From 1 July this year, Single Touch Payroll (STP) will apply to all employers in Australia. First announced in 2015, STP is an Australian Tax Office reporting regime that requires employers to report salaries and wages, PAYG withholding tax, and superannuation to the ATO each time they pay their employees.
According to the ATO, more than 400,000 small employers with up to four employees will need to adopt an STP solution before the end of September 2019. Many don't currently use any software to manage their payroll.
Following months of development by Xero, they've announced the launch of Payroll Only plan to assist small businesses with STP.
Xero's Payroll Only plan is designed for small businesses that employ one to four people in Australia, and their advisors. It is ideal for those who do not feel ready to adopt a comprehensive online accounting software but want to embrace online payroll to comply with STP.
Payroll Only offers complete payroll for up to four employees, including timesheets and leave requests.
It means a small business employer or their trusted advisor can report Single Touch Payroll information to the ATO quickly and easily – adding less than two minutes to the usual online payroll process. And it's just $10 a month.
Additional features that help businesses become more digitally connected – such as API support, invoices and bills, automatic super, and automatic import of bank statements – are available by upgrading to the Starter, Standard or Premium pricing plans.
If you're an employer who needs to make the change to STP, there's no need to worry. "There's plenty of support out there, and you won't be alone," advises John Shepherd, the ATO's Assistant Commissioner for the Single Touch Payroll Program.
"This is a big change, yes. But the software developers have done a really good job of building tools to meet the STP reporting requirements into their product so it's really easy to do."
In any event, make time now to meet with the Collins Hume team to ensure you are STP-ready by July. Our advice is don't leave it to the last minute, as set up can be time-consuming for some businesses. Call us in Ballina or Byron Bay on 02 6686 3000.