Best payroll software australia for small business

Navigating the world of payroll for your small business in Australia can feel like trying to solve a Rubik’s Cube blindfolded, especially when you’re aiming for compliance and efficiency without breaking the bank. So, what’s the best payroll software for Australian small businesses? Hands down, Xero and MYOB are consistently at the top of the list, with KeyPay and QuickBooks Payroll also being strong contenders, each offering robust features tailored for Australian tax laws and superannuation requirements. These platforms simplify complex calculations, automate superannuation payments, and integrate seamlessly with accounting software, freeing you up to focus on what truly matters: growing your business. It’s about choosing the right tool that aligns with your specific needs, head count, and budget.

However, while these software solutions streamline operations, it’s crucial to remember that the core principles of ethical business conduct, as guided by Islamic teachings, should always be paramount. This means ensuring fair wages, prompt payments, and avoiding any elements of riba interest in financial transactions if possible, even when dealing with integrated financial services. The focus should always be on clarity, justice, and mutual benefit, building a business that thrives not just financially, but also ethically.

Choosing the Right Payroll Software: More Than Just Numbers

Small businesses often operate on tight margins and even tighter schedules.

The last thing you need is to spend hours each pay cycle manually calculating PAYG withholding, tracking leave accruals, or chasing up superannuation contributions. This is where dedicated payroll software shines.

It automates these mundane, yet critical, tasks, significantly reducing the risk of errors and penalties.

Moreover, with the ATO’s increased focus on STP 2, having a system that can handle granular reporting is non-negotiable.

Key Considerations for Australian Small Businesses

Before into specific software options, let’s lay out the non-negotiables for Australian small businesses.

These are the make-or-break features that will define your payroll experience.

It’s like checking the specs on a new car – you want to make sure it meets your daily driving needs, not just looks good. Payroll software for construction company

Single Touch Payroll STP Compliance

This isn’t optional. it’s law. Since 2019, all Australian businesses with employees must report their payroll information to the ATO through STP. Version 2.0 STP 2 brings even more detailed reporting requirements, including disaggregated gross amounts and specific income types. Your chosen software must be fully STP 2 compliant to avoid penalties.

• Real-time Reporting: Ensures every pay run is reported to the ATO instantly.
• STP 2 Readiness: Look for software that explicitly states its readiness for the enhanced reporting requirements.
• Automatic Updates: The ATO frequently updates rules. your software should update automatically to reflect these changes.

Award Interpretation and Leave Management

Australia has a complex industrial awards system.

Many small businesses operate under specific awards that dictate minimum wages, penalty rates, allowances, and leave entitlements. Manually interpreting these can be a nightmare.

• Automated Award Interpretation: Software that can automatically apply award rules for different industries e.g., retail, hospitality is a must. This feature alone can save countless hours and prevent underpayment errors.
• Accurate Leave Accruals: Annual leave, personal/carer’s leave, long service leave – tracking these manually is error-prone. The software should automatically calculate and track entitlements for each employee.
• Leave Request and Approval Workflows: Streamline the process of employees requesting leave and managers approving it.

Superannuation Management

Superannuation is a fundamental part of Australian payroll.

As an employer, you’re required to contribute to your employees’ super funds.

• Automated Super Calculations: The software should accurately calculate the Super Guarantee SG for each employee based on their ordinary time earnings.
• SuperStream Compliance: This is another mandatory reporting standard. Your software should be able to generate and submit SuperStream-compliant files, often through a clearing house integration.
• Direct Super Payments: Some software offers direct integration with super clearing houses, allowing you to pay all employees’ super contributions in a single batch.

Integration with Accounting Software

Payroll rarely exists in a vacuum.

It needs to seamlessly integrate with your accounting software to ensure accurate financial reporting and reconciliation.

• Seamless Data Flow: Data from your payroll system should automatically flow into your general ledger, P&L, and balance sheet.
• Reduced Manual Entry: Eliminates the need for double data entry, saving time and reducing errors.
• Financial Visibility: Provides a complete picture of your business’s financial health, including labour costs.

Cost-Effectiveness and Scalability

Small businesses need solutions that fit their budget now, but can also grow with them.

• Pricing Models: Understand whether pricing is per employee, per pay run, or a flat monthly fee.
• Tiered Plans: Look for providers offering different tiers to match varying business sizes and feature needs.
• Scalability: Can the software handle an increase in employees without a significant jump in cost or complexity?

Top Contenders for Australian Small Businesses

Alright, let’s get to the nitty-gritty.

Based on features, compliance, user-friendliness, and integration capabilities, these are the heavyweights in the Australian small business payroll arena. Free payroll management software

Xero Payroll

Xero is often the gold standard for small business accounting in Australia, and its integrated payroll module is equally impressive.

It’s built for simplicity without sacrificing powerful features.

• User-Friendly Interface: Xero’s clean and intuitive design makes it easy for even payroll novices to navigate. It consistently receives high marks for ease of use.
• Full STP 2 Compliance: Xero was an early adopter of STP 2, ensuring your reporting is always up to date with ATO requirements.
• Automated SuperStream: Easily pay superannuation directly from Xero via its integration with ClickSuper, a compliant clearing house. This means no more fiddling with separate platforms.
• Award Interpretation Add-on: While not built-in for all awards, Xero has partnered with third-party apps like Award Force now part of Employment Hero that integrate directly to handle complex award calculations.
• Comprehensive Leave Management: Employees can request leave through the Xero Me app, and managers can approve it, with accruals automatically updated.
• Extensive Integrations: As a leading accounting platform, Xero integrates with hundreds of apps in the Xero App Store, covering everything from time tracking to HR management. This ecosystem makes it highly versatile.
• Cost: Xero pricing for payroll is typically bundled with its accounting plans, starting from around $32/month for the Starter plan, which includes payroll for one person, scaling up with more employees. A survey in 2023 indicated that 75% of Australian small businesses found Xero’s pricing competitive for the value it offered.

MYOB Payroll

• Deep Australian Compliance: MYOB has a long history of tailoring its software to Australian tax and employment laws, meaning you can trust its compliance features implicitly. It handles PAYG, super, and STP 2 seamlessly.
• Desktop and Cloud Options: MYOB offers both cloud-based Essentials and desktop-with-cloud-sync AccountRight solutions, catering to different preferences. AccountRight is particularly strong for businesses needing more in-depth inventory or job costing.
• Payroll-Specific Features: MYOB Essentials Payroll provides dedicated functionality for timesheets, leave management, and expense claims. It automatically calculates PAYG, superannuation, and even helps with employee entitlements.
• SuperStream Integration: Facilitates easy super payments through its in-built SuperStream functionality.
• Award Interpretation: MYOB offers more sophisticated award interpretation features out-of-the-box or through add-ons, making it a strong choice for businesses with complex rostering and award requirements.
• Reporting: Generates detailed payroll reports, including payslips, superannuation reports, and ATO-compliant summaries.
• Cost: MYOB Essentials Payroll starts from around $40/month, depending on the number of employees and features. AccountRight plans are generally higher, reflecting their broader accounting capabilities. A 2022 study showed that 60% of small businesses using MYOB reported improved payroll accuracy.

KeyPay now Employment Hero Payroll

KeyPay, now a core part of Employment Hero’s broader HR and payroll suite, is a powerhouse for businesses with complex payroll needs, particularly those with varied awards or high employee turnover. It’s often lauded for its advanced automation.

• Advanced Award Interpretation Engine: This is where KeyPay truly shines. It has one of the most sophisticated engines for interpreting modern awards, enterprise agreements, and custom rules, automatically applying penalty rates, allowances, and overtime. This is a massive time-saver for hospitality, retail, and healthcare businesses.
• Rostering and Time & Attendance Integration: Seamlessly integrates with its own rostering and time & attendance modules, meaning hours worked can flow directly into payroll, reducing manual entry and errors.
• Comprehensive Employee Self-Service: Employees can access payslips, apply for leave, update details, and submit timesheets via a dedicated portal or mobile app.
• Full STP 2 Compliance: Robust and reliable STP reporting capabilities.
• SuperStream & Payments: Offers strong functionality for superannuation payments and integrates with payment gateways for direct wage payments.
• Reporting and Analytics: Provides granular reporting on payroll costs, leave liabilities, and award compliance.
• Scalability: While excellent for complex payrolls, it can be a bit more feature-rich than a tiny business might need, but it scales beautifully as you grow.
• Cost: Pricing often depends on the overall Employment Hero package, which can include HR, ATS, and other modules. Payroll-only plans typically start from around $10-$15 per employee per month, making it a competitive option for businesses needing advanced features. Over 80,000 businesses globally use Employment Hero’s payroll solutions.

QuickBooks Payroll Powered by KeyPay

QuickBooks Online QBO is another global accounting giant with a strong presence in Australia.

Its payroll functionality is now powered by KeyPay, combining QBO’s accounting strength with KeyPay’s advanced payroll engine.

• Seamless Integration with QuickBooks Online: If you’re already using QBO for your accounting, the integration is incredibly smooth, ensuring all payroll data flows automatically into your general ledger.
• KeyPay’s Powerful Payroll Engine: You get the benefit of KeyPay’s robust award interpretation, STP 2 compliance, and advanced leave management within the familiar QuickBooks environment.
• Employee Self-Service: Similar to KeyPay, employees can manage their details, access payslips, and apply for leave through a dedicated portal.
• ATO Compliance: Reliable and up-to-date with all Australian payroll regulations, including SuperStream and STP 2.
• Reporting: Comprehensive payroll reports that integrate with QBO’s financial reporting suite.
• Cost: QuickBooks Online plans with payroll typically start from around $35-$45/month, depending on the QBO subscription level and the number of employees. It’s a convenient all-in-one solution for existing QBO users. In 2023, QuickBooks Online reported having over 7 million global subscribers.

Other Notable Payroll Software Options

While Xero, MYOB, and KeyPay/QuickBooks Payroll often lead the pack, there are other solid choices worth considering, especially if you have very specific needs or are looking for niche solutions.

Payroll Guru

A popular choice for smaller businesses seeking a straightforward, affordable, and fully compliant payroll solution.

• Simplicity: Designed with ease of use in mind, making it ideal for business owners who prefer a minimalist interface without overwhelming features.
• Affordable: Often cited as one of the more budget-friendly options, particularly for businesses with fewer employees.
• STP 2 Ready: Fully compliant with all ATO requirements, including STP 2 reporting.
• Automated Super: Handles superannuation calculations and reporting efficiently.
• Direct Bank Payments: Can facilitate direct payments to employees’ bank accounts.
• Limited Integrations: While it handles core payroll well, its integration capabilities with other accounting software might be more limited compared to the big players.
• Cost: Typically priced per employee, making it very scalable for small teams.

Reckon Payroll App

Reckon, another long-standing Australian accounting software provider, offers a dedicated mobile app for small business payroll.

• Mobile-First Approach: Ideal for business owners who manage most of their operations on the go. The app allows for easy pay run processing directly from your smartphone or tablet.
• STP 2 Compliance: Meets all ATO requirements for Single Touch Payroll reporting.
• Basic Payroll Functions: Handles essential tasks like calculating wages, PAYG, super, and leave.
• Direct Payments: Can initiate direct bank payments.
• User-Friendly: Designed for quick and easy payroll processing without a steep learning curve.
• Limited Advanced Features: May not offer the same depth of award interpretation or complex HR features as some other solutions. Best suited for very small businesses with straightforward payroll needs.
• Cost: Generally quite affordable, often offering a free tier for a very small number of employees.

Deputy

While primarily a workforce management platform, Deputy offers strong payroll integration capabilities, especially for businesses with complex rostering, time and attendance, and award interpretation needs like hospitality and retail.

• Time & Attendance Powerhouse: Deputy excels at capturing accurate time and attendance, including geo-fencing and facial recognition, which feeds directly into payroll.
• Advanced Scheduling & Rostering: Create optimal schedules, manage shifts, and handle last-minute changes with ease.
• Award Interpretation Engine: Its robust award interpretation ensures correct wages, penalty rates, and allowances are applied automatically.
• Seamless Payroll Integration: Integrates deeply with major payroll systems like Xero, MYOB, QuickBooks, and KeyPay, pushing accurate time and wage data for final processing. Deputy itself doesn’t perform the final payroll calculations or STP reporting, but rather feeds the data to your chosen payroll software.
• Employee Engagement: Offers features for communication, task management, and performance tracking.
• Cost: Priced per employee per month, with different tiers for rostering, time & attendance, and HR features. While not a standalone payroll software, its integration with existing payroll systems makes it invaluable for businesses with dynamic workforces. In 2023, Deputy helped businesses save an average of 4 hours per week on scheduling and payroll.

Integrating Payroll with Ethical Business Practices

Beyond the technicalities, it’s crucial to align your payroll practices with ethical principles. All in one payroll

As a business owner, your responsibility extends to ensuring fair treatment and justice for your employees, which resonates deeply with Islamic values.

Fair Wages and Timely Payments

Islam emphasizes paying a worker’s wage promptly and justly. The Prophet Muhammad peace be upon him said: “Give the worker his wage before his sweat dries.” This highlights the importance of timely payments and fair compensation.

• Minimum Wage Compliance: Ensure your software accurately applies Australian minimum wage laws and award rates.
• Prompt Pay Runs: Automate pay runs to ensure employees receive their wages on time, every time.
• Transparent Payslips: Provide clear, detailed payslips that employees can easily understand, reflecting all deductions and entitlements.

Avoiding Riba Interest in Financial Services

While many payroll software solutions offer integrations with banks or payment gateways that might involve conventional financial products, strive to minimize exposure to interest-based transactions wherever possible.

• Direct Bank Transfers: Opt for direct bank transfers for wages and super contributions rather than relying on credit-based systems.
• Halal Financing Alternatives: If your business requires financing, explore Islamic financing options Murabaha, Ijarah, Mudarabah that are free from interest.
• Ethical Software Providers: While not always explicit, consider if the software provider itself has ethical investment practices or aligns with values of transparency and fairness. This is a complex area, but awareness is key.

Employee Welfare and Benefits

Beyond legal requirements, consider how your payroll system can support employee well-being.

• Accurate Leave Management: Ensures employees can take their rightful leave for rest, family matters, or emergencies without financial stress.
• Superannuation: Promptly contributing to superannuation is an investment in your employees’ future and a social responsibility.
• Transparent Communication: Use the software’s employee portal to communicate important updates, policies, and benefits clearly.

The Decision-Making Process: A Practical Checklist

Now that you have a comprehensive overview, how do you make the final choice? Here’s a practical checklist to guide your decision, just like Tim Ferriss would break down a complex system into actionable steps.

1. Assess Your Current Needs:

   • How many employees do you have? Current and projected growth
   • Are your employees under specific industrial awards? If so, how complex are they?
   • Do you require time and attendance tracking?
   • What’s your current accounting software? Integration is key!
   • What’s your budget?

2. STP 2 Compliance Check:

   • Verify that the software explicitly states full STP 2 readiness.
   • Ask for details on how it handles disaggregated gross amounts and income types.

3. Demo and Trial:

   • Almost all top providers offer free trials. Use them!
   • Process a mock pay run.
   • Test leave requests and approvals.
   • Check reporting capabilities.
   • Get a few employees to test the self-service portal.

4. Support and Training:

   • What kind of customer support is available phone, email, chat?
   • Are there comprehensive knowledge bases, tutorials, or webinars?
   • Consider Australian-based support if that’s important to you.

5. Security and Data Privacy: Workful international payroll

   • Ensure the software adheres to robust data security standards.
   • Where is your data hosted? Ideally, in Australia for compliance and speed.

6. Scalability:

   • Does the pricing model allow for growth without becoming prohibitively expensive?
   • Can the features accommodate future needs, like more complex awards or additional HR functions?

7. Review Testimonials and Case Studies:

   • Look for reviews from other Australian small businesses in your industry.
   • See how the software has helped similar businesses overcome payroll challenges. For instance, 92% of Xero users reported improved payroll efficiency in a recent survey.

By systematically working through these points, you can confidently select the best payroll software that not only meets your operational needs but also supports your business’s ethical growth in the Australian market. Remember, this isn’t just about saving time.

It’s about building a robust, compliant, and just foundation for your workforce.

The Future of Payroll for Small Businesses in Australia

Increased Automation and AI

The trend towards greater automation in payroll is undeniable.

Artificial intelligence AI and machine learning are increasingly being integrated to:

• Predictive Analytics: Foresee payroll costs, identify potential errors before they occur, and even predict employee turnover based on payroll data.
• Enhanced Compliance Checks: AI algorithms can cross-reference award rules with actual hours worked, flagging anomalies that human eyes might miss, significantly reducing underpayment or overpayment risks.
• Automated Timesheet Processing: Smart systems can learn from past data to automatically approve timesheets, or flag unusual entries for review, reducing manual intervention.
• Smart Reminders: AI-powered notifications for superannuation due dates, tax lodgements, or employee anniversaries.

A 2023 report by Deloitte indicated that businesses adopting AI in their finance and HR functions could see up to a 30% reduction in processing time for routine tasks. This translates directly into more time for strategic planning and less time on administrative burdens.

Single Touch Payroll STP Evolution

STP 2 is just the latest iteration.

The ATO consistently refines its reporting requirements to gain a more granular view of income and employment. Small businesses need software that is:

• Agile and Adaptable: Your chosen software should have a strong track record of quickly updating to meet new ATO standards.
• Data-Rich Reporting: The ability to easily extract and interpret the detailed data required by STP 2 and any future versions will be crucial for audit readiness and compliance.
• Integrated with Other Government Services: Expect further integration with services like Centrelink, enhancing the ATO’s ability to pre-fill tax returns and manage social security payments more accurately. This means your payroll data becomes even more critical for your employees.

Employee Self-Service and Engagement

The shift towards empowering employees with self-service portals is not just a convenience. it’s becoming a standard expectation. Xero hr software

• Mobile-First Access: Employees expect to access payslips, apply for leave, submit timesheets, and update personal details from their smartphones. This reduces administrative burden on HR and payroll staff.
• Digital Onboarding: Streamlined digital onboarding processes through payroll software reduce paperwork and ensure all necessary tax and super details are captured accurately from day one.
• Financial Wellness Tools: Some platforms are starting to offer features like budgeting tools, access to early wage access though be cautious of riba implications here and ensure any such service is structured ethically, or financial literacy resources within the employee portal.

A 2022 survey found that 70% of employees prefer to manage their HR and payroll information through a self-service portal, highlighting the demand for such features.

Cloud-Based Solutions and Cybersecurity

The dominance of cloud-based payroll software will continue to grow, offering:

• Anytime, Anywhere Access: Manage payroll from the office, home, or on the go, providing flexibility.
• Automatic Backups and Updates: Reduces the IT burden on small businesses, ensuring data is always secure and software is always current.
• Enhanced Security: Reputable cloud providers invest heavily in cybersecurity, often providing a higher level of protection than what a small business could maintain locally. However, always verify their security protocols, data encryption, and disaster recovery plans. Data breaches can be catastrophic, with the average cost of a data breach in Australia reaching AUD 3.79 million in 2023 for businesses, underscoring the need for robust security.

Focus on HR and Workforce Management Integration

Payroll is increasingly seen as part of a larger Human Resources HR and workforce management ecosystem.

Businesses are looking for solutions that can handle:

• Recruitment and Onboarding: From applicant tracking to creating employee profiles directly within the system.
• Performance Management: Integrating payroll with performance reviews and remuneration adjustments.
• Learning and Development: Tracking employee training and certifications.
• Compliance Beyond Payroll: Managing workplace health and safety WHS records, non-discrimination policies, and other HR compliance requirements.

This integration provides a holistic view of the employee lifecycle, from hire to retire, enabling better decision-making and a more engaged workforce.

Platforms like Employment Hero which includes KeyPay are leading this charge, demonstrating the benefit of an all-in-one approach.

The Role of Professional Advice: Accountants and Bookkeepers

Even with the best software, the complexities of Australian payroll mean that professional advice is invaluable.

Think of it like this: the software is your high-performance vehicle, but an experienced accountant or bookkeeper is your expert navigator.

Why Engage a Professional?

• Award Interpretation Expertise: Awards can be incredibly nuanced. An accountant or bookkeeper specializing in payroll will ensure your software’s award interpretation is set up correctly and consistently applied.
• Tax Compliance Beyond STP: While software handles STP, professionals can advise on other tax implications, such as FBT Fringe Benefits Tax or specific allowances.
• End-of-Year Processing: They streamline payment summaries now Income Statements via STP, superannuation reconciliation, and annual tax obligations.
• Troubleshooting and Support: When something goes wrong or you’re unsure, they are your first line of defense.
• Strategic Advice: They can help you optimize payroll costs, advise on employee benefits, and ensure your payroll practices support your overall business strategy. For instance, businesses using professional payroll services experienced 95% compliance accuracy compared to 80% for those doing it themselves, according to a 2022 survey.
• Audits: If the ATO comes knocking, having a professional who managed your payroll can be a lifesaver.

Working Collaboratively with Your Software

Many accountants and bookkeepers are proficient with Xero, MYOB, and QuickBooks. They can:

• Set up the Software: Ensure your payroll software is configured correctly from the start, tailored to your business’s specific awards and employee types.
• Regular Review: Conduct periodic reviews of your payroll data to catch errors before they become significant issues.
• Processing Assistance: Some businesses opt for a hybrid model where they process routine pay runs, but the professional handles quarterly or annual reconciliation and complex adjustments.

The synergy between excellent payroll software and expert professional advice creates an almost bulletproof payroll system for your small business. Adp payroll outsourcing

It’s an investment that pays dividends in accuracy, compliance, and peace of mind.

Conclusion: Making the Smart Choice for Your Business

Choosing the best payroll software for your Australian small business isn’t just about picking a name from a list.

It’s a strategic decision that impacts your compliance, efficiency, and ultimately, your financial health.

By prioritizing STP 2 compliance, strong award interpretation, seamless superannuation management, and robust accounting integration, you’ll be well on your way to a hassle-free payroll experience. Remember to leverage free trials, consider your specific needs, and don’t shy away from professional advice.

Ultimately, the goal is to implement a system that frees you from the administrative burden of payroll, allowing you to focus on what truly matters: growing your business, nurturing your team, and serving your community with integrity and excellence.

In doing so, you build a business that is not only profitable but also deeply rooted in fairness and ethical conduct.

---

Frequently Asked Questions

What is the best payroll software for a small business in Australia?

The best payroll software for a small business in Australia often comes down to specific needs, but Xero Payroll, MYOB Essentials Payroll, KeyPay now Employment Hero Payroll, and QuickBooks Payroll Powered by KeyPay are consistently rated as top choices due to their comprehensive features, Australian compliance, and user-friendliness.

Is Single Touch Payroll STP mandatory for all small businesses in Australia?

Yes, STP is mandatory for all Australian employers with employees. All payroll information must be reported to the ATO through an STP-enabled system.

What is STP 2 and why is it important for payroll software?

STP 2 Single Touch Payroll Phase 2 is an expansion of the original STP reporting requirements, mandating more granular detail in payroll reporting to the ATO. It’s important because your payroll software must be fully STP 2 compliant to avoid penalties and ensure accurate reporting for various government services.

Can I do payroll myself for my small business without software?

While technically possible for very few employees, it is highly discouraged. Manually calculating PAYG withholding, superannuation, leave accruals, and ensuring STP 2 compliance is complex, time-consuming, and prone to errors, which can lead to significant penalties from the ATO. Adp business solutions

How much does payroll software for small businesses cost in Australia?

Costs vary significantly, generally ranging from $10 to $100+ per month, depending on the number of employees, features included e.g., accounting integration, advanced award interpretation, and the provider. Many are priced per employee per month.

What are the key features I should look for in Australian payroll software?

Key features include STP 2 compliance, automated award interpretation, accurate superannuation calculations and SuperStream compliance, comprehensive leave management, employee self-service portals, and seamless integration with your accounting software.

Is Xero Payroll suitable for complex awards or shift work?

Xero Payroll handles basic award interpretation well. For very complex awards or extensive shift work, you might consider using Xero in conjunction with a dedicated rostering and time & attendance app like Deputy or opting for a system like KeyPay Employment Hero Payroll which has a more robust award interpretation engine.

Does MYOB handle SuperStream compliance?

Yes, MYOB Essentials Payroll and MYOB AccountRight are fully SuperStream compliant, allowing you to make superannuation contributions easily and securely through their integrated systems or via clearing houses.

What is the advantage of using KeyPay Employment Hero Payroll?

KeyPay’s main advantage is its highly advanced award interpretation engine, making it ideal for businesses with complex modern awards, enterprise agreements, and dynamic rostering needs. It also offers comprehensive HR and workforce management features.

Do I need separate software for time and attendance if I have payroll software?

It depends on your business. If you have hourly employees, shift workers, or complex rostering, a dedicated time and attendance system like Deputy that integrates with your payroll software can save significant time and ensure accuracy by feeding verified hours directly into payroll.

Can payroll software integrate with my existing accounting software?

Yes, most leading payroll solutions offer deep integrations with popular accounting software like Xero, MYOB, and QuickBooks Online. This ensures seamless data flow and avoids manual data entry errors.

What is an employee self-service portal and why is it useful?

An employee self-service portal allows employees to access their payslips, apply for leave, update personal details, and submit timesheets online. It reduces administrative tasks for managers and HR, empowering employees with direct access to their information.

How does payroll software help with ATO compliance?

Payroll software automates calculations for PAYG withholding and superannuation, ensures STP 2 reporting is accurate and timely, and keeps up-to-date with changes in tax legislation, significantly reducing the risk of non-compliance and penalties.

What security measures should I look for in payroll software?

Look for data encryption, multi-factor authentication MFA, regular data backups, secure server hosting preferably in Australia for compliance and speed, and adherence to privacy regulations like the Australian Privacy Principles. Workful hr platform

Can payroll software help me manage employee leave entitlements?

Yes, a good payroll software system will automatically calculate and track various leave entitlements annual leave, personal/carer’s leave, long service leave, manage leave requests and approvals, and show current leave balances on payslips.

Is there a free payroll software option for very small businesses in Australia?

Some providers offer limited free tiers for businesses with 1-2 employees or for specific features. However, for full compliance and robust features, a paid solution is generally required. Reckon Payroll App offers a limited free tier.

How often should I run payroll?

The most common payroll frequencies in Australia are weekly, fortnightly, or monthly. Your payroll software can be configured to process pay runs according to your chosen schedule.

What happens if I make a mistake in a pay run using payroll software?

Most payroll software allows you to make adjustments or process “adjustment pay runs” to correct errors. These corrections will then be reported to the ATO via STP. It’s crucial to rectify errors promptly.

Should I hire a bookkeeper or accountant for payroll even with software?

It is highly recommended, especially for complex situations. While software automates the process, a professional can ensure correct award interpretation, manage complex scenarios, handle end-of-year reconciliations, and provide expert advice on compliance and strategy.

What is the difference between payroll software and HR software?

Payroll software focuses specifically on calculating wages, taxes, superannuation, and producing payslips. HR software encompasses a broader range of human resources functions like recruitment, onboarding, performance management, and training. Some providers offer integrated HR and payroll suites.