Most accounting software packages come with a Payroll menu or module so it's easy to keep track of employees pays, taxes and superannuation requirements.
There are also many stand alone Payroll modules that can be used.
Whichever way you have your payroll integrated you must be aware of the following considerations
- The employment contract (You should have one for all employees)
- Implications of state and federal taxes (eg - what are the thresholds when PAYG withholding and State Payroll Tax start to become payable)
- Award coverage including modern awards (Have an up to date copy of the awards on hand if you employ award based employees)
- Problem areas and common misconceptions (eg what deductions can and/or must be taken out of employees after tax income. How to handle a garneshee by the ATO for employees Child Support, etc)
- Key tax aspects of payroll (eg - Employee termination payments, Tax on termination payments, Fringe benefits tax, Superannuation, Workers compensation payment)
What is STP (Single Touch Payroll)?
STP works by sending tax and super information from your STP-enabled payroll or accounting software to the ATO as you run your payroll.
Your STP-enabled payroll software will send the ATO a report which includes the information the ATO need from you, such as: