What Is STP Software? An SME’s Guide

<p style&equals;"text-align&colon; justify&semi;">The single touch <a href&equals;"https&colon;&sol;&sol;newsforpublic&period;com&sol;career-bookkeeping-payroll-sector&sol;">payroll system<&sol;a> has been mandatory for virtually all businesses in Australia since 2019&period; This system is designed to digitise payroll reporting to the ATO in order to provide up to date data and accounting across the country&period; In theory&comma; the process is now easier for employers too&period; However&comma; if you are like most employers&comma; you will still have questions that need answering&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Getting to the bottom of all of these questions and confusions is much easier with the use of <a href&equals;"https&colon;&sol;&sol;www&period;myob&period;com&sol;au&sol;single-touch-payroll" target&equals;"&lowbar;blank" rel&equals;"noopener">STP software<&sol;a>&period; STP software helps business owners navigate the nuances of the payroll changes that single touch payroll has brought&period; With STP software&comma; you will be able to better handle your compliance with the single touch payroll system&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Let’s look at some of the essential points that small and medium-sized business owners need to know about STP and STP software&period;<&sol;p>&NewLine;<h2>Some Essential Points About Single Touch Payroll<&sol;h2>&NewLine;<hr &sol;>&NewLine;<p style&equals;"text-align&colon; justify&semi;"><a href&equals;"https&colon;&sol;&sol;www&period;business&period;gov&period;au&sol;News&sol;Single-Touch-Payroll-is-here" target&equals;"&lowbar;blank" rel&equals;"noopener">The single touch payroll system<&sol;a> requires business owners in Australia to submit a variety of data points on their employees for each pay period&period; This includes wage and salary information&comma; as well as pay as you go withholding and superannuation information&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">It might seem like reporting this information for every pay period merely represents a new burden placed on the already-busy schedules of business owners in the country&period; However&comma; STP reporting does not have to be difficult&period; In fact&comma; with STP software&comma; the process is easy&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">The Australian Taxation Office has also published a <a href&equals;"https&colon;&sol;&sol;www&period;ato&period;gov&period;au&sol;business&sol;single-touch-payroll&sol;how-to-report&sol;" target&equals;"&lowbar;blank" rel&equals;"noopener">detailed list of reporting guidelines<&sol;a> to usher in the new system&period; If you have any questions or uncertainties about the new process&comma; this is an excellent resource&period; You can also contact the ATO directly or consult with your registered tax agent&period;<&sol;p>&NewLine;<h2 style&equals;"text-align&colon; justify&semi;">What Is STP Software&quest;<&sol;h2>&NewLine;<hr &sol;>&NewLine;<p style&equals;"text-align&colon; justify&semi;">There are many providers of single touch payroll software that employers can turn for assistance&period; Depending on how your business operates and what the unique characteristics of your payroll processes are&comma; different software packages will be better for your needs than others&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">For example&comma; micro employers who have four or fewer employees are directed by the Australian Taxation Office to use no-cost or low-cost solutions for complying with the single touch payroll system&period; These solutions are less than &dollar;10 per month&comma; take minutes to complete each pay period&comma; and do not require employers to maintain the software&period; A list of providers for these solutions is available on the ATO’s website&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">For other employers&comma; STP-enabled software is one of the most efficient ways to report single touch payroll information&period; In many cases&comma; payroll software has already been upgraded to meet the new compliance requirements under the STP system&period; This allows you to retain your familiarity with your existing payroll software and simply complete a quick extra step to submit the data to the ATO&period; Alternatively&comma; you will have to submit your data through the ATO’s online portal or through a third-party tax representative&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">When you choose to use STP-software to submit your payroll information&comma; this usually comes with an option to submit the data directly to the ATO through the software itself&period; Speak with your software provider if you are not familiar with how to complete this step&period;<&sol;p>&NewLine;<h2 style&equals;"text-align&colon; justify&semi;">Be Patient With The Process<&sol;h2>&NewLine;<hr &sol;>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Adjusting to the single touch payroll system will take some patience&period; The ATO has made the transitional phase easier for employers by reassuring them that there will be a grace period&period; As you figure out how to submit your payroll information to the ATO&comma; let STP software help you out&period; Software makes the process seamless with your current payroll processes and will make the transition to STP easier to implement&period;<&sol;p>&NewLine;