Why is compliance reporting challenging with separate applications?

Managing compliance across multiple applications can be laborious and resource intensive. 

Separate applications make compliance reporting challenging due to inconsistent data, increased risk of errors and delays, and more significant resource requirements.

Did you know:

1. In the 2019-2020 financial year, the Fair Work Ombudsman issued 183 formal cautions, 155 compliance notices, and 41 infringement notices.
   
   
2. The Fair Work Ombudsman recovered $123.6 million in unpaid wages and entitlements for Australian workers in the 2020-2021 financial year.
   
   
3. Underpayments of wages, non-payment of penalty rates, and failure to comply with record-keeping were the most common workplace breaches reported to Fair Work Australia.
   
   
4. During the past financial year, the Fair Work Ombudsman received over 20,000 anonymous complaints regarding possible non-compliance by employers.

How do separate applications compromise compliance data? 

All data is compromised when merged from separate applications. Combining data from multiple sources introduces errors and discrepancies due to data duplication.

Data from separate applications that feed into payroll for compliance reporting impacts accuracy and compliance.

Let's explore some of the main reasons: 

1. Inconsistent data: Data is inconsistent when stored in separate applications and imported into payroll for reporting. 
2. Manual data entry: Manual data entry is often required, which is laborious and error-prone.
3. Delayed updates: Data from separate applications is not updated in real-time, resulting in delayed payroll, updates, and reporting.
4. Limited data validation: Data from separate applications limits data validation or quality control, which puts the onus on human intervention.
5. Data formats and duplication: Data duplication and formatting errors result from separate applications containing individual data formats.

Reporting for compliance from separate applications is challenging due to errors, discrepancies, and delayed updates. Inaccurate data and late pay runs negatively impact employee morale, and late or erroneous reporting results in penalties from the ATO. 

Compliance reporting example: 

STP2 and Data Disaggregation | The Reporting Requirements and Challenges

A key factor of STP2 reporting is the data disaggregation requirements*. In short, it means separating the payroll data into categories based on various characteristics. In addition to providing valuable insights for employers and regulators, segmented data allows for a more detailed data analysis. To comply with STP2, payroll data must be reported to the Australian Taxation Office (ATO) regularly and on time. 

The STP2 reporting system ensures businesses comply with regulations and pay their employees correctly. Companies that fail to provide accurate and timely reports face penalties and fines. The precise separation of this data within payroll systems is a core challenge for businesses with separate applications.  

*Data disaggregation for STP2 | The reporting requirements and challenges

Regulators use disaggregated data to monitor compliance regulations and identify systemic issues within industries or sectors. 

Data is often duplicated across applications when HR, payroll onboarding, time and attendance and rostering are in separate applications. Due to the individual setup, each application requires additional data input, making payroll processing and disaggregation nearly impossible.

Data mapping, integrity, compliance, and workforce management reporting are challenging.

The impact of using multiple data sources for STP2 reporting:

• Data accuracy: When multiple data sources are used, payroll data accuracy is compromised. 
• Time and effort: Using multiple data sources can increase the time and effort required to prepare compliance and workforce management reports.
• Compatibility issues: Employers must ensure all their data sources are compatible with their payroll software or system. Due to different file formats, data mapping and cleaning is a manual process that can lead to errors.
• Compliance: Using multiple data sources for compliance increases business risk. Missing or inaccurate data means employers struggle to meet their reporting obligations, resulting in penalties and fines from the ATO.

For example, Overtime data is in the time and attendance application that records employee hours via a Time and Attendance app. Time and attendance software is often not configured to disaggregate payroll data, which leads to inaccurate STP2 reporting.

What is the alternative to separate applications?

A True All-in-One workforce management solution is better for compliance and workforce management reporting. The data is consistent, accurate, delivered in real-time, and, most importantly, the single source of truth. 

What is the advantage of using a True All-in-One Solution for compliance reporting?

Using an all-in-one compliance reporting solution reduces manual handling and eliminates integrations and data duplication.

 Let's explore the reporting side:

1. Single set-up: With an all-in-one solution, the workforce and employee set-up is rules-driven. The payroll system monitors employee hours (in real-time) against awards to avoid salary underpayment before it occurs.  
2. Consistent data: Workforce data is stored in a single system, reducing the risk of errors or discrepancies.
3. Real-time updates: All-in-one solutions update in real-time, meaning the data is always current and accurate. Particularly critical for compliance reporting, where timely and accurate data is crucial.
4. Payroll processing: Intuitive payroll and award interpretation ensure seamless and efficient compliance reporting.
5. Date-driven: Modern payroll solutions are date-driven engines that provide accurate pay runs with little to no manual adjustments.   
6. Improved data quality: Better data validation and quality control ensure data integrity and accuracy to meet compliance requirements.
7. Security: All-in-one platforms offer a more secure environment for all your workforce data. 

Workforce data in an All-in-One solution for compliance reporting is accurate, consistent and a single secure source of truth.

What is the benefit of using a True All-in-One Solution for workforce management reporting?

1. Improved Efficiency: Reporting from one data source improves workflow and efficiency.
2. Data-Driven: One data source allows you to make informed decisions in real-time. 
3. Real-Time Monitoring: With workforce management data in place, compliance and breaches can be monitored in real-time. 
4. Increased Accuracy: The All-in-One workforce management solution improves reporting accuracy and ensures compliance with payroll and workplace regulations.
5. Customised Reports: Businesses can customise reports from a single data source with workforce management in an all-in-one solution. 
6. Employee Experience: Employee experience influences engagement, productivity, and retention, which is why it is becoming increasingly crucial to workforce management. Employee experience begins before an employee even joins the company. Employers and employees benefit from a single workforce management platform covering everything from hiring to retirement.
7. Value for money: Reduce costs by streamlining the reporting process and reducing the number of applications required. 

Overall, employers need to ensure a streamlined process for compliance reporting that considers all their data sources. Manual intervention or human data handling leads to errors and processing lag times. 

Contact one of our specialists today to streamline your compliance reporting and workforce management.