Payroll management software such as MYOB Acumatica has many benefits, from saving time to increasing accuracy and employee satisfaction. With the right payroll management system, employers can simplify the whole payroll management process quickly and easily.
Why is payroll management important?
Payroll management is essential to any business as it helps maintain regulatory compliance.
Payroll tasks can be arduous and complex without an efficient method of paying employees, calculating and filing taxes and maintaining accounting records.
What are the main functions of employee payroll management?
Employee payroll management comprises several functions that help you pay your employees correctly and keep your business compliant with government regulations.
Calculating payroll
The payroll manager must check several aspects when calculating payroll, including verifying employees’ salaries, hourly rates, and overtime hours. In addition, they may need to consider vacation time, holiday pay, and sick leave.
They must also apply any mandatory deductions, such as income tax and superannuation, plus any optional health insurance deductions.
Processing payroll taxes
Employers also must pay the correct taxes. Failure to pay payroll taxes (such as PAYG Withholding) may result in the ATO applying a penalty. The tax laws authorise the ATO to impose administrative penalties for:
- failing to lodge a return on time
- failing to withhold appropriate amounts under the PAYG withholding system
- failing to meet tax obligations.
Keeping records
The ATO requires employers to keep employee payroll records for five years.
Maintaining compliance
Employers must generate and send Single Touch Payroll (STP) reports directly to the ATO with every payroll run.
What are the main methods for managing payroll?
There are three main methods for managing payroll:
- spreadsheets
- outsourcing
- software (payroll management system)
What is a payroll management system?
A payroll management system is a software application that automates payroll management. Acacia Consulting is a specialist in MYOB Acumatica Payroll.
It helps businesses:
- manage the wages, salaries, tax deductions, superannuation, and other employee compensation benefits
- pay employees
- deposit employment taxes
- maintain transaction records.
Some companies also use a payroll management system to track employee time off or accrual of vacation leave.
A cloud-based payroll management system:
- keeps your data safe and accessible whenever and however you need it
- eliminates payroll complexity and errors
- ensures you’re compliant with regulations
- gives you real-time visibility and reporting
- can grow with your business.
What are the key benefits of payroll management software?
Payroll management software has many benefits, from saving time to increasing employee satisfaction.
- Automatically calculate payroll variables.
Payroll management software automatically calculates the correct payroll variables like superannuation, tax, and annual leave. The software lets you know if something doesn’t look right with a helpful error message.
- Save time
Payroll management software saves a significant amount of time. Switching to a cloud-based payroll management system reduces repetitive work.
A payroll manager will have more time for other company tasks, such as improving your operations.
- Simplify payroll compliance
Payroll management software notifies employers about changes in employment or tax regulations that affect their business. For example, it keeps you updated with tax obligations and new tax changes introduced by the ATO.
Reduce payroll errors
Payroll management software reduces repetitive data entry and helps prevent human error. Some systems allow employees to submit their bank, tax, and superannuation details through an employee self-service portal.
- Automate time-sensitive alerts
Many payroll management systems offer workflow notifications. If the software detects a data entry error, it sends an error alert to users so they can correct it before processing payroll. - Improve data security
Payroll data is especially sensitive and, therefore, must be highly secure.
The best online payroll management software uses state-of-the-art security to protect employee privacy and company financial data. - Increase employee satisfaction
Payroll management software ensures employees get paid the right amount on time. Plus, modern online systems such as MYOB Acumatica Payroll enable employees to access payslips, apply for leave, and update their details from any device, and the data syncs in real time.
Acacia Consulting specialises in MYOB Acumatica Payroll and has 30 years of experience helping businesses with payroll and other ERP finance modules.
Contact the Acacia team for further assistance or to discuss how MYOB Acumatica Payroll can benefit your business.
Acacia is committed to supporting your business’s financial health and growth.
Contact us at Acacia for more information or a demonstration.
