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Announcing an STP solution for the smallest employers

Posted 2 years ago in Advisors by Trent Innes
Posted by Trent Innes

If you’ve been following the news, you may know that Australian lawmakers are poised to require that all employers use Single Touch Payroll starting in July. Even micro-businesses – those with one to four staff – will be required to electronically lodge every pay run with the ATO.

We asked our smallest business subscribers, as well as our bookkeeping and accounting partners, how they felt about this change. A consistent response came through: micro-businesses want to use Xero Payroll for Single Touch Payroll (STP) but some aren’t quite ready to adopt a full accounting-software package.

For that reason, we’re delighted to announce two standalone solutions that will ensure the 400,000 micro-businesses about to fall under the new STP rules remain compliant:

  • A new Payroll-only product for as many as four employees, with an expected price of about $10 a month
  • The option for Xero partners to add Payroll to a ledger or GST cashbook subscription covering up to four employees (price to be determined).

It’s the first time we’ve offered Payroll as a standalone product, and we’ll deliver both solutions by 1 July 2019. Both options will feature the full Payroll module, offering the ability to process, pay and report information for up to four employees.

“This will be a big help to our smallest clients,” said Jo Doye, director of Alluvia Financial, a bookkeeping and accounting firm in Bendigo, Victoria. “Not only will they get a solution for STP, but many will also get their first sense of what Xero can do for their business.”

Helping the smallest businesses make the shift  

Many smaller businesses use some combination of spreadsheets, ATO paper tax tables, Post-it notes and shoeboxes of paperwork to process payroll. In fact, some 90,000 micro-businesses use no software at all, according to the ATO.

We see this as a huge opportunity for our Xero partners: hundreds of thousands of small businesses are going to need help with this digital move.

In addition to the new product for micro-businesses, we’re happy to announce that employers of any size on a Xero plan with Payroll enabled can now opt in to STP. If you’re a partner, this is an opportunity to get all of your clients on STP well before the July changes take effect.

For many employers making the shift, this could be the catalyst to understanding how simple, beautiful and connected solutions reduce friction in their business.

We’re still in early days with this product announcement and will update the Xero website when we have more information to share. For partners, keep an eye on your email inbox and be sure to attend our coming STP webinars.



Deborah Brooks
May 29, 2019 at 1.07 pm

Is the new product $29 per month, or is there a $10 per month one? I have a private household with two domestic staff. The employer is adverse to cost.

Erin Smith in reply to Deborah Brooks
May 30, 2019 at 6.16 pm

Hi Deborah, thanks for your query. We have launched two new plans in Australia, both of which are now available to purchase. Payroll Only is $10 a month and can be used by small businesses that employ 1-4 people, and/or their accountant or bookkeeper (https://www.xero.com/au/pricing/plan-details/#payroll-only). Payroll Cashbook is a $29-a-month plan and is designed for Xero’s accounting and bookkeeping partners (https://www.xero.com/au/features-and-tools/practice-tools/ledger-cashbook/). You can find more at Xero Central, where you can also contact Xero Support if you have any questions.

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