STP Reporting Help

How STP reporting usually works

An effective STP reporting process starts with a short review of your payroll setup: business structure, ABN/WPN, pay calendars, STP-enabled software, super setup and any overdue lodgements. From there, the workflow typically includes:

• Phase 2 mapping: align every pay category to the correct ATO reporting label (ordinary time earnings, paid leave types, allowances, overtime, bonuses and commissions, salary sacrifice).
• Employee profile checks: TFN/WPN where relevant, employment basis, income type, tax treatment codes, super choice and stapling evidence.
• STP connection: confirm the ATO connection method is active and the transmitting party is authorised.
• Lodgement cadence: send a pay event each pay run, and use update events for year-to-date corrections.
• Reconciliations: regularly match payroll reports to the general ledger, super clearing house and BAS labels (W1/W2).
• EOFY finalisation: reconcile YTD totals, correct variances, then lodge finalisation declarations by the due date.

What STP Phase 2 requires

STP Phase 2 increased the detail reported to the ATO. Accurate pay-item mapping is critical to avoid errors and amended lodgements. Typical inclusions are:

• Disaggregated gross: ordinary time earnings, overtime, paid leave categories, bonuses and commissions.
• Allowances: report by type (e.g. car, laundry, meals, tools, travel) rather than a single “allowances” bucket.
• Salary sacrifice: super and other salary sacrifice arrangements reported separately.
• Employment and income details: employment basis, income types, tax treatment codes and some termination details.
• Super information: super guarantee and reportable employer super contributions aligned to pay events and YTD totals.

Correct categorisation lets the ATO and employees see the right amounts in real time and reduces EOFY clean up.

Deadlines, finalisation and corrections

• Lodgement timing: for most employers, STP reports are due on or before payday.
• EOFY finalisation: make a finalisation declaration after reconciling payroll so employees can access Income Statements in myGov. Most employers aim for mid-July; confirm current ATO dates for your category.
• Corrections: fix data in payroll first, then send an update event or full file replacement (if supported by your software). Keep a clear audit trail.
• Payment summaries: generally not required when you report through STP. Employees use their Income Statement instead.

Always check the latest ATO guidance for any concessions that may apply to your business size or closely held payees.

Common STP reporting scenarios we see

• Late or missed lodgements that need backdated pay or update events.
• Migrating from one payroll system to another and aligning carryover YTD figures.
• Closely held payees and directors’ fees needing the right income types and timing.
• Allowances and paid leave categories not mapped to Phase 2, causing ATO validation errors.
• Super not matching payroll due to clearing house timing or setup differences.
• Industry award settings affecting overtime, allowances and leave loading classifications.

What to compare before you commit

Related payroll services and next pages

Continue with the pages below to narrow your brief, or use the form to request tailored help:

• Payroll services overview for broader payroll processing and compliance.
• Payroll for new employees to get onboarding right from the start.
• Construction payroll for site allowances and overtime considerations.
• Healthcare payroll for shift loadings and multiple worksites.
• Hospitality payroll for penalties, tips and allowances.
• NDIS payroll for support worker rostering and compliance.
• Professional services payroll for salaried teams and bonuses.
• Retail payroll for weekend and public holiday rates.

If your search is still broad, also see our pillar pages: Accounting services, Bookkeeping services, BAS agent services and Tax accountants.

Best next steps

Decide whether you need quick triage (missed lodgements, error fixes), a clean setup (Phase 2 mapping, templates, approvals), or ongoing processing and EOFY support. Then pick a provider who can explain your process and deadlines in plain English.