There are many ways single touch payroll reporting impacts small businesses. Single touch payroll (STP) is a streamlined way for Australian business owners to report their superannuation and tax data to the Australian tax office (ATO). By changing the ways employee tax and super information is reported, STP significantly reduces reporting time and increases reporting accuracy. As a financial professional, increase employees’ payment information transparency, streamline payroll processes, and innovate with scalable accounting software by embracing STP reporting. Read on to discover how single touch payroll reporting impacts small businesses.
Increased Transparency & Compliance
Increasing data transparency and compliance is one way STP reporting impacts small businesses. Single touch processes offer the ATO improved transparency in its real-time tracking of wages and superannuation payments. This way, the ATO reduces its reliance on employees to report non-compliance, and underpayment potential stemming from employers paying out superannuation guarantees improperly. Additionally, the ATO’s employee data and client database is ensured to be up to date since STP increases the frequency of such reports. Surely, reduce the ATO’s reliance on civilian reports and keep their data up to date with the increased compliance and transparency impacts of STP.
Reduced Time & Capital Investments
Single touch reporting also impacts small businesses by reducing time and monetary investments required of payroll and tax reporting. By submitting payroll digitally instead of on paper, small businesses make the process more efficient and significantly reduce the time it takes. This newfound extra time maximizes the capabilities of small business teams by enabling them to focus on other tasks, such as marketing, management, and sales. Additionally, payroll reporting costs are reduced by the chances of mathematical and other reporting errors being eliminated through the use of software. Absolutely, streamline payroll processes and enable your colleagues to focus on other growth-driving tasks using the time and capital reductions provided by STP.
Streamline Tax Processes
A third way single touch reporting impacts small businesses is by streamlining tax-related processes. Since payroll information is sent to the ATO with each pay cycle, chances of tax errors are significantly reduced. Error chances are further reduced by the ATO’s ability to compare your business’s superannuation statements with those of the employee’s superannuation provider. This way, the ATO notifies you of underpaid staff or superannuation contributions much faster, since they have increased real-time data on your payroll processes. Certainly, significantly reduce errors and improve ATO notification speeds with the streamlined small business tax accountant processes offered by STP.
Improved data tracking is an additional impact of STP on small businesses. Single touch payroll offers employees increased clarity of their wages and your contributions through an online portal. Accessing this information digitally is often significant faster and more cost-efficient than searching for these physical, paper records. This way, their newfound control over payment summaries and related data typically improves employee engagement, since they feel more valued. Definitely, streamline employees’ access to their payment data and improve engagement with the data tracking impacts of STP.
Lastly, improving future single touch processes with scalable software platforms is an additional small business impact of STP. In fact, reports conclude 39% of accommodation and food service businesses still do payroll and other processes using a pen and paper. Therefore, these businesses would benefit greatly from the improved visibility and data tracking of their finances offered by accounting software platforms. Additionally, they secure their sensitive business data from theft and misuse via two factor authentication. Of course, significantly improve future data visibility and tracking, as well as secure your company data against misuse, with the scalability of STP software.
Single touch payroll reporting impacts small businesses in a myriad of ways. For example, reduce the ATO’s reliance on civilian reports and keep their data up to date with the increased compliance and transparency impacts of STP. Second, streamline payroll processes and enable your colleagues to focus on other growth-driving tasks using the time and capital reductions provided by STP. Third, significantly reduce errors and improve ATO notification speeds with the streamlined tax processes offered by STP. Next, streamline employees’ access to their payment data and improve engagement with the data tracking impacts of STP. Finally, significantly improve future data visibility and tracking, as well as secure your data against misuse, with the scalability of STP software. When wondering how single touch payroll reporting impacts small businesses, consider the ways mentioned above.