What are payroll systems?
Payroll systems enable businesses to manage and process payroll. A payroll system needs to calculate wages, along with taxes, deductions and super contributions.
What are the different types of payroll systems?
In-house payroll system
An in-house payroll system is one that an internal payroll department manages. The person (or people) managing payroll may use several tools to process payroll, which may be cumbersome if they need to enter data into multiple applications.
Outsourced payroll system
Companies that use an outsourced payroll system may turn over some or all payroll tasks to a third party. Outsourcing payroll can be costly though, so isn't a viable option for many businesses.
Payroll software
Payroll software is the middle ground between in-house and outsourced payroll. You can keep payroll processing within your company while benefiting from an integrated payroll solution. This removes the need for double data handling and cross-checking between systems. Another advantage of modern payroll software is that it’s usually cloud-based. This means you can access your data anywhere, from any device, which helps lift productivity.
What to look for in payroll software
1. Calculates pay items automatically
These calculations are some of the most complicated — yet important — aspects of payroll to manage. Make sure your software can automatically calculate deductions, superannuation contributions and accrued entitlements.
2. Handles STP phase 2 reporting
The Australian government has specific reporting requirements for salaries and wages, pay as you go (PAYG) withholding and superannuation, known as Single Touch Payroll (STP) phase 2. By using STP-enabled software, you can report your employees’ payroll information to the ATO and other government agencies each pay run.
3. Provides robust data security
Payroll data is highly sensitive, containing employee salary and banking information. Read up about the measures each software provider takes to keep your data safe and go for the payroll software with the most robust protections in place.
4. Keeps a comprehensive audit trail
You never know when you may need to provide records for an audit. With everything logged in the system, your payroll software should be able to generate audit-ready reports in just a few steps.
6. Provides multiple levels of access control
Your payroll software should have granular controls to restrict access rights, helping you protect sensitive data from any leak or compromise and maintain employee confidentiality.
7. Enables employee self-service
Ideally, your payroll software should provide self-serve onboarding for employees, helping to reduce the administrative load for your staff.
Automate payroll and compliance with MYOB
Automating your payroll process is one of the most impactful things you can do for your business. It can save a tremendous amount of time and help protect your company from compliance issues and costly errors.
MYOB offers powerful accounting and payroll software that brings all the features you need together in a customisable package. With smart automation, thoughtful design, and cloud access, payroll has never been simpler. Try it today!
Disclaimer: Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.