How do I fix a mistake in an STP pay run?

You fix an STP mistake by submitting an update event or correcting the figures in your next regular pay run. The ATO operates on a Year-to-Date reporting model, meaning subsequent successful lodgements overwrite prior totals. If the financial year has closed, you must lodge a specific STP update event within 14 days.

What happens if I overpaid or underpaid wages in STP?

You must correct the underlying payroll transaction in your software before sending an update to the ATO. For underpayments, process an out-of-sequence pay run and report it immediately. For overpayments, adjust future wages or agree on a repayment schedule in compliance with the Fair Work Act 2009, then file an updated STP event.

Will an STP error show up on an employee myGov account?

Yes, incorrect STP submissions directly alter the Year-to-Date figures displayed on an employee's myGov income statement. While the status remains 'tax ready' only after end-of-year finalisation, intermediate errors can cause confusion. Submitting a corrected pay event or update event will automatically update the employee's income statement figures on myGov.

How long do I have to correct an STP reporting error with the ATO?

The ATO generally requires you to correct an STP reporting error within 14 days of detection, or by the next regular pay event for that employee. If the mistake relates to an earlier financial year, you must lodge an STP update event directly to adjust final records before employees lodge their tax returns.

Do I need to revise my BAS if I made an STP mistake?

You must revise your Business Activity Statement if the STP error altered your reported PAYG withholding amount for that period. Because the ATO pre-fills W1 and W2 labels using STP Phase 2 data, mismatched figures between actual payroll payments and lodgements require manual adjustments on your activity statement to prevent compliance audits.

What is the difference between an STP pay event and an update event?

A pay event is lodged on or before the day wages are paid to employees and includes regular salary data. An update event is submitted outside the normal pay cycle exclusively to adjust Year-to-Date figures, fix classification errors, or complete the end-of-financial-year finalisation declaration without transferring actual funds to bank accounts.

What should I do if I made a mistake in STP reporting?

Fix Single Touch Payroll errors quickly. Learn how to lodge an STP update event, correct employee Year-to-Date figures, and align ATO and BAS records.

Quick answer

To fix a Single Touch Payroll error, correct the transaction in your payroll software and submit an update event or include the adjustment in your next regular pay run. Because STP Phase 2 uses cumulative Year-to-Date reporting, the latest successful lodgement updates ATO records and employee myGov balances automatically.

Skill level: General guidance
Time: Varies
Trade: Bookkeeping & Cashflow
Updated: 4 November 2026

Tools you will need

Xero Payroll - Cloud Accounting Software
MYOB Business AccountRight - Payroll Platform
Intuit QuickBooks Online Payroll - Bookkeeping Software
Reckon One Payroll - Single Touch Payroll App
ATO Online Services for Business - Government Portal Access
myGovID (Strong Identity Strength) - Digital Authentication

What should I do if I find an STP reporting mistake?

If you’ve made a mistake in Single Touch Payroll (STP) reporting, the key is not to panic — but don’t ignore it either. STP errors can affect what the ATO sees, what employees see in their myGov income statements, and whether your payroll records line up with Fair Work pay obligations and super reporting.

What are the key considerations for correcting STP errors?

In many cases, STP mistakes can be corrected by updating the payroll data in your software and lodging an updated STP event. The right approach depends on the type of error — for example, whether it relates to gross wages, PAYG withholding, super, employee details, or the wrong reporting category being used.

Some errors are mainly reporting issues, while others point to an actual payroll underpayment or overpayment. If staff have been paid incorrectly, you may also need to fix the underlying payroll, not just the STP submission.

End-of-year figures matter. If an STP mistake carries through to finalisation, employees may see incorrect income statement information in myGov, which can create tax and trust issues if it isn’t corrected promptly.

Good recordkeeping is essential. Before changing anything, it’s important to identify what was lodged, what should have been lodged, and whether the accounting file, pay runs, super records and bank transactions all agree.

The ATO provides guidance on STP corrections, but payroll compliance also overlaps with Fair Work rules on pay rates, leave and entitlements. If BAS reporting is affected, a registered BAS agent or bookkeeper can help review what needs to be corrected and in what order.

How does a specialist assess an STP reporting error?

Whether the issue is a simple STP reporting mismatch or a deeper payroll processing problem involving employee entitlements, award interpretation or superannuation guarantee obligations.

Which pay periods, employees and reporting categories were affected, and whether the error has flowed into BAS, EOFY finalisation, workers compensation data or payroll tax reporting.

Whether the payroll software setup is contributing to the problem — such as incorrect earnings categories, duplicate employee records, terminated staff still reporting, or mapping issues in Xero, MYOB or QuickBooks.

Whether any correction needs to be communicated to employees, especially if their myGov income statement, payslips or super records may not match what they expected.

Whether the business should escalate beyond bookkeeping support — for example, to Fair Work advice on entitlements or to a tax or accounting adviser if the error has broader tax consequences.

Common Costly Mistakes

Re-lodging figures without first working out whether the original pay run itself was wrong.

Correcting STP but forgetting to fix payslips, leave balances, super or the general ledger.

Leaving the error until year-end, when it is often harder to untangle and more likely to affect employees.

Assuming software will “auto-fix” everything without checking current ATO reporting status and payroll setup.

When To Get Professional Help

If the mistake affects more than one employee, multiple pay runs, super, PAYG withholding or year-end finalisation, DIY can quickly become risky. It also makes sense to get help if you’re unsure whether the problem is just an STP lodgement issue or an actual payroll compliance issue under ATO and Fair Work rules.

Talk To A Specialist

If you’ve found an STP mistake and want clarity on the next steps, a bookkeeping health check can help you understand what needs reviewing before the issue grows. A registered bookkeeping specialist can assess the payroll file, reporting flow and records in a practical way — start here: /finance/enquire?service=bookkeeping

Frequently Asked Questions

Can I fix an STP mistake myself?

Sometimes, yes — particularly if it’s a straightforward reporting error and your payroll software supports updates properly. But if the issue affects employee pay, super, leave or BAS figures, it’s wise to have a registered BAS agent or experienced bookkeeper review it before you make changes.

What happens if I reported the wrong wages in STP?

Generally, you’ll need to work out whether the mistake was only in the STP lodgement or in the actual payroll processing as well. If the pay run was wrong, the correction usually needs to flow through payroll records, payslips and possibly employee payments, not just the ATO report.

Will employees see my STP mistake in myGov?

They can, depending on the timing and the type of error. Incorrect year-to-date figures or finalised amounts may show in an employee’s income statement, which is why prompt and accurate correction is important.

Do I need to tell the ATO if I made an STP error?

In many cases, the correction is made through an updated STP submission rather than a separate notification. The correct process depends on the nature of the error, whether it affects prior periods, and whether other obligations like BAS or super reporting are also impacted.

Should I worry if the STP issue also affects super or leave?

Yes. An STP reporting problem can sometimes be the first sign of a broader payroll setup or processing issue, especially where superannuation guarantee, leave accruals or Fair Work entitlements are involved. That’s where specialist review becomes particularly valuable.

Important — General Information Only

This information is general in nature only and is not personal bookkeeping, payroll or cashflow advice. It does not take into account your objectives, financial situation or needs, and you should consider your circumstances and seek advice from an appropriately licensed or registered professional before acting. For Australian payroll and reporting obligations, check current guidance from the ATO, Fair Work and the Tax Practitioners Board, including whether you need help from a registered BAS agent.

Frequently asked questions

How do I fix a mistake in an STP pay run?: You fix an STP mistake by submitting an update event or correcting the figures in your next regular pay run. The ATO operates on a Year-to-Date reporting model, meaning subsequent successful lodgements overwrite prior totals. If the financial year has closed, you must lodge a specific STP update event within 14 days.
What happens if I overpaid or underpaid wages in STP?: You must correct the underlying payroll transaction in your software before sending an update to the ATO. For underpayments, process an out-of-sequence pay run and report it immediately. For overpayments, adjust future wages or agree on a repayment schedule in compliance with the Fair Work Act 2009, then file an updated STP event.
Will an STP error show up on an employee myGov account?: Yes, incorrect STP submissions directly alter the Year-to-Date figures displayed on an employee's myGov income statement. While the status remains 'tax ready' only after end-of-year finalisation, intermediate errors can cause confusion. Submitting a corrected pay event or update event will automatically update the employee's income statement figures on myGov.
How long do I have to correct an STP reporting error with the ATO?: The ATO generally requires you to correct an STP reporting error within 14 days of detection, or by the next regular pay event for that employee. If the mistake relates to an earlier financial year, you must lodge an STP update event directly to adjust final records before employees lodge their tax returns.
Do I need to revise my BAS if I made an STP mistake?: You must revise your Business Activity Statement if the STP error altered your reported PAYG withholding amount for that period. Because the ATO pre-fills W1 and W2 labels using STP Phase 2 data, mismatched figures between actual payroll payments and lodgements require manual adjustments on your activity statement to prevent compliance audits.
What is the difference between an STP pay event and an update event?: A pay event is lodged on or before the day wages are paid to employees and includes regular salary data. An update event is submitted outside the normal pay cycle exclusively to adjust Year-to-Date figures, fix classification errors, or complete the end-of-financial-year finalisation declaration without transferring actual funds to bank accounts.

Written by Tally, the Bookkeeping & Cashflow specialist at Aus.Tools.