If you’re an accountant, bookkeeper, or outsourced payroll provider, you’ll know first-hand how critical compliance is.
No matter how experienced you are, managing payroll is challenging. Whether it’s keeping up to date with changing laws, complex regulations or keeping track of manual processes – it’s a lot to stay on top of and unfortunately, it can be all too easy to fall into non-compliance.
With wage theft scandals being splashed across front page news frequently, there’s never been a more important time to review your payroll processes to ensure both you and your clients are meeting your obligations. The last thing you want is a client getting caught up in an underpayment scandal and in the spotlight with Fair Work.
For many, managing payroll services can seem like a never ending pile of work. It can be time consuming, and consist of so many variables. That’s why we’re here to give you our top tips for streamlining your payroll processes, giving you that much needed compliance confidence boost.
Lean into powerful payroll software and experience streamlined processes
Payroll software that can do it all
We all know that accountants and payroll providers are busier than ever, which is why investing in powerful software is a game-changer. Whether it’s manual admin, managing timesheets, leave, expense claims or processing pay runs, payroll software can automate it all – compliantly.
One of the best parts about payroll software is the ability for teams to manage their own personal information via self-service. This is one less thing for you and your clients to manage, as well as the ease of having everything stored securely in the cloud and accessible at any time – but more on that later.
There’s also less chasing involved and you don’t have to complete any manual or CSV updates. Plus, some providers have the added benefit of integrated reporting to the ATO, making your client services much smoother and seamless. It’s the easiest and most efficient way to streamline your payroll processes, whilst giving your clients the best possible experience.
Consider integrations with other platforms
When all of your systems work seamlessly with each other, it makes everything a whole lot easier. When you have all information in one place, you can clearly see and access everything you need, which means no more constantly switching tools or having multiple programs for different tasks.
Having the ability to integrate easily with other platforms can also ensure that your data is constantly updated in real-time, safely and securely, without having to spend unnecessary hours on excel spreadsheets. It also reduces the risk of human error that comes with re-entering data. If you’re currently in the market for payroll software, this is an important thing to look out for.
To ensure easy transmission of data, the software should be able to integrate with accounting platforms such as Xero and QuickBooks. Other platforms that would be great for integration and likely to be used amongst your clients include Deputy or MYOB.
Empower your clients’ employees to manage their own personal details
As compliance regulations change, it’s important that your clients have easy access to their employee data. If your clients’ employees can keep their own data up to date, that’s one less thing for you (and them) to worry about.
We know that giving employees the opportunity to manage their personal information can save hours of manual admin, that’s why Employment Hero offers a self-service employee app, Swag, which allows employees to update their personal information.
Whatever system you use or are looking to implement, it’s important that employees have access to their payroll information and have the ability to easily make changes. This will help you to react with agility to compliance changes.
Tips for staying across changes to payroll legislation
Implement payroll software that will do the heavy lifting for you
Like we said earlier, the best way to boost compliance confidence and take the guesswork out of payroll is to use automated payroll software. While there are many payroll software options on the market, we suggest looking for a provider which adapts according to compliance updates and has a team of payroll experts (like Employment Hero does).
Employment Hero Payroll helps take the confusion out of changing legislation with automated updates to awards and functionality, and notifying you of any relevant changes that might affect you or your clients.
If you’ve got international clients, consider the country where the software company is based, the regions they operate in and if they’ve got local payroll experts. This helps you stay up to date with compliance changes around the world, so you can better serve your international clients.
Subscribe to Fair Work emails
In Australia, Fair Work is the governing body which monitors compliance with the Fair Work Act 2009 and related legislation, including payroll practices. They are a key source of guidance regarding payroll compliance updates. You can subscribe to their emails which will notify you of any changes to payroll legislation or workplace laws.
Subscribe to ATO emails
Similarly, the ATO offers a variety of email newsletters which contain important information about workplace compliance issues. Choose a newsletter which is relevant to you to receive regular updates about tax and payroll requirements. In particular, the ATO is an excellent source of information about payroll tax, PAYG withholding, superannuation and other payroll related areas.
Join the Australian Payroll Association (APA)
The Australian Payroll Association is a training and consultancy provider, offering top-tier expertise. An APA membership gives you access to support and advice services, as well as training and regular email updates. This is a fantastic resource to ensure you keep up to date with payroll compliance.
If you’re not ready to become a member, you can still access Australian Payroll Association’s training and professional development services. They offer short courses, in-office training sessions, and payroll specific qualifications.
Use people power
Payroll compliance matters – so invest the time and money to get it right. Make use of your expert staff by properly assigning them compliance responsibilities. Perhaps you need to provide payroll compliance training to your staff. Or, maybe you need to dedicate a specific role within your team to compliance. Either way, if you want to keep up to date with payroll compliance, invest in the expertise of your team.
Stay on top of policy with reinforcement and regular audits
Payroll compliance must be central to your organisational values. Ensure all policies align with compliant payroll practices (eg. record keeping protocol). Continue to reinforce the importance of compliance whenever you can, rewarding employees for best practice and managing non-compliance risks effectively. Vigilance is the only way to stay on top of ever changing payroll compliance legislation.
The easiest way to have confidence in your payroll compliance is to regularly review and audit what you’re doing. Set aside time to cross-check and reference your payroll processes regularly.
Ensure your properly keeping records
Payroll compliance includes securely storing all employee records for a minimum of 7 years. All records related to timesheets, pay, leave, and other contractual details must be kept. To keep on top of payroll compliance regulations, it is essential that your record keeping is accurate and secure. Assess your current storage procedures and consider using a cloud based software such as Employment Hero Payroll, which automatically stores all relevant data.
Attend seminars and industry conferences
Regularly attend payroll related seminars and industry conferences to get the latest information about compliance. The Australian Payroll Association hosts regular events, as does TAPS. Australian Wide Taxation and Payroll Training offers online webinars on a variety of subjects. Be sure to choose a reputable provider and reap the benefits of their expertise. This is an easy way to stay up to date with payroll compliance.
Bookmark important websites
Make a regular habit of checking key payroll websites. Your state’s revenue website (eg. Revenue NSW) is an important source of information, worth checking regularly. The ATO, Fair Work Australia, and large industry professionals such as PwC also have informative websites. We recommend bookmarking these websites and checking them at least once a week.
Simple changes can have a big impact
Compliance is non-negotiable, for the sake of your business, your reputation and your clients. With the right tools, habits and processes in place, you can stay on top of compliance and serve your clients with confidence.
If you’d like further advice about how to streamline your payroll processes, we’d love to share our knowledge. Take a look at the Employment Hero Partner Network.
