BUSINESS ADVICE • 20 JANUARY 2022 • 3 MIN READ

How to choose the right payroll software for your business

SECTIONS

9 things to help choose the right payroll software in Australia

Single touch payroll (STP)

Best payroll software in Australia

Do you dread the idea of manually recording your employee’s hours and days worked again? Do you struggle to keep track of their annual leave days? If this sounds familiar, there’s good news: there’s software for that!

This blog discusses 9 things to help you choose the right payroll software. Whether you operate with a small team or have multiple locations and employees, there are plenty of ways to streamline your payroll processes.

9 things to help choose the right payroll software in Australia

Before you start researching, establish a clear idea of your business needs. These include the number of employees you need to pay, how many administrators will be using the payroll software, your budget, ease of use, and ongoing support.

1. How many employees do you have?

How many employees do you need to do the payroll for? Are they full-time employees, seasonal, or temporary employees? Are they in the same country, or are they based in different countries?

Payroll software is often priced based on the number of employees, so this one is key.

2. How many users will use the payroll software?

Consider the number of users who need to use the software. If you have a small team, you may need fewer features. Larger teams could warrant a platform that offers advanced features such as automatic data capture and data import.

3. How do you conduct payroll?

There are many questions to ask yourself when conducting payroll. What is the payroll cycle? How often do you pay your full-time, part-time employees, and contractors? Do you have employees whose payroll cycles are different from others? Are your employees getting paid salaries or by the hour? Do your employees get a set number of holidays every year, or is it based on the percentage of hours they worked? These need to be taken into consideration when choosing payroll software that suits your needs.

4. What’s your budget for the payroll software?

How much have you budgeted? Is the pricing structure clear and transparent on the website? The most common pricing structure is per employee per month. This means you need to calculate the monthly total cost and compare this number with your budgeted costs to get your total. Remember to account for more seats if your company is in a growth phase.

5. Does it comply with legislative requirements?

Apart from employment law, are there any legislative requirements to consider when processing your payroll? Does your company have enterprise agreements or award rates? Does the software get updated as the new regulations pass? For example, if a public holiday has been added or the tax rates have changed, the payroll provider will ideally update them as they go into effect.

6. Does it integrate with your current accounting software?

Do you want your software linked to your accounting system? Do you need to import information from spreadsheets (such as timesheets) or other platforms? Integrating with your current accounting system and other software helps you streamline and manage information, ultimately reducing time, resources, and costs for business owners.

7. Does it have the level of reporting you need?

You will be able to view your payroll data clearly using the reporting and analysis features. Using the right level of reporting, you'll be able to see and track important metrics such as employee salaries, holidays, taxes (e.g., PAYG withholding, superannuation) and tax deductions.

8. Is it secure?

Your payroll data contains personal information of your employees (e.g., their banking details), as well as information about your business and access to your bank accounts. Choosing a provider that offers top-tier security is essential in order to protect data from potential breaches.

9. Do you need mobile access?

Opt-in for a cloud-based solution (e.g., Xero Payroll) if you need access from multiple locations. This offers several benefits, including:

You can access it from anywhere and get real-time data. No matter where you are, you can check to see if your employees’ paychecks are being processed
Its ease of use makes it a great choice for first-time administrators, saving you time and money in the long run

Single touch payroll (STP)

The Australian Taxation Office (ATO) requires all employers to send information to them about payroll-related payments made. This includes payments for gross wage, tax, and super each time a payroll run is processed. To streamline the process and remain STP compliant, the ATO requires that payments be reported digitally via STP enabled software.

Best payroll software in Australia

Here are some of the best payroll softwares in Australia:

Xero payroll: STP compliant, automate tax, pay and superannuation
Myob Payroll: Cloud payroll software, STP compliant
Employment Hero: All-in-one software for HR, people, payroll, and productivity
Cloud Payroll: payroll software for business with all sizes in various industries
Easy Payslip: ATO approved STP software, access payroll anywhere, anytime
Smart Payroll: online payroll for Australian small to medium businesses
KeyPay: integrates with accounting software and automates the entire payroll journey

Got any questions about Beany?

Chat to one of our friendly problem solvers today to get clarity.

Book a call Get in touch

Who are Beany?

We’re an online accounting firm that is always right here for you, your accounting pain relief. The most advanced technology lets us work way more closely with you than a normal accountant world.

We have a dedicated team of certified accountants and a support team to take care of your business no matter where you are, so you can focus on growing your business. We take out the ‘fluff’, break down the barriers and get things done. Looking out for you is what we are all about. Get started for free today.