“It has made everything smoother and easier and
more transparent. And let’s face it, if you’re doing the right thing as most of
us are, it is not an issue at all.”
Stuart Armstrong, Velo Cycles, Carlton North
On July 1 2019, payroll reporting to the ATO became completely digital, for every business that employs at least one worker. The change has caused confusion for some, but more troubling many employers who must comply with the new law don’t even know about it.
According to News.com.au research by Intuit Australia found that half of businesses with 4 or fewer employees had not heard of STP.
Xero conducted its own survey and found that one in five small business owners don’t think STP applies to them.
Xero Australia national partner director Rob Stone said ATO figures suggested about 90,000 microbusinesses used no software at all when paying their staff.
STP affects around 700,000 small businesses, and they have until September 30 to start reporting using STP. With all of the new changes, small business owners should not worry. The one-touch payroll makes things simpler for employers to pay the proper amount of wages and super to their staff through digital systems.
Stuart Armstrong shared his thoughts, “It was all set up for me, it all just goes through Xero. With my daily job, it hasn’t affected me at all because of the support I received from 360 Accounting. What I would say to other business owners, it’s really not a big deal. Don’t worry.”
The ATO has published a list of no-cost and low-cost STP options for micro employers and would provide exemptions for some business owners.
Or it can be set up through an existing system like Xero or MYOB. If you haven’t been using a digital reporting system previously now would be the perfect time to set one up.
While it may seem like more government regulations hoops to jump through it will ultimately make sure that businesses are on top of their payroll, super and other tax obligations. This makes accessing the financial health of a business easier for the business owner, the ATO, and accountants.
If you have any questions on how these changes may affect you and your business, please do not hesitate to get in touch. We are always happy to help.
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