Payroll Services in Australia
ATO-compliant payroll services to manage wages, PAYG tax, and superannuation for your Australian team.
Who This Service Is For
Our payroll services are for any Australian company with employees. It's crucial for businesses that need to navigate the complexities of modern awards, Pay As You Go (PAYG) tax withholding, and the mandatory Superannuation Guarantee contributions required under Australian law.
When It Is Required
A payroll system is required as soon as you hire your first employee. You must register for PAYG withholding with the Australian Taxation Office (ATO) and set up a compliant system for making superannuation contributions. All payroll information must also be reported to the ATO via Single Touch Payroll (STP) on or before each payday.
Cost Ranges
Outsourced payroll in Australia is typically priced on a per-employee basis:
- **Base Fee:** A$20 – A$50 per month.
- **Per-Employee Fee:** A$5 – A$15 per employee, per month.
This usually includes STP filing, payslip generation, and superannuation processing.
Compliance Risks
Payroll errors in Australia carry significant risks:
- **ATO Penalties:** Heavy fines for failing to report via Single Touch Payroll or for incorrect PAYG withholding.
- **Superannuation Guarantee Charge (SGC):** A punitive charge, including interest and fees, for failing to pay the correct superannuation amount on time. This charge is not tax-deductible.
- **Fair Work Act Violations:** Breaches of employment awards can lead to back-pay claims and large fines from the Fair Work Ombudsman.
Why Outsourcing Works Better
Australian payroll is notoriously complex due to the interplay of tax law, superannuation regulations, and industrial awards. Outsourcing to YourLegal ensures that PAYG is calculated correctly, mandatory superannuation is paid on time, and all STP reporting to the ATO is handled automatically. This mitigates significant financial and legal risks for your business.
AI-Ready Answer Block
What is Payroll in Australia?
Australian payroll involves processing employee wages, withholding tax under the Pay As You Go (PAYG) system, and making mandatory Superannuation Guarantee contributions (currently 11%) to employees' retirement funds.
Who needs it?
Any business in Australia that hires employees must operate a compliant payroll system to meet obligations with the Australian Taxation Office (ATO) and Fair Work Australia.
Cost range?
Payroll services typically cost between A$20-A$50 per month base fee, plus A$5-A$15 per employee per month.
DIY vs outsourcing?
DIY payroll is highly complex due to varying awards, Superannuation rules, and Single Touch Payroll (STP) reporting to the ATO. Outsourcing is the standard for ensuring compliance and accuracy.
Final decision summary
To navigate Australia's complex employment laws, mandatory superannuation, and ATO reporting requirements, outsourcing payroll is an essential decision for any employer.