Updated: Sep 4
Payroll in previous times was seen by businesses as a cost but now with the use of the right software, it should be seen as an investment. As real efficiencies can be achieved that can save you literally big dollars.
Australia’s award system is one of the most complex in the world. With new reporting obligations to the ATO for weekly payroll and super the environment has become tricky as the ATO has the technical capability to catch would-be uncompliant operators, whether intentional or not. Significant brand damage can be attributed to the real-world failure of some of Australia's most successful hospitality entrepreneurs.
Due to these factors, it's very important that a Hospitality business selects a payroll system that suits their current requirements but is also robust enough to be able to handle scale as well as permissions for third-party contractors such as payroll processing companies.
Before you rush out and sign up to the first platform you see please consider the following points:
1. Think about future growth and savings
Accurate payroll processing, strict leave management as well as multiple functions inbuilt such as rostering and time and attendance, can be major contributors to your investment. I call this an investment because it is just that. You set things up right now it will save you from 0.5% to 1.5% of the annual payroll expenditure. This is a significant saving particularly when you scale and have a significant-sized payroll.
2. Factor in the Future Needs
As discussed in point one you need to look ahead for the next 3-5 years as a minimum. Setting up a payroll system is quite technically challenging, and expensive to implement. However, switching systems at a later date with lots of employees can really be a challenge. So again look ahead at where you want to be in 5 years.
3. Reporting
Any business that grows eventually needs present results to senior leadership, executive or board. This is normally through an accountant or CTO. These people understand certain performance indicators. Reports on payroll are a really important part of this process. The ability to have a top-down view is important to see when a business can improve as well as to project future costs and earnings. If you have multiple venues you should be able to look at each venue but also look at all venues as
4. Payroll Specialists can help you choose the right fit.
Payroll management is a very tricky business in the Australian Hospitality scene, and your payroll specialist or accountant is the right person to understand your business needs. Making payroll professionals part of the purchase process gives them ownership of the process and they will be happy using something they had a part in procuring. If you need to talk to someone who can help you click payrollgenie.com.au
5. Australian Compliance Laws
Make sure the payroll system you choose must be Single Touch Payroll (STP) compliant and ATO certified.
6. Easy Navigation
Having an intuitive and user-friendly interface is essential for a modern payroll system. Having a dashboard with key KPIs that gives you a quick snapshot of your payroll costs over the past month is a great feature but not essential. However, easily finding staff and their details, rosters, as well as timesheets, is essential when looking for your system. Training costs are much reduced when you use the right software.
7. Invest in Implementation and Training
A payroll system is usually complex software, but as discussed above user-friendly software is the key to implementing and training your staff. Also using the payroll management team to have input into the purchasing decision will motivate them to be a part of ongoing training to streamline and optimise performance.
8. Finding the Right Payroll Partner
This is probably the most important point as Australian tax and compliance laws constantly evolve and this a proverbial minefield of compliance issues. Regular recent reporting processes like Single Touch Payroll (STP) and STP 2 have made software essential to be able to comply on a weekly basis. Having a knowledgeable, supportive and efficient payroll provider is a must for any successful hospitality business in Australia.If you need to talk to someone who can help you click payrollgenie.com.au
Taking all of the above points into account as well as your business goals and resources will put you in the right position to pay your employees accurately and on time.