Whether you have a small, medium, or large size business, payroll can be a pain. Hopefully, your accounting software has automated systems in place to help. If not, then it is time to search for software tools that can streamline your payroll system quickly and accurately.
As of July 1, 2018, a Single Touch Payroll reporting system will be required for all businesses with 20 or more employees to aid with reporting and filing with the Australian Tax Office (ATO). For those businesses with 19 or fewer employees, legislation is being put in place to start with single touch payroll by July 1, 2019.
Continue reading below for our tips for keeping your payroll system running smoothly and getting ready for the Single Touch Payroll system.
With any employee hires, there are decisions to be made. Will your employees be paid a salary or hourly? Will the employees be full time, part time, freelance contractor, or casual? Will the payroll be weekly, bi-weekly, or monthly? Remember that for any employee earning over $450 a month before taxes, the employer must pay the superannuation rate, which is currently 9.5%.
Payroll Software Options
There are many accounting software options available on the market today. Compare and contrast the various options for the one that is right for your business. Some do not offer payroll options or charge extra fees for more features. Find a software program that includes a complete employee payroll tracking system. Ask questions of the supplier specifically about the new Single Touch Payroll system, to make sure they are compliant with the new regulations.
With a software system in place, you can keep track of all wages and salaries, along with important tax information. This will help to keep you aware of your budget, ingoings and outgoings, and maintain best business practices.
Save Time & Money
While it may seem daunting to set up a software program if you haven’t yet done so, in the long run, it is worth it. For those who aren’t as familiar with using accounting software, most platforms are very user-friendly with tutorials to help. Customer service can also be a great aid in setting up a new software system. With the Single Touch Payroll system coming into effect very soon, it is best to have good payroll policies already in place.
Automated systems for paying taxes, distributing paychecks, and keeping detailed records about all aspects of your business are the main reasons to have an accounting software program. Do research into which system will work best for your business, there are many excellent programs available that were tailor-made for small and medium-sized businesses.
Being able to track all of your business outgoings and incomings along with wages, business expense reports, and taxes is a vital part of running a successful business. Accounting software will keep everything stored in one place, a virtual filing cabinet that has secure encryption technology. Most software programs now offer cloud services, giving you access wherever you go. Most software companies offer a free trial period, so find one that looks like the right fit and get started.
Streamline and Improve Your Business
The Single Touch Payroll system will allow the ATO to have access to your employee’s records. Once the payroll is submitted to the ATO, they can then generate tax forms for each employee, which will be generated at the mygov website. This new system streamlines the necessary income information from employer to tax office and employee.
Take some time to learn more about the Single Touch Payroll system and get started on an accounting software procedure today to improve your business.