Single Touch Payroll: What Employers Must Report
Single touch payroll is the way employers report wages, tax and super to the ATO, and the information goes through on or before each payday. What you report depends on your payroll software, your pay cycle and how your workers are engaged. This guide is for employers and workers, and it sits alongside our payroll for small business guide.
- Payroll information is reported to the ATO through single touch payroll on or before each payday, not weeks later.
- Payday super started on 1 July 2026, so super must reach the employee's fund within 7 business days of payday, and the report should match what you paid.
- Payslips are due within 1 working day of payday, and time and wage records must be kept for 7 years.
- Workers can check their year-to-date figures through their own ATO online records, so errors in a report are easy to spot.
What is single touch payroll?
Single touch payroll, often shortened to STP, sends your payroll data to the ATO from your software each time you pay your people. It replaces the old habit of reporting wages once a year.
| Term | Meaning | Why it matters |
|---|---|---|
| STP report | A digital pay event sent from your payroll software to the ATO on or before each payday. | It is the record the ATO and your workers rely on, so late or missing reports cause problems. |
| Gross wages | The total pay before tax, including loadings, penalties and allowances. | It is the figure reported for each worker, so it has to match the payslip. |
| Super liability | The super you owe on ordinary time earnings, which is 12% for 2026-27. | It is reported with each pay event so the ATO can see what is owed. |
| Payday super | Super paid at the same time as wages and received by the fund within 7 business days of payday. | It ties your pay run, your report and your super payment together. |
| Year-end finalisation | The end-of-year declaration that locks in each worker's figures for the financial year. | It is what workers see when they check their income statement. |
Who needs single touch payroll
If you pay employees, you report through STP. The detail differs by how a worker is engaged, so check each person rather than assuming.
| Situation | What applies |
|---|---|
| Full-time and part-time employees | Report every pay run on or before payday, with gross pay, tax withheld and super. |
| Casual employees | Report the same way, with the 25% casual loading included in gross pay where the award or agreement requires it. |
| Labour hire workers | The labour hire provider is the employer, so the provider reports. The host does not report these workers through its own payroll. |
| Genuine contractors | Not reported as employees, but an ABN does not decide the question. Test the real relationship using the Fair Work Ombudsman and ATO tools. |
| NSW state public sector employees | Covered by the NSW state system for employment law, so check with the relevant agency about payroll arrangements. |
Sham contracting is illegal. Never treat someone as a contractor to avoid payroll duties when the working relationship says otherwise.
What single touch payroll reports to the ATO
Each report is a snapshot of one pay run. Your software builds it from the figures you have already approved, so the quality of your pay data decides the quality of the report.
- Gross pay for each worker for the period, including ordinary hours, overtime, penalty rates and allowances, so the total matches the payslip you give them.
- Tax withheld from each payment, which the ATO uses to match what you remit with what each worker is credited with.
- Super liability for each worker, calculated at 12% of ordinary time earnings for 2026-27, up to the maximum super contribution base of $270,830 per year.
- Year-to-date totals, so a missed or duplicated pay run shows up as a gap against the figures already reported.
- Pay event dates, which should be on or before the day you actually pay, not the day you finish tidying the timesheets.
- Changes to a worker's details or pay, which should be corrected in the next report rather than left until year-end.
How to report single touch payroll step by step
A tidy routine matters more than the software brand. A Monday-morning payroll run is a good time to catch a rate that was never updated after 1 July.
- Confirm each worker's award, classification and employment type, then check the rate against the Fair Work Ombudsman pay guide that applies from 1 July 2026.
- Approve timesheets, including those signed off by host supervisors for labour hire workers, before you start the pay run.
- Process the pay run in your STP-enabled software and check gross pay, tax and super for any worker whose hours changed.
- Send the report to the ATO on or before payday, and keep the confirmation your software gives you.
- Pay super so it reaches each fund within 7 business days of payday, and match the payment against what the report shows.
- Issue payslips within 1 working day of payday, and file the pay run with your records for 7 years.
Single touch payroll and payday super
Since 1 July 2026, super is paid with wages instead of months later. That makes your STP report and your super payment two halves of the same job.
- Pay super at the same time as wages, and make sure it reaches the employee's fund within 7 business days of payday.
- Calculate super on ordinary time earnings at 12% for 2026-27, and remember it is paid on top of wages and not deducted from them.
- Check the fund details you hold for every new starter before the first pay run, because a wrong member number can hold up a payment.
- Keep an eye on the concessional contributions cap of $32,500 for workers with salary sacrifice arrangements or several employers.
Our super guarantee guide covers rates, caps and what to do if super has been missed.
STP payroll for small business and labour hire
Smaller employers often run payroll off the kitchen table, and labour hire placements add a second layer. Both need the same discipline.
- Use STP-enabled software that sends the report for you, and set a reminder for pay days that fall on a weekend or public holiday.
- Check whether you are also above the $1,200,000 NSW payroll tax threshold, because that is a separate return with Revenue NSW. See payroll tax NSW.
- Take out workers compensation insurance with icare if your wages are above $7,500 a year, and report wages accurately because premiums are based on them.
- Ask your labour hire provider for timesheet summaries, since they pay the worker and report the wages while you approve the hours.
Employer payroll obligations alongside STP
STP does not replace your other pay duties. The report is only as good as the records behind it.
- Pay at least the award, agreement or national rate, which is $26.44 per hour for award-free employees from the first full pay period on or after 1 July 2026.
- Give each employee a payslip within 1 working day of payday, showing the rate, hours, loadings, super and deductions. See payslip explained.
- Keep time and wage records for 7 years, so you can answer a Fair Work Ombudsman or ATO question without guessing.
- Correct underpayments promptly and include them in the next report. Our guide on backpay explains how.
- Check the minimum wage australia rates and your award each 1 July before the first pay run.
What workers can check in STP payroll data
Workers do not report anything, but they benefit from the data. If your payslip and your ATO record disagree, one of them is wrong.
- Compare your latest payslip with your year-to-date figures in your ATO online account, looking at gross pay, tax and super.
- Check that super appears in your fund within 7 business days of payday, using your fund's online account.
- Ask your employer in writing to correct any mismatch, and keep copies of your payslips and timesheets.
- Contact the Fair Work Ombudsman on 13 13 94 if you are underpaid, or the ATO if the problem is the reporting itself.
Common payroll mistakes to avoid with STP
- Reporting after payday because the pay run was approved late, which leaves the ATO and the worker with out-of-date figures.
- Skipping the 1 July rate update, then finding that every report understated gross pay for months.
- Paying super late or in a lump, and forgetting that payday super now ties it to each pay run.
- Leaving casuals rostered across two sites in the same week with duplicated or missing hours in the report.
- Treating allowances or super as part of the hourly rate instead of paying them in addition.
- Losing records, when time and wage records must be kept for 7 years.
Single touch payroll FAQ
What is single touch payroll?
It is the system that sends payroll information from your software to the ATO each time you pay employees. The report goes through on or before payday, and it covers gross pay, tax withheld and super liability for each worker, so the ATO has up-to-date figures all year.
When must single touch payroll be reported?
Payroll information must be reported to the ATO on or before each payday. If you pay weekly, you report weekly. If your pay run is delayed for any reason, send the report on or before the day the money actually reaches the workers.
Does single touch payroll include super?
Yes. Each report shows the super liability for every worker. Under payday super, which started on 1 July 2026, super must be paid at the same time as wages and reach the fund within 7 business days of payday, so the two should line up.
Who reports single touch payroll for labour hire workers?
The labour hire provider, because it is the employer and pays the wages. The host employer approves hours and timesheets but does not report those workers through its own payroll. Check the arrangement in your agreement if you are unsure.
Next step: get single touch payroll right
Check your award rates, confirm your software sends reports on or before payday, and match super to each pay run. At TQN Personnel, we place and pay labour hire workers across Sydney and can help you find workers for your site. This is general information, not legal, tax or financial advice, so check the Fair Work Ombudsman, the ATO or an employment lawyer for your situation.