Any business owner can attest to the amount of time payroll takes to process. There’s no need to waste time on this dull task, though. Payroll management software speeds up the entire process. Business owners are asking, ‘why is payroll management software important for business?’. Payroll software can be on-premises or cloud-based, and it helps businesses manage their payroll operations by generating payslips for employees each payroll cycle. The multitude of features available on payroll management software makes it more than beneficial to a business, but instead essential.
Payroll Software Saves Invaluable Time
Time is easily a priority in business. The less time required, the more time can be spent doing things that are more complex and beneficial to the company. Payroll software saves time by automating the payroll process; it tracks employee hours and attendance to calculate salaries and wages, superannuation, pay-as-you-go (PAYG), super liability information, and withholding. In addition to automatically adding this information to payslips, it also minimises human error. In short, payroll management software doesn’t only save time but also money otherwise lost due to mistakes.
Payroll Software is Tax Compliant
With payroll software, which is certified by the Australian Tax Office, you can save even more time. ATO-certified software automatically calculates the various tax information required on payslips. Such functionality ensures the payslips are already tax compliant, even as tax laws and regulations change from time to time. With payroll tax calculated, payroll software takes the stress out of yearly tax submissions. Payroll tax ensures your tax records are up to date, so there’s no last-minute scrambling to refer to or complete old payroll information.
Single Touch Payroll is Mandatory
Single Touch Payroll software is one vital, inescapable detail which cannot be neglected. Beyond the benefits listed above, STP software automatically sends payroll information to the Australian Tax Office each payroll cycle as it is completed. This means all payroll tax information is already complete, and the ATO already has it when tax season rolls around, lightening the load and stress for employees and employers. ATO has made STP software compulsory to make things easier for everyone involved and to minimise tax evasion.
Integration With Accounting Software
By strategically choosing accounting software which is compatible with payroll software, or payroll software that functions as an add-on, all financial information is available in one place. While not all payroll and accounting software is compatible, there are a multitude of packages which offer all this functionality. The best option is to choose accounting software which provides payroll features in the same package or as an add on rather than trying to integrate solutions from different software providers.
Payroll software is important for businesses because it saves time and money, and without STP, companies incur penalties from the ATO. Before choosing payroll software, take some time to ensure it has the features needed to improve and streamline the payroll process and satisfy the most critical business needs.