What is a payroll service company?

Handling payrolls can be very challenging for businesses of all sizes, especially for small businesses with lots of work and short staff. Keeping track of time, attendance, etc. can be both stressful and time-consuming. Not to mention, Australian taxation and other legal requirements. Well, the good news is that there are companies who can do that for you. Payroll service companies are companies outside your organization that handle your payroll services. 

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What exactly do payroll companies do?

Payroll service companies do more than deposit money into your pay packet on pay day. A good partner can handle all aspects of payroll to simplify your job in all ways. Some basic services you should expect from a payroll company are:

  • Integrating a solution to monitor attendance and time

  • Offer informed insight into Modern Award obligations for pay rates & conditions

  • Implementing a payroll / accounting system such as Xero Software, to enable calculations for all relevant taxes and deductions.

  • Making direct deposits

  • Preparing End of Year Payment Summaries

  • Offering electronic records to both employers and employees

  • Meeting ATO obligations such as Superannuation payments deadlines, Single Touch Payroll STP filing, and filing Taxable Payments Annual Reports TPAR, and Payroll Tax.

  • Ensuring and reporting compliance with ASIC, ATO & Fair Work requirements.

How do payroll service companies work?

Nowadays accounting is experiencing an automation revolution, and you should be looking for a company that offers automated web-based solutions for payroll. Monitoring wages, hours, upcoming payment obligations, calculating taxes, and handling deposits are all easier on web-based solutions. Also, a web-based accounting solution means that you can access all the data whenever you want.

We are a Gold Partner and Certified Advisor of Xero, a globally trusted accounting software. Xero offers great features for small businesses and accountants.

Make sure that the one your payroll service company uses, has the features you need for your business.

Rachelle Delmenico