STP Update

From 29 January 2019, the ATO will write to small employers who have 19 or less employees and already use payroll software.

The ATO will remind employers that they don’t need to wait for legislation to pass to start reporting through STP.  If their payroll software offers STP they can update their software and start reporting now.

The ATO have asked software developers to build low-cost Single Touch Payroll solutions (less than $10 per month).

Micro employers (1–4 employees) will also have a number of alternate options.  One option includes initially allowing your registered tax or BAS agent to report quarterly, rather than each time you run your payroll.

It is expected that a range of simple, low-cost Single Touch Payroll (STP) solutions will be available in the market from early 2019.  These will best suit micro employers who need to report through STP, but do not currently have payroll software.

In response to the market request by the ATO, 31 companies have put forward product proposals to offer low-cost STP solutions.  The solutions are required to be affordable, take only minutes to complete each pay period and not require the employer to maintain the software.

These solutions may include mobile apps, simple reporting solutions and portals.

The ATO have published a list of the companies intending to offer these solutions.

Griffin & Associates