[Linux-aus] Employing staff/Single Touch Payroll/MyGovID - help!

[Ben Sturmfels]

Hi folks,

Do anyone run a small business and have experience employing staff and
dealing with PAYG tax witholding?

After many years of working with sub-contractors, I'm employing my first
(non-family) staff member to work in my small business. I spent this
morning working through how to report PAYG and superannuation, but I'm
left feeling horrified and powerless at how proprietary this whole
process is - needing both proprietary Single Touch Payroll (STP)
software and the proprietary MyGovID app, with seemingly no alternative.


Problem 1: Single Touch Payroll  software is all proprietary.

A few years back the Australian Government mandated that all businesses
must begin using Single Touch Payroll (STP) software to report PAYG tax
witholding. You used to be able to report on paper, but it appears that
that's no longer allowed. So you need some STP software. It's all
proprietary unfortunately. I have pondered putting in an LA grant
application to write a FOSS STP tool, but that doesn't help me right
now. The least-worst option I've found is a Java-based tool called "Free
Accounting Software", that provides Linux support.


Problem 2: You need the proprietary MyGovID app - only available
from Google or Apple app stores.

The above STP software needs a "Machine Credential file", which is a
digital key used to communicate with the Tax Office. To get a machine
credential, you first need the proprietary MyGovID mobile app. To get
MyGovID you need a Google or Apple account which I don't have, by
personal choice.

Then when you get the MyGovID app, there's some sort of scary
"photograph your identity documents" dance to complete. Even putting the
proprietary software and security/privacy issues aside, I can't quite
believe that every small business in Australia has managed to deal with
the complexity of this whole process.


What are the alternatives? Not employing people? Forcing everyone to be
sub-contractors? (also problematic) Not running a business at all? I'm
hoping there's some secret loophole where I can just fill in a paper
form and be done with it, which I what I did while employing my wife
some years back before STP.

I'd love to hear about your experience. Did you just end up using the
proprietary software? (no judgement)

(If this rings a bell, I did get a bit upset a few years back about
changes requiring a MyGovID to submit business activity statements and
use the Superannuation Clearing House, but it turned out that
sole-traders like myself could still access these services via my.gov.au
without MyGovID. See:
https://stumbles.id.au/mygovid-ethical-privacy-and-security-problems-for-ato-business-portal.html)

Regards,
Ben