How do I get started with ATO Single Touch Payroll in Australia?

What is Single Touch Payroll (STP)?

Single Touch Payroll is an Australian Government initiative that allows businesses and employers to report staff salary and wages, including ordinary time earnings, and PAYG withholding amounts to the ATO in real-time when employees are paid. STP offers many benefits for both employers and employees.

e-PayDay Pty Ltd was privileged to have collaborated with the ATO to develop Single Touch Payroll Phases 1 and 2. On July 6, 2017, we were approved and lodged the first STP report to be processed by the Australian Taxation Office (ATO).

Getting started with Single Touch Payroll is easy and free.

First, sign up for STP-enabled payroll software. We offer the first three employees free and provide 30 days of unlimited support to help you get up and running. We offer a seamless Single Touch Payroll (STP) reporting solution that is fully integrated and compliant with the latest requirements set by the Australian Taxation Office (ATO). Our products ensure that your payroll processes are efficient and adhere to all necessary legal requirements, giving you peace of mind and assisting in meeting your obligations.

You can start the process by adding your Superannuation Funds, which will only take a few minutes to complete. After that, proceed to choose your relevant Awards and/or Agreements. Our platform directly links to the Fair Work Commission, providing easy access to every Award and Classification available directly within e-PayDay Go®. This ensures you have the most up-to-date Modern Award information at your fingertips. Additionally, you will receive automatic notifications whenever there are changes to the minimum hourly rate, helping you stay compliant and informed about the latest pay regulations.

Our Single Touch Payroll Solution is fully scalable without switching products.

Now, you can start adding your employees. The first three are 100% free. When you have more people on your team, you can choose a suitable plan for your needs. Our plans are structured in tiers, accommodating a specific number of employees in each plan. This innovative structure allows for a cost-effective and adaptable onboarding process with e-PayDay Go®, ensuring you can effortlessly shift between plans tailored to your evolving needs as your team grows. With this flexibility, you can take full advantage of the platform’s features without disrupting your operations. Embrace the exciting opportunities as you scale your workforce and streamline payroll management.

What are the benefits of Single Touch Payroll?

Single Touch Payroll (STP) has transformed how employers report their employees' taxation and superannuation information to the Australian Taxation Office (ATO). When you process payroll using Single Touch Payroll, you send year-to-date values for each employee directly to the ATO. This includes their gross salary or wages, allowances, other relevant payments, deductions, and PAYG withholding. Additionally, the employer’s superannuation liabilities or ordinary time earnings (OTE) for each employee are automatically reported after payroll is processed. With STP, you must send this taxation and superannuation information to the ATO on or before each pay day.

Businesses also benefit from automatically prefilling the W1 and W2 labels of the BAS (Business Activity Statement) in ATO online services. Because the pay as you go (PAYG) withholding amounts are provided in the STP lodgements, the ATO use the same data to prepare your activity statements – so you only 'tell them once'.

What advantages does Single Touch Payroll offer to employees?

Because Single Touch Payroll reports in "real-time" to the ATO every time you pay your employees, they can easily access this information by checking their myGov account. Their Individual Income Tax Return (IITR) will also be pre-filled at the end of the financial year. No need to wait for Payment Summaries (some people still refer to them as Group Certificates) from employers.

In addition, employees can log into myGov and access pre-filled forms to assist them when starting a new job.

The online forms that employees can use instead of paper forms are:

• Tax file number declaration

• Superannuation (super) standard choice

• Withholding declaration

• Medicare levy variation declaration.

Online forms make your new employee onboarding processes easier and help your employees. To use these forms, new employees must link their myGov account to ATO online services.

When did Single Touch Payroll start?

STP reporting started on 1 July 2018. Phase 2 reporting began on 1 January 2023.

What is Single Touch Payroll Phase 2?

With the implementation of Single Touch Payroll Phase 2, the focus has shifted from reporting payments to reporting earnings. The data provided is now more detailed, allowing it to be shared with multiple government agencies. Employees who are also customers of Services Australia can now enjoy a significant reduction in their reporting responsibilities. This eliminates the risk of potential errors in manual reporting, ensuring that the benefits provided by Services Australia are accurately assessed and minimising disruption for payment recipients. Processing speed is greatly improved, reducing the possibility of overpayments and providing a higher standard of customer service and experience.

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