How low-cost STP can help micro-businesses
The ATO announced in 2018 that a number of companies had been asked to release a range of low-cost Single Touch Payroll solutions tailored specifically for micro-businesses.
Prior to the approval of the Treasury Laws Amendment (2018 Measures No. 4) Bill 2018, ATO commissioner Chris Jordan clarified that micro-businesses (businesses with 1-4 employees) would not be forced to purchase any kind of payroll software for the sake of STP reporting.
In addition, Mr Jordan stated that BAS and tax agents will be offering assistance to micro employers as they start the transition from traditional reporting to STP reporting. They will also be allowed to report on a quarterly basis, as previously outlined.
In October 2018, the ATO sought expressions of interest from payroll software providers as part of its goal to develop low-cost STP solutions for micro-businesses. How low-cost STP can help micro-businesses.
A total of 31 companies responded to this market request and have proposed, if not developed, low-cost and even no-cost STP products. The ATO requires these STP products to be affordable (with products costing no more than $10 per month), to not require businesses to maintain the payroll software, and to take only minutes to complete each pay report.
The full list of these service providers can be found on the ATO website.
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