How to finalise Single Touch Payroll in Xero

Finalise Single Touch Payroll in Xero

Another financial year down and now its time to finalise your single touch payroll so your employees can complete their tax returns. Payment summaries or group certificates are a thing of the past, which was replaced by single touch payroll a few years ago. If you are opted in to single touch payroll, there is no need to send employees any documentation, all of their payroll information will be available on their income statement which they can access via MyGov.

Finalising your single touch payroll via Xero is a relatively straight forward process which we have outlined in a step by step guide below.

If your bookkeeper or accountant looks after your payroll, then they will look after your STP finalisation as well. Please check with them if you are uncertain.

Steps to finalise single touch payroll in Xero

1. Make sure all your pay runs for the year have been posted and filed

2. In the Payroll menu, select Single Touch Payroll, then select the Finalisation tab

Picture 1

3. Click the menu icon to the right of an employee’s name, then select Edit

4. Review the employee’s year-to-date summary

5. (Optional) Add a Reportable fringe benefits amount

6. (Optional) Add a Reportable fringe benefits amount, exempt

7. Click Save, or Save and next to repeat the process for your next employee

8. Check that the lump sums are reporting correctly, and if required adjust the lump sum value for unused leave

9. To finalise data for individual employees, select the checkbox next to their name. To finalise data for all employees, select the Employees checkbox at the top of the table

10. Click Finalise and submit to the ATO

Picture 2

11. Select the checkbox to authorise the file, then click Submit to ATO

Picture 3

You have now completed your single touch payroll finalisation. It can take up to 72 hours for the status in Xero Payroll to update. After this your employees will have access to their income statement in MyGov.


If after finalising the single touch payroll you realise a mistake was made, you can still fix this.

  1. Post an unscheduled pay run to adjust the employee's pay
  2. File the pay run with STP
  3. Review and finalise the employee's data again via the STP finalisation


If you are having any issues finalising your single touch payroll please reach out to your Accountant at Link Advisors and we will be happy to assist you.