Payroll Considerations For Your Business
Payroll is the system whereby you manage employee payments. It isn't as simple as managing payroll payments. A small business owner will need to make employee wage payments, time tracking, manage date of payments, the type of payments, the difference between pay rates, taxation, Australia Tax Office (ATO) annual reporting, leave entitlement, sickness tracking, payment statements, maternity/paternity leave and payments, superannuation, expenses, and benefits.Â
Compliance is a key aspect of payroll. You need to maintain records, both for audit purposes and legal cover if an employee raises an issue. The Australian government has regulations and legislations that dictate how business owners operate payroll. It takes time and money to maintain compliance, and for a small business, it might not be time efficient. This is how payroll systems can help with the heavy lifting. The right software will help you run payroll, taxation, employment laws, and reporting.Â
Having a payroll system will not only save you time and money; it will also help save you from compliance stress and ensure you're prepared in the event of an audit.Â
Will it keep you compliant?
With an all-in-one payroll and accounting solution, you reduce the risk of typical manual data entry mistakes. Additionally, thanks to the cloud-based solutions, you're always connected and the automated system ensures you remain compliant.Â
Why can't I use a spreadsheet?
Many businesses rely on a spreadsheet for payroll. If you have the depth of spreadsheet knowledge to use them to their full potential, you may be able to rely on it as a payroll option. Still, most people don't have that depth of knowledge, and it relies on complex calculations, and it can be painstaking. Often, spreadsheets are error-riddled, and the mistakes go unnoticed. While using a spreadsheet for payroll sounds simple enough, it's far more complex than using payroll software. If you repeatedly make errors in payroll, you will lose employee trust, and it may affect your labour turnover.Â