Types of payroll systems
Setting up a payroll system helps to ensure that payroll gets done accurately and on time. With an efficient system in place, companies can better manage payroll. The last thing you want as an employer is for your team to have problems with their paychecks. Every employee expects to be paid the amount they’re owed on payday.
So what is a payroll system? As far as what a payroll system looks like, companies have a few different options. Many companies use the following different types of payroll systems in Australia to manage employee compensation.
In-house payroll
Some companies set up an internal payroll process that must be completed manually every pay period. With this method, either the business owner or a Human Resources (HR) employee is directly responsible for running payroll. While this can be an economical option for small businesses, it can be hard to sustain once your team grows.
Full-time accountant
An accountant is a financial expert who can run payroll and file tax forms on your behalf. Outsourcing payroll management to an accountant can provide you with helpful support. They can take care of the payroll process from start to finish and give you advice and insights along the way.
Payroll service
Payroll providers are companies that specialise in running payroll for other businesses. They offer various payroll services, from time tracking to filing taxes on your company’s behalf. Generally, payroll providers charge a flat fee per month or payroll run.
Payroll software
With specialised accounting and payroll software, you can automate payroll processing entirely. One benefit of software solutions is that they minimise the risk of human error. Plus, payroll and HR software programs can usually generate detailed payroll reports and payslips for each pay period.
