STP is an Australian payroll reporting requirement where employers report salary, wages, PAYG withholding and superannuation information to the ATO each pay cycle.
Single Touch Payroll (STP) is the ATO's digital payroll reporting system that requires Australian employers to report payroll information to the ATO each time they run payroll. STP Phase 2 (effective from January 2022) expanded the reporting requirements to include more detailed information including disaggregated gross amounts, income types, country codes for working holiday makers and child support information. Under STP, employers no longer need to provide payment summaries to employees at year-end - instead, employees can access their year-to-date information through myGov. STP reports are typically generated and submitted through your payroll software (like Xero Payroll) as part of the regular pay run process. Errors in STP reporting can be corrected in subsequent pay runs. SortBooks ensures that payroll transactions flowing through Xero are correctly categorised and that STP-reported amounts align with your general ledger balances.
SortBooks helps with the bookkeeping behind single touch payroll (stp) by connecting to your Xero account and using AI to suggest the right account for transactions sitting in catch-all accounts, learning from your own past coding. Instead of fixing single touch payroll (stp) by hand, you review each suggestion, approve it, and SortBooks updates Xero, GST code included. Then ask the AI CFO about your numbers, using live Xero data.
Payroll is the process of calculating and distributing wages, withholding taxes, managing super/pension contributions and complying with employment tax obligations.
PAYG (Pay As You Go) withholding is an Australian system where employers withhold tax from employee wages and remit it to the ATO on their behalf.
The ATO is Australia's principal tax collection agency, responsible for administering income tax, GST, superannuation, excise and other federal tax obligations.
Superannuation (super) is Australia's mandatory retirement savings system. Employers must contribute a percentage of each eligible employee's earnings to a compliant super fund.
Tax compliance means meeting all your obligations to file tax returns, make payments and maintain records as required by your country's tax laws and tax authority.
Connect Xero, check the AI's suggestions and approve the changes. SortBooks updates Xero for you.