Ask any small business owner what they lose sleep over, and payroll is usually near the top of the list. Paying staff correctly, keeping up with ATO rules, and avoiding costly mistakes โ it can feel like walking a tightrope.
We get it; running a business means early starts and late nights, with moments of doubt balanced by small wins.
This year, the ATO has made it clear: payroll compliance is one of the biggest focus areas for 2025. That means more checks on how small businesses report pay, super and tax. For busy owners, itโs another layer of pressure on top of everything else.
The good news? Getting payroll right doesnโt have to take over your week. With the right system, you can stay compliant without the stress.
What is the ATO focusing on right now?
The ATO is sharpening its focus on areas where small businesses often trip up. Think about the parts of running your business that make you groan โ thatโs usually what ends up under the microscope. The ATO is trying to maintain transparency in the system.
Hereโs what theyโre paying close attention:
- Mixing personal and business funds โ Moving money in and out of your company account without proper records can cause tax headaches.
- Contractor income reporting โ Especially in industries like trades, IT, cleaning, and couriers, where contractor payments are common.
- Over-claiming deductions โ Particularly when it comes to claiming technology or training expenses.
- GST and BAS reporting โ Late or incorrect lodgments could result in some businesses being switched to monthly reporting instead of quarterly.
- Sharing economy income โ Earnings from things like ride-sourcing and Airbnb are being double-checked against platform data.
And of course, payroll. The ATO is closely monitoring errors in wages, PAYG, super, and STP reporting.
How does that impact your payroll obligations?
Payroll is one of those jobs that sounds straightforward โ pay your staff, tick the box, done. But anyone who has run a pay run knows how easy it is for mistakes to sneak in.
In 2025, the ATO has put extra weight on:
- STP errors โ Did you miss a submission? Send the wrong numbers? Forgot to report allowances or overtime? STP software is designed to maintain transparency, but even small errors can accumulate.
- PAYG withholding โ If youโre not withholding the right amount of tax from wages, or if youโre paying it late, the ATO notices fast.
- Record-keeping gaps โ Payroll records need to be clear, complete and kept for at least five years. Messy spreadsheets or missing payslips wonโt cut it.
- Super guarantee charges โ One of the biggest ATO red flags. Even being a few days late with super payments can lead to penalties and stress.
The reality? Small businesses often juggle payroll on top of everything else. Youโre serving customers, rostering staff, ordering supplies โ payroll admin can slip to the bottom of the list. Thatโs precisely where mistakes happen.
How can Payroller take the pressure out of ATO payroll compliance?
This is where Payroller takes the pressure off. We designed it for small businesses that just want payroll sorted without worrying about ATO rules at every turn.
With Payroller, you can:
- Send ATO-approved STP reports automatically every time you run payroll. No extra steps.
- Catch mistakes early with built-in error checks that flag missing or inconsistent info before you submit.
- Stay on top of PAYG and super with calculations that automatically update with ATO changes, especially with Payday Super on the horizon.
- Keep your payroll records in one place โ payslips, deductions, leave and super stored securely, ready when you need them.
- Get reminders for due dates so PAYG and super donโt get forgotten in a busy week.
Itโs not about doing more admin. Itโs about having a system that does the heavy lifting of compliance for you.
Ready to stop worrying about payroll?
The ATOโs focus is clear: payroll obligations are a top priority. If youโve ever worried about STP errors, missed PAYG payments, or scrambling for records during BAS time, nowโs the moment to make a change.
Start your free trial with Payroller today and see how easy payroll compliance can be. Stay on top of ATO payroll compliance โ without adding more stress to your week.