The Australian Taxation Office recently implemented a single touch payroll system, making payrolls completely digital for businesses across the country, covering even small scale ones, as the regulation applies to businesses with less than 19 employees.
However, a lot of Small Business Accounting in Norwest and across the country ended up involving questions about the new STP system, with a lot of Aussie employers confused about what they should do for the new system.
The new STP system is designed to make keeping track of payrolls easy, sending tax and superannuation data directly to the ATO at every payday, which allows the ATO to easily go after fraudulent employers, and protect workers from not getting their super. The new system also meant the end of paper payment summaries and group certificates, which have been replaced by online income statements.
Cloud accounting companies have looked at Small Business Accounting in Norwest and across the AU have noted, with multiple studies, that a lot of business owners don’t have a clear enough grasp of STP or whether or not it affects them.
Notably, prior to the STP implementation in July 1, Intuit Australia conducted research, and found out that more than half of micro businesses; businesses with less than four employees, haven’t even heard of STP prior to the ATO’s announcement.
A separate survey, this one conducted by Xero, found that one in every five small business owners don’t think that STP applies to their business.
Xero Australia National Partner Director Rob Stone noted that ATO figures suggested that about 90,000 micro businesses don’t use any form of software for paying their staff, instead opting for spreadsheets, ATO paper tax tables, as well as boxes upon boxes of paperwork.
He states that it’s often the reality for small business owners to find themselves far too busy handling the day-to-day needs of their business in order to deal with all of the new regulatory obligations.
Mr. Stone, however, noted that there was a lot of support available for small business owners for helping them handle the switch to STP.
On top of that, ATO Assistant Commissioner Jason Lucchese stated that the change, which affected 700,000 small businesses, has breathing room for businesses, as they have until the 30th of September to report using STP.