Small business owners who have adopted single touch payroll (STP) are already reporting significant time savings in their business administration according to new research.
The study, commissioned by Intuit, canvassed over 500 small business owners across Australia to discover how STP was impacting their business. The research found 69 per cent of small businesses that are using STP are finding it beneficial to their business, with 62 per cent saying STP is proving to be a time saver. One-third of users say STP has given them back over two hours per week.
While this is great news for early adopters of the technology, the research identified the majority of small business owners remain ignorant of STP and their obligations with 70 per cent reporting they had never heard of single touch payroll and over half (55 per cent) admitting they didn’t understand the steps they need to take to be compliant with the new reporting regulations which kick off on July 1 2019..
“STP is arguably the biggest compliance event since the introduction of the goods and services tax and we know that large-scale change is never easy,” said John Dunkerley, Country Manager of Intuit Australia.
“While our research shows there is concern and anxiety about STP amongst many small business owners, the good news for them is that the majority of early adopters of STP are seeing various business benefits as a result of this digital shift.”
Thirty per cent of respondents suggested they are ‘concerned’ about the prospect of STP compliance, and a quarter are ‘anxious’. Thirteen per cent of small businesses feel ready and 16 per cent feel confident about their ability to meet this compliance initiative. The biggest concerns are cost (47%), unnecessary complexity (46%) and data security (40%)
Using payroll software to manage employee wages is a key requirement of the ATO in order for small businesses to be STP-ready.
“Only 44 per cent of the small businesses surveyed are currently using payroll software, so the introduction of STP clearly points to an opportunity for them to explore their options,” said Dunkerley.
“There is much to be gained for small businesses and the economy once Australia’s 2.2 million small businesses make the digital shift, with STP creating a level playing field by ensuring superannuation payments are being made on time and reduction in under-payments, thereby helping all Australians.
“We strongly encourage all small businesses to get up to speed with their compliance requirements by using the STP resources available on the ATO website and reaching out to their trusted financial advisors for more information. And, our Intuit team is also here to help,” Dunkerly concluded.