Single Touch Payroll (STP) is a new regulation that has been announced by the Australian Taxation Office (ATO) as a new approach to how and when small businesses report tax, super information, or basically any payroll activity to the ATO. This is an easier, simpler, and more trackable way of managing your business finances.
The process of reporting such information is done on a digital platform with a highly specific format. The report is submitted each day you pay your employees where you’ll be including your employees’ tax and super information each time.
This pay-to-pay constant update thus eliminated the need for a payment summary annual report. All you’re required to do is notify the ATO when you’ve run your last payroll for the financial year.
Additionally, you won’t need to send out payment summaries to your employees anymore, they’ll be able to view all the information regarding their payment summary on myGov.
If you’re employing more than 20 people, chances are you’re already familiar with the change since July 2018. However, small businesses with under 20 employees should start reporting through Single Touch Payroll anytime before 30 September 2019.
Consequently, the question on your mind is probably how you’ll switch to STP and what accounting software includes Single Touch Payroll?
Well, there’s quite a number of companies providing software solutions, whether desktop or online, that are user-friendly, quick, and secure. Let’s go through some of them.
If your business has 1 to 4 employees, you’re in for some good news! For only 10 dollars per month, this web-based software lets you report all your pay run details with only a few clicks. There are other plans starting from 25 dollars monthly for employers with more people on their hands.
Xero really stands behind their motto of simplified compliance thanks to the convenient features they provide. Not only can you pay your employees through it, but also they can self-service, meaning you can give them the power to apply for leave, submit timesheets, and check out their payslips anytime via the XeroMe mobile app.
Another dependable software is ePayroll presented by ReadyTech company. This one was designed particularly for very small businesses at just 10 dollars per month for up to 4 employees. Their main focus is getting the job out of your way as accurately and quickly as possible.
It’s as easy to use as a spreadsheet with a handy auto-update feature for the latest tax alterations. The software is highly secure and offers great email support.
Sharply supporting Australian small businesses, Reckon launched their completely free Single Touch Payroll app aiming to reduce the cost of compliance, so you can run your micro business without extra expenses.
This app is available on iOS and Android, letting you manage your STP reporting on the go. It’s also ATO registered and serves employers with 1 to 4 employees.
Last but definitely not least, we’re looking at yet another company providing 100% free compliance services known as Payroller.
Starting from their free Single Touch Payroll app available on Android and iOS, Payroller promises simple straightforward use and mobile handling of all your STP obligations.
Their desktop version is as free and reliable as the app, both offering unlimited payrolls, reports, and Single Touch Payroll for unlimited employees in all states of Australia.