Single Touch Payroll (STP) for SMEs
In 2000 when GST was introduced in Australia many SMEs modernised their businesses by moving to desktop accounting software. Those businesses gained huge benefits running their business with proper sales and purchase records, they were able to send professional invoices and see who owed them money, quickly, for the first time.
From July 2019 the tax office will require all businesses to report all wage details (including tax and super), for all staff, on or before each and every payment. You will continue to pay your staff as normal, but the tax office will be tracking super payments on behalf of employees to make sure entitlements are being paid, on time! STP will eliminate the need for Group Certificates/Payment Summaries as all data will be reported in real time.
Cloud software will be the only way to report STP to the ATO.
Those businesses that upgraded to desktop software in 2000 now need to look to moving to cloud software (if they haven’t already) and reap the benefits of online data integration between business apps.
Businesses who held off moving from excel (or nothing!), or newer businesses, will need to get on board with cloud accounting as STP becomes mandatory in July this year, the cost can be well and truly offset by the insights and time savings they will enjoy. Online support is easier and cheaper for small businesses to access for their business and accounting issues when they use cloud software.
Are you ready for the rollout of STP in July this year?
Do you need assistance to get up and running with STP if you are already in the cloud?
Do you need help to select and setup a cloud system?
Start by talking to your BAS agent bookkeeper or contact us for a chat about how Xero might be an ideal fit for your small or micro business.
STP – its an opportunity to modernise your business!