Institute of Certified Bookkeepers
A business perspective on Single Touch Payroll
Presentation to the STP Business Engagement Forum
19th October 2016
Matthew Addison
institute of Certified Bookkeepers
Introduction
We are a professional association for the bookkeeper community
That includes many things but for the purpose of this discussion that includes BAS
agents, includes processing payroll, super
We represent bookkeepers that spend their time helping business. They use software
to achieve their outcomes.
We have been very involved in the single touch payroll discussions for over two years
Our involvement has been to keep bringing the reality of business, of small business
to the discussion
Perspective
Our role has included giving the ATO and government a hard time. A common
question has been what do you think you are doing
Another question has been: do you actually understand what an employer has to do
to employ people and pay people?
Today I am comfortable that the ATO has been taking those questions on and is
adapting their design of STP to cope with the real world and provide an achievable
solution.
Our role has included pushing the software companies to think about how they
embrace STP in a way that suits business.
Our comment to software companies includes that STP isn't all bad for them , it
provides great incentive to improve processes and engage business in using better
payroll software.
But we note that software developers are the ones that should be or will be taking all
the pain out of the implementation of STP for the business.
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Why STP?
We are looking to bring single touch payroll into being in a way that helps business
and not one that causes more work
What do we get: Greater efficiency through better digital payroll processes and
solutions
What does the economy get: big picture we get better visibility leading to catching the
crook.
The business community is a little over the guy down the road who gets away with
underpaying workers, not paying the ato, not paying super.
Typically that business model includes shutting the door the day they get found out
and opening a new business next door
Visibility
Tomorrow in STP
a business registers
The ATO quickly see if they are paying employees
The ATO looks for and follows up non-payment of PAYG W
They look for and follow up SGC accrual and payment
Greater visibility / quicker follow up
What do we actually see happening
Today an employer does a whole lot of work to calculate a pay and then send the
payslip and the payment.
Tomorrow an employer does a whole lot of work to calculate a pay and then send a
payslip, the payment and a copy of some of the data to the ATO.
The design has taken on board, NOT creating extra work. In particular the source of
payroll truth remains with the employer. There is no requirement to reconcile with the
ATO records. An employer makes sure their records are correct and if they find a past
error simply update the ATO data. Not fix it, replace it in the next pay run.
The ATO talk about being "relieved" of obligations
What STP actually does is change those obligations
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Payment Summaries
End of year payment summaries are changing - Employer's will still need to do their
end of year processes
We think software will now be able to produce a readable end of year statement as
opposed to the format we have had for a few years
Amending payment summaries - 14 July is the employee date the employer obligation
date is 14 august. Many employers don't lodge with the ATO until later.
Commencement
Starting an employee will still require an employer to obtain a TFN Dec and a super
choice form process.
We are looking for the wholesale system i.e. That the ATO creates the ability for our
payroll system to operate fully with TFN Dec Lodgement and Super - we do it in our
software, it is easier for the employer to intricately manage the collection of
information and therefore receiving the information and efficiently advising it to the
ATO.
The Dream
When I dream about single touch payroll a significant part of that dream is a very big
computer. Every payslip for every employee every payday to be received by the ATO.
And the even bigger computer required to actually process the data.
Our view of the business dream for single touch payroll
Recognizes that the majority of employers are using a technology solution to do at
least part of their payroll.
Tomorrow the majority of employers will use technology.
We recognise that software is going towards having employee portals, in so many
ways the MyGov visibility is another employee portal
My ultimate dream;
• STP removes an obligation for payslips
• If we are submitting the data to MyGov then the employee has that access
Concerns
We are currently not convinced about MyGov being used as a way to get new
employee information
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We are currently not convinced about STP resulting in Pre filling the PAYGW numbers
on the BAS. I don't mind the concept but I don't see it working.
Summary
Single touch payroll has the potential to be a good improvement to the economy
If it brings us better government services to make employment easier then bring it on
Matthew Addison
Institute of Certified Bookkeepers
www.icb.org.au
[email protected]
Bookkeepers Helping Bookkeepers Helping Business
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