Reporting with Single Touch Payroll

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

Payroll in a tap.

Single Touch Payroll explained

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

Businesses must use STP software to comply with ATO Single Touch Payroll Phase 2 requirements.

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

Xero users have until 31 December 2022 to start reporting the additional information required for ATO STP Phase 2.

In STP Phase 2, employers are required to report additional information to the ATO on or before each payday.

To get set up for STP, prepare for online payroll in Xero, then connect your Xero account to the ATO portal.

Generate and send reports showing employee PAYG withholdings and superannuation liabilities every pay run.

: The ATO has granted Xero a deferral on the start date for Single Touch Payroll 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 start the transition ahead of the deferred compliance date. We’ll be providing support through both Xero and educational resources to help you transition employee records for ATO 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
: See answers to frequently asked questions about single touch payroll.
See the FAQs

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