Many business owners are still unaware of some major changes around payroll and compliance requirements. These changes are referred to as Single Touch Payroll (STP) and they became mandatory for all employers from 1 July 2019.

Put simply, STP requires employers to report payroll information to the ATO every time they pay their employees. This includes wages, PAYG withholding and superannuation.

If you are already using STP compliant software like Xero or MYOB, then the process is fairly straightforward once setup. But if you are still using spreadsheets, manual records or non-compliant software its time to act.  

To comply with STP, you need to submit payroll data to the ATO on or before each payday. Here’s how you can get ready:

1. Already using cloud-based payroll software? Great! Just ensure it’s STP-enabled and you're lodging reports correctly.
2. Still on desktop software? You may need to switch to a service that can convert and lodge payroll reports in an STP-compliant format.
3. Using spreadsheets or manual records? Now’s the time to explore a digital solution or speak with a bookkeeper who can handle the reporting for you.

Tip: This is a great opportunity to upgrade to cloud accounting software or outsource your payroll to a professional. Either way, your business becomes more efficient and compliant.

The ATO set the challenge to software developers to have a standalone payroll software for less than $10 / month. This has seen the development of several software packages available to use if you don’t want to have a full accounting package.

Popular providers of accounting software like Xero and MYOB offer affordable standalone payroll software packages. One of the biggest advantages? If you decide to upgrade to a full accounting suite later, you won’t need to re-enter all your employee information – everything transfers over smoothly. This can save heaps of time and stress.

Don’t Leave It to the Last Minute

STP has been mandatory since July 2019 for all employers – even micro-businesses and sole directors. While there may be some flexibility for very small businesses, why take the risk?

Let Shelly’s Bookkeeping handle it all for you – from setup to ongoing compliance. We’ll ensure your payroll runs smoothly, your reports are accurate, and you stay on the right side of the ATO.

Need help with STP?

Get in touch with our expert team at Shelly’s Bookkeeping today and let us take the stress out of payroll compliance.