Modern payroll systems to make employers and employees’ lives easier!
Payroll systems have come a long way in recent years. Seamlessly incorporating cloud and mobile technology, the modern payroll system can result in more efficient and accurate processing by the employer and an easy to use mobile experience for the employee.
Single Touch Payroll commenced on 1 July 2018 for businesses with 20 or more employees and from 1 July 2019 if you have less than 19 employees.
Online payroll software can make things easier and more convenient for you, especially if you are still manually filling out forms or have a large number of employees.
All the major accounting software providers such as MYOB, Xero and Intuit will be Single Touch payroll compliant but the considerable benefits of online payroll are listed below.
Most online payroll systems have the ability for employees to login to access previous payslips or PAYG summaries which can be used for simpler record keeping and finance or credit card applications. They can also apply for leave, fill in timesheets if required and change their pay details online including splitting pay over multiple bank accounts. Many of these systems include a smartphone app making accessing these documents simple and convenient.
For those businesses that utilise timesheets, an employee can complete their own timesheet and submit it for approval. Users can be setup with the appropriate authorisation to change or approve these timesheets with the data flowing directly into the payroll cycle. This can be especially useful for those who have different pay categories or want to split time over different cost centres.
Bulk Payment Processing
If you manually process payments for each employee utilising internet banking; online systems provide more efficient and reliable options for payment. The software will export a single file into your internet banking, which after the appropriate authorisation, can pay multiple employees in a single transaction. Not only is this less prone to error, it is simpler to administer and provides cleaner options to separate responsibility in the organisation. Superannuation payment processing can also be streamlined.
A Super Stream provider processes your super payments through your online payroll system. Super Stream became mandatory for all businesses from 1 July 2016 and makes the payment of superannuation simpler. We recommend taking advantage of the time benefits of using the super stream function in your software.
No longer do you need to manually calculate leave accruals such as annual, sick or long service leave. The software is able to automatically calculate it for you as part of the payroll process making it easy and painless. Both employee and manager apply for and approve leave online with historical records available at any time through the document portal.
Lodge with the ATO online
The ATO now accepts TFN declaration forms online when new employees commence which streamlines the on boarding of staff using this technology. Likewise, the year-end processing of payment summaries can also be lodged with the ATO which facilitates simpler and more accurate processing at this busy time of year.
When employees leave, it can be challenging to work out the appropriate leave calculations. Many modern payroll systems are now capable of generating draft final pay figures. Care must be taken to ensure that everything is processed correctly as this is a complex area depending on the type of termination.
Online payroll software is a powerful tool that when set up correctly can provide wonderful benefits for both employee and employer alike. Importantly, built in checks and balances should minimise the chance of costly processing errors and modern technology does the heavy lifting to save time and resources.
If you are still processing your payroll manually and would like assistance with transitioning your payroll system, please contact one of our Advisory Specialists who will be able to assist you transition to an appropriate online option. Complete your contact details below or give us a call on (03) 9835 8200.
Read More from the Accru Blog
Working with Millennials