When moving to a new payroll system, it is inevitable to feel anxious, challenged and novice especially if you are used to your company’s standard payroll system for several years. However, the big switch is a window of opportunities and growth for the business industry. That said, it’s high time to explore a new system but before doing it, there are plenty of factors that you should consider.
We rounded up a list of the most important things that employers should think about seriously when migrating to Single Touch Payroll (STP).
Payroll Software Provider
With Single Touch Payroll (STP), the way you report your employees’ pay information and tax will change. As mandated by the Australian government through the Australian Taxation Office (ATO), STP solutions are used every time you submit your employees’ salary and other pertinent data to the ATO.
As such, you have to search and eventually subscribe to a reliable payroll software provider. Aside from having the confidence that you are complying with the financial obligations set by the ATO, payroll software will do the usually tedious job for you, replacing manual payroll processing.
Consult your fellow business owners and ask for referrals on trustworthy payroll software providers. Look for one that is “future proof” and has the capacity to handle your payroll whatever size you grow to.
Cybersecurity
The very fact that STP is automated, it means that your new payroll system is heavily dependent on technology particularly the internet. While all information can only be accessed by authorized individuals, privacy and security controls need to be strictly protected.
This entirely new world of payroll system is prone to fraud and malware but with the right payroll software provider, efficient IT system, and compliance with the guidelines set by the ATO, these malicious activities can be prevented.
Training of Employees
Migration to an automated payroll system is not an easy task. In fact, the change is challenging and new tasks are monumental. One of the keys to successfully implementing any new technology is a better understanding of how to manage the new platform.
No matter how promising STP is, if your staff don’t use it, it will be meaningless. That said, it is crucial to consider your employees as you make the big switch. By providing extensive training for your team, you can guarantee that they will be confident in using the system. Furthermore, automated workflows will help reduce pressures and stress as your people can focus on more important tasks at hand, thus boosting your company’s productivity.
Benefits of STP
Single Touch Payroll is built and designed to streamline employers’ reporting obligations particularly on their employees’ payment information such as salary, wages, and deductions, among others. This structure enables a more organized culture among businesses and increases productivity that consequently promotes success for everyone.
Another incredible benefit of STP is it minimizes the problem of human error thanks to STP enabled software. Not only will it verify the accuracy of your reports repeatedly, but it will also keep them neat and in order. Moreover, an automated time tracking method will make sure working hours are accurately monitored, allowing an easier computation of the employees’ wages for the pay cycle.
Do You Need Automation?
Have you ever asked yourself why you need STP? The Australian government mandated this automated payroll process and you obviously have to adhere to it. But, do you really need it?
Yes. STP solves one of the biggest problems of employers: time. The start-up cost of this new payroll system is relatively higher than that of a traditional payroll but in the long run, STP will be more cost-effective than you thought.
Did you know that automation significantly lessens payroll processing costs? This is because of human errors in
paychecks and invoices. With automation like the STP system, these areas can be improved as manual data-entry is minimized and accuracy of pertinent pay information is maintained.
Are you ready to migrate to STP?
It may be a scary switch but as long as you are working with a dedicated team of expert staff, using an efficient payroll software provider, and of course, following the rules set by the ATO, you are definitely ready to get started!
Imagine the peace of mind and satisfaction that STP can bring to your business and your employees. Knowing that your payroll process will be compliant and maintaining accurate employee data and correct payroll wages will definitely earn you positive feedback from your happy staff. Once everything is settled, you’ll wonder why you didn’t switch sooner.
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