In response to industry concerns that micro employers – those with four or fewer employees – may not have payroll software to keep up with STP requirements, the ATO began consulting with digital service providers to provide low cost alternatives for such businesses.
The solutions are required to be affordable, that is, costs less than $10 per month, takes only minutes to complete each pay period and does not require the employer to maintain the software.
According to the ATO, these solutions may include mobile apps, simple reporting solutions and portals.
The ATO has now published a list of 24 companies intending to provide such solutions, with the list to be updated further this month to include information about the products these companies will offer.
MYOB, Xero, Reckon, and Intuit are among some of the accounting software providers that have put forward product proposals, with PwC also looking to offer a product.
The publication of the list comes after ATO Commissioner Chris Jordan called for the industry to remain calm as the agency works to provide alternative solutions to smaller businesses.
“We’re not going to force people to put in a business, accounting system and payroll software. A lot of people will have basic accounting software but not the component that does the payroll. Some of the software providers might be looking at that as an opportunity to get people in to maybe a more upgraded sort of accounting system,” said Mr Jordan.
“With some of these low cost payroll solutions added on, they have to realise everyone is going digital – with e-invoicing, the way people order and dispatch.
“It is the way it happens. We’re not forcing people to go digital to get the accounting software and payroll,” he added.
The list is ordered alphabetically for convenience and does not imply any preference. The ATO does not endorse any of the suppliers listed:
- AccXite Pty Ltd
- Australian Payroll Professionals Holdings Pty Ltd
- Bass Off Pty Ltd
- Cristabel Pty Ltd
- Easy Payslip Pty Ltd
- Employment Hero Pty Ltd
- E-Payday Pty Ltd
- Etax Accountants Pty Ltd
- Free Accounting Pty Ltd
- Globe BD
- Govt Reports
- Intuit Australia Pty Ltd
- Lodgeit Pty Ltd
- Ironbark Software
- Myaccountant Technology Pty Ltd
- MYOB Australia Pty Ltd
- OB Secure Messaging
- Price Waterhouse Cooper
- Reckon Australia Pty Ltd
- Single Touch Pty Ltd
- SRI Enterprise Software Pty Ltd
- Total Forms (Catsoft)
- Xero Australia Pty Ltd
Jotham Lian is the news editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.