Attention to detail required for payroll management
Payroll is one function you cannot afford to get wrong. A mistake can adversely impact morale and has serious legal and tax consequences. Also, a single mistake in setting up an employee’s details can be recurring each pay period.
Relying on one person to maintain and process the payroll, including their own pay and leave entitlements carries an inherent risk. You may trust that person so the system is secure but you have a duty to ensure that the payroll system is not only secure but also seen to be secure.
Flexible Support – Backup to fully outsourcing payroll
As with my other services I can offer flexible support ranging from a backup resource to providing a fully outsourced payroll function.
Single Touch Payroll
As of July 2021, Single Touch Payroll (STP) reporting applies to not for profit organisations. You must use STP-enabled software to send your employees’ salary and wage, tax withheld and super information to the Australian Tax Office each time you pay your employees. Therefore if you have employees you must have payroll software or use a payroll service.
Which payroll software or service is best for your organisations?
If you are using a subscriber cloud accounting system such as Xero or MYOB the payroll function is built-in but there are limits on the number of employees under various plans. As of August 2021 MYOB was offering unlimited employees while Xero had a limit of 5 employees for the comparable plan. To confuse matters further each of the majors offer payroll only plans with limits of four employees for MYOB and Xero. Meanwhile, Quickbooks has a payroll add on at the rate of $5 per employee per month. (Using KeyPay).
Not for Profit organisations often have a fluctuating workforce due to funding, special projects and government grants. Therefore I would recommend using Keypay in conjunction with Wave which does not have an Australian payroll function. For the record, I do not have any direct or indirect financial interest in KeyPay or Wave. I am a member of the KeyPay Partner Program. If you are a Xero user you have more employees than your subscriber limit you could use KeyPay for the additional employees.