Australia Bookkeeping

What are the possible challenges an Employer Could face concerning the Payroll?

• Initial setting up and configuration of the employees with the proper employment classification and entitlements
• Pro-rata calculations for a new start and quitting/resigning/terminated employees
• Answering the technical queries from the employees
• Calculation of the complex payroll tax obligations and potential penalties if not reported correctly.
• Tracking of the leave entitlements, especially the Long Service Leave, as it varies from state to state.
• Ensuring the accrued employees’ entitlements are appropriately accounted for in the accounts of accounts to assess the realistic business performance metrics.
• Frequent changes in the working hours, overtime hours and pay rates would require someone capable of processing these correctly.
• Processing of parental leave, maternity benefits, redundancy and work injury-related entitlements and payments.
• Correct reporting to ATO and annual reconciliation for the wages/PAYG WH reported to the ATO with the payroll system.
• Do I have good governance and controls in my payroll process to mitigate the risk of error and fraud?
• If your payroll system is a standalone system, periodical summary reports will get picked up in your financial accounting systems.
• Suppose the KPI or performance bonus is meant to be paid as super exclusive, in 8/10 cases. In that case, it gets processed with superannuation, which goes unnoticed by the employers and does cause a severe negative impact on the bottom line.

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