Payroll in Australia
Before establishing payroll in Australia, it is essential to understand that Australia operates under a ‘Pay as You Go’ system. As an employer, you are responsible for withholding employee taxes, which must be remitted to the government. Additionally, companies are required to provide employees with a payslip within one working day of their payment.
This task is further complicated by the variation of these regulations between different states and the influence of enterprise or collective agreements.
In addition to wages, there may be payroll taxes on benefits and contributions to Australia’s retirement fund, known as superannuation. Each state imposes its own payroll tax, leading to variations in the percentage depending on the location. Employers are also required to contribute 10.5% of employees’ Ordinary Time Earnings (OTE) to their superannuation funds.
For foreign companies establishing their presence in Australia, complying with legal requirements related to payroll is essential. This includes adhering to minimum wage regulations, overtime pay, and other employee benefits and entitlements.
Processing international payroll internally can be a complex, expensive, time-consuming, and error-prone task for global companies. It also exposes you to the risk of noncompliance. To simplify the administrative complexity and reduce expenses associated with in-house payroll, many companies have turned to payroll outsourcing solutions in Australia.
Outsourced Payroll Solutions by ALTIOS
We help you deal with various payroll-related crucial tasks, including:
- Remitting income tax and fringe benefits tax to the Australian Tax Office (ATO).
- Managing superannuation contributions for eligible employees earning more than AU$ 450 (US$ 326) per month.
- Registering with Centrelink for social security support and filing tax returns within the specified timeframe i.e. four months of the end of the tax year, which spans from July 1 to June 30 of the following year.
- Remitting withheld taxes from employees’ salaries to the ATO.
- Creating employment contracts and generating pay slips.
- Reconciling of federal, state, territorial, and municipal taxes to identify refunds or additional payments.
- Creating payment schedules for salaries.
- Ensuring accurate filing of personal income tax returns for employees, when necessary.
Partner with ALTIOS for Outsourced Payroll Services
By outsourcing your payroll to ALTIOS, your business can comply with tax and employment regulations without risking sanctions or financial penalties for late or incomplete filing. By entrusting payroll management to us, you can streamline your operations, reduce costs, and ensure accurate and compliant payroll processing.
To know more, reach out to us today!
