Reporting with Single Touch Payroll

Report payroll information to the ATO with Single Touch Payroll (STP) software each pay run.

Payroll in a tap.

A mobile phone showing a list of employees in the Xero mobile app

Single Touch Payroll explained

Single Touch Payroll (STP) is a government initiative that requires businesses to report pay details to the ATO digitally.

A business owner sends an STP report working at his desk

Online software required

Businesses must use STP software to comply with ATO single touch payroll requirements.

Report every pay run

Xero compiles and sends an STP-compliant payroll report to the ATO each pay day.

STP Phase 2 is coming

Xero users have until 31 December 2022 to start reporting the additional information required.

How Single Touch Payroll works

Set up for STP with Xero

Use Xero to start reporting to the ATO each pay run. During the setup process, you:

  • Included
    Choose a Xero plan and prepare for payroll.
  • Included
    Connect your Xero account to the ATO portal
See plans and pricing

Send reports direct to the ATO

Generate and send reports showing employee PAYG withholdings and superannuation liabilities.

  • Included
    Xero collates pay, PAYG, and super details at every pay run
  • Included
    Submit reports direct to the ATO in a few clicks
  • Included
    View the status of reports: overdue, pending or sent
A report is being ready for submission to ATO

More about Single Touch Payroll

The ATO has granted Xero a deferral on the start date of STP Phase 2. Instead of reporting your first STP Phase 2 pay run on 1 January 2022, all businesses who use Xero Payroll have until 31 December 2022, giving you more time to transition payroll records.

See details of the deferred start date

You don’t need to do anything yet but you’ll be able to begin the transition ahead of the deferred compliance date so you have time to adapt. We’ll be providing support, both within Xero and through educational resources, to help you transition employee records to STP Phase 2.

See how to get ready for STP Phase 2

The expansion of Single Touch Payroll (Phase 2) means some additional information will need to be reported. This includes income or payment type and the reason for any cessation of employment.

See more about the changes at STP Phase 2

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 how to set up Single Touch payroll in Xero

After each pay run, once pay details from Xero have been reported to the ATO, employees can see up-to-date tax and super information in their ATO online services account. An income statement is also available there at the end of the financial year.

See more about STP for employees at the ATO website

Use Xero for Single Touch Payroll

Access all Xero features free for 30 days, then decide which plan best suits your business.