Bookkeeper Payroll Software for STP Reporting

What bookkeeper payroll software needs to support

Bookkeeper payroll software needs to support the reporting work connected with Single Touch Payroll, because STP is how employers report employee tax and super information to the ATO. A practice should also be able to identify the client employer segment the product is intended to serve and keep a clear review process around payroll data.

The ATO describes STP as the way employers report employee tax and super information. That makes reporting capability a practical starting point for any payroll software comparison, rather than an optional feature to consider after a practice has selected a system.

STP reporting began for employers with 20 or more employees on 1 July 2018, according to the ATO’s employer reporting guidelines. The same guidelines state that employers with 19 or fewer employees were required to begin from 1 July 2019 unless an exemption applied. Those dates show why practices may handle payroll clients with different historical implementation experiences.

The ATO states that STP information changed from 1 January 2022 as reporting moved beyond the original Phase 1 settings. When comparing products, bookkeepers can therefore ask how the provider supports the relevant STP reporting environment rather than treating every payroll product as interchangeable.

How to compare payroll software for different clients

Compare payroll software by matching the product’s stated scope to the client, confirming its relevant STP function, and assessing the practice’s review workflow. Record the client’s employee count, identify who prepares payroll information, and decide who checks exceptions before reporting. This keeps the comparison tied to recurring work rather than a generic feature list.

1. Record the client’s employee count and, where relevant, their annual PAYGW withholding band.
2. Check whether the product is listed for Payroll (STP) and whether its stated target market suits that client.
3. Confirm who prepares information, who reviews it, and how exceptions are returned for correction.
4. Document the software choice and the payroll review steps in the client’s working papers.

This sequence does not replace professional judgement or client-specific enquiries. It does, however, prevent a comparison from becoming a feature checklist with no connection to the employer category that a product is designed to serve.

Why STP reporting history still matters to practices

STP reporting history matters because the program started for different employer groups and the information reported changed from 1 January 2022. Practices taking on a payroll client need to understand which reporting process is in use, what data the client supplies, and whether the payroll system supports that process before they standardise recurring work.

STP reporting began for employers with 20 or more employees on 1 July 2018, according to the ATO’s employer reporting guidelines. The same guidelines state that employers with 19 or fewer employees were required to begin from 1 July 2019 unless an exemption applied. Those dates show why practices may handle payroll clients with different historical implementation experiences.

For a bookkeeping practice, that history is useful context for client conversations: payroll reporting is a structured reporting process, and software selection should account for the information a system needs to handle.

The Australian Bureau of Statistics reported total payroll jobs increased 1.0% between mid-May and mid-June 2020, based on Weekly Payroll Jobs and Wages in Australia data for the week ending 13 June 2020. In the same 30 June 2020 release, ABS Head of Labour Statistics Bjorn Jarvis said, “This continued the gradual recovery in payroll jobs since mid-April (when total job losses were 8.8 per cent). However, payroll jobs are still 6.4 per cent below mid-March.”

Where automation fits in a payroll bookkeeping workflow

Automation fits around the repetitive handling and review of payroll information, not around unsupported assumptions about a client’s reporting position. A practice can use bookkeeper payroll software to organise recurring payroll work while retaining a documented review step for unusual items, incomplete records and information that needs client clarification.

DeskMate checks a period’s pay runs before payroll is finalised, confirming every run is posted, showing reported totals with a per-employee breakdown, and flagging anomalies such as no tax withheld on real wages; it is read-only and does not post anything. Explore what DeskMate automates and which bookkeeping tasks AI software can automate when designing the surrounding workflow.

A useful implementation plan separates software capability from operational ownership. Decide which team member gathers client information, who checks payroll exceptions, where completed work is recorded, and when a client receives a question. That structure helps the practice compare payroll processing software on the work it actually needs to perform.

Questions to ask before selecting a payroll platform

Ask whether the platform is suitable for the client’s employer segment, supports the relevant STP reporting work, and can be reviewed consistently by the practice team. These questions keep a payroll software comparison focused on documented product scope and operational process instead of unsupported promises about compliance outcomes or time savings.

• Is the product shown for Payroll (STP) in the ATO Software Developers product register?
• Does its stated target market match the client’s employee count and, where applicable, PAYGW withholding band?
• What information must the client provide before payroll can be reviewed?
• How will the practice identify, resolve and record exceptions?
• Who is responsible for the final review of payroll information before reporting?

For Australian accounting and bookkeeping practices, the best starting point is a clear fit between client profile, STP reporting needs and a repeatable review workflow. That creates a more useful basis for choosing bookkeeper payroll software than a generic list of payroll features.