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 refers to the complete process of recording, managing, and closing a company’s financial accounts over a given accounting period—typically monthly, quarterly, or annually. Our accountants are highly trained and highly efficient across all of these.

What is GAAP in accounting?

GAAP (Generally Accepted Accounting Principles) are standardized accounting rules and guidelines used to prepare and present financial statements accurately and consistently.

What is the Accounting Cycle?

The accounting cycle is the step-by-step process of recording, processing, and closing financial transactions during an accounting period, ending with financial statements.

What is accrued income revenue in accounting?

Accrued income (or accrued revenue) is income that has been earned but not yet received or invoiced by the end of the accounting period.

What is accrued income journal entry in accounting?

An accrued income journal entry records income earned but not yet received. It typically debits Accounts Receivable and credits Revenue.

What is the difference between accrued and outstanding in accounting?

In accounting, accrued refers to income or expenses recognized before cash is received or paid, while outstanding usually refers to unpaid liabilities or obligations still due.

What is accrued revenue in accounting?

Accrued revenue is income earned for goods or services provided but not yet invoiced or received by the end of the accounting period.

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, interest accrued in your bank account should be included as income when filing your tax return, even if it hasn’t been physically received yet.

What is duality in accounting?

Duality in accounting refers to the principle that every financial transaction affects at least two accounts—one debit and one credit—keeping the accounting equation balanced.

Do you assist with correcting or resolving past accounting issues?

Yes, we assist in reviewing and correcting past accounting issues to ensure your financial records are accurate, compliant, and up to date.

Payroll Processing

At PremierOne, we understand that managing payroll can be a hassle, especially for medium-sized businesses. That’s why our comprehensive payroll management services are designed to take payroll off your plate, leaving you free to focus on what you do best

What is Payroll Management?

Our Business Payroll Services handle the processing and payment of employees’ wages and salaries. This essential function starts with calculating each employee’s gross pay and then determining their net pay—take-home pay—after deducting income tax and superannuation contributions.

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

Based on your chosen payroll calendar—weekly, fortnightly, or monthly—the hours worked by each employee are recorded, and wages are calculated accordingly. With the introduction of Single Touch Payroll, an advanced reporting system from the ATO, timely and accurate payroll processing is critical for Australian businesses.

In addition to regular wages, we manage entitlements such as annual leave, extended service leave, personal/carer’s leave, and superannuation, all stored securely in your cloud-based accounting application.

At PremierOne, we assess your specific payroll needs to establish a tailored monthly fee. Contact us today to learn how we can streamline 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 refers to the complete process of recording, managing, and closing a company’s financial accounts over a given accounting period—typically monthly, quarterly, or annually. Our accountants are highly trained and highly efficient across all of these.
What is GAAP in accounting?
GAAP (Generally Accepted Accounting Principles) are standardized accounting rules and guidelines used to prepare and present financial statements accurately and consistently.
What is the Accounting Cycle?
The accounting cycle is the step-by-step process of recording, processing, and closing financial transactions during an accounting period, ending with financial statements.
What is accrued income revenue in accounting?
Accrued income (or accrued revenue) is income that has been earned but not yet received or invoiced by the end of the accounting period.
What is accrued income journal entry in accounting?
An accrued income journal entry records income earned but not yet received. It typically debits Accounts Receivable and credits Revenue.
What is the difference between accrued and outstanding in accounting?
In accounting, accrued refers to income or expenses recognized before cash is received or paid, while outstanding usually refers to unpaid liabilities or obligations still due.
What is accrued revenue in accounting?
Accrued revenue is income earned for goods or services provided but not yet invoiced or received by the end of the accounting period.
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, interest accrued in your bank account should be included as income when filing your tax return, even if it hasn’t been physically received yet.
What is duality in accounting?
Duality in accounting refers to the principle that every financial transaction affects at least two accounts—one debit and one credit—keeping the accounting equation balanced.
Do you assist with correcting or resolving past accounting issues?
Yes, we assist in reviewing and correcting past accounting issues to ensure your financial records are accurate, compliant, and up to date.

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