Why We Vouch For Xero STP Software

Following the payroll rules in Australia can be tricky business, but making the swap to Xero STP software is an effective tool to make the process much easier. 

In their own words, the team at Xero originally launched with the vision of changing the game for small businesses. Regarded as pioneers of cloud based software purely for accounting and bookwork management, Xero was founded across the ditch in New Zealand in 2006. 

Since then, they’ve managed to accumulate over two million subscribers worldwide, including Canio, Michele and the team at Muro. Since Single Touch Payroll (STP) became mandatory for all employers in Australia from 1st July 2021, it should come as no surprise that Xero STP software have become industry leaders in helping small business owners navigate the new rules. 

How Xero STP Software Can Help With Your Payroll

For those unfamiliar with the concept, Single Touch Payroll (STP) is the way you report your employee's tax and super information to the ATO. First legislated in 2016 as a part of the Budget Savings Omnibus Act 2016, the process has received numerous updates throughout the years, with the latest being rolled out on January 1 2022 known as STP Phase 2. 

STP works by sending tax and super information from your STP enabled payroll or accounting software to the ATO as you run your payroll, and automatically reports information such as salaries and wages, pay as you go (PAYG) withholding, and superannuation liabilities. Although it was once only applicable to employers with a certain number of staff, STP enabled software is now mandatory in Australia for all employers. 

Although STP Phase 2 doesn't change the payments you need to report through STP, it does change how those amounts need to be reported. The additional information supplied will reduce the burden for employers who need to report information about their employees to more than one government agency, and support the administration of the social security system.

To streamline your obligations, accounting software giant Xero has a number of subscription options that can help brands of all shapes and sizes navigate their legal responsibilities. From just $10 a month, users can use Xero STP functions to meet their payroll requirements, without the need for signing up to other more in depth plans. 

However, for an additional $17 per month, it’s worth considering other Xero STP friendly plans such as the Starter. At just $27 per month, it’s ideal for small scale operators and sole traders like creative industry professionals and small retailers. The Starter plan allows users to generate up to twenty invoices and quotes per month, enter up to five bills, reconcile up to twenty bank transactions, payroll for one person, and capture bills and receipts with HubDoc. When the time comes, users can eventually upgrade to a plan with less limits on how Xero performs. Other optional extras to consider include Xero Expenses and Xero Projects, which can be added to any of the Xero plans for a discounted price each month. How it works is that both programs charge a fee on top of the payment plan for one user per month, plus an additional fee for each active user per month on top of that. 

In addition, it’s worth noting that Xero STP rollouts are purposefully designed to help and support business owners as they navigate the changes. The software company is well regarded for the efforts they make to communicate with their subscribers, which goes a long way when it comes to reducing stress and any potential anxiety linked to dealing with the ATO.  While there’s countless options for STP friendly software, we vouch for Xero for their capabilities and customer services. 

Whether you’re starting a business, purchasing an existing one, or even reevaluating where your current one stands - all inevitably require some form of financial know-how if you hope to successfully navigate your legal requirements such as STP, as well as hitting your business goals. If finance isn’t your strong suit, then it might be time to consider outsourcing. 

Partner With The Brisbane Finance Professionals

If understanding the legalities that surround your business or finances isn’t your strong point, then it may be reassuring to know that you’re not alone. In fact, many businesses (big and small) enlist the services of an accountant in order to free up their time while knowing that their financial obligations are already taken care of by the professionals. 

Ultimately, the team at Muro believe that every business owner is an entrepreneur. However, accounting does not discriminate - finances break down barriers and are not territorial. If you would like to take a deeper look into your finances, please get in touch with us at Muro today to ensure that you’re on the right path for success.