Parliament has passed legislation resulting in STP (Single Touch Payroll) being mandatory for all employers from 1 July 2019.
For those employers already on STP compliant software they can opt in at any time. Given that the implementation has progressed smoothly, with only minor issues, there is no reason to delay opting in to STP any time between now and 1 July. There will be further details available for reporting options for smaller employers, however the ATO has stated it won’t force employers with 19 or less employees to purchase payroll software if they don’t currently use it.
For micro employers (1 – 4 employees) there are a number of software developers who will be offering low cost payroll only solutions for an estimated $10 per month. MYOB and Xero have already stated that they will have an option available by 1 July. Other options such as initially reporting quarterly through a registered tax agent are being investigated but no details are available as yet.
Exemptions to STP reporting will also be available to employers if they have no internet or an unreliable connection.
For any questions or to discuss any of the above in relation to your personal situation, please contact your Nexia Adviser.
