If you are not sold on the idea of single touch payroll (STP), you may be disappointed to know that it will be mandatory for all employers after July 1, 2019. However, there is no need for consternation. Employers with 20 or more employees are already subject to STP and are experiencing the benefits of the new system.
STP aside, there is always a benefit to keeping up-to-date with just about everything in your business and Payroll systems are no different. To ensure you are always up-to-date, it’s critical that you understand the benefits of updating your payroll systems to ensure that they are compatible with STP.
Let’s take a closer look at just some of the advantages of keeping your payroll systems current and a few ways in which your business can profit from updating.
The cloud has transformed the way many companies conduct business today. Payroll systems which leverage cloud technology can be more automated and provide means of reducing the duplication of efforts when it comes to data input. Data for your payroll system may be input or inspected remotely which naturally enhances efficiency. Furthermore, backing up your information to the cloud provides a failsafe way of keeping your data secure in case anything unexpected should happen to the original documentation.
Updating your tax-table information can be as easy as updating your payroll software. This convenience benefit alone makes it worthwhile to update regularly. Conversely, manually updating and inputting information into a payroll system can be tedious and prone to human error. New features are constantly added to payroll software packages which can help your company avoid many of the headaches that come with keeping this information straight.
With regard to the single-touch payroll system, the primary benefit of the program is to streamline the process of reporting payroll information to the ATO. This information will allow the ATO to make more informed decisions regarding policy and the like. Software that is compatible with the STP will ensure that your data is kept in a ready-to-be-reported format which will save you a great deal of time and effort.
Updating your payroll software can help save your HR personnel from being stuck with tedious and time-consuming tasks that can be performed much more quickly with computers. With extra time on their hands, your staff will be better able to handle higher-level issues which can only benefit your business.
You may even come to find that the minute cost of upgrading your software pales in comparison to the savings you reap from having more available employees. Best of all, by updating your payroll software you can ensure that technical support will be readily available should you encounter any problems.
Part of the benefit of single-touch payroll is that employees have far greater and far easier access to their payroll information at the click of a mouse button. Being transparent in this way with your staff, who can readily see their deductions and tax obligations at any time, will give them a greater degree of freedom to corroborate the accuracy of this information. This makes it far less likely that serious disputes or discrepancies will linger in your company and you are sure to see a boost in employee satisfaction.
Continue to reap the advantages of payroll software and make sure that you are prepared for the STP reporting standards by updating your software today. It’s important to do what you can to ensure that your financial records are always accurate and up-to-date. Keeping your payroll software up-to-date is sensible in the long run and will make your life easier when it comes to organizing your business finances.