STP reporting

What Is STP Reporting?

Single Touch Payroll (STP) reporting is the Australian Taxation Office’s (ATO) digital system for employers to report payroll information, including wages, PAYG withholding, and superannuation contributions, directly to the ATO after every pay run.

Introduced in 2018 and now mandatory for most employers, STP simplifies and streamlines how employers report employee payment details. Instead of providing separate reports at the end of each financial year, employers submit payroll data in real time, each time they pay their employees.

ATO – What is Single Touch Payroll

How STP Reporting Works

STP reporting is integrated into STP-enabled payroll software, like Microkeeper. Each time you run a payroll, your payroll system sends a secure digital report to the ATO. This includes:

• Gross wages
• PAYG (Pay As You Go) withholding
• Superannuation contributions (ordinary time earnings)
• Employment details (start dates, terminations, etc.)

Since STP Phase 2, introduced in 2022, more detailed information is required, such as:

• Income types and payment classifications
• Breakdown of gross income (e.g. bonuses, allowances, overtime)
• Reasons for employment cessation
• Details about salary sacrifice and child support payments

Who Needs to Report Through STP?

All Australian employers—regardless of business size—must report through STP:

• Small employers (1–4 employees)
• Micro employers (less than 4, with concessions in some cases)
• Large employers (20+ employees)

Even businesses with closely held payees (e.g. family business directors or beneficiaries) must comply, though quarterly reporting options may apply.

Benefits of STP Reporting

Real-time compliance
By reporting payroll events as they happen, you stay consistently compliant with ATO requirements and avoid year-end reporting errors.

Simplified year-end
With year-to-date data already submitted, there’s no need to provide traditional group certificates or payment summaries. Just complete your STP finalisation declaration.

Pre-filled tax returns for employees
STP data feeds directly into employees’ myGov accounts, providing instant access to tax-ready information.

Transparency and accuracy
Reduces the risk of errors in super and PAYG reporting, ensuring greater trust from employees.

Reduced admin burden
Eliminates the need for separate reporting to multiple government bodies. In some cases, STP data is also shared with Services Australia.

STP Reporting vs Traditional Payroll Reporting

How Microkeeper Supports STP Reporting

Microkeeper is a fully STP Phase 2 compliant payroll platform, approved by the ATO. With Microkeeper, you can:

• Automatically send STP data after each pay run
• Edit and resubmit payroll events if needed
• Finalise payroll data at EOFY with one-click reporting
• Stay up to date with ATO rule changes
• Handle closely held payees and casual workforce reporting
• Integrate payroll with time tracking, rostering, and HR tools to reduce data duplication

Learn how Microkeeper simplifies STP compliance

Key STP Terms to Know

• Pay event: The data file sent to the ATO after a pay run.
• Update event: A correction or adjustment to previously submitted payroll data.
• Finalisation declaration: The EOFY notification to the ATO that submitted payroll data is complete and accurate.
• BMS ID (Business Management Software ID): A unique identifier linking your payroll system to the ATO.

FAQs About STP Reporting

Do I still need to provide payment summaries to employees?

‍No. If you report through STP, payment summaries are no longer required. Employees access their income statements via their myGov account.

What happens if I make a mistake in my STP submission?

‍You can submit an update event to correct the data. Your payroll software will usually handle this seamlessly.

Is STP reporting secure?

‍Yes. All STP data is encrypted and transmitted via secure channels to the ATO.

Can I report quarterly instead of every pay?

‍Only in special cases (e.g. micro employers with closely held payees) and with ATO-approved concessions. Most employers must report every pay cycle.

What if I don't use payroll software?

‍You must use STP-enabled software or engage a third-party provider/bookkeeper that does. The ATO no longer accepts manual reporting alternatives.

Final Thoughts

STP reporting has modernised payroll compliance in Australia, replacing outdated, manual systems with a smarter, more efficient process. For employers, it provides peace of mind, real-time accuracy, and year-round compliance. For employees, it offers transparency and simplified tax filing.

With a reliable, ATO-approved platform like Microkeeper, STP reporting becomes a seamless part of your payroll process—saving time, reducing errors, and keeping your business on the right side of the law.

_{Disclaimer: This article is for general informational purposes only and does not constitute legal or financial advice. Always consult a registered tax agent or the ATO for guidance specific to your circumstances.}