A guide to payroll for beauty therapists & salons

Payroll management can be challenging if you have part-time, full-time, or casual beauty therapists. Streamline the payroll process for your beauty workforce with our 8 tip guide below. 

1. Know your beautician employees’ classification

The status of your beauty therapists as independent contractors or employees is crucial to your business as an employer. There are different entitlements under Australian employment law depending on a person’s classification, such as minimum wage rates, sick leave, and superannuation contributions.

2. Choose a payroll system that meets your beauty business’ needs

It is possible to manage your payroll either in-house or outsource it to a professional payroll service. As a micro-employer or small business, it’s more affordable to choose a self-service payroll solution.  To automate PAYG withholding calculations, payslips, and superannuation contributions, use reliable payroll software like Payroller. Payroller is approved for Single Touch Payroll (STP) by the Australian Tax Office (ATO).

Sometimes you want help from a payroll or accounting specialist.  You can also invite your tax agent to help you manage your payroll via the secure Payroller Agent portal.  

3.  Decide on pay rates for your beauty staff

Set an hourly rate that aligns with industry standards, experience, and qualifications. Consider penalty rates for working weekends, public holidays, and after-hours.

4. Make accurate superannuation contributions to your beauty therapists

As an employer, you must contribute to your employees’ retirement savings through superannuation. Learn how to set up superannuation payments using the Payroller integration with super clearing house, BEAM. 

5. Automate calculations of withholding taxes

The employer is responsible for withholding income tax and Medicare levy from an employee’s gross salary. Withholding amounts from employees are calculated by the Australian Taxation Office (ATO). Payroller calculates net pay for your employees automatically.

6.  Tailor leave entitlements for your beauty workers

Depending on their employment classification, beauty therapists are entitled to annual leave, sick leave, and long service leave. In order to ensure your employees receive their entitlements when they take leave, you must manage these entitlements accurately. Learn how to add different leave types in Payroller with our simple user guide.

7.  Check if you need to report payroll tax 

Your business may be required to report payroll tax if your payroll exceeds the state or territory threshold.  Having reliable payroll software like Payroller ensures you keep accurate records of your payroll transactions for payroll tax calculations.

8.  Maintain accurate records for your beauty salon & save time during tax season

It’s essential to keep accurate records of your employees’ payroll transactions.  This includes payslips, PAYG withholding, and superannuation contributions. The records you keep will assist you in paying employees accurately and prepare you for end-of-financial-year (EOFY) tax reporting.