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.

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

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.

A business owner sends a Single Touch Payroll Phase 2 report working at his desk.

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 Phase 2

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

Learn more about STP Phase 2
An employer sends a Single Touch Payroll report to the ATO

Set up STP with Xero to get started

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

Learn more payroll in Xero
A business owner opts in to Single Touch Payroll using the STP software in Xero

Send reports direct to the ATO

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

Learn more about reporting with STP
 A report is ready for submission to comply with ATO single touch payroll requirements

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 Xero

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 Xero

Certain 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 deferrals

Certain 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 deferrals

The 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 2

The 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 2

After 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 website

After 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 website

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.

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 FAQs

See answers to frequently asked questions about Single Touch Payroll.

See the single touch payroll FAQs

Use Xero for Single Touch Payroll

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