our guide on payroll we discussed the process of paying an employee. Part of that discussion was the actual calculation and processing, we discussed options like using a third party or using software to do it yourself. In this guide we will review what you need to consider in selecting a Payroll software solution.
Chances are if you are considering payroll software you already have or are also considering an accounting package solution. Either way you are best to ensure the solution is either built into the accounting package or can be integrated. This will save you lots of time. See our essential guide on accounting software solutions.
Small business payroll software is a solution used in-house that helps you streamline and automate payroll processing tasks. The software saves time and effort through automation as well as reduces errors vs doing manually. It often includes modules for time tracking, tax filing, and benefits administration.
WHY do I need software to do my payroll?
Benefits of Small-Business Payroll Software
- Automation of processes
- Reduced labour costs associated with payroll processing
- Greater accuracy and lower risks eliminate the possibility of human error. The software can also remind you of deadlines, so reduce your risk of fines.
- Integration with existing software, for example, accounting packages or POS systems
- Some packages will provides updated tax tables when the legislation changes so that the right PAYG Withholding is used.
WHAT you need to know about the ATO and Single Touch Payroll
As a small business in Australia you need a package that will comply with the Australian Tax Office Single Touch Payroll (STP) https://www.ato.gov.au/business/single-touch-payroll/in-detail/single-touch-payroll-employer-reporting-guidelines/. Larger business may consider a package that includes other HR functions but it is unlikely a small business you would consider this. Like the accounting, POS, and eCommerce software solutions the Payroll solution is most likely to be cloud-based bringing functionality at a reasonable price.
HOW do I make a decision on which Payroll Software
Features you should consider:
- Designed for the Australian Tax System and reporting requirements
- Performs Single Touch Payroll reporting
- Direct deposit functionality into employees’ bank accounts
- SuperStream standard compatibility for Superannuation compliance
- Ability to integrate with other cloud-based software solutions you are using. This will reduce the workload
- Additional information can be printed on the employee payslip such as annual leave owing
- The ability to support employee deductions or allowances for example, car leasing or uniform allowance
- Leave management including annual, sick, and long service
- Employee portal to update banking details or enter leave
- Mobile access from your smartphones, both for administration and employee
- If employees clock on and off, the ability to integrate this process
- Flexibility to handle employment options including variable hours, bonus payments, contractors, etc
- New hire integration without external assistance
- Reporting functionality including leave reporting
- Alerts or reminders, for example, payment was not successful or Super payment is due
- Security. Remember all your wage information is on the cloud. Consider in which country the information is hosted
- Legislation updates. How quickly will the software be updated to abide by any new Government legislation?
- Support. Various support or training might be available either included or at a cost.
- Cost and cost of extra features
Make sure your software choice will does not have any compatibility issues with your and your employee’s bank account intergration. Also ensure the bank will process payments overnight so employees can draw cash the next day.
SUMMARY – Easy Payroll
This software can be accessed inexpensively and will make your life easier. More info on vendors can be found by searching for small business payroll software Australia.