The Future of Payroll
with Glynn Flaherty & Kerry Agiasotis

The function of payroll within businesses has significantly evolved over the years. It has moved away from being transaction-based and now requires more interpretation. The amount of information provided to the Australian Taxation Office (ATO) has increased significantly, and it is being used by organisations like Services Australia to determine eligibility and liability.

The complexity associated with payroll and the frequency with which the ATO and government require information creates a significant burden for organisations. The role of payroll has evolved from a clerical function to one that requires access to resources and qualifications. There is increasing recognition of the difficulty of payroll within organisations.

The role of technology in the market and the burden of compliance are significant. The complexity of tax reporting systems and the different definitions of income, eligibility, and liability pose challenges. There is also the difficulty of keeping up with multiple sets of payroll tax legislation, workers' compensation, super guarantee law, and pay-as-you-go withholding.

The recovery of $532 million in underpayments by Fair Work and the potential impact on corporate image and being an employer of choice were highlighted. There is approximately $2.9 billion of superannuation owed, with $1.7 billion not being correctly sent to the super funds. Organisations and their directors can be personally liable for underpayment of wages, superannuation, and GST.

The importance of investing in the right technology and expertise for a business was emphasised. The significant cost of getting it wrong suggests that businesses should take steps to avoid uncertainty in the present and future. The importance of certification, such as in payroll professionals, and the use of resources like the AP were also mentioned.