The ATO has confirmed that micro businesses (those with 1-4 employees) will not be required to purchase payroll software to be Single Touch Payroll (STP) compliant.
The ATO is looking at alternate low (or no) cost solutions for these businesses, that are easy to use and not time consuming.
Some possibilities that are being looked at include a STP app or reporting directly through the employer's internet banking.
At the time of writing, the legislation to expand STP to employers with 19 or less employees from 1st of July is still before the Senate. Whilst micro businesses will not need payroll software to be STP compliant, please keep in mind that there are other benefits to using payroll software. You may like to discuss these benefits and a solution for your business needs with our business advisors.
