As the Fair Work Ombudsman (FWO) ramps up its efforts to identify and penalize businesses that underpay their employees, it is crucial that employers take steps to ensure their payroll systems are up-to-date and compliant with current laws. Several businesses have made headlines over the past few years for failing to pay staff what they were owed.
According to estimates, as much as $1.35 billion worth of wages are underpaid annually in Australia, with up to 21% of workers in high-risk industries being affected. In response to this, several states have strengthened their laws to specifically target employers who intentionally withhold wages and other employee entitlements.
However, it is important to note that many instances of underpayment are not deliberate attempts to cheat employees, but rather the result of honest mistakes made when calculating payroll and leave entitlements. This is especially true for businesses that use manual payroll systems, as frequent changes to rules and regulations can make the process time-consuming and complex.
And, mistakes add up. After all, when was the last time you reviewed your payroll systems and processes? Sometimes, it’s not until a business completely overhauls its payroll system that the magnitude of the problem is fully realised.
Automation is Key
Staying compliant with ever-changing tax laws and regulations can be a challenge for any business, especially when it comes to payroll. But, there is a solution that can help: Automated Payroll Systems. By streamlining processes, an Automated payroll system can significantly reduce the risk of errors and non-compliance.
Xero is one good example of how powerful payroll software can expedite your payroll processes while giving you peace of mind.
1) Streamline compliance with Single Touch Payroll (STP).
Xero simplifies compliance with the ATO by allowing you to lodge salary, wage, PAYG, and superannuation details, as well as sending STP reports each payday.
2) Automate your online payroll.
Xero’s payroll software makes it easy to pay employees in just a few clicks. The software automatically updates your accounts with payroll data, including:
Did you know?
Xero’s automatic superannuation (auto super) is gold-certified by the ATO as SuperStream compliant. Auto super sends employee super contributions electronically to the nominated super fund. It also sends super data to the provider and the ATO.
3) Empower employees with self-service features
Xero’s payroll software includes a mobile app and web access for employees, allowing them to submit leave requests and timesheets for review, view leave balances, and access payslips. Leave balances are automatically adjusted when a request is submitted and approved, and the software includes standard types of leave, as well as the ability to set up rostered days off and time in lieu.
4) Gain valuable insights with payroll reports
Xero enables employers to view a wide range of payroll reports to gain valuable information on payroll activity, transactions, leave balances, timesheets, remuneration, and superannuation.
Concerned About the Transition?
Change can be overwhelming, especially when it comes to setting up new payroll software. But with options like Xero Payroll, which offers a 30-day trial and 24/7 support, you can try before you buy and make sure it’s the right fit for your business.
But, even with the best software, mistakes can happen during setup. That’s why Tailored Accounts is here to help. As a Xero Gold Partner, Tailored Accounts offers assistance with system setup and implementation, as well as user training. Our team is also certified to help with other popular accounting software.
Don’t hesitate to reach out for guidance and support, even if it’s just an initial chat to scope things out. Contact us today!
Source: Tailored Accounts
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