Regulatory changes, STP the ‘top payroll challenges’ for new FY
Shifting client expectations and a raft of regulatory and legislative changes will make 2023-24 a challenging period for accountants, a software firm says.
The implementation of single touch payroll phase 2 and reforms around payday super and external contractors will create difficulties for accountants providing payroll services over the next 12 months, according to Employment Hero.
“The industry has done a great job of getting to the point where everyone understands what’s happening now with STP phase 2 but we’ve still got some challenges with getting it implemented,” said Phil Bernie, head of product, payroll at Employment Hero.
“We’ve then got the changes around payday super which takes place on 1 July 2026. That’s a different mindset in terms of paying super on payday and I think we’ll also see a move towards that not just for super but for tax as well. So for tax we could see more of a payday based payment.”
With many businesses facing increased costs and economic pressures, Mr Bernie said accountants will also play an important roll in helping clients manage cash flow as well over the next year.
Automating processes will become increasingly important with super and tax payments likely to move to a more frequent basis, he said in an upcoming Accountants Daily podcast.
“If you’re moving from paying super quarterly to paying it with wages and your quarterly BAS tax bill potentially moving to weekly or fortnightly, you don’t won’t want to have a manual process for that,” said Mr Bernie.
Compliance crackdowns raising expectations of accountants
Clients also now expect more from accountants in terms of compliance oversight perspective with payroll, particularly with regulators more heavily scrutinising this area.
“With the Fair Work Commission cracking down on compliance particularly around awards in specific sectors there’s a higher expectation for accountants to provide that compliance oversight within payroll,” said Mr Bernie.
Mr Bernie said accountants are becoming more of a trusted partner when it comes to recommending software and implementing systems for clients to use.
“From a payroll perspective, there’s a lot more expectation around accountants providing advice on not just what software to use but how to use it and how to stay compliant,” he said.
“Its not just about how to produce the right value on the payslip but also how to send that information through to the ATO with STP reporting, ensuring the information is recorded correctly in case you do get audited down the track. Small businesses in particular are leaning more and more on accountants to provide that type of advice.”
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