About Single Touch Payroll (STP)

What is STP?

STP requires employers to report payroll data on a pay-by-pay basis using the ATO's standard business reporting platform (SBR ebMS3) .

STP is part of the Australian government's commitment to streamline employer reporting obligations.

STP was initially legislated on 16 September 2016 as part of the Budget Savings (Omnibus) Act 2016, this was known as STP Phase 1.

Further legislation was passed on 3rd September 2020 as result of the Treasury Laws Amendment (2020 Measures No.2) Bill 2020. This is known as STP Phase 2.

STP Phase 2 sees an expansion to the role the ATO plays in collecting and administering information from employers on behalf of other government agencies such as Services Australia. For employers this meant less reports to generate for other government agencies because that data is now reported via STP instead.

When did reporting via STP start?

STP Phase 1

• On 1st July 2018, mandatory reporting via STP applied to most employers with 20+ employees.
• On 1st July 2019, mandatory reporting via STP was extended to most employers with less than 20 employees.
• On 1st July 2021, the number of concession holders was further reduced, i.e. most Closely Held Payees and Inbound Assignees to Australia were required to be reported via STP.

STP Phase 2

• Employers were expected to commence reporting under STP Phase 2 services from 1 January 2022.

  However most software providers were not able to be ready by this date and as such the ATO provided deferral dates.

  MYOB's deferral date is 31 August 2022.

  PayGlobal was officially able support sending data to the ATO via the STP Phase 2 services in v4.62, released in April 2022.

  Unless your organisation has obtained an independent deferral from the ATO; your organisation must submit its first STP Phase 2 compliant submission on/before 31 August 2022.

  Note: Employers with a withholding payer number (WPN) are exempt from STP reporting for all financial years from 2018–19 to 2022–23. You will need to start reporting these payments through STP from 1 July 2023. PayGlobal does not support reporting obligations for WPN holders at this time.

What did STP replace

STP Phase 1 replaced the following:

• PAYGW Payment Summary Annual Report (PGPRTAXA093A)

  This is the report that employers sent the ATO at tax year end time.

  It also meant employers were no longer obligated to provide employees with a self-print Payment Summary (PGPRTAXA090A - INB Payment Summary and PGPRTAXA092A - ETP Payment Summary.... there is no BPS self print Payment Summary within PayGlobal)

• TFN Declaration (PGPRTAXA026B)

STP Phase 2 replaces the following:

• Lump Sum E letters sent to employees as part of EOFY processes.
• Employment Separation Certificates sent directly to Centrelink.

  Note: A 'former' employee may still request an Employment Separation Certificate.

How STP works

Please refer to the MYOB Terms of Use for Single Touch Payroll.

Topic: 44370