Australian businesses are struggling to comply with Single Touch Payroll, with larger firms facing the most problems.
Single Touch Payroll (STP) will come into effect for employers with more than 20 employees on 1 July this year. Smaller organisations will be required to comply a year later.
But Direct Management director Diane Lucas told Accountants Daily that bigger firms are struggling with the increased red tape.
"Some of the larger businesses feel like it’s basically a forced compliance for them and I think there is a reluctance for that to be forced upon them when they feel that they are compliant anyway," she said. "At the moment they are lodging on time but in our own time, as opposed to having gone through the pay run process."
Ms Lucas added that some software providers had been slow to support STP, further delaying the implementation process and increasing confusion.
Her comments follow a poll conducted by Accountants Daily, which showed that an overwhelming majority of participants — almost 90% of the 623 votes — are not prepared for STP.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
Australian businesses are struggling to comply with Single Touch Payroll, with larger firms facing the most problems.
Single Touch Payroll (STP) will come into effect for employers with more than 20 employees on 1 July this year. Smaller organisations will be required to comply a year later.
But Direct Management director Diane Lucas told Accountants Daily that bigger firms are struggling with the increased red tape.
"Some of the larger businesses feel like it’s basically a forced compliance for them and I think there is a reluctance for that to be forced upon them when they feel that they are compliant anyway," she said. "At the moment they are lodging on time but in our own time, as opposed to having gone through the pay run process."
Ms Lucas added that some software providers had been slow to support STP, further delaying the implementation process and increasing confusion.
Her comments follow a poll conducted by Accountants Daily, which showed that an overwhelming majority of participants — almost 90% of the 623 votes — are not prepared for STP.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
