With a ramp up in litigation by the Fair Work Ombudsman (FWO) and the recent introduction of Single Touch Payroll (STP), employee pay reporting processes are under the microscope on multiple fronts. If it wasn’t already, payroll governance needs to be a priority at the Board level.
The first full year of STP reporting is now complete and providing the Australian Taxation Office (ATO) with unprecedented levels of payroll data. In a recent announcement, ATO Deputy Commissioner James O’Halloran said that employers have already started receiving “gentle reminders” regarding late superannuation contributions in an effort to track and boost super compliance. With this shift in enforcement activity and new data sources enabling regulators to be much more proactive, Directors will be particularly interested given the potential for personal recourse against them should a superannuation guarantee (SG) liability remain unpaid.