Understanding Single Touch Payroll (STP): A Guide for Employers

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Single Touch Payroll (STP) is an Australian Government initiative designed to streamline payroll reporting for businesses. Through STP, employers report employees’ payroll information directly to the Australian Taxation Office (ATO) each time they process a pay run. This includes details on salaries, wages, Pay As You Go (PAYG) withholding, and superannuation contributions.

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Key Features of STP

• Real-Time Reporting – Employers must report payroll information every time they pay employees through STP-enabled software.
• Mandatory Compliance – STP became mandatory for employers with 20 or more employees from July 1, 2018, and for all businesses from July 1, 2019.
• Employee Access – Employees can view their year-to-date tax and super information in their ATO-linked myGov account.
• End-of-Year Finalisation – Employers must finalize their STP data at the end of the financial year, ensuring employees’ income statements are ‘Tax ready’ for tax return lodgment.

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Benefits of STP for Employers

• Simplified Reporting – STP removes the need for manual submission of payment summaries and PAYG reports.
• Improved Accuracy – Reduces errors and ensures employees' tax and super details are always up-to-date.
• Enhanced Transparency – Employees can track their tax and superannuation contributions throughout the year.
• Integration with Government Services – The ATO shares STP data with Services Australia to help assess eligibility for government benefits.

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How to Get Started with STP

1. Use STP-Enabled Software – Ensure your payroll system complies with STP reporting requirements.
2. Register with the ATO – Notify the ATO that you are using STP and ensure your payroll provider is correctly set up.
3. Train Your Staff – Educate your payroll team on STP processes and requirements.
4. Start Reporting – Begin reporting each pay cycle to remain compliant.

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Need Help with STP?

Navigating STP requirements can be complex, but Trinity Accounting Practice is here to help. Our team ensures your business remains compliant with ATO regulations and payroll obligations.

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Contact Trinity Accounting Practice

👉 Trinity Accounting Practice
✅ Accounting Firm in Beverly Hills
☎️ 02 9543 6804
📍 159 Stoney Creek Road Beverly Hills NSW 2209
🌐 www.trinitygroup.com.au
📅 Weekend & after-hours appointments available!

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