Single Touch Payroll (STP) forms part of new regulations for reporting tax and superannuation information to the ATO. Your reporting requirements will vary, depending on the number of employees within your business as follows:
If you’re an employer with four or less employees, you will have additional options.
If you’re using a solution that offers Single Touch Payroll reporting − such as payroll or accounting software − you will automatically send your employees’ tax and super information to the ATO each time you run your payroll, in which case information will be sent to the ATO either directly from your software, or through a third party such as a sending service provider.
All major accounting software packages such as XERO and MYOB already have this function built in. All you need to do is follow the relevant instructions from the software provider and contact the ATO to confirm your business is ready to file the report, each time you run payroll.
There will also be a number of options available for employers who do not use payroll software, such as no-cost and low-cost Single Touch Payroll solutions, being made available from early 2019 in addition to existing commercial STP solutions.
No-cost or low-cost solutions have been developed for employers with 4 employees or less, who need to report through STP but do not currently have STP ready software. These solutions may include mobile apps, simple reporting solutions and portals.
Due to demand, software providers have proposed product solutions for these micro-businesses (4 employees or less), with the aim to make these products cost-effective (under $10), only take minutes to use, and not require any software maintenance from the employer.
Employers need to choose a solution that is right for their business, based on individual circumstances. A list of no-cost or low-cost solutions for Single Touch Payroll for small business can be found on the ATO website.
To learn more about Single Touch Payroll, including Single Touch Payroll reporting and available options for small businesses, contact the team at IZ Bookkeepers today.