Starting a new business can be a daunting prospect. With so many different elements to focus on, it can be easy to become overwhelmed. When it comes to your business finances, and in particular your payroll, you need to ensure that everything is above-board and that you meet your obligations.
Having an efficient payroll system in place will ensure that you avoid any penalties from the ATO and that your employees are paid correctly and on time.
Many businesses in Australia rely on payroll software to streamline the process of paying employees. With a range of different software solutions to choose from, it’s important to spend some time choosing a package that will meet the needs of your business.
Consider the number of staff that you employ, their unique requirements, and be sure that your payroll software of choice can be integrated with Single Touch Payroll (STP) to make payroll reporting to the ATO straightforward and simple.
Continue reading to learn everything you need to know about payroll as a new business in Australia.
Understand Your Tax Obligations
To avoid incurring penalties and fines from the ATO at the end of the tax year, you need to understand your payroll obligations. Modern cloud-based payroll software solutions can be easily integrated with Single Touch Payroll (STP) making tax compliance a breeze.
You can access all of the payroll information you need such as current awards, pay rates, annual leave, and other important data. With the right payroll software, you can be sure that your business is fully compliant going forward.
Know The Important Deadlines
As a new business owner, you will need to ensure that you process your payroll correctly and pay your staff on time. However, in addition to your staff payment deadline, you will also need to be aware of a number of other deadlines.
Pay As You Go (PAYG) withholding, payment summaries, annual reports, and superannuation contributions must all be filed by particular dates. Be sure to keep a note of these dates to ensure that you remain compliant.
Maintain Accurate Employee Records
To ensure that your payroll is processed seamlessly each week or month, you need to ensure that you have the right employee information. Having the wrong employee details can cause issues with your payroll so be sure that it is always up-to-date.
Encourage your employees to update you of any changes to their payroll information so that you can update your system and ensure that everything continues to operate smoothly.
Choose The Right Approach To Payroll
As a new business, it’s important to put systems in place that you can rely on going forward. Take some time to look at the different payroll software options available and choose a provider that offers the best service at the best price.
Make a list of what you need from your payroll software and keep a budget in mind to ensure that you make the right decision. While you can always change providers in the future, it’s much easier to get this decision right the first time so take your time, compare the different options and make the right call for the needs of your business.
Take Control Of Your Payroll Process From The Beginning
As a new business owner, there is a lot to manage, particularly in the early stages of getting your startup off the ground. You will inevitably hit a few speed bumps and encounter issues along the way, however, it’s important that you put systems in place from the very outset to help you to take control of the most important aspects of running your business.
Payroll is one of those critical areas that need to be given careful consideration. Take the time to implement a payroll solution that will benefit your business moving forward and you can avoid dealing with unnecessary problems down the line.