What Single Touch Payroll requires
Employers report payroll information to the ATO each time they pay their employees, using STP-enabled software: salaries and wages, PAYG withholding and super liabilities. Phase 2 added more detail about income types and other items. At year end the employer finalises the STP data for each employee instead of issuing payment summaries.
The honest position on Business Central
Business Central does not include an Australian payroll engine with STP reporting. Most Australian organisations run payroll in a dedicated STP-enabled product and integrate the results to the general ledger. Finance & Operations has HR and payroll capabilities, but Australian STP reporting still depends on the specific configuration or a certified third-party solution.
That means the question is not whether Business Central does STP, but how cleanly your payroll system's output lands in the ledger: one journal per pay run, split by department, cost centre and project, with the right liability accounts for PAYG, super and leave.
The integration we design
We treat the payroll interface as a ledger design problem.
If you operate payroll overseas as well
For subsidiaries in Kenya, Nigeria and South Africa we have built PayrollFlow 365, which runs statutory payroll in those countries on Business Central or Finance & Operations. It does not replace an Australian STP product. In a cross-border group the pattern is: Australian payroll in an STP-enabled product, African payroll in the local product, both posting to one consolidated ledger.
Frequently asked questions
Does Business Central handle Single Touch Payroll?
Not as a native payroll engine. Australian organisations typically use an STP-enabled payroll product and integrate pay runs to Business Central. We design that integration and the liability reconciliations.
Can you replace our payroll system?
We do not offer an Australian STP payroll product. Our payroll product covers Kenya, Nigeria and South Africa. For Australia we integrate with the payroll system you choose.
What about super?
Super contributions are paid through the channels your payroll or clearing house provides, using the SuperStream standard. We design the ledger postings and reconciliations around those payments.
Will the integration be real-time?
Typically one journal per pay run, posted when payroll is finalised. We agree the cadence and approval step with finance during design.
General information, not tax or legal advice. Rules and thresholds change; confirm the current position with the ATO or your registered tax agent before relying on it.
Last reviewed 2026-10-11