How companies can pick a Single Touch Payroll vendor
Organisations across the country have been busy preparing for Single Touch Payroll (STP) and the finish line is drawing near.
If your current partner isn’t ready for the change in legislation, you could find yourself looking for a new payroll provider. There are a few things to keep in mind while you conduct research and narrow down your options.
What is Single Touch Payroll?
Still getting your head around what Single Touch Payroll (STP) means for you and your business. Read our quick blog here or find out more about Single Touch Payroll with our overview here.
How to pick a vendor
It’s best to start evaluating your STP vendor needs with a two-pronged approach: internally and externally. Of course, the most important question that needs answering is whether you already have a solution in place. Companies will be required to digitally submit payment information to the Australian Taxation Office (ATO), so utilising a payroll platform is imperative.
If you already do leverage payroll software, consult with the provider to ensure its software will be compliant before July 1, 2018 or a Deferral is in place that covers all your Company ABN’s. If they won’t satisfy regulatory standards by then, search for an organisation that will so your company can avoid paperwork associated with Employer deferrals. Keep in mind that your IT team may also need time to integrate the solution.
Consider the following factors when evaluating vendors, PricewaterhouseCoopers reported:
- Does the provider or another organisation handle the responsibility of filing with the ATO?
- Will the platform take care of the specifics, such as converting a spreadsheet to an XML file?
- Is STP reporting included in the package, or will it be an additional expense?
- How simple will it make the switch to STP for your business?
Conducting due diligence here is vital; expenses from non-compliance could prove costly. Companies with dedicated staff to meeting ATO regulations provide excellent additional value and you can go to them for insight.
The good news is that the ATO has made it simple for businesses to find a provider that complies with STP. The Australian Business Software Industry Association (ABSIA) is keeping an updated catalogue of payroll vendors whose software is updated to meet STP specifications.
This is where you can find a variety of information, testimonials and the assurance that you won’t run into any trouble with the ATO by choosing one of the providers listed. In a hectic time like this for payroll departments, peace of mind is invaluable.