30 April 2018
(This letter was sent to Accountants in Tasmania)
Single Touch Payroll – My Opinion
To be frank, I am worried about the Single Touch Payroll (STP) rollout in Australia.
The Single Touch Payroll legislation requires that all employers with 20 or more employees start submitting Single Touch Payroll information to the ATO on (or before) pay day, starting from 1 July 2018.
But, using MYOB as a case in point, I note that even though MYOB have released a version 2018.1.1, that prepares for STP connectivity, that version does not appear to actually perform the STP upload, and MYOB have preempted some improvements to it (just Google “AccountRight 2018.1.1”). I predict that most of the several hundred AccountRight users in Tasmania will not have a fully STP compatible upgrade installed before June, and many will not even install it before July!
But that’s not all – You can’t actually use the STP system until you have been given an software service ID (SSID) by your payroll software company. You’ll then need to forward it to the ATO: Either call the ATO and notify them of the SSID, or login to ATO Access Manager (using AUSkey) and nominate a software service provider. Just completing these 2 set ups is likely to cause a lot of headaches and delays.
And what’s more – Payroll officers need to make sure that they have correctly coded the pays according to the STP requirements. (For a brand new payroll set up on STP compliant software, the coding will follow easily, but for preexisting setup payrolls this will need checking.)
So why am I writing? Not just out of a sense of public duty.
Our company, Business Software Tasmania, was formed nearly 12 months ago out of the restructuring of Modulo Software, of which I was previously a director, operating from the same premises at Westella, 181 Elizabeth Street. We have many years experience in business, database, accounting and payroll software. Our emphasis is integration (linking systems) and customisation, not accounting or bookkeeping advice.
If you or your clients would like assistance loading the necessary upgrades, or checking your payroll category coding against the STP requirements, please contact me. In cases where companies cannot get their existing payroll software upgraded I can let you know whether changing software or using a bureau exchange service will work for them.
Business Software Tasmania Pty Ltd