Best STP Software Australia 2025: Workstem vs Competitors Comparison

Choosing the right Single Touch Payroll (STP) software is critical for Australian businesses in 2025. It’s not just about compliance; it’s about finding a solution that saves time, reduces errors, and grows with your business. With options like Xero, MYOB, and Reckon dominating the market, how does a specialised platform like Workstem compare?

This detailed comparison breaks down the key features, pricing, and support models to help you make an informed decision for your business’s payroll future.

Comprehensive STP Software Comparison Matrix

Key Takeaway: While generalist accounting software offers STP functionality, Workstem provides a dedicated, all-in-one payroll and HR platform with compliance features built-in, not bolted on.

Workstem STP Advantages: Why Choose Us

Beyond the feature list, businesses choose Workstem for our unwavering focus on Australian payroll compliance and reducing administrative burden.

• Real-Time Compliance Guarantee: Our platform is continuously updated by in-house experts to reflect the latest ATO rulings, modern awards, and legislation. You don’t need to be a payroll expert to be compliant.
• Automated Error Detection: The system proactively identifies common mistakes in pay runs—like missing TFNs, classification errors, or overtime miscalculations—before they are submitted to the ATO, preventing costly fines.
• Dedicated Australian Support: Get answers from a knowledgeable, local support team that understands Australian payroll law. We’re here to help you solve problems, not just read from a script.
• True All-in-One Pricing: What you see is what you get. Our pricing includes payroll, STP reporting, HR modules, rostering, and award interpretation without per-user fees or expensive add-ons.

Start Your Free 14-Day Trial and get hands-on with the platform. For a personalised walkthrough of how Workstem can solve your specific payroll challenges, request a tailored demo from our team.

Implementation Process: 5 Steps to Go Live in 2 Weeks

Switching software seems daunting, but with Workstem, our structured onboarding gets you live and compliant quickly.

• Discovery Call (Day 1): We learn about your business, your current payroll setup, and your goals.
• Data Migration & System Setup (Week 1): Our team assists in securely importing your employee data, configuring awards, and setting up your pay items.
• Training & Dry Run (Week 2): We train your team on the platform. You process a test pay run with our guidance to build confidence.
• Go-Live & First STP Submission (Week 4): You process your first real pay run. We’re on standby to ensure your first STP submission to the ATO is successful.
• Ongoing Success Review: We check in to ensure you’re getting the most out of the platform and answer any questions.

Customer Success Stories: 3 Businesses, 3 Industries, 1 Solution

Manufacturing: Streamlining a Complex Award-Based Payroll

• A mid-sized manufacturer with 80+ employees on multiple awards was spending over 20 hours a week on manual calculations. After switching to Workstem, their payroll is processed in under 3 hours. Built-in award interpretation automatically applies correct penalties and overtime, ensuring 100% compliance and saving thousands in potential underpayment risks.

Retail: Managing Casual Rosters and STP with Ease

• A retail chain with high casual staff turnover struggled with roster changes and accurate STP reporting. Workstem’s integrated rostering and payroll features allow managers to update rosters in real-time. Hours are automatically sent to payroll, and STP submissions are completed with a single click, eliminating double-handling.

 Professional Services: Integrating Projects with Payroll

• A consulting firm needed to track project costs against employee time. Using Workstem’s integrated timesheets and payroll, they can now attribute labour costs directly to projects automatically, providing better financial insights while maintaining seamless STP compliance.

How Workstem Helps Manage STP Obligations?

Ensure your business remains compliant effortlessly. Let Workstem’s automated payroll and integrated STP Phase 2 reporting handle the complexity for you. Explore Workstem’s STP Solution today and ensure peace of mind with every pay run.

Simplify award interpretation and payroll processing with Workstem, the all-in-one workforce management & payroll software designed for every industry.Workstem is an ATO-approved STP Phase 2 solution that simplifies compliance by automating the entire process:

• Built-in Validation: Workstem’s software is designed with the correct STP Phase 2 fields and categories, guiding you to enter data correctly and reducing errors.
• Seamless Integration: As an all-in-one platform, Workstem integrates time & attendance, payroll, and STP reporting. This eliminates manual data entry between systems, ensuring the data you report is accurate and consistent.
• Easy Submissions: Reporting is done with a single click at the end of each pay run, with immediate confirmation from the ATO.
• Simplified Finalisation: The year-end finalisation process is streamlined and can be completed in minutes.

Choose from our Standard or Advanced plan to suit your business needs, and stay Fair Work compliant with confidence.

FAQs About the Single Touch Payroll (STP)

Q1: What is Single Touch Payroll (STP) in simple terms?

A: Single Touch Payroll (STP) is a mandatory Australian government initiative that requires businesses to report their employees’ payroll information—such as salaries, wages, pay-as-you-go (PAYG) withholding, and superannuation—to the Australian Taxation Office (ATO) directly from their payroll software each time they run payroll. It’s “single touch” because the reporting happens with a single action at the same time as you pay your staff.

Q2: Who needs to report through STP?

A: Essentially, all Australian employers must report through STP.If you have even one employee, you are generally required to use STP.

Q3: What is the difference between STP Phase 1 and STP Phase 2?

A: STP Phase 2 expands the reporting requirements introduced in Phase 1. The key difference is the level of detail provided to the ATO.

• STP Phase 1 reported total amounts for key figures like gross earnings and tax withheld.
• STP Phase 2 requires a detailed, disaggregated breakdown of an employee’s income (e.g., separating salary, overtime, allowances, and leave payments).

Q4: What are my ongoing STP reporting obligations?

A: Your main ongoing obligations are:

• Report Each Pay Event: Submit the required data to the ATO on or before every pay day.
• Year-End Finalisation: Finalise your data by 14 July each year. This declares the information for the financial year is complete and correct. This replaces the need to provide payment summaries to your employees.
• Keep Records Accurate: Ensure employee details in your payroll software are always up-to-date (e.g., tax declarations, super fund choice).

Q5: I missed the STP Phase 2 migration deadline. What should I do?

A: You should take action immediately:

• Contact your software provider to start the transition process.
• Lodge a voluntary disclosure with the ATO to explain the delay. The ATO generally looks favorably upon businesses that come forward voluntarily and may provide you with a compliance plan or extra time to transition.
• Ensure you are using an ATO-approved STP Phase 2 solution, like Workstem, to become compliant.

Q6: How does STP help with my employees’ Superannuation?

A: While STP itself does not pay your super, it reports the liability for superannuation to the ATO each payday. This allows the ATO to better monitor and ensure that employers are meeting their super guarantee obligations on time. You still need to pay your super contributions to your employees’ funds by the quarterly due dates.

Q7: Does STP change when I have to pay my tax and super?

A: No. STP is a reporting system, not a payment system. The due dates for paying the PAYG withholding tax you report to the ATO and your super guarantee contributions to funds remain unchanged.

Q8: What happens if I make a mistake in my STP report?

A: Mistakes can be fixed. If you discover an error in a past submission, you can make a STP amendment through your payroll software. You simply correct the information in your system and submit a revised update to the ATO. It’s important to correct errors as soon as you find. 

Q9: Where can I find official information from the ATO?

A9: The best source of truth is always the official ATO website. You can find comprehensive guides, news, and resources on their Single Touch Payroll for employers page.

Book a free demo with our payroll experts and experience how Workstem can streamline your payroll and workforce operations.

Read More: 

STP Phase 2 Australia: Post-Migration Compliance Guide & Requirements 

Single Touch Payroll 2025: Everything Australian Employers Need to Know

Avoiding STP Penalties 2025: ATO Audit Guide & Risk Prevention

Guide to Single Touch Payroll for Closely Held Payees

Guide to Single Touch Payroll Phase 2

Guide To Single Touch Payroll (STP)