Question: What is Single Touch Payroll and who needs to use it?
Answer: Single Touch Payroll (STP) is mandatory ATO reporting that sends employee pay, tax, and super information directly to the ATO each pay run. All Australian employers must use STP-enabled software, regardless of business size. It replaced annual payment summaries and ensures real-time compliance with Australian tax obligations.
Question: What happens if I lodge my STP late or incorrectly?
Answer: Late or incorrect STP lodgement can trigger ATO penalties ranging from $313 to $1,565 per breach. The ATO may also audit your payroll processes, delay employee tax returns, and flag your business for closer scrutiny. Consistent late lodgement builds a compliance history that increases penalty severity over time.
Question: Do I need to report casual workers through Single Touch Payroll?
Answer: Yes, all employees, casual, part-time, and full-time, must be reported through STP on or before their pay day. This includes workers paid hourly, daily rates, or irregular shifts. True Tally ensures every payroll run for Geelong and Bellarine businesses captures all worker types accurately, preventing ATO compliance issues.
Question: How often do small businesses need to lodge STP reports?
Answer: STP must be lodged on or before each pay day, whether you pay weekly, fortnightly, or monthly. If you’re a micro employer (1-4 employees), you may qualify for quarterly reporting, but most Victorian small businesses lodge every pay cycle to maintain real-time compliance and avoid penalties.
Question: What’s the difference between STP Phase 1 and STP Phase 2?
Answer: STP Phase 2 (mandatory from 1 January 2022) requires additional details including employment type, country codes for overseas payments, and disaggregated tax information. It provides the ATO with richer data and affects how you classify employees. Most modern payroll software now supports Phase 2 automatically.
Question: Can I do my own payroll or should I outsource it?
Answer: You can manage your own payroll if you’re comfortable with STP software, award rates, super guarantee calculations, and ATO compliance deadlines. Many Geelong trades and professional services businesses outsource to True Tally because manual payroll errors are costly, time-consuming, and trigger audits, outsourcing provides accuracy, speed, and peace of mind.
Question: What super guarantee rate applies in 2024 and when must it be paid?
Answer: The super guarantee rate is 11.5% for 2024-25 (increasing to 12% from 1 July 2025). Super must be paid quarterly by 28 days after quarter-end: 28 October, 28 January, 28 April, and 28 July. Late payment incurs Superannuation Guarantee Charge penalties, which aren’t tax-deductible.
Question: How can I fix payroll and STP compliance issues quickly?
Answer: Book a free discovery call with True Tally at truetally.com.au/contact. We audit your current payroll setup, identify compliance gaps, rectify STP errors with the ATO, and implement accurate monthly payroll systems. Our Geelong-based team delivers fast turnarounds and ongoing support, so you stay compliant without the stress.
Related Reading
- Best Software for Trades Businesses in Australia: Tradify and NX Ledger
- Is Dext Worth It? Why We Recommend It for Larger Businesses
- What Is Cash Flow Management? A Guide for Australian Small Businesses
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