Payroll Processing & Outsourcing Services - Australia wide
In providing Payroll services, we assist with:
- Identifying payroll policy – such as pay policy, attendance and leave policies
- Collecting Employee data – such as personal details, TFN and Super details
- Interstate Payroll Tax Calculations and Compliance
- Net Pay calculations
- Payroll planning
- Statutory Compliance
- Payroll accounting
- Accurate and Flawless Payroll Processing and Disbursement
- Timely Submission of reports to the Business Owners and ATO
- Prompt Processing and Payment of Superannuation Contribution
- EOFY STP Finalisation
- Proper reporting of PAYG withholding to the ATO
- Final Pay Calculations at the time of Termination of Employment.
- Analytical reports on the wages as required by the Business Owners.
- Accurate Management of Employees’ Entitlements such as Annual Leave, Long Service Leave and Sick Leave.
Payroll Service involves processing and paying employees periodical wages and salaries. It is a key business function that essentially processes the gross pay of the employee to calculate ‘net pay’ after the adjustment of taxes and deductions. For an efficient payroll management process, the payroll administrator needs to plan the payroll process step-by-step. After recording the personal details of the employees such as name, age, address, Tax file number, Superannuation member, the hourly or annual rate of salary, type of employment (Permanent, Part-time, Casual) and emergency contact, tax file declaration is filed with the ATO.
Based on the payroll calendar set as weekly, fortnightly or monthly, the payroll is processed after inputting the hours worked by the employees and accordingly, the wages are calculated. With the single touch payroll reporting system introduced by the ATO, it has become one of the critical requirements to process the payroll accurately and report promptly to the ATO as well.
In addition to the periodical wages, entitlements such as Annual and Long Service leave, sick leave and superannuation are also processed and stored in the relevant cloud-based accounting application. PremierOne has extensive experience and expertise to process your business’s payroll, at a pre-agreed fee, after scoping out the work.
If you need help managing your employee Payroll, speak with us so we can help you with it.
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Payroll Processing & Outsourcing- Frequently Asked Questions
Payroll tax is the levy payable by the businesses to the state revenue offices based on the annual Australia national wages threshold stipulated for each state. It is payable either on a monthly or yearly basis.
PAYG Withholding is the income tax applicable to your employees’ wages and salaries, which needs to be deducted from the salaries & wages payment and remitted to the ATO either monthly or quarterly, based on your gross sales turnover.
• Full-time Employment where an employee works for a total of 38 hours a week.
• Part-time Employment where an employee works only for a few days or hours in a week with full-time employment entitlements calculated pro-rata.
• Casual Employment where an employee works on a casual basis with no specified hours and is not entitled to the benefits and entitlements applicable for full-time employees.
• Labour Hire: The employees perform the work on a contract basis, with the contract start and end terms clearly defined. Commonly seen in the Information Technology industry
• The age and work rights to work in Australia
• Tax residential Status
• Adequate Work cover insurance to be provided by the employer
• Superannuation membership
• Tax File Number
• Bank Account details
• Sick leave
• Annual Leave
• Long Service Leave
• Public Holiday Pay
• Compassionate Leave
Three Widely practised pay periods are as below,
• Weekly-52 Weeks in a year
• Fortnightly- 26 Fortnights in a year
• Bi-monthly-24 bi-months in a year
Wages, Commission, Allowances, Bonuses and similar such names are construed as OTE (ordinary time earnings), and accordingly, SCG is payable by the employer on such earnings of their employees.
Overtime wages don’t attract a superannuation guarantee charge.
• Single Touch Payroll Reporting to the ATO at the end of each pay period processing.
• Superannuation contribution to the nominated super funds through the clearinghouse on quarterly or monthly intervals.
• PAYG Withholding reporting and payment to the ATO monthly or quarterly based on whether you are a small, medium or large withholder.
• Computation and reporting for the payroll tax on a monthly or annual basis to the respective state revenue offices based on which states your employees are located.
• Annual Actual wages declaration to your work cover insurances ( again varies for each state) based on which actual premium is determined.
• If you are engaged in Labour Hire contracts/Supply Services, a labour-hire licence has recently been made mandatory.
• End of Financial year (EOFY) STP reporting and reconciliations to produce payment summary reports to your employees and the ATO.
• Ensure the wages for June are paid and credited into the employees’ bank accounts on or before 30th June.
• Ensure your Superannuation for the June Quarter gets paid by 30th June to qualify for a tax deduction. If not possible to estimate/determine the superannuation liability for June, pay Apr & May at least, which will act as a tax saver for you.
• If you have any KPI Bonus, Commission, Directors Fee, Incentives etc., that are payable relevant to the current financial year but could only be correctly computed and paid in the subsequent financial year, make a provision in the current financial year will also act as a tax saver.
• Initial setting up and configuration of the employees with the proper employment classification and entitlements
• Pro-rata calculations for a new start and quitting/resigning/terminated employees
• Answering the technical queries from the employees
• Calculation of the complex payroll tax obligations and potential penalties if not reported correctly.
• Tracking of the leave entitlements, especially the Long Service Leave, as it varies from state to state.
• Ensuring the accrued employees’ entitlements are appropriately accounted for in the accounts of accounts to assess the realistic business performance metrics.
• Frequent changes in the working hours, overtime hours and pay rates would require someone capable of processing these correctly.
• Processing of parental leave, maternity benefits, redundancy and work injury-related entitlements and payments.
• Correct reporting to ATO and annual reconciliation for the wages/PAYG WH reported to the ATO with the payroll system.
• Do I have good governance and controls in my payroll process to mitigate the risk of error and fraud?
• If your payroll system is a standalone system, periodical summary reports will get picked up in your financial accounting systems.
• Suppose the KPI or performance bonus is meant to be paid as super exclusive, in 8/10 cases. In that case, it gets processed with superannuation, which goes unnoticed by the employers and does cause a severe negative impact on the bottom line.
• Setting up and configuring your payroll systems, specific to your requirements.
• Creating the master file data for your employees with date of birth, TFN, leave entitlements and pay rates.
• After getting the timesheet from you, we shall process the pay and send the draft for your approval.
• Once approved, we shall finalise the payroll, email the payslips to your employees, send you the payment electronic batch file for you to process through online banking and reporting to the ATO through STP.
• Superannuation processing either monthly or quarterly based on your reporting obligations.
• End of financial year STP finalisation and reporting to the ATO.
• Month end reports for you to track the various payment categories, changes over the previous pays,gross summary journal for your accounts department to account for the payroll.
• Round the clock support to address queries/issues coming from you and your employees.
• Appropriate calculation of tax for fractured pays arising due to termination and onboarding of employees outside the normal pay calendar.