How to Set Up Single Touch Payroll (STP)
Single Touch Payroll requires all Australian employers to report payroll information to the ATO each time they run payroll. Setting up STP involves connecting your payroll software to the ATO via a registered software provider, mapping employee income types, and verifying your first submission. Most modern payroll platforms handle STP setup in under 30 minutes.
Overview
Single Touch Payroll requires all Australian employers to report payroll information to the ATO each time they run payroll. Setting up STP involves connecting your payroll software to the ATO via a registered software provider, mapping employee income types, and verifying your first submission. Most modern payroll platforms handle STP setup in under 30 minutes.
Key Facts
- STP is mandatory for all employers regardless of size — including single-employee businesses
- You need a myGovID and Relationship Authorisation Manager (RAM) to connect software to the ATO
- First STP submission should include a $0 update event to verify the connection works
- STP Phase 2 requires disaggregated reporting — ensure your software version supports it
- Micro employers (1-4 employees) can use a registered tax agent to lodge quarterly instead
What You Need to Know
This guide covers the essential compliance requirements that Australian employers need to understand. Non-compliance can result in significant penalties, ATO audits, and reputational damage.
We recommend using purpose-built software that automates compliance reporting. The right software will handle rate changes, deadline reminders, and lodgement with the relevant authorities.
Official Resources
For the latest official requirements, refer to these government resources:
- ATO — Single Touch Payroll — Official ATO resource for STP setup, reporting requirements, and employer obligations
Recommended Software
The following software products handle payroll compliance for Australian businesses: