If you follow legislation in Australia and the news, you would know by now that if you are a business with one to four staff you will need to lodge electronically every pay run with the Australian Taxation Office.
A big thank you to all the Accounting Firms sending their micro-business clients to me for a quick setup. As the phone calls have been coming in, I have asked each business how they have felt about the new changes. Most business owners said the would prefer to use Xero Payroll for Single Touch Payroll but did not want to use the full accounting software package.
So, if you are a business that uses Xero you will be glad to hear that there are two solutions for you so you can remain compliant under STP rules:
- with an expected price of about $10 a month, there will be a new Payroll-only product for up to four employees,
- There will be an option to add Payroll to a ledger or GST cashbook subscription covering up to four employees ($ to be determined).
So, according to the ATO, there is about 90,000 micro-businesses that use sticky notes, spreadsheets, ATO paper tax tables or combinations of these to get their payroll processed. So, it is great that Xero is providing a solution.
Tip: Don't wait until July 2019, opt in to STP now.
For many employers, you may just realise how much time you can save moving over to STP.