Payroll Best Practice Guide for Employers

Payroll mistakes can be costly.

From late superannuation payments and payroll tax obligations to Single Touch Payroll (STP) reporting and WorkCover declarations, employers face a growing list of compliance requirements year-round.

Missing a deadline or reporting incorrect information can result in penalties, unnecessary administration and added stress at year-end.

Whether you employ one person or one hundred, now is the perfect time to review your payroll processes and ensure your business meets its obligations. Here are some key areas every employer should focus on.

Single Touch Payroll (STP)

STP remains a key reporting obligation for Australian employers. Payroll information is reported directly to the ATO each payday, with annual finalisation required after year-end.

Tip: Regularly reconcile wages, PAYG withholding and superannuation against your BAS and payroll reports to avoid year-end surprises.

Payroll Tax

Businesses that exceed state payroll tax thresholds may have payroll tax obligations.

If you employ staff across multiple states or operate through related entities, the rules can become more complex.

Tip: Review your payroll tax position annually and ensure you correctly include reportable benefits.

Reportable Benefits and Contributions

Certain employee benefits and salary-sacrificed super contributions may need to be reported, even where they are treated differently for tax purposes.

Tip: Review fringe benefits and salary packaging arrangements before year-end to ensure they are reported correctly.

WorkCover Obligations

Employers are generally required to lodge an annual remuneration declaration with their workers compensation insurer.

Accurate wage estimates help avoid unexpected premium adjustments.

Tip: Keep payroll records up to date throughout the year rather than trying to reconstruct figures at renewal time.

Superannuation

Late superannuation payments can result in significant penalties and additional compliance requirements.

Tip: Consider making superannuation contributions well before quarterly due dates to avoid processing delays and assist with tax planning opportunities.

How Morrows Can Help

Payroll compliance requirements continue to evolve, and mistakes can be costly. At Morrows, our team can assist with payroll reviews, STP compliance, payroll tax obligations, superannuation requirements and broader employer compliance matters.

If you need more information or assistance with your payroll processes, please contact your tax and business advisor at Morrows. We will be happy to help.  

 

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