How dental payroll usually works
A well-run payroll services for dentists engagement starts with a short discovery to confirm your structure, headcount, pay cycles, award coverage, software and any backlog. From there we stabilise the current pay runs and move to a cleaner, automated flow.
Typical steps:
- Scope and triage: fix urgent issues (late super, incorrect STP categories, missing leave accruals).
- Setup and mapping: configure awards, pay items, allowances, penalties and leave rules in Xero/MYOB; connect rostering (e.g., Deputy/Tanda) if used.
- Onboarding: collect TFN/ABN, bank, super stapling details, right-to-work docs and role classification.
- Run cadence: lock in pay calendars, approvals, and cut‑off times for timesheets and changes.
- Super and ATO: lodge STP each pay, pay super through a clearing house, reconcile PAYG and IAS/BAS.
- Review and improvements: quarterly payroll health checks, variance analysis and process updates.
- Year end: STP finalisation (generally by 14 July; later for closely held), wage reconciliations and reports for your tax return.
Australian context to keep in view
- Awards: Most clinical support roles are under the Health Professionals and Support Services Award (MA000027). Some office-only roles may fall under the Clerks—Private Sector Award (MA000002). Check classifications, penalty rates, overtime, allowances and any applicable leave loading.
- Employees vs contractors: Assess associates properly. Contractors may still attract super if paid mainly for their labour, even with an ABN.
- PAYG and registrations: Register for PAYG withholding before paying wages subject to withholding.
- STP Phase 2: Use an STP‑enabled solution (e.g., Xero/MYOB). Disaggregate gross, set correct income types and cessation reasons, and finalise on time.
- Super: Super Guarantee is 12%. Pay at least quarterly to a complying fund via a clearing house; many clinics pay monthly or per pay run.
- Payroll tax and WorkCover: State payroll tax only applies above each state/territory threshold. Register for Workers Compensation/WorkCover per state rules.
- Rostering: Weekend and late trading hours increase the importance of proper penalty and overtime settings in your timesheet/rostering tool.
If you are also cleaning up books or preparing BAS and tax, see bookkeeping for dentists and tax accountant for dentists to streamline everything with one integrated workflow.
What to compare before you commit
Scope
Confirm the scope covers award set up, onboarding, pay runs, super, STP, payroll tax (if relevant), end‑of‑year finalisation and any cleanup or backpay calculations you already suspect.
Software fit
Look for confidence in Xero or MYOB and, if you roster, Deputy or Tanda. Ask how awards are configured and tested, not just which apps are named.
Turnaround and communication
Agree on cut‑off times for timesheets and changes, escalation paths for urgent fixes, and who signs off final numbers before lodgement.
Commercial fit
Choose pricing that matches your rhythm (per pay run or fixed monthly), clarify inclusions, and decide whether you want compliance only or broader advisory with bookkeeping and tax.
Best next steps
Write down your immediate outcome: correct awards and pay rates, on‑time super, smooth STP, or a full payroll clean‑up. Then shortlist providers who can explain exactly how they’ll configure the award, reconcile variances and lodge on time.
If you want one coordinated team, explore the dental pages and connect payroll with your books and tax:
- Dental accountant overview for the bigger picture
- Bookkeeping for dentists to clean data flows
- Tax for dentists for forecasting and returns
Frequently asked questions
Which award covers dental assistants and reception staff?
Most dental assistants, sterilisation techs and reception/support roles are under the Health Professionals and Support Services Award (MA000027). Some office-only roles may fall under the Clerks—Private Sector Award (MA000002). The right award and level drive correct base rates, allowances, penalties and overtime.
Are associate dentists employees or contractors for payroll?
Many associates are contractors under a service facility agreement. However, you still need to assess employee vs contractor status for PAYG and super. Even with an ABN, super may be owed if they are paid mainly for their labour. Document the arrangement and seek advice before setup.
What does STP Phase 2 change for dental practices?
STP Phase 2 requires more granular data (income types, disaggregation of gross, cessation reasons). Keep Xero/MYOB settings accurate for each pay item and finalise by the ATO deadlines (generally 14 July; later for closely held payees).
What super rate applies and when do we pay it?
The Super Guarantee is 12%. Pay at least quarterly to a complying fund through a clearing house, with many clinics opting for monthly or per-pay-run payments. Collect stapled fund details on onboarding.
Do we need to register for payroll tax?
Register if your Australian taxable wages exceed your state/territory threshold (grouping rules may apply). Thresholds, rates and contractor rules vary—check your state revenue office.
What software is best for dental payroll?
Xero and MYOB are common for STP, super and BAS integration. Deputy or Tanda help with rosters and penalties. Your practice management system usually handles appointments and billing; payroll should still run in the payroll system with awards mapped correctly.