The world of payroll can seem quite daunting. This can be an employer’s most complicated place to tread as it is filled with award conditions and compliance issues that can baffle even veteran bookkeepers. Here are 10 questions you need to ask to make your payroll less complicated:
- What kind of employment are you offering: permanent, casual or temporary?
- Is your worker an employee or a contractor?
- Can your employee legally work in Australia?
- What are your employee’s rights under anti-discrimination laws?
- What are your record-keeping requirements?
- Are you paying the correct wages and entitlements?
- What tax do you need to deduct from your employee’s pay?
- What are your superannuation obligations?
- What are your workplace health and safety obligations?
- Do you need workers’ compensation insurance?
For more information on the above, download MYOB’s handy guide.
Once you have all of your information on hand and the correct paperwork completed by the new employee, this is where the headache stops from a processing perspective.
- Using Accounting Software, simply add the employees by using the information on their Tax File Number Declaration form. You will find that all the necessary information is on this form and this will make your job easy. Make sure you tab across and complete the necessary questions relating to their taxable options.
- Complete their hourly rate or annual salary amount and ensure you put their bank account details in so that their payment can be made effortlessly.
- Using their completed “Super Choice Form”, fill out the Superannuation tab. Make sure the employee has completed this form correctly and has included the ABN and USI number for their Superannuation Fund. Your bookkeeper and accounting software will keep up to date with the latest ATO tax changes including changes to the superannuation guarantee rate, which you are to pay.
Doing the pay run
It’s pay day….. now what? Luckily you have already taught your software what to do!
Once you are ready to process a pay, all you have to do is check that the prefilled dates are correct. Tick your employee and follow steps on screen. Your job is done.
Make sure you transfer staff wages to the relevant bank accounts and you have happy employees. More importantly, you can be happy that you have managed to do the right thing and pay the right rate. Well done!
Make sure you are using the right Award conditions and you have researched your Award/s thorough. Take the time to set up your payroll as it will help you run your business smoothly. Freeing up your time with expert help and smart software means you can focus on other aspects of your business that you love. Go for it!