As businesses with employees in New Zealand prepare to adopt the country’s new payday filing requirements on 1 April this year, it all seems remarkably familiar. Perhaps that’s because Australia’s Single Touch Payroll (STP) and payday filing share many similarities.
There certainly seems to be less apprehension about the introduction of payday filing than there was for STP. Perhaps the positive experience and lessons learned during Australia’s STP roll-out have allayed fears about this impending change for the NZ business community.
Simpler processes with fewer steps
Designed to digitise and streamline payroll processing, both STP and payday filing align the processing of the pay run with the reporting obligation. This means complying with PAYE reporting obligations is simply another step within the processing of a pay run. Traditionally, reporting on PAYE was a separate and distinct operation employers had to perform.
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Technology takes care of the complexity
There are clear differences between STP and payday filing, particularly with respect to what information needs to be reported. However the common thread to both is the role technology plays in managing the complexity of meeting these compliance obligations.
The impact of STP and payday filing has been massive on payroll software vendors, posing a herculean task to deliver compliant solutions. Despite this, Sage MicrOpay and WageEasy were certified STP-compliant by the ATO well before the introduction of the initiative last year.
While some employers worry about increasingly evolving compliance and reporting obligations, the good news is that with compliant payroll software, all the complexity remains hidden ‘under the hood’. It’s not an exaggeration to say that you can perform STP reporting and payday filing with just a few clicks!
What does it mean for Sage payroll clients?
Buoyed by their positive experience with Australia’s STP roll-out, Sage payroll clients with both Australian and New Zealand employees are likely positively anticipating New Zealand’s payday filing.
To learn more about payday filing and how Sage can help you meet your compliance obligations, please visit the Sage payday filing site for everything you need to know.