The onset of Single Touch Payroll (STP) is a breakthrough for digital privacy. In the commitment to serve businesses with utmost confidentiality and security, this new system in the payroll process integrates artificial intelligence (AI) as its core.
From altering how business owners and payroll admins handle employee information to organizing their payroll data, new financial obligations are mandated by the Australian government to prevent fraudulent activities and leakage of classified information.
This article illustrates the implications of STP to the data security of a business.
Accurate and up-to-date accounting system
AI-driven STP means a smarter technology proven to change the future of payroll in several ways. Unlike the traditional payroll system that uses manual entering of employee information and pay events such as wages and deductions, the big switch to this automated system enables businesses to have a modern and a more structured payroll as they comply with the new set of financial obligations mandated by the government.
An STP-enabled software is essential in submitting reports to the Australian Taxation Office (ATO). It serves as a channel to generate electronic pay events that are automatically verified by the system for accuracy of data.
This type of assistance refers to AI-based systems that allow knowledge workers to recover and generate reports in a highly dynamic method. An ordinary knowledge worker spends 15 minutes – over an hour a day searching for business information in obsolete database systems and via the internet.
With AI, automatic clustering and visual recognition technologies reduce search time and identify on behalf of the knowledge worker the correct information needed such as employee’s personal profile and pay details by 50% or more, according to a study.
Furthermore, the use of AI reporting tools enable businesses to be more productive as human intervention in STP reporting is reduced hence more time is allotted to do more high-value work. As such, the accuracy of reporting is increased by minimizing human error from the quantitative nature of financial reporting.
Streamlined STP reporting
The advent of Single Touch Payroll has nullified the need for a report that consists of payment summaries such as salaries and wages throughout the year. This means that the employer or a payroll manager will prepare a report based on the standard guidelines of the ATO. As such, pay information of employees is aligned and correct. More so, this long-term practice enables business of all sizes to be strictly compliant with the rules of STP reporting.
Verified STP reports
Did you know that the AI system uses natural language processing? This is to classify complicated contracts, especially from foreign parties. The method of verifying essential information helps in keeping both the employers and employees’ data consistent and updated,
Furthermore, the management of personal and professional information of a business is run by AI tools trained in input management to foster compliance with standard report formats. These AI tools used in STP reporting alerts business owners and payroll admins potential issues such as financial anomaly and leakage of confidential data.
Real-time STP reporting
STP requires employers to report payroll in real-time. In doing so, records are always updated and workers can access and understand their tax and super contributions in just one click.
STP reporting utilizes sophisticated technology to accomplish such functions and to guide business owners on the productivity of their employees and cash flow.
As mentioned, STP does not require reporting payment summaries at the end of the year. This means more time can be invested in more important work which promotes focus and productivity among employees.
Let’s not forget that errors in salary payments are a common challenge among business owners. Unlike manual pay processes that involve a lot of human intervention, STP has a dedicated software, IT and AI systems to help you get paid faster and have quick access to the updated financial data.
Moreover, reduced human involvement in STP reports means minimized to no-error reporting of payment information.
Are you ready for STP?
It is inevitable that many companies are anxious to apply the new Single Touch Payroll system. While it is understandable that most businesses are used to the conventional method of the payroll process, STP offers growth and opportunities to business owners and employees.
Have you realized the impact of cash flow in your business? Do your employees understand the implications of STP in your business? Now is the time to start making crucial changes to your business’ stability and security.