How to set up payroll for new businesses

To start processing payroll, you’ll need to determine your employees’ pay rates and entitlements. You’ll have to consider factors such as their job roles, qualifications, and experience to ensure you pay them fairly and in accordance with relevant awards and legislation. Find your employees’ award rates per industry and state from Fair Work Australia.

Step 1: Register for an Australian Business Number (ABN)

Before you start setting up payroll, you’ll need to register for an Australian Business Number (ABN) with the Australian Business Register (ABR). The ABN is a unique identifier that the government uses to track your business for tax purposes. Apply for an ABN with the Australian Business Register (ABR).

Step 2: Choose STP compliant software

Payroller offers the most simple payroll solution for any business type. Our cloud payroll solution is approved by the Australian Tax Office (ATO) for single touch payroll (STP) reporting.  For small businesses, it is ideal because it is capable of handling multiple pay rates, allowances, and deductions.

Step 3: Set up cloud payroll software

Setting up Payroller as your STP system is simple.  Sign up to Payroller and set up your Payroller account in a few simple steps.  You’d need to enter your business details like your ABN. To start reporting STP, you must register Payroller with the Australian Tax Office (ATO).

Next, you can add personal and work details for employees.  Input your employees’ personal details including names, addresses, and tax file numbers.  You can also enter their job titles, work types (casual, part-time, full-time and more) and more.

Step 4: Determine your employees’ pay rates & entitlements

Late payments can disrupt your cash flow. On Bookipi’s invoice generator, turn automated payment reminders on to help you stay on top of outstanding invoices. Set up personalized reminders to notify clients when payments are due, reducing the need for manual follow-ups. With automated reminders, you can maintain healthy cash flow and improve your financial stability.

Step 5: Process your first payroll

Get started with processing your first pay run in Payroller. You’ll need to enter your employees’ hours worked, any allowances or deductions, and any leave taken. 

Payroller automates calculations of tax withholding, superannuation contributions, and more.    You can also generate payslips for your employees from your completed pay run.  

Read our more comprehensive guide to running payroll for your small business.

Step 6: Stay on top of your payroll obligations

Staying on top of your payroll obligations is crucial for employers. This includes meeting your tax and superannuation obligations, providing payslips to your employees, and keeping accurate records. Payroller software makes it easy to meet your legal obligations. 

You can set up payroll for your new business in Australia by following these steps. If you’re unsure about any aspect of the process, consider seeking advice from an accountant or payroll specialist.  You can also invite your tax agent to help manage your payroll securely via the free Payroller Agent portal.