What is payroll tax and PAYG withholding?

Payroll tax is the levy payable by the businesses to the state revenue offices based on the annual Australia national wages threshold stipulated for each state. It is payable either on a monthly or yearly basis. PAYG withholding is the income tax applicable to your employees’ wages and salaries, which needs to be deducted from the salaries and wages payment and remitted to the ATO either monthly or quarterly, based on your gross sales turnover.

What are the various employment arrangements that are commonly seen in Australia businesses?

• Full-time employment where an employee works for a total of 38 hours a week. • Part-time employment where an employee works only for a few days or hours in a week with full-time employment entitlements calculated pro-rata. • Casual employment where an employee works on a casual basis with no specified hours and is not entitled to the benefits and entitlements applicable for full-time employees. • Labour hire where the employee performs the work on a contract basis, with the contract start and end terms clearly defined. This is commonly seen in the Information Technology industry.

What are the critical factors for you to have an employee on board?

• The age and right to work in Australia • Tax residential status • Adequate work cover insurance to be provided by the employer • Superannuation membership • Tax file number • Bank account details

What are the significant entitlements for the full-time/part-time employees?

• Personal/carer’s leave (formerly known as sick leave) • Annual leave • Long service leave • Public holiday pay • Compassionate leave

What are the typical pay periods practised by Australian Businesses?

• Weekly: 52 cycles per year • Fortnightly: 26 cycles per year • Bi-monthly: 24 cycles per year

What attracts a superannuation guarantee charge (SCG) for employers?

Wages, commission, allowances, bonuses are considered ordinary time earnings (OTE) and, accordingly, SCG is payable by the employer on such. Overtime wages don’t attract a SCG.

What are the various regulatory/statutory reporting obligations for the employers?

• Single Touch Payroll (STP) reporting to the ATO at the end of each pay period processing. • Superannuation contribution to the nominated super funds through the clearinghouse on quarterly or monthly intervals. • PAYG withholding reporting and payment to the ATO monthly or quarterly based on whether you are a small, medium or large withholder. • Computation and reporting for the payroll tax on a monthly or annual basis to the respective state revenue offices based on which states your employees are located. • Annual actual wages declaration to your work cover insurances (this varies for each state) based on which actual premium is determined. • If you are engaged in labour hire contracts or supply services, a labour-hire licence is now mandatory. • End of financial year (EOFY) STP reporting and reconciliations to produce payment summary reports to your employees and the ATO.

What are the EOFY tax-saving tips and tricks?

• Ensure the wages for June are paid and credited into the employees’ bank accounts on or before 30th June. • Ensure your superannuation for the June quarter gets paid by 30th June to qualify for a tax deduction. If it’s not possible to determine the superannuation liability for June, pay April and May at least, which will act as a tax saver for you. • If you have any KPI bonus, commission, directors’fees or incentives that are payable relevant to the current financial year but could only be correctly computed and paid in the subsequent financial year, making a provision in the current financial year will also act as a tax saver.

What challenges could an employer face concerning payroll?

• Initial setting up and configuration of the employees with the proper employment classification and entitlements. • Pro-rata calculations for a new start and exiting employees. • Answering technical queries from employees. • Calculation of the complex payroll tax obligations and potential penalties if not reported correctly. • Tracking of leave entitlements, especially long service leave, as it varies from state to state. • Ensuring the accrued employees’ entitlements are appropriately accounted for to assess realistic business performance metrics. • Frequent changes in working hours, overtime hours and pay rates requires accuracy and attention to detail. • Processing of parental leave, maternity benefits, redundancy and work injury-related entitlements and payments. • Correct reporting to the ATO and annual reconciliation for wages/PAYG withholding. • Implementing good governance and controls in your payroll process to mitigate the risk of error and fraud. • If your payroll system is a standalone system, periodical summary reports will get picked up in your financial accounting systems. • Remembering that KPI or performance bonuses are to be paid exclusive of a superannuation contribution.

What’s PremierOne's Process?

• Setting up and configuring your payroll systems, specific to your requirements. • Creating the master file data for your employees with date of birth, TFN, leave entitlements and pay rates. • Process the pay run based on timesheets and sending the draft for your approval. • Once approved, we finalise the payroll, email payslips to employees, send you the electronic batch file for processing through online banking, and fulfil ATO reporting requirements through STP. • Superannuation processing either monthly or quarterly based on your reporting obligations. • End of financial year STP finalisation and reporting to the ATO. • Month-end reporting to track the various payment categories, changes over previous pays and gross summary journal. • Round-the-clock support to address any queries that arise. • Appropriate calculation of tax for fractured pays arising due to termination and onboarding of employees outside the normal pay calendar.

What is full cycle accounting?

Full cycle Accounting is the process of maintaining and tracking of accounts by our accountants throughout the year. Our accountants do these activities every year until the company remains in business.

What is GAAP in accounting?

GAAP stands for Generally Accepted Accounting Principles. It is a collection of accounting rules and standards followed across the market for financial reporting. Our accountants follow these processes as they are seamless and error free.

What is Accounting Cycle?

Accounting Cycle involves multiple steps for the accounting events of a company like identifying, analysing and recording. It begins with the start of a transaction and ends when the transaction is recorded financially in statements.

what is accrued income revenue in accounting?

Accrued income is a revenue that is rightfully earned . Small businesses, individuals and companies can all receive accrued income. Although it is not yet received, accrued income is recorded on the books as and when it is earned, in accordance with the accrual accounting method.

What is accrued income journal entry in accounting?

Accrued income journal entry is the journal entry for income which is earned during a particular period, bit is yet to be received until the end of that period. Though the amount is not received, our accountants will add it to the journal as assets as per the modern rules of accounting.

What is the difference between accrued and outstanding in accounting?

Accountants consider an income as accrued until it is not due for payment, while it is considered as outstanding while it is past due.

What is accrued revenue in accounting?

Accountants term the revenue which is earned but not yet invoiced or received as accrued revenue. It is also known as unbilled revenue. It is part of Accrual Accounting.

Is Accrual accounting part of accounting services offered by premier one?

Yes. All our accountants have expertise in accrual accounting and it is a part of our accounting services.

Should i add interest accrued in bank to accounts for filing tax?

Yes. you should add the interest availed during that period during the tax filing. If you are not sure, our accountants will be help you in adding the same.

What is duality in accounting?

It is a concept where accountants have to record every transaction in two different accounts. It forms the basis of dual entry accounting for all accounting frameworks for producing reliable financial statements

Do you help in solving issues with previous accounting?

Yes. Our experienced accountants will help in resolving issues with previous accounting throughout Australia.

Efficient Payroll Management Services at your Fingertips

At PremeirOne, we understand that managing payrolls can be taxing, especially for and medium-sized businesses. But our comprehensive payroll management services are here to ensure that payroll is one less thing for you to worry about.

What is Payroll Management?

Our Business Payroll Services manage the processing and paying of employees’ periodical wages and salaries. This key business function begins with processing the gross pay of each employee, before calculating the net pay — or take-home pay — after income taxes and superannuation contributions are deducted.

An efficient payroll management process is methodical and consistent, ensuring the utmost accuracy and compliance. The payroll manager is responsible for personal employee details such as name, age, address, tax file number, superannuation membership details, the hourly or annual rate of salary, type of employment (permanent, part-time or casual) and emergency contact details. They are also required to complete a tax file declaration and file it with the ATO.

Based on a weekly, fortnightly or monthly payroll calendar, the hours worked by each employee are input and the wages are calculated accordingly. With the advent of Single Touch Payroll — a sophisticated reporting system introduced by the ATO — the accurate and timely processing of payroll is critical to Australian business operations.

In addition to periodical wages, entitlements such as annual leave, long service leave, personal/carer’s leave and superannuation are also processed and stored in the relevant cloud-based accounting application.

Here at PremierOne, we evaluate your specific payroll requirements to determine a set monthly fee. Contact us today to outsource your payroll services.

What do our Payroll Management Services Include?
We manage all aspects of your Payroll so you can focus on your business growth!

Establishing payroll policies – such as pay policy, attendance and leave policies
Collecting employee data – such as personal details, tax file numbers (TFN) and superannuation details
Managing interstate payroll tax calculations and compliance
Calculating net pay
Payroll planning
Statutory compliance
Payroll accounting
Payouts
Business reporting

Accurate payroll processing and disbursement
Timely submission of reports to business owners and Australian Tax Office (ATO)
Prompt processing and payment of superannuation contribution
End-of-year finalisation via Single Touch Payroll (STP)
Detailed reporting of PAYG withholding to the ATO
Final pay calculations at the time of termination of employment
Analytical wages reports for business owners
Accurate management of employee entitlements— such as annual leave, long service leave and personal/carer’s leave for Australian companies

Payroll Services & Outsourcing for Companies - FAQs

Payroll Services for Companies
General Accounting Services

What is payroll tax and PAYG withholding?
Payroll tax is the levy payable by the businesses to the state revenue offices based on the annual Australia national wages threshold stipulated for each state. It is payable either on a monthly or yearly basis.

PAYG withholding is the income tax applicable to your employees’ wages and salaries, which needs to be deducted from the salaries and wages payment and remitted to the ATO either monthly or quarterly, based on your gross sales turnover.
What are the various employment arrangements that are commonly seen in Australia businesses?
• Full-time employment where an employee works for a total of 38 hours a week.

• Part-time employment where an employee works only for a few days or hours in a week with full-time employment entitlements calculated pro-rata.

• Casual employment where an employee works on a casual basis with no specified hours and is not entitled to the benefits and entitlements applicable for full-time employees.

• Labour hire where the employee performs the work on a contract basis, with the contract start and end terms clearly defined. This is commonly seen in the Information Technology industry.
What are the critical factors for you to have an employee on board?
• The age and right to work in Australia

• Tax residential status

• Adequate work cover insurance to be provided by the employer

• Superannuation membership

• Tax file number

• Bank account details
What are the significant entitlements for the full-time/part-time employees?
• Personal/carer’s leave (formerly known as sick leave)

• Annual leave

• Long service leave

• Public holiday pay

• Compassionate leave
What are the typical pay periods practised by Australian Businesses?
• Weekly: 52 cycles per year

• Fortnightly: 26 cycles per year

• Bi-monthly: 24 cycles per year
What attracts a superannuation guarantee charge (SCG) for employers?
Wages, commission, allowances, bonuses are considered ordinary time earnings (OTE) and, accordingly, SCG is payable by the employer on such.

Overtime wages don’t attract a SCG.
What are the various regulatory/statutory reporting obligations for the employers?
• Single Touch Payroll (STP) reporting to the ATO at the end of each pay period processing.

• Superannuation contribution to the nominated super funds through the clearinghouse on quarterly or monthly intervals.

• PAYG withholding reporting and payment to the ATO monthly or quarterly based on whether you are a small, medium or large withholder.

• Computation and reporting for the payroll tax on a monthly or annual basis to the respective state revenue offices based on which states your employees are located.

• Annual actual wages declaration to your work cover insurances (this varies for each state) based on which actual premium is determined.

• If you are engaged in labour hire contracts or supply services, a labour-hire licence is now mandatory.

• End of financial year (EOFY) STP reporting and reconciliations to produce payment summary reports to your employees and the ATO.
What are the EOFY tax-saving tips and tricks?
• Ensure the wages for June are paid and credited into the employees’ bank accounts on or before 30th June.

• Ensure your superannuation for the June quarter gets paid by 30th June to qualify for a tax deduction. If it’s not possible to determine the superannuation liability for June, pay April and May at least, which will act as a tax saver for you.

• If you have any KPI bonus, commission, directors’fees or incentives that are payable relevant to the current financial year but could only be correctly computed and paid in the subsequent financial year, making a provision in the current financial year will also act as a tax saver.
What challenges could an employer face concerning payroll?
• Initial setting up and configuration of the employees with the proper employment classification and entitlements.

• Pro-rata calculations for a new start and exiting employees.

• Answering technical queries from employees.

• Calculation of the complex payroll tax obligations and potential penalties if not reported correctly.

• Tracking of leave entitlements, especially long service leave, as it varies from state to state.

• Ensuring the accrued employees’ entitlements are appropriately accounted for to assess realistic business performance metrics.

• Frequent changes in working hours, overtime hours and pay rates requires accuracy and attention to detail.

• Processing of parental leave, maternity benefits, redundancy and work injury-related entitlements and payments.

• Correct reporting to the ATO and annual reconciliation for wages/PAYG withholding.

• Implementing good governance and controls in your payroll process to mitigate the risk of error and fraud.

• If your payroll system is a standalone system, periodical summary reports will get picked up in your financial accounting systems.

• Remembering that KPI or performance bonuses are to be paid exclusive of a superannuation contribution.
What’s PremierOne’s Process?
• Setting up and configuring your payroll systems, specific to your requirements.

• Creating the master file data for your employees with date of birth, TFN, leave entitlements and pay rates.

• Process the pay run based on timesheets and sending the draft for your approval.

• Once approved, we finalise the payroll, email payslips to employees, send you the electronic batch file for processing through online banking, and fulfil ATO reporting requirements through STP.

• Superannuation processing either monthly or quarterly based on your reporting obligations.

• End of financial year STP finalisation and reporting to the ATO.

• Month-end reporting to track the various payment categories, changes over previous pays and gross summary journal.

• Round-the-clock support to address any queries that arise.

• Appropriate calculation of tax for fractured pays arising due to termination and onboarding of employees outside the normal pay calendar.

What is full cycle accounting?
Full cycle Accounting is the process of maintaining and tracking of accounts by our accountants throughout the year. Our accountants do these activities every year until the company remains in business.
What is GAAP in accounting?
GAAP stands for Generally Accepted Accounting Principles. It is a collection of accounting rules and standards followed across the market for financial reporting. Our accountants follow these processes as they are seamless and error free.
What is Accounting Cycle?
Accounting Cycle involves multiple steps for the accounting events of a company like identifying, analysing and recording. It begins with the start of a transaction and ends when the transaction is recorded financially in statements.
what is accrued income revenue in accounting?
Accrued income is a revenue that is rightfully earned . Small businesses, individuals and companies can all receive accrued income. Although it is not yet received, accrued income is recorded on the books as and when it is earned, in accordance with the accrual accounting method.
What is accrued income journal entry in accounting?
Accrued income journal entry is the journal entry for income which is earned during a particular period, bit is yet to be received until the end of that period. Though the amount is not received, our accountants will add it to the journal as assets as per the modern rules of accounting.
What is the difference between accrued and outstanding in accounting?
Accountants consider an income as accrued until it is not due for payment, while it is considered as outstanding while it is past due.
What is accrued revenue in accounting?
Accountants term the revenue which is earned but not yet invoiced or received as accrued revenue. It is also known as unbilled revenue. It is part of Accrual Accounting.
Is Accrual accounting part of accounting services offered by premier one?
Yes. All our accountants have expertise in accrual accounting and it is a part of our accounting services.
Should i add interest accrued in bank to accounts for filing tax?
Yes. you should add the interest availed during that period during the tax filing. If you are not sure, our accountants will be help you in adding the same.
What is duality in accounting?
It is a concept where accountants have to record every transaction in two different accounts. It forms the basis of dual entry accounting for all accounting frameworks for producing reliable financial statements
Do you help in solving issues with previous accounting?
Yes. Our experienced accountants will help in resolving issues with previous accounting throughout Australia.

Clients love our exceptional Business Accounting Service!

Good Expertise on tax laws in Australia Maru's expertise helped cleared a lot of my questions and his patience ensured I understood the concepts and tax laws.

Jaidyn Lai

Best Tax accountant near me Mr.Maru was extremely thorough with the entire tax return process and ran me through all the requirements. He made sure I received all my entitled returns for the tax period. Will definitely be doing my taxes with Premierone Accounting in the upcoming financial years :))

Jayabharathi Prabakar

Informative and friendly tax accountant near me in Australia Mr. Maru was very helpful, informative and friendly throughout the whole process. Any questions asked very answered thoroughly and my needs were processed very efficiently. Thank you!

Kapila Prabakar

Premierone - Best Concern for tax returns near Melbourne Excellent communication from the team at PremierOne Tax and Accounting when preparing my Tax Return this year.

A V

Helpful in tax returns. Got highest amount back. PremierOne was very helpful in getting my tax returns done very quickly and got the highest amount back as well they are the best.

Actavia Heath

Highly recommend for tax accounting services after second time tax filing This is the second time I have filed my tax returns through Premiere One. Maru is prompt, friendly and supportive. He goes through our documents in detail and ensures the tax returns are filed without any further hassle. Highly recommend!

Raja Koushik

Professional tax expert near melbourne - Recommended for tax and accounting services in Australia I recently lodged my tax returns with Maru. He is professional and knows what he does! Would definitely recommend him for any tax and accounting services. Thanks Maru for your efforts!!

Priya Sathish

Highly recommend for tax return in melbourne. It was very easy and quick for our first visit, I will be going back for my next tax return, I highly recommend, see you soon. thanks for your help and advise. Thanks again Mr. Maru, Keep it up.

Deleela Arul

Appreciate PremierOne team for awesome tax work. They are the Perfect Tax Agent near Melbourne. A perfect and awesome tax agent.. my messy job was complete with fast and unexpected time... good job PremierOne Team. A million thanx and Appreciate.