Single Touch Payroll (STP)

Single Touch Payroll (STP) is the way Australian employers report employee pay, PAYG withholding, and super information to the ATO each payday.

STP connects payroll software to government reporting. When an employer pays staff, the payroll information is sent to the Australian Taxation Office through STP-enabled software, rather than being reported only at the end of the year.

The ATO’s STP overview says STP reporting includes salary and wages, PAYG withholding, and superannuation liability information. It also notes that STP Phase 2 expanded the data collected from 1 January 2022.

Where Single Touch Payroll Appears

You will usually see STP in:

employee setup and payroll software connection steps
pay runs and pay event submissions
PAYG Withholding reporting
Superannuation Guarantee (SG) information
ATO online services and employee income statements
end-of-year payroll finalisation

STP does not replace paying employees, paying super, or paying amounts owed to the ATO. It is the reporting channel attached to those payroll obligations.

How Single Touch Payroll Works In Practice

An employer sets up payroll, connects its software to the ATO, enters employee details, runs payroll, and submits STP data on or before payday. Employees can then see year-to-date information through ATO online services linked to myGov.

At year end, employers make a finalisation declaration so employees know their income statement is tax ready. This replaced payment summaries for amounts reported through STP.

Simple Example

A small business pays an employee $1,400 gross for a fortnightly pay run, with PAYG withholding and super calculated in payroll. When the pay run is submitted, STP sends the relevant pay, tax, and super information to the ATO.

The employee receives their net pay, and the ATO receives payroll information for that payday.

Why Single Touch Payroll Matters

STP matters because payroll reporting is a compliance obligation, not just an internal admin task. It helps align payroll records, ATO reporting, employee income statements, PAYG withholding, and super information.

Incorrect setup can create duplicate income statements, wrong year-to-date amounts, or payroll corrections that take time to clean up. Good employee details, payroll categories, and software connection steps matter from the first pay run.

Easy Way To Remember It

STP is payday reporting to the ATO.

How Gimbla Can Help

Gimbla Payroll supports Australian pay runs and STP reporting workflows so payroll, accounting records, payslips, PAYG withholding, and super stay closer together.

Helpful Gimbla Guides

In Short

Single Touch Payroll is Australia’s employer payroll reporting system. It sends employee pay, PAYG withholding, and super information to the ATO each payday through STP-enabled software.