Snippets 13th February 2019
Single Touch Payroll
Today, the Australian Federal Parliament passed legislation that requires even the smallest of employers to electronically file each pay run with the tax office using Single Touch Payroll, starting July 1. It’s a big ask for the nation’s 2.3 million small businesses, which employ 40 percent of all workers.
Many of these employers still use a combination of spreadsheets, ATO paper tax tables and Post-it notes to process payroll. They have yet to embrace cloud-based solutions that save time and simplify their lives. In fact, some 90,000 micro-businesses use no software at all, according to the ATO.
Xero is our preferred accounting software solution. However, MYOB and Quickbooks are also supported. Single Touch Payroll in these systems adds just a few clicks to businesses’ workflow and keeps them ATO compliant. Wherever small businesses are in the digital journey, they can be assured that we have an STP solution for them.
For the estimated 400,000 micro-businesses that have four or fewer staff, Xero announced a standalone solution last week that will ensure they remain compliant with the ATO. This Payroll-only product will process, pay and report information for up to four employees, with an expected price of about $10 a month.
Making lives simpler
And for larger employers, Xero’s premium plans have them covered. As well as the Payroll suite, they get online tools to track workers’ hours and approve leave, offer controlled access for employees, reimburse expenses, and be SuperStream compliant. It also gives businesses access to an ecosystem of over 700 time-saving apps.