With Single Touch Payroll likely to become mandatory for all businesses in the coming months, MYOB has announced a cost-effective solution for microbusinesses allowing them to be STP compliant with ease.
MYOB General Manager of Products, David Weickhardt, said the company is passionate about helping businesses of all sizes succeed. He suggests the payroll solution for micro businesses (those with 1-4 employees) will be a game changer.
The solution will provide microbusinesses with significant time savings by cutting out the need for individual payment summaries and reducing the margin for keying errors by auto populating payment and super information.
“We’ve designed our solution to be as straightforward as possible that anyone can pick it up and use it,” Weickhardt said.
Also announced today was the launch of a Connected Ledger plus payroll package for accountants and bookkeepers, which will allow practitioners to support small businesses with their STP compliance. The Connected Ledger and payroll product combined would carry a cost of $30 a month and would also be targeted at businesses with one to four employees.
Currently, STP is not compulsory for businesses with 19 and fewer employees yet according to MYOB’ latest Business Monitor report, many micro businesses are already embracing the change.
“Smaller businesses aren’t waiting for STP to be made compulsory. Our research tells us 13 per cent of businesses with 19 employees or less has started using STP. This shows there’s already an appetite for this shift,” Weickhardt said.
For many micro and small businesses, the switch to STP comes with added benefits Business Monitor reports 38 per cent of businesses with one to four employees believe a jump to STP will save them time on payroll.
“STP comes with many benefits, for both the business owner – less admin time, less risk of error – and employees – quick access to information about super and simpler tax returns. Combined with a fully fleshed out payroll system, we expect time savings for SMEs of up to 25 per cent.”
Weickhardt urges micro and small business owners to ready themselves for the change to STP reporting. Since both major political parties support the initiative, the legislation is likely to go ahead regardless of any election outcomes. If this should occur Weickhardt says MYOB is poised to assist.
“We want to be ready. We want to have something we can instantly take to market when the time comes, so micro businesses can have the option to hit the ground running,” he said.
If the 19 and under STP legislation goes ahead, the MYOB micro business offering will be available for purchase from April and will represent the first time MYOB launches a payroll-only product in Australia.