Parliament has finally passed laws to mandate all businesses to use single-touch payroll from 1 July 2019. If you are an Australian employer this means you will have to archive your paper payroll ledgers once and for all.
This news was great news for Amelia that owns a small cafe in Perth, Western Australia that has 3 employees, as last year Amelia was doing payroll by entering numbers into a Microsoft Excel spreadsheet, calculating the days, times and checking the superannuation, tax and then typing out each payslip, all up it was taking about one and a half hours each time to process pays.
We have implemented Xero's platform to generate digital payslips for Amelia and she is now ready for single-touch payroll and our client couldn't be happier because she now says that it has reduced the chance of errors and decreased her payroll processing time to 30 minutes.
With single touch payroll each employer must report tax and superannuation at the same time that they run their payrolls to the Australian Taxation Office, not later on down the track in a months time, etc.
The Australian Taxation Office has confirmed small employers, with one to four staff, will not have to pay large amounts for accounting software subscriptions to adhere to the single-touch payroll laws.
"We have asked software developers to build low-cost STP solutions at or below $10 per month for micro employers – including simple payroll software, mobile phone apps and portals," the Australian Taxation Office said in its advice to small businesses.
More than 30 accounting companies have put forward proposals to the tax office for payroll software costing less than $10 a month. This includes Xero and MYOB.
If you are a small business, be aware that there are no-cost options and low-cost options - just give us a call.