Key findings and insights:
- Sage Software is the #1 payroll software provider across all organisations surveyed.
- Australian companies are chronically under prepared to meet the challenge of Single Touch Payroll with less than 25% of them having a plan to tackle the upcoming legislative changes.
According to Sage Software Australia, Vice President, Customers for Life, Simon Berglund, our payroll & HR solution success over the survey period was due to a combination of attracting new customers with our proven product and decades long commitment to the Australian payroll professional, as well as continued enhancement of our payroll products for existing customers.
“We hired some fantastic new Customer Managers who helped ensure that our customers received the best support in the industry, ongoing enhancements to the products themselves, as well as providing confidence in our continued support of the community via our ongoing participation in forums like that for the ATO’s Single Touch Payroll,” he said.
Positioning for a cloud-based future:
The payroll and HR software landscape is evolving and shifting towards cloud solutions. Not surprisingly, the Australian Payroll Association 2017 Payroll Benchmarking Study reported a shift towards native cloud applications. Sage is well positioned to meet this challenge as it transitions its products towards the cloud and incorporates payroll as part of a wider Human Capital Management (HCM) offering.
The Sage People end-to-end cloud HCM solution that addresses the workforce management challenges of medium to large organisations, integrates everything from talent acquisition to people analytics in one online system – helping businesses to recruit, engage and retain top talent. When combined with Sage’s existing payroll capability it is a powerful tool for managing a company’s most valuable asset – its people.
“Many of our customers are content to continue using the on premise solutions that they know and trust such as Sage MicrOpay. Our commitment to them is to continue supporting these products. There will be no sun setting, no end of life.
“At the same time we are building products for a more mobile, more connected future where payroll will integrate with people management, payments and accounting in a world where business admin is virtually invisible. When our customers are ready to embrace this world we will be ready to service them with products like Sage People,” said Berglund.
Single Touch Payroll:
Single Touch Payroll is scheduled to be introduced on July 1, 2018 for employers with 20 or more employees, and on July 1, 2019 for employers with 19 or less employees. It represents a significant change to existing payroll legislation and will present challenges for businesses of all sizes. Surprisingly, the survey data shows that just 24.3% of Australian companies have a plan for its introduction.
Sage is helping its customers to navigate this change by building functionality into its payroll products as well as working directly with the ATO to help educate customers on the new requirements.
About the report:
The Australian Payroll Association 2017 Payroll Benchmarking Study is an annual study examining trends, efficiency and costs of payroll in Australia. Survey respondents represent a wide variety of industries, geographic locations and company size and complexity.
The Australian Payroll Association is a trusted voice of the industry and has been conducting similar research for many years. This survey was conducted in December 2016 and January 2017 and received responses from more than 2,000 organisations representing 2,248,577 employees and 68,909,348 payslips. It is the largest study of the payroll industry in Australia.