Managing the hiring process and working out what each worker needs to be paid is one of the hardest parts of running a business.
In 2019, Single Touch Payroll (STP) was introduced to ensure employers lodge their PAYG and superannuation for employees digitally with every pay cycle, as well as at the end of the financial year.
The move encouraged smaller businesses to become more digitally savvy and efficient. It is also designed to ensure that employees are getting all their entitlements in a timely fashion.
For example, this year the superannuation contribution for employees has increased to 10.5%. Employers must now make sure their payroll software is updated to reflect this change from 1 July 2022. Penalties for employers failing to pay the regulated superannuation entitlements are significant.
Employees should provide you with the details of their super funds, but the business should also have a default super fund for those employees without a nominated fund.
Today there are many choices in software solutions to help you manage compliance issues. For example, Xero can complete a payroll in minutes and the program is connected directly to the ATO portal so monthly reporting and adjustments are simple. These systems can also generate invoices automatically and specific apps can track business processes, cashflow patterns and human resource data. Packages can be designed to suit specific industries.
If you would like more information on suitable software solutions that will help small business owners manage payroll and forecasting, please ask us next time you speak to your dmca adviser.