How to pay tax for employees
When it comes to paying taxes for your employees, it’s essential that you understand your responsibilities as an employer.
Paying and reporting employee taxes accurately also improves morale of your staff who have more confidence in your business’ processes.
How do I pay income tax for employees?
To report PAYG income taxes for your employees in Australia, you’ll need to register for a Tax File Number (TFN) and an Australian Business Number (ABN). You can apply for an ABN online via the Australian Business Register.
You’ll also need to determine your employees’ tax rates based on their income, residency status, and any deductions that they may be entitled to. Use reliable single touch payroll (STP) compliant software like Payroller for automated calculations of PAYG income taxes for your employees.
What is pay as you go withholding (PAYG)?
How to withhold taxes for employees
What are an employer’s income tax reporting responsibilities regarding employees?
What’s the difference between PAYG income taxes and payroll taxes?
How to pay tax for employees with Payroller
Paying tax for your employees in Australia can seem complicated. However, Payroller software automates your PAYG withholding calculations and reporting tasks. It’s easy to comply with ATO obligations. Follow our steps below to report PAYG and comply with single touch payroll (STP) requirements with Payroller.
Step 1: Register for Payroller & set up your cloud payroll
Sign up to Payroller in a few minutes to set up your first payroll. You’ll need to enter your business information, such as your ABN and bank account details. You can also register your Payroller account with the Australian Tax Office (ATO) so that you can enable and submit STP for your pay runs.
Step 2: Enter your employees’ pay details
Once you’ve set up your payroll, you’ll need to add employees to your account. Enter your employees’ pay details including hourly wage rates or salaries, as well as any allowances or deductions they may be entitled to.
Step 3: Process your payroll & pay your employees
Once you’ve added individual employee information, you can make a pay run with a few steps. Payroller automates calculations of the correct tax amounts to be withheld from your employees’ pay as well as superannuation contributions.
Step 4: Report STP to the ATO with one click
As a single touch payroll (STP) compliant payroll solution, Payroller sends all PAYG information to the Australian Tax Office (ATO) in real-time on your behalf. All it takes is one click to submit STP to the ATO from your completed pay run.
With Payroller, you can streamline the payroll process, save time, and meet your employer PAYG reporting obligations in Australia. Learn more about why Payroller is the best payroll and employee management system for any small business in Australia.