Single Touch Payroll (STP) is an Australian Government initiative that streamlines employer reporting to government agencies, specifically the Australian Taxation Office (ATO) . With STP, employers report their employees payroll information to the ATO each time they pay them through STP-enabled software. This includes information such as salaries and wages, pay as you go (PAYG) withholding, and superannuation liability information. STP replaces the need for employers to report this information separately throughout the year or at the end of the year.

STP is mandatory for all employers in Australia, regardless of the number of employees they have. Employers can send STP data to the ATO in a few ways, including through online payroll software or by using a service that can upload payroll reports and convert them into the ATOs required format. Employers who need to transition to STP reporting may have concessional reporting options, and depending on their situation, they may be exempt from STP reporting or able to defer reporting.

STP has several benefits, including reducing the administrative burden on employers, improving the accuracy of payroll reporting, and providing employees with year-to-date tax and super information. However, failure to comply with STP reporting requirements can result in penalties.

In summary, Single Touch Payroll is an Australian Government initiative that requires employers to report their employees payroll information to the ATO each time they pay them through STP-enabled software. It replaces the need for employers to report this information separately throughout the year or at the end of the year and is mandatory for all employers in Australia. Employers can send STP data to the ATO in a few ways, and failure to comply with STP reporting requirements can result in penalties.