With the ever-expanding Single Touch Payroll data set and the sheer volume of information currently being reported, the need for Assurance is paramount, yet no framework is in place or even on the radar.
The Budget Paper No. 2, Budget Measures 2019-20 has an allocation of 16 Million for the expansion of Single Touch Payroll. *Source:Â Budget Measures Budget Paper No. 2 2019-20 (Page 170)
The 2019-2020 Budget allocates more than enough funds to create the Assurance framework that is so desperately needed.
What is the difference between Conformance, Validations, and Assurance?
Conformance and Validations are given because they are required to check the file's technical integrity. In contrast, Assurance is a framework that protects against GIGO (Garbage In, Garbage Out) within the system.
An Assurance framework assures what is sent is being reported correctly.
Presently, a Digital Service Provider (DSP) (or, to put it another way, the people who build Payroll Solutions) cannot be completely certain that current reporting to the ATO is correct.
What is the state of the data reported to the ATO using Single Touch Payroll?
It's not good! Why? Because there is no standard set of test scenarios for DSPs to consume, ensuring correct reporting. Every DSP can and will make mistakes. The complexity of payroll rules makes them easily misinterpreted, resulting in outcomes that were not as originally intended. Employers need assurance that the output will be the same regardless of their payroll solution.
So, what is the fix for the current situation of questionable data being reported to the ATO using Single Touch Payroll?
We must have a system where the ATO supplies a standard set of Test Scenarios. These crosschecks get entered into Payroll solutions, and the resulting data is reported to the ATO: data sent, data received (where it went), does it match, yes or no, and if not, a return message detailing what it should have been. Following this simple procedure, a DSP can proactively correct any issues and address the current GIGO problem.
Testing environments are already available within the ATO. Assurance could be leveraged from this existing framework, therefore, producing a complete system of checks and balances.
This post updates my previous comments, highlighting increased frustration due to the ATO's inaction on this critical issue, leading to the reported poor data quality.
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