The Perks of Payment – A Guide to Choosing Payroll Software

Whether you are a small business employing just a few people, or you have a bigger operation with many workers on the books, you will need to ensure your staff are paid. In the past, this was mostly done manually either by an in-house accountancy team in-house or through an outside accounting firm. Nowadays, however, more and more businesses are choosing to use payroll software as they reduce costs, minimise error and make the process entire process more convenient and easier to manage.

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However, as the popularity of payroll software has increased, so too has the number of providers. Making the decision to use a payroll software is only one small step towards modernizing your business. The big decision really comes when it’s time to choose the right software for your business. Depending on the size of your company, the way you do business and the number of staff members you employ, you may choose a payroll software package that offers different things.
Let’s take a look at a few crucial areas that you need to consider to ensure you choose the best payroll software for your business.
Understanding and Meeting ATO Requirements
First of all, it’s important to be aware of government requirements, particularly in terms of what guidelines set forth by the Australian Taxation Office (ATO). If the software you choose is not designed to operate seamlessly within their guidelines, you are going to end up making more work for yourself and your payroll will become inefficient and time-consuming.
In Australia, employers are required to withhold payments made to their employees using the Pay As You Go (PAYG) withholding system. Payments are then made to the ATO either on a monthly or quarterly basis when the Business Activity Statement (BAS) is submitted. Then at the end of the year, the employer must issue a payment summary to each employee and send the same report to the ATO to meet the required reporting obligations.
It all sounds very complicated and it certainly can be, especially for those who are new to the steps involved and as your number of employees grows, it often becomes more difficult to track and manage the reports. However, the Australian government has implemented a new system called Single Touch Payroll (STP), which streamlines the entire process. It’s crucial that your payroll software is configured for STP so that it can assist you in meeting the requirements of the ATO and help you to manage your payroll more efficiently.
Cost of Setup and Maintenance
As with any other major business decision, it’s important to consider the cost of the system. More basic software options might be cheaper but ultimately you will get what you pay for. If you need very basic functionality, it might be ok to choose a less expensive option, however, you will likely need to put in some time to ensure that everything runs smoothly.
 
With a more comprehensive system, you will be able to focus your time and energy on other areas of the business that are more important in terms of your success and longevity as a company. Remember to not only consider the initial setup or installation. Be sure to also inquire as to any additional maintenance costs or other additional expenses you might incur down the line.
Security Matters
Accounting data and business accounts should be kept secure and private. When choosing a payroll software, always be sure to ask about how your data will be stored. Now more than ever data privacy is becoming increasingly important and it’s crucial that you take steps to ensure that your information is kept safe.
Choosing the Right Payroll Software for Your Business
Modernising your business and opting to implement an automated payroll system is a smart choice in bringing your business into the modern day. When deciding on the right software for your business, be sure to consider the needs of your company and that your selected software can meet those requirements as well as the requirements of the ATO. It’s also critical that you choose a system that fits within your budget and one that will keep your data safe. With the right system, you will be able to manage your payroll more efficiently and with fewer errors ensuring your finances are kept in order.