What exactly is Single Touch Payroll?

Single Touch Payroll, also called STP or one touch payroll, is an initiative from the ATO to encourage frequent salary reporting. This means you’ll be required to report salaries and wages, PAYG withholdings, and superannuation, every time you pay your employees.

From 1 July 2018, STP became mandatory for employers with 20 or more employees. From 1 July 2019, all Australian small business owners are required to report their payroll information.

What does that mean for you?

For some businesses, the only change you’ll need to make is reporting more frequently instead of once at the end of a financial year. If you currently use payroll or accounting software that offers Single Touch Payroll, you can start reporting any time.