Generally speaking, having a clear process to handle your business’ payroll not only means your employees are being paid properly and promptly, but it also helps you stay compliant with tax and legal regulations throughout the country.
Still, depending on how many employees you have, it can be easier said than done to have effective payroll management.
So, we’ve put together five of the best ways you can stay on top of this crucial part of business management within this article.
Classify Your Employees Correctly
Before getting into some of the broader tips, you’ll at least want to ensure your employees are properly classified first.
Whether they’re full-time, part-time, casual, or contract workers, each of these classifications has different entitlements and tax obligations. As such, properly classifying your employees is imperative to ensure they’re all fairly compensated.
Choose a Payroll System
You’ll need some sort of payroll system if you really want to simplify the payroll process. From cloud-based software to in-house software, you’ve got quite a few options here, so ultimately, make a decision based on your business’ size, needs, and budget, too.
Deduct Taxes and Superannuation
As an employer, it’s naturally your responsibility to deduct income tax and make superannuation contributions on behalf of each of your employees. Going back to the previous point, you’ll want to ensure that whichever payroll system you choose can calculate and withhold the correct amounts – not to mention actually make the payments on time.
Process Payroll on Time
Regardless of whether it’s weekly, fortnightly, or monthly, make sure you establish a regular payroll schedule and stick to it. Not only are timely payments going to keep your employees happy, but they also help you avoid any potential compliance issues down the line.
Seek Professional Help if Needed
Payroll management can be slightly challenging, especially when you need to consider things like taxes and superannuation on top of it. If you need some assistance covering the accounting side of things, don’t hesitate to contact the team at Accounting Tax Solutions so you can get back to growing your business.