Run a business that employs one to four people and not yet ready for compulsory Single Touch Payroll (STP) reporting? Read on.
MYOB and Xero have both announced new Single Touch Payroll (STP) compliant payroll solutions for companies with one to four employees.
Businesses with less than 20 employees must comply with STP rules from July 1, 2019. This will involve submitting payroll information to the ATO on each pay day.
MYOB made two new STP-compliant payroll solutions available this week. Each cost $10 per month.
MYOB Essentials Payroll is a standalone solution that MYOB promises “automates all the tax and superannuation reporting you’ll need to do” to comply with STP rules.
Businesses can use it to submit payroll data to the ATO, pay employees electronically organise timesheets and automate Pay as you Go tax and calculate leave.
MYOB also offers an STP-compliant payroll component for MYOB Connected Ledge. The component also costs $10 per month.
On April 10, Xero plans to announce a new STP-compliant payroll plan called Payroll Only, for business with one to four employees. The company hasn’t revealed how much it will cost.
Xero’s Payroll Only plan will be designed for businesses that are “starting out” with online accounting.
QuickBooks and Reckon One
Intuit, the company behind QuickBooks, has also announced plans to offer a STP compatible payroll solutions for micro businesses that will cost $10 per month or less.
Meanwhile, accounting software vendor Reckon has focused on the choice between payroll-only STP software and STP-compliant accounting software with more features.
“Price cuts and shaved-down STP solutions may seem attractive, especially for employers operating on spreadsheets or who are new to accounting software, but business owners must be mindful of the trap of value,” said Reckon Group CEO Sam Allert in a statement issued in February.
“While the bare minimum may keep you compliant for now and may seem cheap, you could be easily locked into a solution with nowhere to go, spending more money than you should, and unable to use an alternative vendor without substantial switching costs,” Allert stated.
The ATO currently lists seven companies that offer free or “low-cost” STP payroll solutions. They are:
- Single Touch Pty Ltd
- Cashflow Manager
- Free Accounting Software Pty Ltd
- MYOB Australia Pty Ltd
- CloudPayroll Pty Ltd
Do you like your STP payroll software? Tell us what you think below.