Small Business Payroll Services

1. Is your provider using a secure and up to date, cloud based platform?

Your payroll software platform should be easy to use and quick to set up.  Some outsource providers use old and outdated systems that are rigid and not user friendly.  It is worth asking about how flexible the system is to the changing needs of your business, is it scalable?  Does the system integrate with your accounting software?  Can you run reports or have reports automatically sent to various people within your business?  Where is the data stored and what backup procedures are in place?

2. Will you have a dedicated payroll consultant?

As with any business partnership, fit is important.  Payroll outsourcing arrangements are critical to your business and you need to be comfortable that your service provider has a detailed understanding of your needs. Some very large providers are highly segmented meaning that you may need to deal with a few different people.  Using a provider that gives you a consistent contact from implementation through to ongoing processing of your payroll will ensure that your individual needs are catered for.

3. Exactly what services will be provided?

Make sure that you receive a clear list of each of the services that will be provided including a list of specific reports.  Are superannuation payments on your behalf included?  What about ATO reporting, PAYG lodgements?  Don’t be afraid to ask for all of the items on your wish list, you may not get everything, however its best to know up front.

4. How do you manage time and attendance or rostering?

This is often overlooked.  There are some highly flexible time and attendance and rostering systems available.  Do you need remote sign on or sign off?  Is there an app for mobile devices?  What about manager dashboards and real time monitoring?

5. What is available to support Award Interpretation and automatic pay rules?

There are many stories in the media about companies ‘who should know better’ that have misinterpreted complex Award Conditions or overlooked an important enterprise allowance.  Asked about whether the payroll platform has embedded Award interpretation and automatic pay rules management.

6. Are you Single Touch Payroll Compliant?

Single Touch Payroll is an Australian Tax Office reporting change for employers that started on 1 July 2018. Employers with 20 or more employees must report payments such as salaries and wages, pay as you go (PAYG) withholding and superannuation information each time they pay their employees.  Parliament has recently passed legislation to extend STP reporting to all employers from 1 July 2019.  Your payroll provider should have this option up and running and ready to go at no extra charge.

7. What other support services can you provide?

In addition to all of the critical payroll services discussed above, look for a provider who can also offer a broad range of in-house employment management services including employment law, migration, human resources, recruitment and workplace health and safety experts.  You may not need this now. However, as your business grows, it’s great to know you can pick up the phone and talk to someone who already knows you.