Managing and executing payroll for a large organization on time can be hectic on its own. However, making sure that the payroll is compliant to different Australian laws can add a whole new level of complexity to the endeavour.
Here we will share 4 easy-to-implement tips for managing your payrolls that will help ensure that your staff salary administration is fully compliant to Aussie laws.
Lodge and Pay Taxes When Processing Payroll
The Single Touch Payroll Reporting (STPR) system is part of the Australian Tax Office’s attempt to implement big data technology into the tax collection system. It allows the Tax office to collect information about transactions and compliance in real-time, bringing significant improvements to the way how businesses process their payroll across the country every month.
According to the Budgets Savings (Omnibus) Act 2016, employers will soon be required to comply with the STPR. Businesses that employ more than 20 workers are required to follow STPR from July 1st, 2018. Businesses with less than 20 employees must follow the requirement from July 1st, 2019. Implementing STPR during payroll processing will ensure that businesses are compliant when the law takes effect.
Recording Obligation and Pay Slips
Employers can make their payroll more compliant by implementing time recording measures for employees to clock-in and out of work. This offers two benefits to businesses.
First, businesses can be sure that employees are punctual and coming in to work and leaving at the correct times. Second, it also helps record the number of hours worked which ensures that wages are calculated and reported to the tax office accurately.
Issuing salary slips to workers will also be mandatory for big and small businesses. Small businesses incorrectly believe that they are exempt from issuing payslips and record-keeping. However, businesses will be required to maintain a complete payroll record in the future, regardless of size.
Modernize Payroll Systems
Most modern payroll systems come equipped with the tools and features that allow them to be integrated with other accounting software. Modern payroll systems are cloud-based, allowing greater accessibility for businesses to enter and adjust data or review the information from anywhere, anytime. The payroll accounts can also be accessed through mobile devices allowing faster processing.
The systems also use automation, eliminating the need to manually enter data multiple times and reduce errors and inconsistencies. Employment Innovations payroll compliance systems are becoming increasingly popular among Australian businesses and HR professionals.
Improve Payroll Award Management
Payroll awards cover special payment arrangement with employees. These include the following.
- Minimum Wages
- Overtime and Penalty Rates
- Annualized Wages or Salary Arrangements
- Full-Time, Part-Time or Casual Wages
- Paid Leaves, Holidays, Sick Leaves etc
Legislation concerning payroll awards changes frequently. It is important for employers and HR professionals to keep up-to-date with such changes and ensure that employees are paid correctly and correct taxes are submitted to the tax office.
Businesses can improve compliance by registering for online updates to changes in legislation concerning payroll awards.