MYOB has launched a low-cost payroll product for micro businesses, enabling STP (Single Touch Payroll) compliance in time for the ATO’s 1 July deadline.
MYOB Essentials Payroll and MYOB Connected Ledger with Payroll are the first specifically for micro businesses or those with one to four employees. Essentials is available for $10 per month, while Connected Ledger has a $10 per month payroll component, with the product itself costing $20 per month.
Legislation was passed earlier this year with Single Touch Payroll soon to be compulsory for all businesses paying staff, after those with 20 and more employees transitioned to the new reporting model last year.
MYOB General Manager of Products, David Weickhardt, said the initial transition to STP had been smooth for larger businesses using MYOB and he anticipates the same for micro businesses, some of whom will be using cloud-based accounting software for the first time.
“Having a product tailored specifically for micro-businesses means in addition to being STP compliant some businesses will have the benefits of a complete cloud-based payroll solution for the first time,” Weickhardt said.
“This includes timesheets, PAYG, leave calculations and the automation of a number of other payroll-related tasks, all at a low cost.”
Over 1.3 million transactions have been processed via MYOB’s software so far, many of those from smaller businesses that adopted STP ahead of the compulsory deadline. Recent research conducted by MYOB found one in ten micro businesses are already reporting STP despite not being legally obliged to.
“The introduction of STP is a good reason for businesses to look at where they’re at and how cloud-based software might help them and their business. 53 per cent of business owners go to their accountants or bookkeepers for trusted advice and information on their business, more than any other source, and this is a good time to start a conversation with them about some of the options available,” Weickhardt said.
Leanne Berry, Director of Love Your Numbers, has been moving all her clients, including micro businesses, to STP enabled products since last year, anticipating the legislative change. For her, it’s been an easy conversation to have.
“Once I show my clients the benefits of Single Touch Payroll and an automated payroll product they’re excited about the possibilities for their business,” Ms Berry said. “It’s not just another reporting requirement; using STP enabled products means not having to provide payment summaries or spend hours reporting at the end of the financial year. It improves payroll processes, saving time and increasing accuracy.
“While there is a cost involved when signing up to a software subscription, the business owner’s time is so much more valuable than that fee and they get many benefits beyond STP reporting,” she added.
Key benefits and features of MYOB’s STP enabled payroll solutions include:
- Single Touch Payroll, tax obligations and super payments are incorporated and automated.
- Processes payroll for staff electronically, as well as it stores and shares timesheets, manages PAYG and automatically calculates leave entitlements.
- Employees can enter their own hours and access their payslips via the MYOB YourPay app.
- Run detailed reports on past pay runs, history of PAYG summaries, year-to-date activity and more in just a few clicks.
- Payroll tax is updated each financial year.
- Ability to attach expense receipts and employee documents in product.
