Single touch payroll benefits for small business
If you’re an Australian employer, you are required to use a single touch payroll (STP) compliant cloud payroll system under Australian Tax Office (ATO) laws. With STP systems, you send employees wage, tax and superannuation information direct to the ATO. This occurs whenever you finalise a pay run and confirm that you want to report STP in your cloud payroll software.
What are the benefits of single touch payroll (STP) for small business?
The introduction of single touch payroll (STP) as a mandatory requirement for Australian employers has benefits small businesses in several ways listed below:
Automated updates to the ATO
Australian employers must use STP software approved by the ATO like Payroller. Using cloud STP systems means small businesses report up-to-date employee wage, PAYG withholding and superannuation information in real-time to the ATO. There’s no need for separate activity statements or end-of-year wage payment summaries like group certificates used before the introduction of STP.
Do payroll & meet reporting obligations at once
STP streamlines the payroll process as a business’ regular internal payroll and official reporting obligations is completed at once. As an employer, you don’t need to manually report employee wage and superannuation payments at the end of financial year (EOFY). Small businesses save time with this reduced administration.
More accurate payroll
Cloud payroll software automates pay, tax, super and leave entitlement calculations. As a business, you minimise errors in payroll. Employers are more confident that they’re accurately paying their workers and reduce compliance risks.
Pay transparency for employees
Employees can access their year-to-date pay, tax withheld and superannuation contributions in their myGov accounts. As STP automates employee pay and tax reporting to the ATO, your staff can track their up-to-date earnings at any time.
Simplified superannuation reporting
Super reporting is integrated in STP software. Small businesses save time by not having to separately reconcile and report superannuation contributions for employees.
Valuable business insights
Having cloud STP software also benefits businesses who wouldn’t ordinarily analyse payroll data if it were done manually. With STP systems like Payroller, small businesses can analyse wage costs, and employee metrics like leave taken by accessing payroll information online. This helps small business owners take steps to improve operations.
Faster onboarding of new employees
When you add new employees in STP software like Payroller, their details are securely reported to the ATO in real-time. You can also offboard workers when you remove them from your payroll which is handy when you manage casual employees, seasonal workers and contractors.
How does my small business benefit from using cloud STP systems?
A cloud STP solution automates payroll processing tasks that are often repetitive. You can make pay runs in minutes and even generate employee payslips with one click using Payroller.
Real-time updates to comply with laws
STP software like Payroller has real-time updates to meet government laws as it’s approved by the Australian Tax Office (ATO). Our team ensures that Payroller software automatically updates with any changes to legal requirements. One example is Payroller introducing the changes required under Phase 2 of the Single Touch Payroll program.
Trust that your data is secure
ATO approved online cloud payroll providers like Payroller have undergone rigorous testing of security protocols and use high level encryption. This is superior to manual payroll records that small businesses with limited IT resources used in the past.
Scale up or down as you need
A good STP system is flexible so that your small business grows or adjusts to seasonal periods. You can easily add or remove employees with our employee management section in Payroller.