Payroll Guide: The Basics of Payroll In Australia

Australia has one of the most complex payroll systems in the world, so it’s no surprise that we continually see and hear of businesses getting it wrong. Between payroll tax, STP, Modern Awards and other payroll jargon, it can be confusing to know if you’re paying your employees correctly.

Whether you employ one person, or one hundred people, the same rule applies to all businesses when it comes to payroll – be compliant or face strict penalties. However, when you’re a small or medium-sized business, you most likely don’t have the luxury of having in-house or external professionals helping you manage your payroll function. So, how can you ensure you’re doing the right thing?

In the Employers’ version of this guide, you’ll learn:

• What is payroll and how does it work?
• How does payroll tax work in Australia?
• When can non-compliance occur?
• Important things to consider when paying your staff
• How using payroll automation software can help

In the Outsourced Payroll Providers’ version of this guide, you’ll learn:

• What is payroll and how does it work?
• How does payroll tax work in Australia?
• All about STP Phase 2
• How modern awards and award interpretation works for clients
• The importance of record keeping
• The benefits of payroll software in streamlining tricky legislation

Disclaimer

The information in this article is current as at 16 March 2023, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this article.