2019 Payroll Update is the Biggest Tax Change Since GST is here - Get on board, Small Business
In the most significant tax change since GST was introduced in 2000, the Australian Taxation Office (ATO) has introduced mandatory payroll reporting, it took effect on, July 1, 2019.
From that date, all employers must report employees’ pay and superannuation details to the ATO through its new one-touch system, ‘Single Touch Payroll’ (STP). This is not an optional exercise by the ATO: it is mandatory for all businesses.
The introduction of STP has been known about for a year, but the message doesn’t seem to be getting through to Australia’s army of small and micro-sized businesses, despite the ATO’s campaign to get business owners all around the country prepared for it.
A recent YouGov ‘galaxy survey’ of 517 business owners required to comply with the new ATO regulation found that 70% had “no idea what’s ahead of them,” while more than half (55%) had “little knowledge” about how to become compliant with STP.
“It is not surprising that these small businesses are not embracing STP as enthusiastically as the ATO had hoped,” says Peter Nawn, chief executive officer of payroll app Easy Payslip.
“This is similar to the introduction of GST, in that complying with new tax rules, contemplating setting up new accounting software, and just the steep learning curve required is far more than an inconvenience for time-poor small business owners,” says Nawn.
“It’s an imposition and requires skills that can be very different to the ones these business owners are trained in, or use to serve their customers.
“These businesses see this as another ‘set of hoops’ that they need to jump through, but many are nowhere near ready for it,” Nawn says.
Easy Payslip supports the ATO’s STP initiative, which will be a valuable introduction for all stakeholders. It will provide visibility to employees, employers and authorities on pay and superannuation for all employees across the country.
Employees will have near-real-time access, through MyGov or the ATO online services, to ensure they are receiving the appropriate entitlements and benefits along with necessary documentation.
For employers, STP compliance doesn’t need to be a difficult task: it will take ten minutes with the right software. Easy Payslip has been created to make this a simple process: with the flexibility of an app and website, it can be done anytime, anywhere.
Easy Payslip is a leading Australian-based payroll solution for business owners who need flexible technology, simple setup and an easy-to-use solution, with ready access to help and support.
‘Simplicity, Mobility, Compliance, Value’ is the driving philosophy behind Easy Payslip, which was created to provide small business with the easiest way to overcome these challenges. Every idea must align with this philosophy – or it doesn’t get built.
“This is the first payroll app and website on the market that provides a complete answer to small business’ payroll needs that employers can use anytime, anywhere,” says Paul Sharpe, operations director at Easy Payslip.
“Easy Payslip is a fit-for-purpose product that is easy to use. Once employers spend ten minutes entering their business and staff information, it produces payslips, manages to leave, entitlements, tax and super, then sends Single Touch Payroll data back to the ATO to meet its regulatory requirements. This all happens with a few clicks from a desktop, tablet or phone.”
The message to small and micro-sized businesses is to move quickly and invest a small amount of time in setting up a system like Easy Payslip so that the potential headache of STP is solved. Easy Payslip has the methods to help make this a stress-free experience.
About Easy Payslip
Easy Payslip is a payroll solution for micro-sized and small businesses. It is the first payroll app in the market to have a fully stand-alone mobile technology that translates complex HR and payroll accounting system requirements into a simple app that employers can use wherever, whenever, and on whatever device they like.