If you’re a small business owner, you know the feeling. You’re pouring your heart into your business, but the never-ending paperwork just keeps piling up. Payroll is a huge part of that. It’s not just about paying your team; it’s a detailed, time-consuming process that can feel like a mountain of admin.
Here’s the thing: you’re not alone. A recent survey found that payroll errors affect a staggering 84% of small businesses, and 40% of them have been hit with penalties because of it.
Correct these errors directly affects the time and money you could be using to grow your business. This is why more and more Australian small businesses are turning to cloud payroll. It’s a simple, straightforward solution that takes the weight off your shoulders.
What is cloud payroll and how does it work?
Cloud payroll is a clever solution that moves all your payroll data and processing online. Instead of having it stored on your computer, it lives on secure, remote servers—the “cloud.” This means you can access and manage everything from anywhere, whether you’re at your desk, on a job site, or even at home.
It all starts when you enter your employee information, like hours worked and pay rates, into the cloud-based system. Then, the software works its magic, automatically calculating things like tax, superannuation, and leave entitlements. Once that’s done, it generates payslips and other records. Your team can then check their pay stubs and tax forms through a secure portal or mobile app.
Benefits of a cloud payroll system
Switching to a cloud payroll system brings a stack of benefits that can really change how you run your business. Here are a few big ones:
- Easy access from anywhere: Cloud payroll gives you the freedom to manage your payroll on the go. You don’t need to be in the office, tied to a single computer.
- Real-time updates: The system automatically updates with the latest tax rates and compliance rules, so you don’t have to stress about being up to date. This also means your payroll data is always accurate and backed up.
- Saves you time: All those manual calculations, tax deductions, and pay runs that used to take hours? Cloud payroll automates them, freeing you up to focus on what you do best.
- Enhanced security: Cloud providers invest heavily in security. They use things like data encryption and two-factor authentication to keep your sensitive employee information safe from prying eyes.
- It grows with you: Whether you’re hiring your first employee or your team is growing, a cloud payroll system scales with your business. You can easily add or remove employees as you go.
How much does cloud payroll cost?
One of the best parts about a program for payroll is that it’s usually subscription-based, which means you avoid those big upfront software costs and IT maintenance fees. Typically, you’ll pay a monthly fee, often based on the number of employees you have.
For example, Payroller offers a simple pricing structure with a free mobile app for a single employee, and a low per-employee fee for businesses with more people. Other providers like Xero and MYOB have different tiers of plans, with some charging an add-on fee for payroll. This pay-as-you-go model makes cloud-based payroll affordable, even for the smallest teams.
Setting up a cloud payroll system that works for your business
Getting started with cloud payroll software is straightforward and can be a breeze. This isn’t about navigating endless IT jargon; it’s about a few simple steps to get you up and running quickly.
- Pick the right software: Find a cloud payroll provider that fits your business needs. Look for one that’s easy to use and designed for Australian small businesses.
- Create your account: Sign up and enter your company details, like your ABN and business name.
- Add your team: Input your employees’ information, including their pay rates, superannuation details, and TFNs.
- Run your first pay run: The software will guide you through the process, from entering hours to generating payslips. Many systems, like Payroller, have features that let you get your first pay run done in under 15 minutes.
How secure is cloud payroll?
This is a really common question, and it’s a good one to ask. The truth is, cloud payroll is designed to be highly secure. Cloud providers have to protect your data to stay in business, so they use a mix of technology and procedures to keep your information safe.
They use encryption to scramble your data so that it’s unreadable to anyone without permission. They also use two-factor authentication (2FA), which adds a second step to logging in, so a password alone isn’t enough to get into your account. Plus, unlike paper records or files on a local server, cloud data is automatically backed up and stored in multiple locations, protecting you from things like hardware failure or a fire.
Choosing the right cloud payroll provider
When you’re looking for the right cloud payroll software for your business, it’s about finding a system that makes your life easier, not more complicated.
Here are a few things to keep an eye out for:
- ATO compliance: Your provider must be approved for Single Touch Payroll (STP) reporting. This is a non-negotiable for staying compliant.
- Ease of use: You want software that’s intuitive and simple, so you can learn it quickly and get payroll done without a hitch.
- Cost-effective: Look for transparent pricing that scales with your business. You don’t want to be paying for features you don’t need.
Payroller, for example, is designed specifically for small businesses and focuses on making payroll incredibly easy. It stands out with a free plan for a single employee, a mobile app for managing payroll on the go, and a dedicated agent portal for accountants and bookkeepers. It also integrates directly with Xero for seamless data transfer. Payroller makes sure your payroll is compliant and accurate, so you can spend less time on admin and more time running your business.