Institute of Certified Bookkeepers

Transcription

1 Presentation to the STP Business Engagement Forum 19 th October 2016 Institute of Certified Bookkeepers A business perspective on Single Touch Payroll 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? The Institute of Certified Bookkeepers Page 1

2 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 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 The Institute of Certified Bookkeepers Page 2

3 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 Payment Summaries End of year payment summaries are changing - Employer's will still need to do The Institute of Certified Bookkeepers Page 3

4 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. The Institute of Certified Bookkeepers Page 4

5 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 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 Matthew@icb.org.au Bookkeepers Helping Bookkeepers Helping Business The Institute of Certified Bookkeepers Page 5