Businesses are struggling to cope with an uphill compliance battle as they come to grips with Single Touch Payroll, and according to one bookkeeper, larger firms are struggling with this the most.
The introduction of Single Touch Payroll (STP) for employers with more than 20 employees will start on 1 July this year, while STP for smaller employers with 19 or less workers is due to begin from that same date in 2019.
Direct Management director Diane Lucas told My Business’ sister publication Accountants Daily that she is seeing plenty of pushback from bigger firms that are struggling with the increased red tape burden.
“Some of the larger businesses feel like it’s basically a forced compliance for them and I think there is a reluctance for that to be forced upon them when they feel that they are compliant anyway,” she said.
“To have that actually put through automation as opposed to a voluntary lodgement because at the moment they are lodging on time but in our own time as opposed to having gone through the pay run process.
“Some of the big businesses are not happy from that aspect and our role as bookkeepers is to try and sell it really.”
Ms Lucas added that certain software providers have been slow in their development for STP, further delaying the implementation process and creating even more confusion and angst.
“I also believe and understand that there are still some software vendors who are yet to finalise their processes for that, which is a bit of a challenge for organisations to bring that process into fruition,” said Ms Lucas.
Her comments follow a poll conducted by Accountants Daily, which showed an overwhelming majority of participants — almost 90 per cent of the 623 votes — are not prepared for STP.
Jotham Lian is the news editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals. With a focus on breaking news and exclusive analysis, Jotham keeps Accountants Daily readers up to date with company moves, tax updates and essential business and client strategy.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including The Sydney Morning Herald and Channel NewsAsia.