Payroll is an important administration function that you must get right!
With the advent of Cloud accounting many business owners are processing their employee payroll themselves through an accounting payroll system using software such as MYOB and Xero.
This administrative work can be daunting,and where mistakes can be made if not done correctly
The four most common mistakes that a business owner can make are:
- Employee Details: Not taking up your employee information correctly when establishing a new employee on your payroll system.
Hint: Ensuring all employee’s details are correct and up to date.
- Tax File Number.
- Personal Details
- Superannuation Fund
- Entitlements: Incorrect classification of l allowances/wages that are subject to PAYG Withholding and/or Super Liability.
Hint: Some examples of allowances are:
- Overtime: No Super Liability.
- Allowances for Tools/Uniforms: Only subject to PAYG Withholding.
- Allowances for Laundry: Not liable to pay PAYG Withholding and Superannuation.
A more comprehensive allowances table can be found on the ATO website or by contacting us on 03 9597 9966.
- Tax changes: Oops forgot to update the tax tables
Hint: Tax rate changes occur every year on the 1st of July. By ensuring you have the latest version or having the latest tax table loaded before you start to process your payroll, will mitigate this mistake.
- Payroll Deadlines: Not meeting the lodgement of PAYG Withholding, SGC payments and producing PAYG summary for employees.
Hint: Missing these deadlines are one of the most common mistakes that business owners can make and can lead to a costly tax audit or disgruntled employees
At Gartly & Associates we specialise in help business get their payroll records right .
Call Michael or Geoff on 03 9597 9966 and ask us to assist you by:
- Check whether you had set up the payroll within your accounting software correctly.
- Provide software integration, to reducing time required to go over timesheets.
- Process your payroll for you.