As a small business owner, payroll requirements can be daunting, but with some careful planning, you can avoid some common mistakes. Planning and organisation will not only mean that your staff are paid when they’re supposed to be, but you’ll also ensure that your payroll records meet legal requirements.
So here’s a list of 6 common payroll mistakes many small business owners make.
1. Start and end dates of employment
This may seem obvious, but many employers don’t accurately record start and end dates for their employees, meaning that payments such as annual, long service or maternity leave cannot be calculated correctly.
2. Insurance premiums
It’s vital that as a small business owner you ensure that you have the correct insurance premiums in place as an employer.
3. Benefits for employees
Ensure that you are meeting your legal requirements by offering employee benefits for which they are entitled when they are eligible to receive them.
4. Leave accrual at the end of employment
It’s crucial to factor in annual leave taken, and accrued, into any calculations when an employee leaves the company. Doing this will ensure you have an accurate record of how much the employee is owed, if anything.
5. Employee expenses
Depending on what state you are in, employee expenses can be taxable benefits, and therefore it’s critical to keep an updated, accurate record of such expenses.
6. Meet critical deadlines
Tax payments and mandatory reporting requirements to the Australian Taxation Office are integral to your business. Always ensure that you supply accurate information, and by the deadline specified by the relevant authority. This is even more important with Single Touch Payroll becoming mandatory in only a few months.
All these common payroll mistakes can be avoided by simply contacting a specialist who can assist you with your payroll requirements and provide you with expert accounting advice.
Propeller Advisory, a specialist virtual bookkeeping and accounting firm based in Melbourne is who you can trust to provide you with the very best advice. But best of all, you won’t have to pay the normal excessive costs usually associated with receiving a premium service. What more could you ask for?