Online Payroll Explained

Chapter 1: What is payroll?    

At least one hour every day should be set up for promotional efforts. Spend some of that time evaluating what is and is not working.

There’s nothing wrong with attempting a new approach and discovering that it doesn’t work. However, when something isn’t working out, it’s critical to cut your losses.

Remember to direct part of your marketing efforts toward your current consumers. It’s much easier to keep an existing customer than to find a new one. However, you must offer them some affection. From time to time, express your gratitude for their business.

Understanding five legal issues related to payroll   

Payroll requirements vary by jurisdiction, however, there are key parts of the law that are likely to apply anywhere you do business:

1. Taxation
   Any business that has employees is required by law to withhold the proper payroll taxes from its workers’ wages and pay those taxes to the appropriate government agencies. To put it another way, you act as a tax collector for your staff members.
2. Retirement plans and healthcare
   There is a possibility that you will also need to deal with payments for nationally specific necessities like social security and medical care, which vary from country to country. To accomplish this, it is necessary to deduct the required amounts from the salary of your employees and, in the majority of situations, to also make employer contributions. Sometimes these are predetermined sums, and other times they reflect a proportion of the total salary that each employee receives.
3. Fines and penalties
   You could face a significant fine or other penalty if you don’t pay the required taxes, so make sure you determine the amount of PAYG, payroll tax, and Superannuation Guarantee Contributions (SGC) owed and pay them on time.
4. Reporting
   Written reports of your compliance with PAYG, payroll tax, and SGC obligations need to be provided to the relevant government agencies as well as to your staff members. This could be done once a week, once a month, or once a year depending on the regulations in your area.
5. Payroll is for employees
   Payroll must legally contain only those workers who are directly employed by your company. Freelancers and independent contractors, in addition to anyone else who invoices you through their own company, are typically not included in this category. If you’re ever confused about who’s on your payroll and who isn’t, you should discuss the matter with your accountant.

In some locations, you might also be responsible for additional tasks, such as making payments towards unemployment insurance or ensuring that all of your workers have the appropriate authorisation to be employed in your country.

How to pick a payroll programme    

In certain types of accounting software, payroll functions are either pre-installed or offered as an optional add-on. There are also applications that operate independently as payroll systems. The requirements of your specific organisation are the primary factor that should guide your decision, but there are a few points that you should bear in mind either way:

• Utilise what you have
  Is accounting software already in use in your company? Check to see if it comes with built-in payroll or if you can instal one. It’s time to upgrade if it isn’t already.
• Check to see if it is simple to use
  Choose a payroll package or payroll accounting software add-on that can also be used by your accountant or financial advisor. To prevent swapping files in multiple formats, keep it simple.
• Online and cloud usage
  Using cloud-based accounting and payroll software makes sense these days. You may access and share payroll information with trusted partners from anywhere and at any time. In addition, less IT support is required.
• Ensure it can develop along with you
  You may only have one or two employees right now, but you’re clearly setting your sights high. You won’t have to switch systems as your company grows if you use scalable payroll software.
• Make sure it can record in real-time
  Make certain that the payroll software you chose preserves accurate, up-to-date, and real-time records of payroll processes.
• Request suggestions
  Inquire of your accountant or bookkeeper, financial advisor, bank, company colleagues, and proprietors of enterprises that are similar to yours. Check out what they have to say.
• Look over the reporting requirements
  Check to check what kinds of reports are available with the accounting or payroll software you’ve chosen. Inquire with your accountant about which ones would be beneficial to your company.

Consider incorporating other helpful features such as automated tax computations, direct payment administration, and timesheet management in addition to the aforementioned recommendations. Because transferring from one payroll system to another could be tough, you should think about what you’ll require and make a selection after gathering as much information as possible.

A six-point checklist for great payroll    

If you require help with your bookkeeping, you can give us a call on (03) 8568 3606 or email us on [email protected].

Having the appropriate software is only one component of a complete payroll solution. Now it’s up to you to put it to good use! Setting up your payroll system correctly from the beginning will save you a lot of time and hassles in the long run. Here are some pointers:

1. Register your business
   Ensure that your registered business number appears on all payroll documents and any tax forms you send to the ATO.
2. Record your employees’ data
   In your payroll system, enter all of your employees’ information, including their name, address, welfare ID number, and deductions (if taxes need to be taken out). Include your contact information, salary, leave entitlements, overtime, and any other benefits. Check your local regulations to see what information you must provide.
3. Do the paperwork
   Ensure that your employees complete and deliver all appropriate tax and superannuation forms to the tax office. Make your own forms in the same way.
4. Decide on payment periods
   When are you going to pay your employees? It could be on a weekly, monthly, or fortnightly basis.
5. Keep up to date
   Payroll information should be updated on a regular basis. Do it yourself or have a bookkeeper or accountant do it for you.
6. Set up an archive
   Consider how you’ll archive records that need to be retained for several years. Some of this will be done for you by good payroll accounting software, but you’ll still need some paper archives for papers like tax forms.

Understand what to do when your payroll changes    

Payroll isn’t set in stone; it will fluctuate when you hire additional staff. Whenever a new employee joins your company, double-check that all necessary federal tax paperwork is completed and filed.

Payments to your payroll employees will change, and you’ll need to incorporate them into your system in a variety of ways. Here are a few examples:

• Salaried worker
  For each pay period, a fixed salary was paid.
• Regular hourly or casual employee
  For a set number of hours per week, you are paid an hourly wage.
• Commission
  Paid on a percentage basis for services provided, items or services sold.
• Bonus
  Paid for exceeding expectations in terms of performance.
• Supplemental wages
  Bonuses, commissions, overtime pay, terminations, and back pay are all included in this umbrella phrase.

Archive your payroll records    

Payroll records must be kept for seven years by the government. For each employee, these records should have the following information:

• Name, address, and federal tax identification number (TFN). Check the local rules in your country for further information.
• Date of employment
• Date of termination (if not still employed by you)
• Payment amounts and dates for all wages, annuities, and pensions
• Copies of all pertinent forms provided to (and completed by) the employee
• Dates, amounts, and who made the payments for sickness or injury are all listed.
• Dates and amounts of your tax deposits
• Copies of the filed returns, as well as confirmation numbers
• Keep track of your employees’ fringe perks and expenditure reimbursements.

You may also be legally obligated to keep some information. To find out, contact the Australian Taxation Office (ATO).

Payroll is your responsibility to get right    

You can either conduct payroll activities in-house or outsource them to an accountant or payroll business. In either case, it is the responsibility of the business owner to keep proper records and file them with the ATO. As a result, it’s critical to take your time and do it properly.

You may make your life easier by selecting the best payroll accounting software and properly configuring it. To ensure that this is done correctly, seek assistance from your accountant, the ATO, and Fair Work Australia. Investing some time and effort now will save you a lot of time and money when your company grows and you hire new staff.

Chapter 2: Getting your head around small business payroll

What does payroll mean for small business?    

Payroll is, at its most basic level, giving with one hand and taking with the other. You must do the following:

• always pay your staff the correct amount at the correct time (according to their contract and in line with employment law)
• make correct deductions for things like taxes and retirement from their pay

Payroll, as you might expect, is rife with regulations. You must adhere to several government regulations.

What’s involved in payroll compliance?    

You must do the following to comply with government regulations:

• ensure that your payments and deductions are accurate.
• deliver a detailed payslip to your employee that details everything you’ve done to file and pay taxes on time.
• timely filing and payment of taxes
• other deductions, such as retirement payments, should be directed to the appropriate accounts.
• keep payroll records for a minimum of seven years.

For the purposes of this lesson, we’ll assume you already know how to calculate your employee’s compensation. We’ll go over the deductions and reporting obligations with you.

What are payroll deductions?    

Deductions are sums of money deducted from an employee’s pay before they are paid. Deductions can be used to pay for things like:

• contributions to employee pension plans
• employee income tax, as well as benefits taxes
• child support payments, for example

Your employees may have additionally agreed to have supplementary healthcare insurance, retirement plans, or charitable donations deducted directly from their salary. Our guide to recruiting workers has more information on these deductions, including the order in which you should make them.

Reporting to the ATO    

You will collect taxes from your employees for the tax office as an employer. You must pay such taxes on time and file reports with the tax office on a regular basis. These reports demonstrate that you are correctly paying and taxing your staff.

Every payday, you’ll disclose to the ATO how much your employees were paid, how much tax was withdrawn, and how much superannuation was contributed under Single Touch Payroll (STP). This report must be filed using your accounting or payroll software, or you can have it done for you by a registered agent or payroll service provider.

Payroll options for small business    

The more staff you have, the more complicated your payroll becomes, particularly if you have a mix of hourly and salaried personnel.

When you add in contractors, commission-based employees, overtime, expense claims, allowances, and leave entitlements, your payroll can be completely different each time you do it.

Payroll management for small businesses can be done in a variety of ways:

• Pen and paper, or spreadsheets: Businesses with fewer than ten staff favour these approaches. Spreadsheets, on the other hand, are frequently rejected by the ATO.

• DIY software: Apps can help you calculate pay and deductions, as well as fill out tax forms. You will, however, be responsible for the payments.

• Payroll service providers: Payroll can be outsourced to professionals. Some service providers will take care of everything for you. Others will assist with certain chores..

• Accountants and bookkeepers: You don’t need to hire a professional payroll service. Payroll can be handled by a variety of accountants and bookkeepers. To find one, look through the Xero advisor directory.

Chapter 3: What is single touch payroll and how does it affect your business?

Summary of single touch payroll    

A new rule modified when and how small firms submit payroll activity to the Australian Tax Office, known as one touch payroll (ATO).

The ATO used to get this information from businesses once a year. After each pay day, they now send a report. Those reports must also be submitted digitally and in a certain manner.

When you report payroll    

At the conclusion of the fiscal year, small firms used to finalise their payroll records and produce:

• a payment summary annual report for the ATO, detailing the amount of salary or wages paid, the PAYG withheld, and any superannuation payments made.
• a payment summary for each employee, detailing the wages or salaries they received, the payroll taxes deducted from their pay, and any superannuation contributions made on their behalf.

The payment summary yearly report and the payment summary have both been eliminated as a result of STP.

No more payment summary annual reports    

You do longer need to file a payment summary annual report because you update the ATO on a pay-by-pay basis. You simply notify the ATO when you’ve completed your final pay run for the fiscal year for your employees.

No more employee payment summaries, either    

Employers are no longer required to send payment summaries to employees, hence they are no longer needed to prepare them. The Australian Taxation Office (ATO) relies only on single touch payroll reports to keep track of salaries/wages received, taxes collected, and superannuation contributions.

By login onto myGov, your employees can see the information that used to be on their payment summary.

You need to report payroll online    

The ATO no longer accepts paper forms for reporting payroll transactions. You must send the material using the SBR format, which is a specialised format for online submissions (Standard Business Reporting).

Employers with 1–4 employees are able to use the ATO-commissioned software developers’ no-cost or low-cost solutions. These services should cost no more than $10 per month. These companies can also hire a licenced tax or BAS agent to file quarterly reports on their behalf until June 30, 2021.

How to comply with single touch payroll    

You must ensure that you are able to provide compliance reports on a regular basis. Here’s how it works:

• If you’re using online payroll software, it should be up to the task. Just make sure the reports are ATO-compliant.
• If you use desktop payroll software, you’ll need to find a service that will upload your payroll reports, convert them to the ATO’s required format, and submit them for you.
• If you use spreadsheets or pen and paper, you need to find a service to convert the data into a compliant digital report format and submit it on your behalf.

This could be an excellent moment to hire an accountant or bookkeeper if you haven’t already. In the Xero adviser database, you can locate one who is knowledgeable with online payroll software.

Chapter 4: How to record payroll taxes accurately

Your employees pay tax through you    

As a business owner, you are responsible for paying taxes on your company’s profits. However, your tax obligations do not end there. You must also collect tax from your employees on their earnings.

Each of the employees you hire gets taxed on their earnings. The amount of tax they pay will be determined by their wage and a variety of other criteria.

Your employees, on the other hand, do not send monthly checks to the government tax office. You instead collect (withhold) and pay their tax on their behalf.

As a result, keeping proper payroll tax records is critical. We’ll look at what’s involved in doing that in this guide.

The importance of keeping records    

It is a legal duty to have correct payroll tax records. In legal words, you are acting as the government’s fiduciary agent when you collect taxes from your employees.

As a business owner, this is one of your responsibilities, and failure to do it correctly might result in serious consequences. If you don’t follow the guidelines to the letter, you can expect a government audit.

Even if there were no consequences, keeping detailed records would still be necessary. Accurate figures can reveal a lot about the status of your company.

They explain how your money is spent in great detail. They also tell you how much each employee costs you in real terms, not simply how much their compensation costs you.

What should you record?    

The requirements of various tax authorities will differ. However, they will all want some crucial information. Fortunately, you can use that knowledge to run your firm. Consider the following scenario:

• Employee information, such as names, addresses, and social security numbers.
• Dates of the payroll tax reporting period’s start and end.
• Details of all salary payments made during the time period under consideration.
• Pensions, benefits, and superannuation contributions are examples of additional payments.
• Any payments you make to your employees in lieu of money, such as goods or services.
• Expenses incurred by your employees and paid to them, including all receipts.
• Pay for maternity and paternity leave, as well as sick leave.

In other words, you should keep track of anything monetary that you pay or give to your employees. It all has an impact on their earnings and the amount of tax you must withhold.

Looking after your records    

Safeguard all payroll tax information. Most countries need it to be kept for at least four years, but check your local rules to be sure.

It makes no difference how you keep the information as long as it is secure and dependable.

For this, many businesses adopt cloud-based accounting software. Their data is automatically encrypted and backed up via the internet. This provides better peace of mind to business owners.

Simplifying the work with online payroll software    

Payroll tax recording was previously done by hand with a pen and paper. This was a lengthy and exhausting procedure. Fortunately, reliable payroll accounting software can now automate the majority of the procedure.

A big advantage is the ability to connect many systems. This is especially true if you’re working with cloud-based technologies. This means the programme is web-based and capable of securely communicating data. You save time as a result. Consider the case below:

• Employee timekeeping can be done electronically rather than using paper time sheets.
• Tax codes are revised on a regular basis.
• Employees may be able to assist you. They can use the system to update their contact information and apply for vacations.
• Claims for travel and expenses can be processed considerably more quickly.
• Using the most up-to-date tax standards, the software can calculate payroll tax for you.
• Using a laptop, smartphone, or tablet, you may securely access your information from anywhere at any time.

All of this makes payroll record-keeping much easier. It will also assist you when it comes time to file your tax returns with the ATO.

Filing online – a choice or requirement?    

Governments are attempting to make payroll reporting for businesses — and for themselves – as simple as possible. Many companies now have the option of completing tax returns online, and in certain countries it is required.

Reporting intervals are also becoming shorter. Businesses used to be required to file quarterly or annual reports. Some governments now demand that you file paperwork every time you pay an employee. It’s critical to have proper payroll records whenever you file them.

This appears to be a significant amount of work for business owners. However, with the correct payroll accounting software, keeping track of the crucial figures is simple.

Accounting software providers strive to integrate with government tax systems. Payroll accounting software that is hosted in the cloud is updated on a regular basis and automatically. As a result, you’ll always have access to the most up-to-date online reporting tools.

Better business insight    

Never underestimate the importance of payroll tax records to your company. They’re based on data that you should already be gathering. They can, however, provide you with a fresh viewpoint on your company.

Knowing how much tax you’re withholding can assist you figure out what each employee’s genuine cost is.

• Reports assist you in concentrating on areas where you can save money without sacrificing productivity.
• Expense claims may reveal areas where you can cut costs. Perhaps you might provide your employees with a variety of travel options.
• If your sick pay is high, consider how you may improve your employees’ working environment.

Of course, you can’t rely on payroll tax records to tell you everything about your company. However, they can provide you with a unique perspective on what is likely to be your most expensive business expense – your employees.

Don’t forget to pay!    

You must ensure that withheld taxes are paid on time and in full each and every time. There are consequences for neglecting to keep correct records, as we’ve already explained. However, there are consequences for not paying the correct amount of tax on behalf of your employees.

The longer you wait to pay, the higher the fines become. As a result, make sure to establish payment reminders in your accounting software. You’ll never miss a payment again.

Part of good business    

As you can see, it’s critical to keep correct records. The data will assist you in keeping track of how much you pay your employees. It will also ensure that the correct amount of tax is withheld. If you do it correctly, you will stay on the right side of the law.

It’s a positive sign that your firm is running smoothly if your payroll tax records are accurate. So take the time to set up the proper recording setup. Then you’ll be in compliance with tax law – and have a better understanding of your company.

Chapter 5: Payroll compliance for an employee’s first day

Compliance is a legal requirement    

There’s a lot to do before your new employee shows up for their first day. The majority of the HR work will have been accomplished — contracts will have been signed, and files will have been updated. The focus now shifts to payroll.

As was said in earlier payroll tutorials, there is more to payroll than simply disbursing funds to your staff members on a regular basis. Payroll addresses a variety of issues, including hiring and dismissal, remuneration, leave dates, benefits, and bonus payments, among other things.

It also has a direct relationship with taxes and tax accounting. That is to say, it is governed by law. So, if you don’t obey the law to the letter, you could face legal action.

There is more to consider than only the law of the nation. Legislation governs each and every stage of the payroll process, from ensuring that the appropriate paperwork is completed to ensuring that the appropriate overtime payments are made.

Within the scope of this tutorial, we will investigate what constitutes payroll compliance. In this way, both you and the person you recruit to replace you will be able to begin working immediately.

Start with the basics    

The first step is to enter the new employee’s information into your system. It’s possible that you have standalone payroll software. It could also be integrated into your primary accounting programme. In any case, you must cover the essentials:

• Ascertain that the new hire is a corporate employee. They are not your employees if they work as an independent consultant or freelancer.
• Check all of your personal information. Date of birth, address, and marital status are all included. This has an impact on how an employee is handled in terms of taxes.
• Make sure you’re using the correct salary information and tax codes. Include any contractual incentives and benefits; these must be reported to the ATO.
• Make sure you’ve entered the correct working hours. Part-time or full-time, flexible or fixed hours, get them perfect for the new hire.
• Check that you have the correct bank account information. Check this with your staff in writing. You may end up paying the wrong person if you use incorrect information. And correcting this can be costly.
• Set the start date for the new employee’s information to go live. Check their payment dates as well; they are likely to be the same as everyone else in your company.

Enrol your new employee    

Enrolling new employees in your pension or superannuation programme is a legal requirement in various countries.

It is optional in other nations, but many employers do it regardless. It can be a tax-effective approach to make your company more appealing to employment candidates.

It can also be a minefield when it comes to compliance. Your and your employee’s contributions will differ depending on their age, seniority, and salary. Any blunder can have far-reaching ramifications.

Government websites frequently provide helpful information. Check them out first to get a sense of what you’ll need to run your own scheme properly.

Think about the details – five questions to ask yourself    

We’ve covered the fundamentals of payroll compliance that apply to all businesses. However, there are some challenges that will solely affect businesses like yours. Consider the following scenario:

1. What is your staff turnover?
   Casual or temporary employees may only be needed for a few weeks in some industries. In some cases, you may have the same personnel for a long time. You’ll need to concentrate on different areas of payroll accounting depending on the situation.
2. How do you handle expenses?
   Check the local regulations regarding employee spending, whether it’s for travel or entertainment. Some things are permitted, while others are not, and the distinctions will not always be evident.
3. Do you pay your employees in cash?
   Nowadays, it’s uncommon, and most tax offices strive to discourage it. Paying your employees in legal cash, on the other hand, is perfectly acceptable. However, this will necessitate more security. It also implies that your accounting systems must be capable of handling cash accounts.
4. Do your employees do overtime?
   This must all be taken into account, especially when it occurs on weekends or holidays.
5. Do you fully understand local legislation?
   When you hire workers from other nations, you must pay them in accordance with local legislation. Make sure you’re familiar with minimum wage, employee tax reporting, and maternity and paternity leave laws.

These are only a few of the more complicated aspects of payroll compliance. If you’re unsure, get expert counsel. Business counsellors, chambers of commerce, and accountants are all excellent sources of information.

Always talk to your accountant    

You may have already spoken with your accountant about your new hire. In reality, this new employee might be a component of your business plan, which you drew out with the help of your accountant.

You could also have gotten this far without the help of an accountant. In that circumstances, hiring an accountant is never too late.

Accountants, unlike other business owners, are required to stay current on accounting legislation. This involves adherence. This implies that your accountant should have a lot better understanding of your situation than you have.

When it comes to employing new employees, an accountant can ensure that you’re following all of the proper procedures. Your accountant will be able to inform you if there is anything unique about your business condition – and will also be able to help you correct it.

Consider outsourcing payroll    

You might hire a company that specialises in payroll to do the work for you. This is extremely frequent in companies with less than 50 employees.

It can help you save time and money, but it won’t address all of your problems:

• You’ll still be required to give accurate information on your new hires.
• You’ll be one step removed from the person handling your payroll, making it more difficult to double-check.
• It’s still your legal responsibility to get payroll right, even if you outsource it.

This method has both advantages and disadvantages. Before selecting whether or not to outsource payroll, consider the pros and cons.

Use payroll software that helps you    

If you want to keep everything in-house, make sure you employ software that makes the process easier. It should be as follows:

• Easy to use
  Check through customer reviews and discussion boards to see how user-friendly it is.
• Suitable for your location
  Check to see if it can be set up to conform with local regulations.
• Connected to your accounting software
  You don’t want to have to type in the same data repeatedly. Payroll is included in certain accounting software programmes, while it is an optional feature in others.
• Cloud-based
  If the software is available online, you can use it at any time and from any location. As a result, it will always be current, and your accounting data will always be safe.

Request references from colleagues, accountants, and vendors. Don’t make a hasty decision because effective payroll software will grow with your company.

Talk to your new employee    

When your new hire arrives for work, there are a few things you should discuss with them. They will be introduced to coworkers, health and safety will be discussed, and they will be shown about the office.

But make sure you talk to them about compliance as well. This includes their obligations, which include things like:

• If their personal circumstances changes in any way, they will notify you (such as address or marital status).
• keep any receipts for business and travel expenses that are authorised.
• keeping track of any overtime they work This is also your responsibility, although it’s a good idea to double-check.
• complying with any requirements outlined in their employment contract with you.

Compliance makes life easy for you – and the tax office    

Complying with employment laws is one of the most difficult challenges facing small businesses. This is especially true in the case of payroll. So don’t be hesitant to ask for assistance. If you’re not outsourcing the labour, get assistance and select appropriate software.

Compliance should begin on the first day of work for your new employee, if not sooner. Get the payroll side of things up and running efficiently, and you’ll save yourself a lot of trouble later.

It will also make things easier for the government, particularly the tax office. Payroll compliance means you’ll have all the information you need to properly fill out and submit tax forms.

As a result, adherence will save you both time and money. That is true from the beginning to the end of your new employee’s employment with your company.

How payroll accounting software benefits your office

Payroll is more than just payment    

Payroll is more than just a list of your employees and their salaries. It’s also about keeping track of tax information and meeting regulatory standards like Single Touch Payroll.

Most payroll manuals approach the subject from the standpoint of the business, such as what it can do for you and how to stay in compliance with applicable regulations.

Of course, those are serious issues, but there’s more to it than that. Every employee on your payroll is a real person.

You can miss an opportunity to understand their requirements if you treat them like an accounting ledger entry. As a result, your company may experience underperformance.

So, in this article, we’ll look at payroll in a broader sense to give you a better notion of what your employees need. You’ll be able to optimise your payroll process – and gain more from your staff – with this knowledge.

Understanding employee motivation    

You generally have two main objectives or aims as a small business owner. The first step is to make enough money to keep your company afloat. The second goal is to expand your company as quickly as is feasible.

Your employees’ motives and circumstances are frequently dissimilar to yours. Here are some things to think about:

• They don’t own the company, therefore they won’t make a lot of money when (or if) you sell it.
• They each have their own professional and personal objectives.
• They may only be employed by your company for a limited time.
• They may lack financial stability and rely on frequent pay checks to make ends meet.
• They must evaluate monthly expenses such as rent, food, and utility bills.
• They are still working for you with the purpose of getting paid, no matter how much they adore your company.

As a result, it’s evident that money is one of the most powerful motivators for your staff. Not money at some indeterminate moment in the future, but money at regular and predetermined intervals throughout the month. That is why it is critical for your staff to have a smooth payroll procedure.

Give your employees what they need    

An inconsistent payment system wreaks havoc on working life and employee morale. Employees will be happier and more productive if they are paid on a regular basis, on schedule, and with all paperwork completed correctly. As a result, if you want your company to run smoothly, you’ll need a payroll accounting system that takes care of them:

• Automated direct payments
  Knowing that a bank deposit will be made on the promised date gives you peace of mind. As a result, don’t make your personnel wait for their pay. There will be no delays with direct automatic payments.
• Fast updates to tax codes
  The tax codes of your employees may vary. This is sometimes due to new legislation that affects their income tax bracket. Changes in personal circumstances, such as marriage or parenthood, might also play a role. Your system should be able to easily and quickly update tax codes.
• Accurate tax information
  Most employees’ salaries are withheld from them before they are paid. That is your role as an employer, and it is critical that you do it correctly. Your employees may not have enough money to survive on if you deduct too much. If you deduct too little, they may be forced to make a lump-sum payment to the IRS at the end of the year, putting them in financial distress. There’s a legal as well as a moral duty to get these deductions properly.
• Let your employees help
  As your company grows, you may have dozens or even hundreds of employees. That information must be updated in your system every time they move house or change their personal status. Giving employees limited access to their own data so they may make adjustments on their own makes reasonable. This should reduce errors, and you can set it up so that any altered data is double-checked before being updated.
• Manage holiday accounting
  Your payroll system should keep track of how many days an employee has been on leave throughout the course of the year, as well as their overall leave allowance and any carryover from the previous year. Allowing your staff to apply for leave directly within the system can boost workflow efficiency. Their boss can then approve or deny their applications without having to fill out a lot of paperwork.
• Process expenses and travel claims quickly
  These are expenses incurred by your employees but billed to your company. Ensure that your staff get reimbursed as soon as possible to avoid any unnecessary stress.
• Make regular healthcare, pension or superannuation contributions
  These payments may not appear to be significant at first, but they pile up over time — as do any errors. These payments will be handled automatically by good payroll accounting software. If you want to keep your employees satisfied, benefits, overtime, and sick pay should all be handled quickly and properly.

Choosing the right payroll software    

You’ll need a system that can deal with the issues mentioned above. However, effective payroll accounting software can do much more:

• Simplify tax paperwork
  If you own a business, you will have to deal with tax paperwork on a regular basis. By integrating into your accounts and retrieving all of the relevant information at once, good software will make it as straightforward as feasible. After that, all you have to do is review it and submit it – which is usually done online.
• Take care of new employees and ex-employees
  It should only take a few clicks to manage paperwork and payments for employees who are departing your company. When new people join, things will get a little more complicated, but decent payroll software will walk you through the process step by step.
• Reduce IT costs
  The ideal programme is one that does not require any effort on your part. There are no in-house support fees, no costly updates, and very minimal downtime. You won’t have to worry about IT issues if you utilise online payroll accounting software (also known as cloud payroll software), because everything is handled remotely.
• Give you access from anywhere
  Your data is securely saved, and you may view it from anywhere using online payroll accounting. As a result, you don’t need to be in the office to approve employee payments or verify the payroll figures on a monthly basis. You can do so using a laptop, tablet, or smartphone from anywhere, at any time.
• Stay up to date
  Employee benefits rules change, tax laws change, and income tax rates change. Payroll software that incorporates changes as they occur and distributes them to your employees can make your life easier.

Take your employees’ needs into account    

What’s good for your employees is excellent for you when it comes to payroll. There have been multiple instances of payroll software going awry in recent years, with disastrous consequences for employee morale. Some businesses will never fully recover.

Don’t overlook the significance of payroll to your staff. You can ensure that your employees are paid the proper amount of money at the right time by using the right payroll accounting software.

This will help to keep them pleased and allow them to focus on their work. As a result, your company will be able to develop and thrive.

Chapter 6: Payroll outsourcing: what you need to know

What is payroll outsourcing?    

There are specialists who will take care of payroll for you, just as there are specialists who will take care of most duties you don’t want to do or can’t perform. Payroll service providers can handle everything from calculating salary and deductions to depositing funds into your employee’s account and submitting taxes. Depending on what you need and what you can afford, they may just do part of the job.

Why outsource payroll    

Payroll processing can be difficult and time-consuming. Furthermore, there are numerous legal restrictions, which means there are substantial consequences if something goes wrong. Many business owners prefer to leave it to the professionals for these reasons. It provides them with more time and more peace of mind.

Furthermore, because they employ software to automate many of the procedures involved, payroll providers are generally able to conduct your payroll at a minimal cost.

What do payroll providers do?    

Payroll companies may give several degrees of service, which you can select based on your requirements. However, they’re all capable of:

• working out pay (including benefits and reimbursements)
• deducting employee income taxes and, if applicable, payroll taxes
• making any other deductions, such as retirement contributions
• filing (and even paying) taxes with the ATO
• making payments to employees
• keeping payroll records

Types of payroll service    

Payroll service providers are available in a variety of shapes and sizes. They can be accountants, bookkeepers, or payroll service providers. Some suppliers specialise in small payrolls, while others cater to large corporations.

They also differ in terms of the quality of service they offer and how they give it. There are two major groups.

1. Full-service payroll provider    

A full-service payroll provider handles your payroll from beginning to end; all you have to do is provide them with information about your company and employees. Everything else is taken care of by them.

Full-service payroll is often simpler, but it is also more expensive. You’ll also need effective information-sharing methods in place. They require prompt access to timesheets (for hourly employees) as well as notification of changes to a worker’s employment conditions or tax status.

2. DIY payroll providers 

Many payroll service providers handle the more difficult aspects of payroll while leaving the basic administration to you. You could, for example, maintain track of time and attendance and personnel records. They will, however, calculate all salary, taxes, and other deductions. They’ll also set you up with software that simplifies your tasks.

How to choose a good payroll service provider    

Payroll is an important aspect of your company. You’ll want to get it right the first time and choose a service who can meet your requirements. Here are some things to think about while selecting a payroll service:

• Get the right level of service
  Make sure your provider provides the appropriate degree of service; you don’t want to pay for services you don’t require. Understand what you’re paying for, what you’ll have to handle in-house, and how much extra services will cost.

• Automate the easy stuff
  Make sure your supplier uses software to automate the simple tasks so you don’t have to pay professional costs for simple administrative tasks.

• Check employee details regularly
  Inquire about their procedures for verifying and updating personnel information. Because a change in an employee’s information might have an impact on deductions and regulatory requirements, providers must be cautious about keeping their records up to date.

• Secure your data
  How does your service provider protect the privacy and security of your company’s and employees’ information? Inquire about the protections in place to keep your data safe.

• Work with what you have
  Examine the capabilities of your accounting software. You may already have the tools to automate payroll; all you need is assistance from an accountant who is familiar with your programme.

• Work with who you know
  Remember that some accountants and bookkeepers also provide payroll services. Inquire with your accountant or bookkeeper about payroll services.

Outsource payroll the right way    

When it comes to payroll outsourcing, it’s important to consider what will be most beneficial to your business in terms of both efficiency and cost. Do your homework and take a close look at the requirements of your firm before settling on a choice. If you choose with the right provider, you won’t have to worry as much about payroll and can instead focus on running and growing your company instead of dealing with the administrative tasks associated with it.

Chapter 7: Setting up online payroll with your bank

Payroll doesn’t stand still    

Payroll procedures are always changing. Businesses have transitioned to new payment systems throughout time. Employees have traditionally been compensated with:

• cash payments
• handwritten checks
• printed checks
• manual direct deposits into employee bank accounts
• online direct deposits into employee bank accounts.

The next logical step is to automate your employees’ online direct payments. To link to their bank accounts, modern firms employ software. They can then set up automated payments for their employees, among other things.

Linking your business to your bank    

Your bank account is an essential component of your company. Every day, you make and receive payments. As a result, it’s only natural for your bank account to be linked to your business software.

Modern accounting software can connect to most major banks’ internet banking services. This allows you to manage all areas of your finances without ever having to visit a bank.

Good accounting software, for example, can receive a “bank feed” from your bank. When you log into your accounting software, you can see your bank transactions via a bank feed. It’s a simple and painless approach to match bank transactions and reconcile your accounts.

You may also make speedier payments to your employees without having to manually enter all of their information. Online payroll is beneficial to both your employees and your company.

How does it work?    

Online banking is governed by strong regulations and safeguarded by sophisticated security measures. Bank account holders must be certain that their funds are secure at all times. As a result, banks and accounting software providers work diligently to ensure that online payroll is safe.

To make safe online payroll payments, there are two options:

1. Your accounting software creates a payment file. This document offers payment instructions in a format that your bank recognises. Log in to your online banking account and select the file to upload. Then simply affirm that you want to proceed with the payments, and they’ll be sent on their way.
2. Your accounting software sends payment instructions directly to a trusted payment company like your bank. That company pays your staff on your behalf, and you only have to pay the company once.

Both approaches offer benefits, but the second is especially quick and simple. You’ll be able to manage the entire process from your accounting software, and you’ll only need to log into your bank account once to make a payment.

Connect to your account    

Once you’ve connected your bank to your accounting system, getting automatic bank feeds is simple. Your bank statement lines are loaded into accounting software so that you can compare them to your records and reconcile them.

All of your recent banking transactions will be automatically updated in your accounts. You won’t have to type anything, which will save you a significant amount of time and work.

Most big banks will provide you with direct feeds if you use good accounting software. You may be required to sign a paper authorising the company beforehand. You could also have to pay the bank a modest fee. However, due of the benefits it provides, it is well worth the money.

A bank connection makes it easier to do business    

One of the advantages of tying your accounting software to your bank is easier payroll. You have a lot of options when you can access bank feeds with up-to-date information. The following are some of the other benefits:

• a lot less tedious effort – your financial data is automatically updated
• accounts reconciliation is sped up thanks to bank feeds.
• there are fewer chances of typing errors or other human blunders.
• you get an accurate, real-time view of your accounts
• you get an up-to-date, precise picture of your finances.
• you may quickly and simply make and schedule payments.
• employees and suppliers will be delighted since you can pay them more quickly.

Anything that makes account reconciliation and payroll payments easier is beneficial to your company.

Choosing the right software    

You’ll need the correct software to connect to your bank and take advantage of automated payments and feeds.

Accounting software works in a variety of ways — and with a variety of banks. Make sure you select the software that will best suit your needs. It should have the following characteristics:

• Support for bank feeds and account reconciliation
  This should ideally be automated, so you don’t have to download the data from your bank account manually.
• Support for payment data files
  You should be able to create payment data files in a common format that you can upload to your bank.
• Accessibility
  You can securely access your accounts whether you’re at the office or not with online or cloud-based software. When it comes to managing your online payroll, this means you’re not bound to a single machine.
• Ease of use
  Accounting might be difficult at times, but your accounting software should make it as easy as possible for you.
• Payroll features
  If your accounting software can’t support online payroll procedures, you won’t be able to pay your employees automatically.
• Scalability
  Because you’ll have more employees as your business expands, your payroll will grow as well. You must ensure that your accounting software can handle this expansion.
• Low maintenance
  You don’t want to be constantly updating and patching your accounting software. It should ideally be cloud-based, as this ensures that upgrades and backups are performed automatically.
• Single Touch Payroll compliance
  Each pay day, you must submit reports to the ATO. Look for software that allows you to write reports automatically and submit them online, as this can save you a lot of time.

Better online banking – six aspects to look for    

Some banks take a conservative, antiquated approach to commercial banking. Others, on the other hand, are more forward-thinking and proactive, having adapted to the world of cloud-based applications. So, now that you’ve found a possible business bank for your online payroll needs, it’s time to look into it a little more. Here are some characteristics to look for in a banking partner:

1. Support for the accounting software you’ve chosen.
2. They lead you through each step of the sign-up procedure.
3. Online banking solutions that are both comprehensive and simple to use. Your accounts should be accessible via a web browser as well as smartphone and tablet apps.
4. Connectivity to your accounting software.
5. If you use online payroll, you’ll be able to upload payment data files.
6. A presence in the area. If something goes wrong, trying to fix it over the phone with someone halfway around the world might be frustrating. A local branch allows you to deal with any difficulties on a one-on-one basis.

It’s usually a good idea to shop around. Examine customer reviews and thoroughly study each bank’s terms and conditions. A solid bank will be with you for the duration of your business, so don’t rush this decision.

Test and test, then test again    

Once you’ve decided on the accounting software and bank account that’s right for your company, put it to the test. Do not attempt to make live payroll payments right away. Take the time to learn about the procedure.

Check how efficiently your bank feed interfaces with your accounting software. Check to see if the numbers are correct.

After that, you can switch to online payroll. Begin with a few test payments to ensure that everything is working properly. You could, for example, pay a small sum to yourself or a single employee. This would be a good initial test because you can easily reverse the transaction and receive your money back.

It’s critical that you have faith in your bank’s relationship with you. Any inaccuracies may be difficult to correct later. So, in the beginning, keep an eye on the numbers. Check to see if the automated operations are performing as expected.

Bank integration simplifies payroll    

You may make your life easier by integrating your accounting software with your bank. It can make payroll speedier as well as having your financial information available in real-time.

It also cuts down on human error, as well as the time and work it takes to maintain your accounts up to date.

You may improve the efficiency of your payroll procedures with a little work up front. This will keep your employees satisfied, which is beneficial to your business.

Chapter 8: Can payroll software actually save you money?

Payroll is vital for your business    

You must pay your employees if you have them. Payroll is the process of coordinating payments to your employees.

Some small firms in Australia prefer to perform payroll by hand, preserving payment records in a spreadsheet or other document. Others may delegate payroll to an accountant or bookkeeper, or even a specialised payroll firm.

These are all viable options, but there is one more. Payroll accounting software can help you manage your payroll processes in-house. In this post, we’ll look into how that might work to see if it can save your company money.

What to consider for payroll    

Payroll isn’t as straightforward as it appears. Of course, you must pay your staff on a regular basis, but there’s a lot more to it than that. The following are examples of small business operations:

• Payments to your staff
  Dates and amounts must be kept track of at all times.
• Payment types
  Salaries, hourly rates, bonuses, and commissions are all different.
• Taxation
  Make sure the ATO is aware of any taxes you collect on behalf of your employees.
• Reporting
  Keep track of important reporting dates for employees’ pay and deductions from the government.
• Leave entitlement
  Keep track of your employees’ vacations, including any that are carried over to the next year.
• Sickness tracking
  Keep track of all of your employees’ sick days.
• Maternity and paternity payments
  This is a complicated field that necessitates thorough reading and comprehension of government legislation.
• Superannuation
  Take note of the sums you and your staff have contributed.
• Expenses payments
  What were they used for, and when and how were they reimbursed?
• Benefits and perks
  To be appropriately taxed, these must be accounted for.
• Significant dates
  Include dates of hire for new employees and dates of termination for departing employees.

This is a lot to contemplate, which is why every Australian small business should think about how they handle payroll.

The cost of compliance    

If you manage a business in Australia, you must be familiar with compliance. This entails adhering to all applicable government legislation and regulations. Taxation, reporting, employment rules, and payroll are all covered.

It takes time to comply, and time is money – your money.

This is especially true in small enterprises, where owners sometimes wear multiple hats, including director, bookkeeper, HR manager, and sales lead. You might be surprised at how many hours you spend keeping up with Australian-specific compliance if you calculate how many hours you spend on it.

As a result, anything that saves you time is bound to save you money. Quality software can save you a lot of time. Can it, however, save you enough time to make up for the cost of purchasing it? Next, we’ll take a look at that question.

What is payroll software worth to your business?    

While some accounting systems include payroll, you will have to pay for payroll software separately. The key decision is whether or not it is a price worth paying for your company. Will payroll accounting software, in other words, save you more money than it costs? Here are four self-examination questions to consider.

1. What will the software cost you?
   Investigate the market. Examine the prices of various software packages, keeping in mind that some will require regular updates or monthly subscription payments. Some software allows you to add as many extra users as you like for free, which can save you a lot of money.
2. How much does payroll work cost you now?
   The other half of the equation is this. One approach to do this is to add up the total amount of time you and other employees in your company spend on payroll. Add up how much time you spent on each of the payroll chores listed earlier in this article. Assign this task an hourly rate. Calculate the yearly cost of payroll-related tasks for your company by multiplying the two figures together.
3. Will the software help your business stay compliant?
   The danger of errors associated with manual data entry is reduced when payroll and accounting are combined into one system. You’ll have piece of mind knowing you’re complying with automatic and connected software.
4. Why can’t I manage payroll on a spreadsheet?
   Businesses frequently use Excel for payroll, but spreadsheets are notoriously prone to errors. These tools can conduct incredibly complex calculations for persons who know how to use spreadsheets to their maximum extent. However, many small firms overlook the fact that it is a difficult application and do not limit access to experts. As a result, many businesses rely on spreadsheets to assist with payroll, only to discover that it is more complex than they anticipated. With regulatory compliance in mind, failing to upgrade from Excel to adequate accounting and payroll software could result in severe fines.
   If you continue to utilise a spreadsheet, you risk damaging the company’s reputation among employees. This could happen for a variety of reasons. One reason is that complex regulations are always changing, and any problems might generate conflicts between the employer and the employee. Another point to consider is that spreadsheets do not guarantee accuracy. Your data will not be automatically backed up if you lose it, unlike payroll software.

Four key benefits of online payroll software    

There are a variety of payroll packages to choose from. Some are designed to function on a single office PC, but newer packages now have the ability to run online via the cloud. There are numerous advantages to this, including:

1. Anytime, anywhere access
   All of your data could be gone if your computer crashes. Cloud-based online payroll solutions do not have this problem. Simply log in from a different computer and continue.
2. Multiple access
   Invite your bookkeeper or accountant to access your payroll system remotely from wherever they are to assist you in managing it.
3. Data security
   If an office laptop is lost or stolen, all of your payroll data may be gone as well. Worse, financial information could be stolen, leaving you or your employees out of cash. Cloud-based technologies encrypt your data to keep it safe and accessible online, lowering the risk of data loss.
4. Work from anywhere
   Do you need to double-check certain numbers on the weekend while the office is closed, or when on a business trip? No issue — simply log in remotely at any time and get the information you require.

As a result, online payroll software may do all of the functions of traditional payroll software, but with the extra benefit of the cloud. It allows you to be free of your computer, desk, and even office.

Choose payroll accounting software wisely    

It’s crucial to look around for the best payroll accounting software for your business, just like you would for any other purchase. Some of the aspects that may be beneficial to you include:

• • Tax calculation features
    You don’t want to have to figure out how much tax each employee owes manually. Make sure the programme can handle all of this for you, and that updates are handled automatically each year.
  • Superannuation compliance
    The Australian Government’s SuperStream data and e-commerce criteria can make paying your employees’ superannuation a time-consuming and complicated task. Make sure your payroll software can easily and automatically handle payments to numerous funds.

Full tracking and recording

A complete audit trail of every transaction is vital in order to meet Australian compliance requirements.

• Anytime, anywhere access
  Cloud-based software can be accessed via a laptop, smartphone, or tablet from any location. This allows you to manage your company from anywhere, at any time. If the programme is entirely cloud-based, you’ll have less IT support to deal with.
• Multiple levels of access
  You may want to allow managers or employees to enter their hours (with checks) into the system, but keep all other information private. This is something that good online accounting software will allow you to perform.
• Application and approval for leave
  Wouldn’t it be fantastic if your employees could utilise the payroll system to request yearly leave, and you could accept it with a few mouse clicks? This is something that the greatest software will allow you to do, saving you time and paperwork.
• Scalable architecture
  You most likely want your small business to grow into a major corporation over time. As a result, it’s pointless to invest in software that won’t develop with you. Make sure you pick a package that can simply scale up to meet your expanding needs.

It’s critical that the software you purchase be simple to use and dependable. Check through user forums and talk to other small business owners in Australia to see what they recommend.

So, can payroll software save you money?    

Yes, but only if you make the right choices. By minimising the amount of labour you have to perform manually, the correct payroll software will more than pay for itself in the long term.

So, if you do your homework and invest in the correct software (ideally cloud-based), you’ll be able to save time when it comes to payroll processing.

This will free you up to focus on what you do best: running and growing your business.

Chapter 9: Payroll software that makes things simple

Payroll technology is changing    

Consumers aren’t the only ones who benefit from new technology; businesses do as well. Accounting technology advancements are changing the way firms handle employee payment operations. These new methods have the potential to change the way you pay your employees.

They can, for example, make tax code revisions easier, track employee hours and expenses, and eliminate the need for paper forms.

They can also empower your staff by giving them more control over their personal data. As a result, your expenses will be reduced.

There’s a lot to learn about payroll technology on the internet. We’ll go over everything you need to know in this tutorial. Then you can apply what you’ve learned to streamline your payroll, saving you both time and money.

How payroll technology works    

It wasn’t long ago when paying employees by hand was the norm. Manually noting records, writing and handing out checks in person, and updating accounts ledgers using pen and paper were all done by hand.

Most organisations have progressed past that point and now rely on technology to automate some of their payroll operations.

However, technology advances at a rapid pace.

If your company’s software is more than a few years old, you may be missing out on some exciting new capabilities.

And such features may save you as much time and money as the move away from paper did. They are as follows:

• Improved automation.
• More integration with accounting software.
• Your staff are responsible for keeping personal information up to date.
• Leave approvals are now easier.
• Smartphones allow for faster expense claims.
• Tax calculations have been improved.
• Real-time reporting for financial auditing.

If your current payroll system lacks many of these capabilities, it’s time to reevaluate your options.

Choosing the right payroll software    

The features are what matter, whether you buy an off-the-shelf product or use online accounting software. Good software will expand with your company, so it’s worth it to make the proper purchase. Here are some things to think about:

• Compatibility
  You’ll need a package that connects to your present accounting software to keep things simple. You won’t have to enter information twice or worry about file formats if the two systems can readily integrate. Even better, some accounting software includes payroll features as a standard feature or as an add-on.
• Ease of use
  It’s pointless to spend money on complicated and difficult internet software since it will never be used effectively. So, before you buy, read online reviews and client comments. Instead of complicating your payroll workflow, good software will make it easier.
• Scalability
  You may only have a few employees today, but you may have dozens next year. Will your software be able to scale as your company grows? The most effective packages will. Furthermore, if the software is stored online, you may be able to receive free upgrades rather than needing to purchase new versions of the software on a regular basis.
• Compliance
  Payroll is regulated, therefore you’ll require software that complies with local regulations. Check to see if the programme you’re buying is designed to work in your area.
• Time-saving features
  This is what sets good software apart from the rest. Payroll can be a time-consuming and difficult task. By automating much of the process, good software can save time. So, before you buy, double-check the features and read user reviews and discussion forums for more information.

Advantages for your employees    

Employees will appreciate the convenience of online payroll technologies. It may allow users to have more choice over how some of their personal data is stored. Consider the following scenario:

• Change of address
  Employees can update their addresses directly in the system, eliminating the need for them to fill out and send paper forms to your HR department.
• Changes in life status
  Employees can alter their status at any time, whether it’s due to marriage, divorce, or the birth of a kid. Benefits and other payments may be affected immediately as a result of this.
• Simpler leave notification
  Your staff can manage their own vacation and sick leave applications and alerts. This is especially beneficial around the holidays because it allows you to keep track of all of your team’s plans in one spot.
• Easier expenses claims
  Your staff can now scan their purchases with their smartphone or tablet thanks to new technology. This means that expenses may be immediately recorded and approved, allowing them to obtain their money back sooner.

All of this can be done without jeopardising the system’s security. Employees with limited access can benefit from new technology, which sends notifications to your accounts team, allowing them to review and approve any modifications.

New technologies can simplify your payroll workflow — and save your bureaucracy – from holiday approvals to personal address updates.

Five key advantages for your business    

Some of the features that benefit your employees are also beneficial to you because they help you save money. Other benefits of good payroll software for business owners include:

1. Less paper
   Paper isn’t particularly costly on its own. Printers, toner, electricity, maintenance, storage, and archiving, on the other hand, are all expenditures associated with paper. Paper forms and tax submissions are becoming obsolete as a result of new technology. It won’t make your office paperless on its own, but it will assist you in using less paper.
2. Automated bank transactions
   You may set up the system to handle direct transfers into your employees’ bank accounts – once payments are accepted – depending on where you’re based. Employees can be notified of payments and tax records can be updated at the same time.
3. Stay up to date with tax laws
   Every year, it appears that tax laws become more complicated. You may quickly and easily add new tax codes and make changes with online payroll. Then, with minimal disturbance, you may roll out these modifications to all of your employees.
4. Less admin
   New technologies can simplify your payroll workflow — and save your bureaucracy – from holiday approvals to personal address updates. The main benefit is that you may delegate a lot of the work to your staff. Because consumers have authority over their personal data, they have a vested interest in ensuring that it is accurate and up to date.
5. Access information from anywhere
   You may access your payroll information at any time, from any location, with online accounting solutions. This is a significant benefit, as many business owners now spend a significant amount of time outside of the office. All you need is a smartphone, laptop, or tablet to stay current — safely and conveniently.

Online technology gives everyone more control    

Online payroll technology’s major purpose is to provide everyone more power. That includes offering your employees more control over their personal information and leave requests, as well as allowing you more control over how the process is handled.

But don’t just go out and buy the first payroll accounting software you come across. Because this is such an important aspect of your company, it pays to do it properly the first time. Choose the perfect product for you – one that will streamline your payroll and expand with your company. You may free up time and resources by using the proper tools to focus on what matters most: growing your business.

Chapter 10: Payroll software for Mac that’s easy to use

Beautiful yet powerful design    

If you’re an Apple lover, one of the features you most likely value is the excellent product design. Apple’s lustrous, appealing products conceal a great deal of thought, effort, and attention to detail. Apple puts a strong emphasis on usability in both its software and hardware, and it shows.

However, as a small business owner who enjoys Apple software, you may have found it difficult to find payroll software that you enjoy as much. Some payroll programmes still have a lot of room for improvement. Payroll software built for PC users and subsequently customised for Mac users, for example, may not meet all of your needs.

So let’s take a look at what to look for in Mac payroll accounting software that’s actually straightforward, user-friendly, and powerful.

Seven must-haves for payroll software    

Apple products are popular not only with individual consumers, but also with corporations. This is especially true for today’s connected workers. If you run your company on Apple devices, you’ll know exactly what you’re looking for in payroll software:

1. A payroll system that works on your iPad, iPhone, and Mac that is cloud-based or online.
2. Intuitive design – which is sometimes lacking in financial software.
3. Only the features you’ll utilise, not a slew of others you’ll never use.
4. Because your accounting data is priceless, you need a system that is both stable and safe.
5. Excellent customer service and dependability.
6. Ability to cooperate and exchange data with others in your company.
7. It’s simple to connect to a variety of third-party add-on programmes.

That covers the essentials to get you started. But what about features like bookkeeping and payroll?

Payroll software for Mac – seven points to consider    

Let’s say you can discover payroll software that complements Apple’s design aesthetic. That’s a terrific start, but it must also include the appropriate features. It will be required to:

1. Calculate the salary of your employees without having to enter the same information twice.
2. Determine the difference between a salaried and hourly employee.
3. Take care of all payroll taxes as well as insurance deductions.
4. Prepare and file all tax returns and other required papers electronically.
5. Integrate with other apps to securely share information.
6. Add an unlimited number of users and set access levels to allow you and your team to work together online at the same time.
7. As long as you have an internet connection, you may access your account from anywhere at any time.

That last point is quite crucial. You need to be able to access your accounts while on the go in today’s fast-paced corporate world.

You’ll be able to gain a far better view of your financials if you’re enthused about utilising your payroll software and find it simple to use.

Good payroll software makes teamwork and collaboration easy    

For a modern organisation, the capacity to communicate information is critical. Some payroll software allows you to grant specific people access to specific sections of the payroll process. You might want to share payroll data with these persons (but limit the figures they see):

• Your employees
  When you utilise current payroll software, employees can submit their own information. They’ll be able to enter their own hours and view previous and current payslips. They could also use the system to request vacation time.
• Your bookkeeper, accountant and financial advisor
  Would you like to have financial summaries printed out every time you meet with these professionals? No, securely sharing data online is considerably easier and faster. You’ll be able to collaborate with your accountant on the process of conducting payroll, filing taxes, and paying them with the correct payroll software.

Finding the right payroll software    

You should now have a clear notion of what features you require in the finest payroll software. But how do you choose the best one for your company?

Begin by reading software product reviews on the internet. Look for ones that will meet your company’s requirements. Check out customer reviews as well; they’re a terrific way to learn what people genuinely think about a product.

Don’t be afraid to enquire about what your coworkers, partners, suppliers, and friends use. You’ll receive a slew of suggestions to help you narrow down your options.

Time-saving tools    

You may narrow down your options even more by considering how software can save you time – and thus money. The best payroll software for Mac will take care of all of your administrative responsibilities. It should be able to do the following:

• calculate your taxes and allow you to pay them electronically
• use time sheets to boost productivity and make computations easier.
• take care of direct bank deposits for your employees
• prepare papers for filing, including employee end-of-year tax forms
• include a calendar for staff vacations, sick days, and birthdays
• collaborate with your accountant so that they can verify your numbers from afar
• data is automatically updated in your accounts’ general ledger.

The more thought you put into selecting payroll software, the happier you’ll be with your ultimate pick.

Payroll without compromise    

You may have simple-to-use software with all the features you need – and more – when it comes to payroll software for Mac.

Check out customer reviews and look for cloud-based or online payroll software. Several payroll software solutions provide a free trial period so you can see if it’s the best fit for you.

You’ll be able to gain a far better view of your financials if you’re enthused about utilising your payroll software and find it simple to use. Controlling your finances and cash flow has to be beneficial to your business.