What does small business payroll usually include?

Typical inclusions are payroll setup or cleanup (STP Phase 2, pay items, leave, super, allowances), pay run processing, superannuation and PAYG withholding, onboarding and terminations, timesheet imports, award interpretation, STP lodgements, year-end finalisation and basic payroll reporting.

How much does small business payroll cost?

Pricing is usually per pay run, per employee per month or a fixed monthly package. The fee depends on pay frequency, headcount, software complexity, awards, casual or shift loadings and whether cleanup or advisory is needed.

Which payroll software is best for small businesses?

Popular options include Xero Payroll, MYOB, QuickBooks Online and Employment Hero Payroll (KeyPay). The best choice depends on headcount, awards, timesheets and integrations with rostering tools like Deputy or Tanda.

Do I need Single Touch Payroll (STP)?

Yes. Australian employers must report through Single Touch Payroll. STP Phase 2 expands the data sent to the ATO, so correct setup of pay items and employee profiles is important.

Can you help with awards and penalty rates?

Yes. A proper setup maps the relevant Fair Work award, base rates, casual loading, penalty rates, allowances and overtime rules into your payroll system and timesheet workflows.

What information do I need to start payroll?

You’ll usually need ABN and PAYG withholding registration, super details, employee TFNs and onboarding forms, award coverage, pay rates, pay cycles, leave policies and any existing payroll or timesheet data.

How quickly can you onboard a new small business?

Simple setups can be onboarded within a few business days. Complex award mapping, cleanup or migrations take longer. A quick discovery call confirms the timeline.

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Q: When is superannuation due?

Superannuation is generally due quarterly via a clearing house. Pay on time to avoid the Superannuation Guarantee Charge. From 1 July 2024 the Super Guarantee rate is 11.5% (check current ATO rates for changes).

How small business payroll usually works

A sound payroll process starts with a quick review: business structure, headcount, pay cycles, awards or EBAs, current software, and any urgent risks (missed super, incorrect rates, or STP issues). From there the work splits into three layers:

1) Triage – Fix urgent issues (late super, incorrect pay items, missing employee details, STP errors) and stabilise upcoming pay runs.

2) Setup and design – Configure STP Phase 2, employees, allowances, leave, super, pay categories and timesheet/rostering integrations. Map the correct Fair Work award and casual or penalty loadings where relevant.

3) Ongoing processing and review – Run pay cycles, reconcile PAYG and super, lodge STP, manage onboarding/terminations, and complete EOFY finalisation.

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What’s included in small business payroll services

STP Phase 2 setup or cleanup, including correct pay items and employee profiles
Award mapping (base rates, casual loading, penalties, allowances, overtime) and leave accruals
Pay run processing and reconciliations (weekly, fortnightly or monthly)
Superannuation setup and clearing house payments
PAYG withholding, BAS payroll labels and reporting cadence
Onboarding and offboarding, TFN declarations, super stapling and employee records
Timesheets and rostering integration (e.g., Deputy, Tanda, Employment Hero) where needed
End of financial year finalisation and employee income statements
Advice on employee vs contractor status and basic payroll tax considerations

If your business also needs broader support, see our small business accountant, bookkeeping services, BAS agent services or tax accountant pages.

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Australian rules to keep in view

PAYG withholding registration is generally required before withholding tax from employees, directors and some contractors.
Single Touch Payroll (STP) reporting is mandatory through an STP-enabled payroll solution. Phase 2 requires correct categorisation of income, allowances and deductions.
Superannuation Guarantee is generally payable for eligible employees; pay on time via a clearing house to avoid the Superannuation Guarantee Charge.
The Super Guarantee rate is 11.5% from 1 July 2024 (check the ATO for the current rate and future increases).
Fair Work award coverage drives the correct base rates, casual loading, penalty rates and allowances. Misclassification can cause underpayments.
Employee vs contractor classification matters for PAYG, super and leave entitlements; do not rely on job titles alone.

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What to compare before you choose a provider

Scope

Confirm setup, cleanup, pay runs, super, STP lodgements, award mapping, onboarding/terminations and EOFY finalisation are included.

Software fit

Ask about experience with Xero, MYOB, QuickBooks Online and Employment Hero Payroll. Check integrations with timesheets and rostering.

Turnaround and communication

Clarify pay run cut-offs, approval steps, urgent changes, and how you’ll receive payroll and compliance updates.

Commercial fit

Compare per-employee pricing, per pay run pricing or fixed packages. Decide if you need compliance-only or advisory support.

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Software and integrations

Choose tools that match your size and complexity. Many small businesses use Xero Payroll, MYOB, QuickBooks Online or Employment Hero Payroll (KeyPay). If you manage rosters or variable shifts, connect a timesheet and award engine such as Deputy, Tanda or Employment Hero to reduce manual adjustments. A good provider will design the workflow, not just name the software.

When to get help

Hiring your first employee and unsure about awards, STP or super
Changing software or needing a cleanup before EOFY
Missed super deadlines or STP finalisation risks
Inconsistent pay rates, allowances or leave accruals
Manual spreadsheets causing errors or delays

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Best next steps

Write down your immediate outcome: hire-ready setup, award mapping, reliable pay runs, late super fix, or software migration. Shortlist providers who can explain the steps, timeframe and data they need from you, then set approval cut-offs and reporting rhythms so everyone stays aligned.

If you’re still scoping, use these hubs: Payroll Services, Accounting services, comparison pages and the help centre.

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Frequently asked questions

What does small business payroll usually involve?

It combines setup or cleanup (STP Phase 2, pay items, awards, leave and super), ongoing pay runs and reconciliations, STP lodgements, onboarding/terminations, and EOFY finalisation.

How do I know if this service suits my business?

It’s a fit if it solves the real issue: hiring your first staff member, correcting rates, automating timesheets, clearing backlogs, or reducing compliance risk.

What should I compare before choosing a provider?

Scope, software expertise, turnaround, communication, and pricing method. Ask for a workflow overview and responsibilities on both sides.

Do I need Single Touch Payroll?

Yes. STP reporting is mandatory in Australia for employers. Phase 2 requires proper categorisation of income, allowances and deductions.

When is superannuation due?

Generally quarterly via a clearing house. Pay on time to avoid penalties. Check the ATO for current due dates and rates.

Which software works best?

Xero, MYOB, QuickBooks Online and Employment Hero Payroll are common. The right choice depends on awards, headcount and integrations.

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