What is Single Touch Payroll?
Single Touch Payroll (STP) is the way you report your employees' tax and super information to the Australian Taxation Office (ATO).
This information includes:
- salaries and wages
- pay as you go (PAYG) withholding
- superannuation.
What is STP Phase 2?
The expansion of Single Touch Payroll is known as STP Phase 2.
For Phase 2, you'll need to send additional information to the ATO about areas such as employment type, gross income and country codes.
Providing this additional information will reduce your overall reporting burden.
The changes will also aid the administration of Services Australia.
The mandatory start date for STP Phase 2 reporting is 1 January 2022.
To read more about STP Phase 2 requirements, check out our blog.
What does this mean for me?
From payroll only to accounting software, all MYOB Business plans are STP 2 compliant.
Choose the plan that best suits your business.
Payroll Only
For businesses that need stand-alone payroll for up to 4 employees
- Compliant Single Touch Payroll (STP)
- Automated superannuation contributions
- Self-serve employee onboarding
- Manual timesheets
- Send reports directly to the ATO
Pro
50% off for 3 months
For growing businesses taking the next step and employing more people
- Compliant Single Touch Payroll (STP)
- Track income and expenses
- Create and send unlimited professional invoices and quotes
- Accept payments
- Scan and store receipts
- Track GST and lodge BAS
- Connect unlimited bank accounts
- Manage advanced reports and analytics
Optional payroll
AccountRight Plus
50% off for 3 months
For established businesses with inventory management needs
- Compliant Single Touch Payroll (STP)
- Track income and expenses
- Create and send unlimited professional invoices and quotes
- Accept payments
- Scan and store receipts
- Track GST and lodge BAS
- Connect unlimited bank accounts
- Manage advanced reports and analytics
- Manage inventory*
- Bill by time*
Included payroll
^Offer: 50% off MYOB Business for 3 months. Offer ends 31 December 2023, unless varied by us. Limit of 1 company data file. Not applicable to Invoice Payments, Payroll Only or Payroll add-on. Further exclusions apply. Full T&Cs here.
*Currently available as a download-only feature for desktop PCs. Web browser functionality will be included in future updates.
Single Touch Payroll FAQs
What is Single Touch Payroll (STP)?
STP is a government initiative that requires all employers to report payroll information to the Australian Taxation Office (ATO). It involves electronically reporting your employees’ payroll information to the ATO each payroll cycle, whether you pay weekly, fortnightly or monthly. STP Phase One became mandatory on 1 July 2019 and Phase 2 begins from 1 Jan 2022. MYOB has you covered for STP, offering ATO compliant payroll solutions from just $10 per month.
How does Single Touch Payroll work and what are the benefits?
Single Touch Payroll (STP) uses internet cloud accounting software to submit information to the tax office online. Employers can automate and streamline their processes and keep their accounting data accurate and up-to-date. Having better and timely information at their disposal enables them to make better-informed business decisions as well as sharing essential payroll information with the ATO more easily, through:
One-click compliance
No more EOFY summaries
Error-free payroll
Employee access to payslips
Tax File Number (TFN) declaration (STP Phase 2)
STP helps employees, too. They no longer have to wait until EOFY to see their tax information. Their details - salary, PAYG withholding and super— is readily available via their myGov account.
What is STP Phase 2?
STP Phase 2 introduces changes to the reporting processes, breaking down the payroll data to service ATO and Services Australia. MYOB’s products are STP Phase 2 compliant and will guide you through the process step by step.
What if I am moving from another software provider?
MYOB’s payroll onboarding process will guide you through all the relevant requirements for bringing your payroll data across. We also have a Support Team available 7 days a week if you have any questions, or you can reach out to your trusted advisor.
Does Single Touch Payroll apply to my small business?
Yes, if you have employees Single Touch Payroll (STP) applies to your small business. In fact, all Australian businesses with a payroll function must use STP. From 1 July 2019, STP became mandatory for organisations of all sizes, even those with fewer than four employees.
MYOB is offering Australian businesses MYOB Business from just $10 a month. Complete your payroll tasks and stay ATO compliant.
How do I start using STP?
If you’re unsure how to register Single Touch Payroll (STP), how to set up STP, or how to install STP, don’t worry, MYOB is here to help. STP functionality is conveniently included in all MYOB Business, MYOB AccountRight subscriptions.
Once you’ve signed up to MYOB accounting software and you’re up and running, you’ll need to connect to the Australian Taxation Office (ATO). MYOB will guide you through all the necessary requirements for reporting STP.
What if I don't comply with STP legislation?
If you do not comply with STP legislation you may face penalties from the Australian Taxation Office (ATO). Penalties for not complying with STP legislation will be judged on a case-by-case basis.
Don’t worry, registering for STP is easy. MYOB is offering Australian businesses MYOB Business from just $10 a month. Complete your payroll tasks and stay ATO compliant.
Where do I go for more information?
Visit our Help Centre for more information.
Alternatively, you can chat directly to someone from the MYOB team.
If you’d like to do further research, you can speak to your accountant or bookkeeper, or check out the ATO website.