Quick Overview
- 1#1: Xero - Cloud accounting platform with seamless STP Phase 2 payroll reporting directly to the ATO.
- 2#2: MYOB - Comprehensive business software offering STP-compliant payroll for single touch reporting.
- 3#3: KeyPay - Award-winning cloud payroll solution optimized for Australian STP compliance and automation.
- 4#4: QuickBooks Online - User-friendly accounting and payroll software with built-in STP event submissions.
- 5#5: Reckon One - Modular payroll system providing affordable STP Phase 2 reporting for small businesses.
- 6#6: Employment Hero - All-in-one HR and payroll platform with direct STP integration for real-time reporting.
- 7#7: Elmo - Cloud-based HR and payroll software enabling effortless STP payroll lodgements.
- 8#8: Tanda - Workforce management tool with integrated STP-compliant payroll and timesheets.
- 9#9: Deputy - Scheduling and payroll software that automates STP reporting for shift-based businesses.
- 10#10: Sage Micropay - Established payroll software delivering reliable STP compliance for Australian employers.
We ranked these tools by prioritizing STP Phase 2 compliance, user-friendliness, automation features, comprehensive functionality (including HR integration or timesheet management), and overall value, ensuring each entry delivers reliability and practicality for Australian employers
Comparison Table
This comparison table breaks down top Single Touch Payroll Software tools, including Xero, MYOB, KeyPay, QuickBooks Online, Reckon One, and more, helping readers understand key features, usability, and cost to choose the best fit for their business.
| # | Tool | Category | Overall | Features | Ease of Use | Value |
|---|---|---|---|---|---|---|
| 1 | Xero Cloud accounting platform with seamless STP Phase 2 payroll reporting directly to the ATO. | specialized | 9.6/10 | 9.8/10 | 9.3/10 | 9.1/10 |
| 2 | MYOB Comprehensive business software offering STP-compliant payroll for single touch reporting. | enterprise | 9.1/10 | 9.5/10 | 8.7/10 | 8.8/10 |
| 3 | KeyPay Award-winning cloud payroll solution optimized for Australian STP compliance and automation. | specialized | 8.7/10 | 9.2/10 | 8.5/10 | 8.3/10 |
| 4 | QuickBooks Online User-friendly accounting and payroll software with built-in STP event submissions. | specialized | 8.7/10 | 9.2/10 | 8.5/10 | 8.0/10 |
| 5 | Reckon One Modular payroll system providing affordable STP Phase 2 reporting for small businesses. | specialized | 8.2/10 | 8.5/10 | 8.0/10 | 7.8/10 |
| 6 | Employment Hero All-in-one HR and payroll platform with direct STP integration for real-time reporting. | enterprise | 8.4/10 | 9.0/10 | 8.2/10 | 7.9/10 |
| 7 | Elmo Cloud-based HR and payroll software enabling effortless STP payroll lodgements. | enterprise | 8.1/10 | 8.6/10 | 7.7/10 | 7.9/10 |
| 8 | Tanda Workforce management tool with integrated STP-compliant payroll and timesheets. | specialized | 7.8/10 | 8.2/10 | 7.9/10 | 7.4/10 |
| 9 | Deputy Scheduling and payroll software that automates STP reporting for shift-based businesses. | specialized | 7.6/10 | 7.8/10 | 8.4/10 | 7.2/10 |
| 10 | Sage Micropay Established payroll software delivering reliable STP compliance for Australian employers. | enterprise | 7.1/10 | 7.8/10 | 6.2/10 | 6.9/10 |
Cloud accounting platform with seamless STP Phase 2 payroll reporting directly to the ATO.
Comprehensive business software offering STP-compliant payroll for single touch reporting.
Award-winning cloud payroll solution optimized for Australian STP compliance and automation.
User-friendly accounting and payroll software with built-in STP event submissions.
Modular payroll system providing affordable STP Phase 2 reporting for small businesses.
All-in-one HR and payroll platform with direct STP integration for real-time reporting.
Cloud-based HR and payroll software enabling effortless STP payroll lodgements.
Workforce management tool with integrated STP-compliant payroll and timesheets.
Scheduling and payroll software that automates STP reporting for shift-based businesses.
Established payroll software delivering reliable STP compliance for Australian employers.
Xero
specializedCloud accounting platform with seamless STP Phase 2 payroll reporting directly to the ATO.
One-click STP finalization and submission directly from the pay run interface, ensuring instant ATO compliance without manual exports.
Xero is a leading cloud-based accounting platform with robust integrated payroll functionality tailored for Australian businesses, enabling seamless Single Touch Payroll (STP) reporting directly to the ATO. It automates pay runs, tax withholdings, superannuation calculations, and compliance updates, supporting STP Phase 2 for real-time data submission. The software integrates payroll with full accounting features, making it ideal for end-to-end financial management.
Pros
- Seamless STP integration with automatic ATO reporting during pay runs
- Comprehensive payroll tools including superannuation, leave tracking, and compliance updates
- Strong integration with accounting, invoicing, and bank feeds for holistic business management
Cons
- Higher pricing tiers required for advanced features and unlimited employees
- Initial setup and data migration can be time-consuming for complex payrolls
- Limited customization for highly specialized industry payroll needs
Best For
Small to medium-sized Australian businesses seeking an all-in-one accounting and STP-compliant payroll solution.
Pricing
Starts at $32/month (Ignite plan) up to $95/month (Ring plan) for AU users; payroll included, with per-employee fees over certain limits.
MYOB
enterpriseComprehensive business software offering STP-compliant payroll for single touch reporting.
Full STP Phase 2 support with one-click finalisation and automatic superannuation clearing house integration
MYOB is a comprehensive Australian accounting platform with robust Single Touch Payroll (STP) capabilities via products like MYOB Essentials and AccountRight, enabling real-time payroll reporting to the ATO. It automates STP Phase 1 and 2 compliance, including pay runs, superannuation payments, and tax withholdings, while generating compliant payslips. Integrated with full accounting tools, it streamlines financial management for businesses of varying sizes.
Pros
- Seamless STP compliance with automatic ATO lodgements
- Deep integration with accounting and inventory management
- Strong local support and regular updates for Australian regulations
Cons
- Higher pricing tiers for advanced features
- Steeper learning curve for non-accountants
- Occasional performance issues in desktop version
Best For
Australian SMEs and mid-sized businesses seeking integrated accounting and STP payroll compliance.
Pricing
Starts at $30/month for Essentials (basic STP), up to $100+/month for AccountRight Live with advanced payroll.
KeyPay
specializedAward-winning cloud payroll solution optimized for Australian STP compliance and automation.
Automated modern award interpretation engine ensuring precise compliance with Australia's complex employment laws
KeyPay is a cloud-based payroll platform tailored for Australian businesses, providing full Single Touch Payroll (STP) Phase 2 compliance for seamless real-time reporting to the ATO. It automates payroll runs, tax and superannuation calculations, payslips, and handles complex award interpretations. The software also integrates rostering, timesheets, and employee self-service via a mobile app, making it a comprehensive HR-payroll solution.
Pros
- Robust STP compliance with automated ATO reporting and Phase 2 support
- Intelligent award interpretation for accurate pay compliance
- Strong integrations with Xero, MYOB, and other accounting/HR tools
Cons
- Pricing scales per active employee, costly for large businesses
- Some advanced customizations locked behind higher plans
- Occasional support delays during peak payroll periods
Best For
Medium-sized Australian businesses needing STP-compliant payroll with integrated rostering and HR features.
Pricing
From $6 per active employee/month + base subscription fee (~$50/month); enterprise custom pricing.
QuickBooks Online
specializedUser-friendly accounting and payroll software with built-in STP event submissions.
Real-time STP lodging that automatically transmits employee income and super data to the ATO during each pay run
QuickBooks Online is a comprehensive cloud-based accounting software with integrated payroll features fully compliant with Australia's Single Touch Payroll (STP) Phase 2 requirements. It allows businesses to process employee payments, calculate PAYG withholding and superannuation, generate payslips, and automatically report data directly to the ATO. The seamless integration ensures payroll transactions flow into general ledger accounts, simplifying financial reporting and compliance.
Pros
- ATO-approved STP compliance with real-time reporting
- Seamless integration between payroll and accounting
- Automated superannuation calculations and payments
Cons
- Pricing scales up quickly with employee numbers
- Limited advanced HR tools compared to dedicated payroll software
- Occasional delays in customer support response
Best For
Small to medium Australian businesses needing an integrated accounting and STP payroll solution without separate systems.
Pricing
QuickBooks plans start at $25/month; Payroll add-on from $5 base + $2 per active employee/month (GST inclusive).
Reckon One
specializedModular payroll system providing affordable STP Phase 2 reporting for small businesses.
Direct real-time STP reporting with built-in ATO connectivity and error-checking for hassle-free compliance.
Reckon One is a modular cloud-based accounting platform from Australian provider Reckon, featuring a dedicated Payroll module fully compliant with Single Touch Payroll (STP) Phase 1 and 2 requirements. It enables businesses to process employee payments, calculate PAYG withholding, superannuation, and lodge reports directly to the ATO in real-time. Integrated with invoicing, expenses, and inventory modules, it offers a scalable solution for streamlined payroll and financial management.
Pros
- Seamless STP compliance with automatic ATO lodgements and validation
- Modular structure allows pay-as-you-grow without full-suite commitment
- Strong integration with Reckon's accounting and invoicing tools
Cons
- Pricing escalates quickly for larger teams or multiple modules
- Limited advanced HR features like performance tracking or onboarding
- Occasional sync issues with ATO during peak tax periods reported
Best For
Small to medium Australian businesses needing integrated accounting and STP-compliant payroll without complex enterprise setups.
Pricing
Modular subscriptions start at $12/month per module; Payroll add-on from $20 base + $5 per additional employee/month (billed annually).
Employment Hero
enterpriseAll-in-one HR and payroll platform with direct STP integration for real-time reporting.
Built-in employee engagement hub with learning, benefits, and wellbeing tools alongside STP payroll
Employment Hero is a comprehensive Australian HR and payroll platform that excels in Single Touch Payroll (STP) compliance, automating real-time reporting to the ATO for pay runs, superannuation, and tax obligations. It combines payroll processing with employee management tools like onboarding, leave tracking, performance reviews, and a self-service employee portal. Designed for scalability, it supports businesses from startups to enterprises with integrations for accounting and rostering software.
Pros
- Full STP Phase 2 compliance with automated ATO reporting
- All-in-one HR tools including onboarding and performance management
- Strong integrations with Xero, MYOB, and rostering apps
Cons
- Higher pricing tiers unsuitable for very small businesses
- Initial setup and learning curve for advanced HR features
- Customer support response times can vary
Best For
Australian SMEs needing an integrated HR and STP-compliant payroll solution.
Pricing
Starts at $99/month base + $6/active employee/month for payroll; custom enterprise pricing available.
Elmo
enterpriseCloud-based HR and payroll software enabling effortless STP payroll lodgements.
End-to-end HR-payroll integration with AI-powered compliance checks for STP and superannuation
Elmo Software is a robust cloud-based HR and payroll platform tailored for Australian businesses, offering full Single Touch Payroll (STP) Phase 2 compliance for direct reporting to the ATO. It streamlines payroll processing, handles complex pay conditions, superannuation, and tax obligations, while integrating with HR functions like onboarding, performance management, and employee self-service. The solution supports unlimited pay runs and provides detailed reporting and analytics for compliance and decision-making.
Pros
- Comprehensive STP compliance with automated ATO reporting and validation
- Integrated HR suite including recruitment, onboarding, and performance tools
- Scalable for mid-to-large businesses with strong mobile employee access
Cons
- Steep learning curve due to extensive features
- Pricing can be high for small businesses (quote-based)
- Limited free trial or basic tier for testing
Best For
Mid-sized Australian enterprises needing an all-in-one HR-payroll solution with reliable STP integration.
Pricing
Custom quote-based pricing, typically $4-8 per employee per pay run plus base fees; minimum 10-20 employees.
Tanda
specializedWorkforce management tool with integrated STP-compliant payroll and timesheets.
Automated Modern Award interpretation for accurate pay rates and STP-compliant payroll calculations
Tanda (tanda.co) is a workforce management platform designed for Australian businesses, offering employee scheduling, time and attendance tracking, and Single Touch Payroll (STP) compliance through seamless integrations with systems like Xero, MYOB, and KeyPay. It enables real-time clock-ins via mobile app or kiosk, automated timesheet approvals, and direct STP reporting to the ATO, reducing manual payroll errors. Primarily targeted at shift-based industries, Tanda combines rostering with labour cost forecasting for efficient operations.
Pros
- Robust time tracking with geofencing and kiosk support
- Strong STP integration for compliant ATO reporting
- Advanced scheduling with demand forecasting
Cons
- Relies heavily on third-party payroll integrations rather than standalone STP
- Pricing scales with active users, costly for large teams
- Steeper learning curve for complex award configurations
Best For
Australian shift-based businesses in hospitality, retail, or healthcare needing integrated time tracking and STP compliance.
Pricing
Essentials from AU$6/active user/month; Pro and Enterprise plans custom-quoted based on features and team size.
Deputy
specializedScheduling and payroll software that automates STP reporting for shift-based businesses.
Real-time timesheet-to-payroll automation that pulls shift data directly into STP-compliant pay runs
Deputy is a workforce management platform with integrated Single Touch Payroll (STP) capabilities designed for Australian businesses, focusing on scheduling, time tracking, and compliant payroll reporting to the ATO. It automates timesheet capture via mobile clock-ins, roster-based pay calculations, and direct STP lodgements, reducing manual data entry. Primarily geared toward shift-based operations, it combines operational tools with essential payroll features for seamless end-to-end processing.
Pros
- Seamless integration of scheduling, timesheets, and STP payroll
- User-friendly mobile app for employee clocking and communication
- Automatic STP-compliant reporting and payslip generation
Cons
- Payroll features lack depth for complex compliance or multi-award scenarios
- Pricing can become expensive for larger teams with add-ons
- Limited customization in reporting compared to dedicated payroll tools
Best For
Shift-based businesses in retail, hospitality, or healthcare needing integrated scheduling with straightforward STP payroll.
Pricing
Starts at AU$3.50 per active user/month for Essentials plan; Payroll included in Premium (AU$5.25/user/month) or Enterprise (custom pricing).
Sage Micropay
enterpriseEstablished payroll software delivering reliable STP compliance for Australian employers.
Direct STP Finalisation Declaration support for end-of-year ATO submissions without manual intervention
Sage Micropay is a desktop-based payroll software tailored for small Australian businesses, providing full compliance with Single Touch Payroll (STP) Phase 1 and Phase 2 requirements. It automates payroll processing, including wage calculations, tax withholdings, superannuation payments, and direct electronic lodgements to the ATO. The solution also offers leave tracking, custom reporting, and integration with accounting tools like MYOB and Xero.
Pros
- Fully STP-compliant with automatic ATO reporting
- Handles Australian-specific payroll complexities like super and leave entitlements
- Reliable for small teams with customizable payslips and reports
Cons
- Outdated desktop interface with a steep learning curve
- Not cloud-based, limiting remote access and mobility
- Limited integrations compared to modern cloud competitors
Best For
Small Australian businesses with 1-20 employees seeking a cost-effective, reliable desktop payroll solution for STP compliance.
Pricing
Starts at around $299/year for the base license plus $1.10-$2.20 per pay run, with volume discounts for larger usage.
Conclusion
Across the range of tools, Xero emerges as the top performer, delivering seamless STP Phase 2 reporting directly to the ATO with a user-friendly cloud platform. MYOB follows strongly with its comprehensive business software, offering robust STP compliance, while KeyPay stands out as an award-winning, automated solution optimized for Australian payroll needs. Each tool caters to distinct business requirements, but Xero’s integration and ease of use make it the clear front-runner.
Take the first step toward efficient payroll management—try Xero today to simplify STP reporting and focus on growing your business.
Tools Reviewed
All tools were independently evaluated for this comparison
Referenced in the comparison table and product reviews above.