Xero has launched a payroll-only solution for smaller employers ahead of their Single Touch Payroll start date.
Single Touch Payroll (STP) involves employers reporting information – including salary and wages, PAYG Withholding and superannuation – to the ATO each pay cycle.
Large employers are already using STP; small employers (19 or fewer employees) will have to start using it 1 July 2019.
As part of this roll-out, the ATO has been seeking (but not endorsing) low-cost solutions for small employers who might not be using payroll software.
Xero’s Payroll Only subscription plan is one such solution – it is aimed at employers with up to four employees, and costs $10 per month.
“We’re pleased to offer a digital payroll reporting solution supporting Australia’s smallest employers – many of whom are used to manually reporting payroll activity to the ATO,” said Trent Innes, Managing Director of Xero Australia.
“The government’s introduction of real-time digital payroll reporting for all Australian businesses is a step towards levelling the playing field for small business owners of all sizes,” he said.
“Xero’s data shows digital integration is associated with better outcomes for small businesses – including increased revenue – so this change is hugely positive for the sector.”
“We want to help small business owners – no matter where they are in their journey – understand that digitising and automating their backend processes can provide a significant competitive advantage. Our Payroll Only plan is designed to make it as effortless as possible for small business owners to make the transition. The beauty of Xero’s cloud-based platform is that it can then grow with small businesses as their needs change and mature,” Trent said.
The Coalition had announced a $100 non-refundable tax offset for employers to buy compatible software, but this was dropped.