The ATO is currently writing to accountants and tax agents around Australia listing all their non STP compliant clients.
We know this because we got one too (that’s right, we’re also accountants!).
Previously, the ATO granted exemptions for certain types of businesses, meaning some businesses did not need to do STP reporting.
These exemptions included businesses where the payee is directly related to the business, as opposed to a normal arm’s length employee.
These are sometimes referred to as closely held payees, and are described by the ATO as where the person being paid is either:
- A family member of a family business
- Directors or shareholders of a company
- Beneficiaries of a trust
There were also exemptions for other types of small businesses which meant they did not need to do STP reporting.
These exemptions are now ending, meaning all small businesses, including those with closely held payees are required to perform STP reporting from July 1st.
Getting these clients onboard with STP can be a challenge because no two businesses are the same:
- A solution that works for some, won’t be a good fit for others
- For some, its worthwhile investing time and energy working with their accountant to use an integrated accounting package with other features
- For others, a simple solution with the least amount of change is preferable
- Some small businesses want their accountant or tax agent to do it all for them
- Others will want to give it a go themselves, assuming they can find the right solution with the right support.
Having some flexibility in the approach allows accountants to offer their clients a more fit-for-purpose solution.
But it can take a lot of effort and tenacity to work with all clients to get them STP compliant. And with year-end fast approaching, we know things are busier than ever.
So it’s worthwhile for accountants to look for an option that offers:
- Flexibility to do STP on their clients behalf, or have them do it themselves
- Quick and easy setup, with options for creating accounts via upload and no need to contact the ATO to register a software ID
- Good value
- Great customer support to both accountants and their clients
While some of the biggest accounting software players like Xero & Reckon have built STP solutions, they tend to be:
- Complex to use
- Hard to get started for their clients
Other companies are offering free STP solutions for small businesses that are great value but will actually create more work for accountants, due to:
- No Accountants’ Dashboard to manage all their clients easily from one place
- No support for either the accountant or their clients
So we decided to build a simple solution that allows accountants and their clients to run their own payroll through web and mobile apps.
With our solution called EasyPayslip, accountants can upload a list of their clients:
And easily create a dashboard like the one below:
Once the client’s Dashboard is setup, accountants have the flexibility to:
- Do their clients’ STP reporting for them OR
- Invite them to access their own account so they can do it themselves
Clients can setup their own account from our website or mobile phone apps, too. It take about 10 mins to setup and send the first STP file. And they can then invite their accountant to access their account.
This gives accountants complete flexibility to manage their clients’ STP compliance in the way that suits them best. Better still, there is no need to contact the ATO and register a software ID for each client as it happens automatically.
Accountants also have a dedicated Easy Payslip partnerships manager that they can call on as they need, plus their clients also have access to a Sydney-based support team. We’ve helped thousands of small businesses send their first STP files.
And all accountants, bookkeepers and tax agents get 3 months free for every new client account they’re setting up. Then it’s just from $8/month per client.
Start dealing with your STP compliance headache by signing up for your free accountant’s dashboard with Easy Payslip for Accountants or book a demo to see for yourself and have a chat with our Partnerships Manager, Paul.
Ready to reduce STP headaches for you and your clients?
Not an accountant? Sign up here.