What Is the Best Payroll Software for a Small Business?

You are here:

What Is the Best Payroll Software for a Small Business?

Just as larger businesses require payroll services, so do small businesses. Payroll software streamlines and automates payroll processing. This method saves time, effort, and labour costs while minimising human error. But what is the best payroll software for a small business?

It’s important to remember that single touch payroll makes things easier, but it’s also a legal requirement, so any software you adopt needs to be STP enabled. Various other factors are involved in choosing the best payroll software, which can make choosing one difficult. And that’s why we’ve broken it down for you.

Payroll Software for Businesses

Payroll software has been designed to reduce the time taken to process payroll. Through automation, the STP-enabled software submits the payroll information, complete with employee benefits, to the Australian Tax Office every payment cycle.

Larger businesses will need more comprehensive software to manage human resources, payroll for employees at different locations, and complex reporting requirements. Smaller businesses, however, can have all their needs met with a more pared-down version of the same software. Small businesses typically only need payroll tax filing, benefits administration, and time tracking.

How Does Payroll Software for Small Businesses Work?

The features of payroll software vary from one package to the next; however, most are cloud-based. These cloud-based portals allow employers and employees to view their payslips complete with benefits, and tax details. As Single Touch Payroll is now mandatory in Australia, your payroll software will automatically submit this information to the ATO. This simplifies tax submission requirements for both parties at the end of each tax period. Depending on how the system is set up, it may eliminate the need for printing out and delivering payslips, as the employees can view the necessary information on the payroll portal.

Features To Look For in Payroll Software

The features a small business needs in their payroll software depend on the type of business, the staff compliment, the budget, and whether the business is growing. For additional information regarding the requirements, it’s always best to ask the relevant accountant or bookkeeper what features they need in particular.

  • Cloud-based payroll software comes with a plethora of benefits. It is more secure, allows for collaboration, can be accessed from anywhere, and is much easier to set up because it requires minimal installation.
  • Single Touch Payroll capabilities are non-negotiable. STP is compulsory and without STP, additional software or applications will be required to ensure ATO compliance.
  • Customer support is essential; without the ability to reach out and get the answers you need when you need them, your software is useless.
  • Direct deposit to your employees makes everything so much easier, ensuring the payroll workload is further streamlined and fewer person-hours are required to process payroll each cycle.

Knowing what a business needs is the first step to finding the best payroll software for a small business. Software providers should be happy to answer questions and offer demonstrations to clarify any concerns.

newsletter icon

Subscribe to our e-newsletter to receive updates from Arrow Research Corporation.

  • This field is for validation purposes and should be left unchanged.