The ATO has released its list of low-cost, and in some cases no-cost, software for micro-employers to meet their Single Touch Payroll reporting obligations.
Single Touch Payroll will apply to small businesses (19 or fewer employees) from 1 July 2019, including micro-employers – which the ATO describes as having between one and four employees.
The ATO has been seeking low-cost solutions from software developers for micro-employers to meet this new reporting obligation.
“There will be a range of no-cost and low-cost Single Touch Payroll (STP) solutions available in the market from early 2019,” says the ATO.
“These solutions will best suit micro employers (with one to four employees) who need to report through STP, but do not currently have payroll software.”
“Companies have put forward product proposals to offer no-cost and low-cost STP solutions in response to a market request. The solutions are required to be affordable (costing less than $10 per month), take only minutes to complete each pay period and not require the employer to maintain the software.”
The tax office doesn’t require these solutions to be full bookkeeping software, opening the list to include “mobile apps, simple reporting solutions and portals”.
The ATO has now released its list of low-cost and no-cost STP solutions. The list currently has six STP solutions as available now: four which cost “$10 or less per month”, one which is free until the end of 2019 (after which it is $10 a month), and one which is free.
Another 16 solutions are listed as ‘in development’, including products by developers MYOB, Xero, Intuit and Reckon.
The ATO says it does not endorse any of the suppliers, and warns that it is not making representations about the software products. The ATO says businesses wishing to buy the software on the list should “do so on the basis of independent consideration or advice”.