Single Touch Payroll (STP) is a legal requirement for Australian employers. It sends your employees’ tax and superannuation information directly to the ATO every time you pay them. While the system is meant to make reporting easier, many small businesses still make mistakes that lead to penalties, extra admin work, or frustrated staff.
The good news is most of these errors are preventable. In this article, you’ll learn the most common STP mistakes and how having a bookkeeper on your side can help you avoid them. By the end, you’ll see how the right help can save time, reduce stress, and protect your business from costly compliance issues.
1. Missing or Incorrect Employee Details
One of the simplest but most common errors in STP is submitting incorrect employee information. This includes:
- Wrong Tax File Number (TFN)
- Incorrect spelling of names
- Wrong date of birth
- Old addresses
- Incorrect super fund details
Even a small typo can cause the ATO to reject your STP submission or cause delays in employee super payments.
How a bookkeeper helps:
A bookkeeper checks all employee details before you start using STP or when adding a new team member. They also update records when staff changes happen, so your submissions are always accurate.
2. Missing Termination Dates and Reasons
When an employee leaves, you must include their cessation date and reason in your STP report if you’re making termination-related payments. Forgetting this step is a common mistake.
Why it matters:
Without this information, your report is incomplete, and the ATO may require corrections. It can also delay the employee’s access to accurate income statements.
How a bookkeeper helps:
A bookkeeper ensures termination details are entered correctly in your payroll system before lodging the STP file. This avoids back-and-forth with the ATO and keeps your records clean.
3. Incorrect Pay Item Set-Up
STP Phase 2 introduced the need to break down gross pay into separate categories such as overtime, bonuses, allowances, and paid leave. If your payroll software isn’t set up properly, you could be reporting everything under “gross” incorrectly.
How a bookkeeper helps:
A bookkeeper understands the new STP rules and makes sure your pay items are set up with the correct reporting categories. They also test your payroll reports before the first official submission to catch errors early.
4. Forgetting to Lodge on Time
STP reports must be sent on or before the day you pay your employees. Many businesses fall into the trap of paying staff and “catching up” on the report later. This can lead to ATO warnings or penalties.
How a bookkeeper helps:
A bookkeeper builds STP reporting into your payroll process so it happens automatically with each pay run. They track deadlines and lodge on time, every time.
5. Using the Wrong Country Codes
If you employ staff from overseas or have employees working overseas, you must report country codes correctly. Using “na” to mean “not applicable” is a common mistake—it actually refers to Namibia.
How a bookkeeper helps:
A bookkeeper knows which codes apply and double-checks them before lodgement. This ensures your report is accepted the first time.
6. Outdated Payroll Software
Some businesses still use older payroll software that isn’t fully STP Phase 2 compliant. This can lead to incorrect data mapping, missing categories, or rejected reports.
How a bookkeeper helps:
A bookkeeper makes sure you’re using software approved by the ATO for STP Phase 2. They also manage software updates and test your payroll after changes are made.
7. Not Reconciling Payroll and STP Data
If your payroll records don’t match what’s reported through STP, you could face discrepancies at the end of the financial year. This creates extra work to fix and can trigger ATO queries.
How a bookkeeper helps:
A bookkeeper regularly reconciles payroll reports against STP submissions. This means any errors are spotted early, well before end-of-year finalisation.
8. Failing to Train Staff on Payroll Changes
Sometimes the mistake isn’t in the system—it’s in the process. If your payroll team isn’t aware of changes like STP Phase 2 rules, they may keep using old categories or processes.
How a bookkeeper helps:
A bookkeeper trains you or your payroll staff on new reporting requirements. They also provide checklists so the right steps are followed each pay run.
9. Incorrect Superannuation Reporting
STP reports superannuation amounts to the ATO, but it’s still your job to pay it to the correct super fund. Mistakes happen when amounts are calculated incorrectly or contributions are delayed.
How a bookkeeper helps:
A bookkeeper checks super calculations each pay run and ensures payments are made on time. They also track contribution due dates to avoid super guarantee charge penalties.
10. Not Keeping Payroll Records Up to Date
Even though STP sends data to the ATO, you still need to keep payroll records for at least seven years. Businesses sometimes think they can rely on the ATO as their “record keeper”, which is not true.
How a bookkeeper helps:
A bookkeeper maintains organised payroll records—digital or paper—so you meet your record-keeping obligations and can access past data easily.
Why STP Mistakes Are More Than Just Admin Issues
Some people think STP mistakes are just a small paperwork problem. In reality, they can:
- Delay your staff getting the right tax refunds or super
- Lead to ATO penalties for late or incorrect reporting
- Damage your business reputation with employees
- Create unnecessary stress during tax time
Having accurate STP reporting means you’re paying your team correctly, meeting your legal obligations, and keeping your business running smoothly.
How a Bookkeeper Makes Compliance Simple
A professional bookkeeper doesn’t just “do the books”—they protect your business by:
- Setting up your payroll system correctly from the start
- Staying updated on ATO rule changes
- Checking every detail before lodging STP reports
- Reconciling regularly to avoid end-of-year surprises
- Freeing you from payroll admin so you can focus on running your business
Practical Example
Let’s say a Gold Coast café owner with 8 employees was lodging their own STP reports. They accidentally left out cessation dates for two casual employees who left mid-year. The ATO flagged the reports as incomplete, and the owner had to spend hours fixing them while also dealing with a busy holiday season. After hiring a bookkeeper, all payroll changes were recorded immediately, STP reports went through without errors, and the café owner didn’t have to think about it again.
Take One Small Step Today
STP mistakes can be frustrating, time-consuming, and costly. But they don’t have to be part of running a business. A skilled bookkeeper can handle the details, keep you compliant, and give you peace of mind.
If you want to make sure your STP reporting is accurate every time and your payroll runs without stress, now is the time to get help. Even a short conversation with a bookkeeper can highlight issues you might not have noticed and save you from ATO trouble later.
Take one small step today—speak with a bookkeeper who understands STP compliance and can keep your payroll accurate, on time, and stress-free.
