Real-time payroll reporting with Single Touch Payroll
Report employee earnings, tax, super and other payroll information to the Australian Tax Office (ATO) for each pay run using Single Touch Payroll (STP) software.
Payroll in a tap
Single Touch Payroll explained
Single Touch Payroll (STP) is an Australian government initiative that requires businesses to report pay information to the ATO digitally each pay run. It’s designed to streamline employer reporting.
STP software required
Businesses must use STP software to comply with ATO Single Touch Payroll reporting requirements.
Report every pay run
Xero compiles and sends payroll data in an STP-compliant report to the ATO each pay day.
Transition to STP Phase 2
Most employers have transitioned to STP Phase 2 reporting but you may be exempt or able to defer.
About Single Touch Payroll
STP was introduced in 2018 and expanded in 2022 so employers reported additional information to the ATO. This expansion (known as Single Touch Payroll Phase 2) was designed to reduce the work involved for employers who need to report employee information to multiple government agencies.
Learn about Single Touch Payroll at the ATO website
Using Xero to streamline Single Touch Payroll
Xero’s online payroll software for Australia helps simplify STP payroll reporting and lets you send information to the ATO about each pay run.
Learn more payroll in Xero
Sending STP reports direct to the ATO
Once you’re set up for Single Touch Payroll, you can generate and file STP reports showing employee PAYG withholdings and superannuation liabilities every pay run.
Learn more about reporting with STP
Report payroll to the ATO with Single Touch Payroll
Payday shouldn't mean hours of admin. Send your team's pay, tax and super to the ATO automatically every pay run and stay compliant with less effort.
More about Single Touch Payroll
During a free trial of Xero, you can use the demo company to test setting up STP, file your pay runs, and finalise STP data without your data actually being sent to the ATO. When you subscribe to Xero, you need to choose a pricing plan according to the number of employees you pay and whether you want auto super included, then prepare to run payroll in Xero. During the setup process, you’ll need to connect your business to the ATO.
See how to set up Single Touch payroll in XeroDuring a free trial of Xero, you can use the demo company to test setting up STP, file your pay runs, and finalise STP data without your data actually being sent to the ATO. When you subscribe to Xero, you need to choose a pricing plan according to the number of employees you pay and whether you want auto super included, then prepare to run payroll in Xero. During the setup process, you’ll need to connect your business to the ATO.
See how to set up Single Touch payroll in XeroCertain employers are eligible for an exemption from STP reporting. As of January 2024, Single Touch Payroll exemptions mainly applied to small employers with low digital capability or in an area with unreliable or no internet service. Employers who need more time to start STP reporting, or to transition to STP phase 2 and start reporting the additional information to the ATO, can seek a deferral.
Read the ATO advice on exemptions and deferralsCertain employers are eligible for an exemption from STP reporting. As of January 2024, Single Touch Payroll exemptions mainly applied to small employers with low digital capability or in an area with unreliable or no internet service. Employers who need more time to start STP reporting, or to transition to STP phase 2 and start reporting the additional information to the ATO, can seek a deferral.
Read the ATO advice on exemptions and deferralsThe expansion of Single Touch Payroll (STP Phase 2) added some extra reporting requirements for employers. The additional information that needs to be reported to the ATO includes income or payment type and the reason for any cessation of employment.
See more about the changes at STP Phase 2The expansion of Single Touch Payroll (STP Phase 2) added some extra reporting requirements for employers. The additional information that needs to be reported to the ATO includes income or payment type and the reason for any cessation of employment.
See more about the changes at STP Phase 2After each pay run, once pay details from Xero have been reported to the ATO, employees can see year-to-date tax and super information in their ATO online services account. An income statement (previously called a payment summary) becomes available there at the end of the financial year.
See more about Single Touch Payroll for employees at the ATO websiteAfter each pay run, once pay details from Xero have been reported to the ATO, employees can see year-to-date tax and super information in their ATO online services account. An income statement (previously called a payment summary) becomes available there at the end of the financial year.
See more about Single Touch Payroll for employees at the ATO websiteRegistered tax and BAS agents need to use Xero or other STP software for reporting if they process payroll or calculate pay-as-you-go (PAYG) withholding and super for clients.
Registered tax and BAS agents need to use Xero or other STP software for reporting if they process payroll or calculate pay-as-you-go (PAYG) withholding and super for clients.
See answers to frequently asked questions about Single Touch Payroll.
See the single touch payroll FAQsSee answers to frequently asked questions about Single Touch Payroll.
See the single touch payroll FAQs
Single touch payroll reporting made simple with Xero
See how Xero keeps you compliant and files every pay run with the ATO, super included.
Report with STP-compliant software
Xero Payroll is STP-compliant, so your reporting meets ATO requirements every time you pay your team.
File with the ATO as part of your pay run
Complete your pay run in Xero and lodge it with the ATO on payday, no separate reporting to juggle.
Ready for STP Phase 2
Xero reports the extra Phase 2 detail from the employee information you've already entered, so you stay up to date.
Understand what single touch payroll is
Single touch payroll (STP) is an ATO initiative that requires Australian employers to report wages, PAYG withholding and super digitally with every pay run. It's mandatory for most employers, and Phase 2 expanded it to add more detail to each report.
Read the ATO's guide to single touch payroll
Automate STP reporting with Xero Payroll
Enter your pay run once and Xero sends the STP report to the ATO for you. It reports salary, wages, PAYG withholding and super automatically on payday, so you spend less time on admin.
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File STP reports straight to the ATO
Wondering what happens after each pay run? Xero generates and files an STP report showing PAYG withholding and super, and sends it straight to the ATO. Because you report as you pay, your year-end reporting is already taken care of.
Follow the steps to file STP in Xero
Finalise STP at the end of the financial year
When the end of financial year rolls around, you finalise your STP totals in a few steps in Xero. After you finalise, each of your employees receives an income statement for the financial year.
Get your business EOFY-ready with Xero
FAQs on Xero's single touch payroll
Yes. Single touch payroll is mandatory for most Australian employers, and you report each time you pay your team. A limited number of employers qualify for an exemption or deferral. Xero Payroll is STP-compliant, so your reporting meets ATO requirements. The single touch payroll guide walks through what's involved.
Yes. Single touch payroll is mandatory for most Australian employers, and you report each time you pay your team. A limited number of employers qualify for an exemption or deferral. Xero Payroll is STP-compliant, so your reporting meets ATO requirements. The single touch payroll guide walks through what's involved.
Yes you do. Even with just one employee, you still report through single touch payroll unless you have an exemption or deferral. If you run a small team, Xero handles STP reporting for you. See how easy payroll software for small teams can help.
Yes you do. Even with just one employee, you still report through single touch payroll unless you have an exemption or deferral. If you run a small team, Xero handles STP reporting for you. See how easy payroll software for small teams can help.
Single touch payroll sends your payroll information to the ATO each time you run a pay. With Xero, one pay run covers it:
- Enter and approve your pay run as usual
- Let Xero prepare an STP report with wages, PAYG withholding and super
- File the report with the ATO on payday
Single touch payroll sends your payroll information to the ATO each time you run a pay. With Xero, one pay run covers it:
- Enter and approve your pay run as usual
- Let Xero prepare an STP report with wages, PAYG withholding and super
- File the report with the ATO on payday
STP Phase 2 asks for more detail in each report, such as income or payment type and the reason a job ends. Xero handles this for you, generating the tax treatment code from the employee details you've already entered.
STP Phase 2 asks for more detail in each report, such as income or payment type and the reason a job ends. Xero handles this for you, generating the tax treatment code from the employee details you've already entered.
Single touch payroll started in 2018 and later expanded to all employers. Since then, reporting to the ATO on payday has become the standard way to run payroll in Xero. Browse more single touch payroll FAQs for the details.
Single touch payroll started in 2018 and later expanded to all employers. Since then, reporting to the ATO on payday has become the standard way to run payroll in Xero. Browse more single touch payroll FAQs for the details.
Setting up takes only a few clicks to connect Xero Payroll to the ATO. Once connected, every pay run you file reports automatically. For the full steps, see Xero Central's guide to setting up STP.
Setting up takes only a few clicks to connect Xero Payroll to the ATO. Once connected, every pay run you file reports automatically. For the full steps, see Xero Central's guide to setting up STP.
To finalise, go to Payroll, then Employees, then End of year reports, and complete your STP finalisation. This confirms each employee's year-to-date totals with the ATO. For a step-by-step walkthrough, see Xero Central's guide to finalising STP data.
To finalise, go to Payroll, then Employees, then End of year reports, and complete your STP finalisation. This confirms each employee's year-to-date totals with the ATO. For a step-by-step walkthrough, see Xero Central's guide to finalising STP data.
Some employers may qualify for an exemption, and deferrals are available if you need more time to start reporting. You can check your options on the ATO's need more time page.
Some employers may qualify for an exemption, and deferrals are available if you need more time to start reporting. You can check your options on the ATO's need more time page.
For your employees, single touch payroll means their pay information reaches the ATO automatically. They receive an income statement at the end of the financial year.
For your employees, single touch payroll means their pay information reaches the ATO automatically. They receive an income statement at the end of the financial year.
Yes. Registered tax and BAS agents who process payroll, PAYG withholding or super for clients must use STP-enabled software such as Xero. It keeps client reporting accurate and lodged on time.
Yes. Registered tax and BAS agents who process payroll, PAYG withholding or super for clients must use STP-enabled software such as Xero. It keeps client reporting accurate and lodged on time.
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