What is single touch payroll?

[niyati]

I’ve been hearing about Single Touch Payroll (STP) in accounting software and compliance updates. Can someone explain what it actually means and how it works for small businesses? Is it mandatory in all cases?

 

[stevesmith]

Single Touch Payroll (STP) is an Australian government initiative aimed at simplifying the process of reporting employee wages, tax, and superannuation. It requires employers to report this information directly to the Australian Taxation Office (ATO) each time they pay their employees, instead of submitting end-of-year summaries or annual tax returns.

 

[jatin]

Single Touch Payroll (STP) is an Australian government program that requires employers to update payroll-related information about their employees, such as wages, taxes, and superannuation, with the Australian Taxation Office (ATO) whenever they make payments to their employees. STP simplifies reporting and provides tax and super changes in real time. Most Australian businesses require it.