We acknowledge these are challenging and uncertain times for everyone. Through it all, our payroll specialists have played an essential role in helping ease client concerns and ensuring people still get paid whilst responding quickly to the ever changing landscape of government support.
Keeping up-to-date with the different support measures, let alone the PAYG tax codes and the detailed reporting requirements of payroll, takes a lot of time. This is time which small business owners don’t have.
On top of that, an incorrect interpretation of the information, or payroll errors, may end up costing money. This is money which small business owners can’t afford.
These past 18 months may have highlighted that you too may need a payroll specialist and that outsourcing the payroll function to a professional is the best option.
The payroll specialist ensures that every employee is paid accurately and on time. But the payroll function is much more than this and some business owners can be overwhelmed by the responsibilities that come with payroll and their employees.
Here are a few areas to focus on to avoid problems within the payroll function.
1. Check employee details for accuracy:
- Tax file number
- Full name and address
- Start date or termination date of employee
- Date of birth
- Pay details such as gross wage, allowances, hourly rate, employment period
- Superannuation fund details
2. Don’t miss the payroll reporting deadlines of Single Touch Payroll
- salaries and wages
- pay as you go (PAYG) withholding
- super liability information
3. Superannuation
- Super audits by the ATO focus on unpaid super amounts. It is critical to have all your employees’ super details entered and up to date, and that super contributions are paid on time.
- Xero offers Auto Super as their Super clearing house and complies with the Superstream rules, transmitting the money and information consistently to the various super funds.
Late last year we converted a client over to Xero payroll. Where she used to be up until after 1am on pay day, she is now well and truly finished the payroll by 7.30pm. That’s a time saving of more than 5 hours per week, not to mention the reduction in stress.
It is really worth investing the time to set up your payroll system correctly. A reliable payroll function is critical to any successful business operation and ensures compliance with all the ATO reporting obligations.
By choosing the right software, and enlisting the help of a payroll specialist like MBC Bookkeeping, your time will be freed up so you can focus on the other aspects of your business that you love.
Contact us at bookkeeping@mbco.com.au to find out why we should be your payroll specialist.
