You must be reporting to the ATO via STP Phase 2
The ability to report payroll via STP Phase 1 in MYOB will end soon. If you've been using STP Phase 1 reporting in MYOB, we encourage you to move to STP Phase 2 to ensure that you are compliant and can continue to report Single Touch Payroll to the ATO – see how easy it is to move.
Single Touch Payroll (STP) is a simple way to report your employees’ payroll information to the ATO and keep your business compliant. It’s included with your MYOB subscription, so there's no additional charges.
Once you're set up, you'll send your employees' salary, tax and super info to the ATO after each pay. This means end-of-year reporting is a breeze and your employees can access their up to date payroll information through the ATO's online service, MyGov.
STP Phase 1 and Phase 2
The ATO first introduced STP in July 2018. In January 2022 they expanded STP to include some additional information in your STP reporting. They called this expansion STP Phase 2. Learn more on the ATO website.
If you set up STP any time after mid-December 2021, you'll be set up for STP Phase 2. Otherwise you must move from STP Phase 1 to STP Phase 2 to stay compliant with the ATO.
1. Get set up
There's two things you need to do before you're ready to send STP reports. Don't worry, we'll guide you through the whole process.
Make sure your employee, company and payroll data is complete and in the right format. See Setting up Single Touch Payroll reporting
Let the ATO know that you're ready to go. See Notify the ATO for Single Touch Payroll reporting
Additional people who need to process payroll for your business will need to add themselves as STP declarers
When you're ready, let's get started.
2. Report payroll info to the ATO
Once you're set up, you'll report your employees' year-to-date payroll totals to the ATO every time you complete a pay run.
For all the details, see Do a pay run. You can then see each of your submitted pay runs in the Single Touch Payroll reporting centre.
3. End-of-year finalisation
Now you're using STP, end-of-year is much easier. Instead of payment summaries, you just need to confirm that the payroll information you've sent to the ATO is final and correct. You can also enter reportable fringe benefits amounts (RFBA) at this step.
Once you've finalised your STP information, your employees will be able to complete their tax returns in MyGov.
See End of year finalisation with Single Touch Payroll reporting
Need more help?
The ATO website has lots of great info - see Single Touch Payroll.
If your employees want to know more, the ATO website has them covered too - see Single Touch Payroll for employees.
Check out our free STP training course on Setting up Single Touch Payroll.