You just started your small business. Then without realizing you’re getting lost with the day to day tasks of running it. You feel overwhelmed with so many tasks to do and unable to concentrate on them all. Well, there is a solution for that! There are some specialized small business software solutions are there to take care of much of the admin activities for you. One such Single Touch Payroll Software for Small Business is Pay4Biz .
The one-stop payroll solution for small businesses Single Touch Payroll Software (STPS) is designed to make running payroll a breeze. We’ve eliminated the need for spreadsheets, manual reports and extra time doing paperwork — so you can focus on running your business. With STPS, you can access all of your reports from anywhere and have the information ready at hand when you need it most.
Which businesses must report through STP?
If your business has 20 or more employees, it should have been reporting through STP since July 2018. Keep in mind that in this context, “employees” can include:
- full-time employees
- part-time employees
- casual employees
- employees based overseas
- any employee absent or on paid or unpaid leave.
So, if you have 40 employees each working half-time that counts as 40 employees, not 20 full-time-equivalent employees.
These people do not count as employees in this context:
- employees who have ceased working for you
- independent contractors
- staff provided by a third-party labour hire organisation
- office holders
- religious practitioners
- ‘closely held payees’ such as family members of a family business, directors or shareholders of a company and beneficiaries of a trust.
If your business has 19 or fewer employees, it should have started reporting through STP by 30 September 2019 – unless you obtained a deferral from the ATO.
Which small businesses can defer STP reporting?
Any small employer can request a deferral if it needs more time to start STP reporting, but you have to justify why you should be granted one. According to an ATO spokesperson “The degree of substantiation differs depending on what they state the reason is and how long they request the deferral to be.”
The ATO will consider deferrals if you are using customised payroll software and need time to configure and test it, for example. You can also apply for a deferral if you’re in an area with intermittent or no internet connection.
If your business is a ‘micro employer’ (it has one to four employees) and has a non-computerized payroll system – which an ATO spokesperson told us “could include running your payroll manually and keeping records on a spreadsheet or paper” – then you may have also been eligible to lodge quarterly through your registered tax or BAS agent until 30 June 2021. But your agent had to apply on your behalf by 30 September 2019.
Micro employers in the agriculture, forestry and fishing industries, can apply to report quarterly until 30 June 2021, though they must report through STP.
CloudPayroll Micro
This is another headcount-limited version of a full payroll system. It costs $10 a month for up to four employees, and there’s a free trial available.
Features include:
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- employee record keeping, including leave
- extensive reporting
- automated pay runs
- support for a wide range of deductions, including loan repayments and novated lease payments
- superannuation
- STP lodgement.
The actual payment process can be done manually or by exporting an ABA file to make it largely automatic. Two-factor authentication is optional, using Google Authenticator, Microsoft Authenticator or certain other apps.
Custom fields are also available to help you manage and report on employee data. For example, you could use these to track training undertaken and licence expiry dates.
There is also an employee ‘kiosk’, which allows employees to make timesheet entries, submit leave requests, and examine their payslips, tax summaries and other information.
CloudPayroll integrates with MoneyWorks, MYOB, QuickBooks, Xero and other accounting systems, saving you the effort of manually transcribing data. It also works with a range of time and attendance, rostering, human resources, occupational health and safety, and business management software.
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If your business grows beyond four employees, the full CloudPayroll system costs $2.20 per person plus a $7.75 pay run fee per week. Unusually, the company also offers a fully outsourced payroll service for businesses that would rather not do the work in-house.
Easy Payslip
Easy Payslip boasts that users can set up its software in less than 10 minutes. They also offer a 30-day free trial, so there are hardly any barriers to seeing whether it would work for you.ALSO READ: What Is the Most Popular Accounting Software for Small Businesses
If you decide to buy it, you’ll need to pay $8.80 a month ($8.99 via in-app payments) for up to four employees. The price increases to $12.95 for up to six employees and $19.95 for up to 10 employees.
Features include:
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- creation and emailing of payslips (with weekly, monthly or fortnightly pay runs)
- tracking of entitlements, such as annual and sick leave, and superannuation
- handling of STP lodgements
- a range of reports
- Android and iOS apps.
However, there is no indication that Easy Payslip can generate an ABA file, which can be uploaded to your bank to trigger payments. Nor is there any indication that it interfaces with superannuation clearing houses. So presumably the actual transactions are performed manually, working from reports generated by the software. Unlike some of the other products described here, you would also need to transcribe data into your accounting system.
There’s no sign of an employee portal or employee app in Easy Payslip either, like some of the other applications in this list. So, you would need to keep your employees’ details up to date. You can send a Tax File Number and superannuation choice forms to an employee from within the app though.
KeyPay Standard
This cloud application is fairly well known in small business circles, because a 10-employee licence is included with Intuit QuickBooks subscriptions. So we’ve included it in this list, even though the price of $4 per month, per employee takes it above the ATO’s $10 threshold for low-cost products. There’s also a free 30-day trial.
The product includes the usual payroll functions. It processes STP lodgements automatically after each pay run and processes superannuation quarterly.
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The employee portal allows employees to fill in timesheets, leave requests and maintain personal details. They can access it via the web or by using the WorkZone app for Android or iOS, although the app doesn’t support all the portal functions.
KeyPay integrates with the QuickBooks, Saasu and Xero accounting systems, as well as several rostering, time and attendance, human resources and point-of-sale applications – in addition to other systems.
If you pay a little more, KeyPay Plus ($6 per employee per month) knows about Modern Awards, and allows you to create your own pay rules to help automate the payroll process. It also includes a rostering function, which is unusual in this category.
MYOB Essentials Payroll
Introduced earlier this year for micro businesses facing STP reporting, MYOB Essentials Payroll includes the payroll and ‘in box’ parts of MYOB Essentials, along with payroll-related reports. So upgrading it to the full MYOB Essentials accounting system is a simple process. It costs from $10 a month for up to four employees.
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MYOB Essentials Payroll handles income tax, payroll tax, superannuation and leave calculations. Along with Xero Payroll Only, it also appears to be one of the few products in this category that provides explicit support for the backpacker tax.
You can use it to pay employees by uploading the ABA file generated by MYOB Essentials Payroll, or do it manually, based on the pay run summary report. And you can deposit superannuation contributions via MYOB’s super portal.
And once you’ve set up MYOB Essentials Payroll, STP reporting is just a matter of clicking a button when each pay run is finalised.
You can also use it to print or email payslips, and your employees can read payslips online via MYOB’s YourPay employee portal, which also allows the entry of timesheet data. This portal is protected by two-factor authentication using a one-time code sent by email, or by the Google Authenticator, Microsoft Authenticator or Authy apps.
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Reports available in MYOB Essentials include payroll summary, payroll details, PAYG payment summaries and pay items. Its in-tray can be used to store payroll-related documents, such as correspondence and forms. This convenient feature isn’t provided by every product in this category.ALSO READ: Small Business Accounting and Inventory Software
Payroller
You can use this cloud product for an unlimited number of employees and pay runs without charge, which is unusual for such a well-featured product. The company behind it says that’s because it earns an income from its other applications.
Features include:
- create and process pay runs (including extras such as overtime or bonuses)
- send payslips
- create an ABA file to automate pay deposits (cash payments are also supported)
- allows employees to enter their personal details, or you can do it as the manager of the business
- scheduling and tracking annual leave and sick leave
- two factor authentication via Google Authenticator
- integration with Xero, MYOB, and PayPal
- Android and iOS apps.
Once you set up STP reporting in Payroller it occurs at the click of a button for each pay run.
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Payroller also integrates with Beam (operated by a subsidiary of SunSuper) for superannuation payments. Using it for superannuation salary sacrifice is currently a manual process, but an automated method is on the list of features to be added.
Payroller can also report on employee details and leave balances, and provide a payroll activity summary and a payroll employee summary.
Xero Payroll Only
As the name suggests, a Xero Payroll Only subscription gives you access to the payroll functions of the well-known Xero cloud accounting system. You can use it to pay up to four employees in any calendar month.
Xero Payroll Only uses the full Xero accounting engine, making it easy to upgrade it to a full Xero subscription. This should also make things easier for your business’s bookkeeper or accountant if they are Xero partners. Additionally, Xero Payroll Only offers all the usual Xero integrations, so you can use it with Deputy, Employment Hero, Hubdoc, Tanda and Timely.
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Features include:
- calculates pay and tax
- creates pay slips you can email , make available online or print
- leave management
- full set of reports, including payroll activity, superannuation and employee contact details
- makes provision for the backpacker tax.
You can use Xero Payroll Only to generate an ABA file and upload it to your internet banking platform to automate payments. Or, you can use its payroll report to manually enter bank transactions or prepare cash payments.
Payroll4Free: Best Overall Free Payroll Software
Best for smaller businesses that need the tools to do direct deposits and tax calculations by themselves, free of charge.
True to its name, Payroll4Free is a handy tool for completing payroll for free. If you are paying 25 or fewer people, your small business is eligible to access its basic services for free.
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Even at its most stripped-down level, Payroll4Free still packs a comprehensive array of features that can take the hassle out of completing payroll. For starters, it allows users to pay both W2 and 1099 employees. The software also can print checks and calculate federal, state, and local taxes. Furthermore, users can export their payroll data to be integrated with accounting and banking software like QuickBooks.
Payroll4Free’s portal and reporting features let employers and employees alike keep track of sick days, vacation, and other PTO. Additionally, employees can print out their pay stubs and W2 forms off the platform, saving small business owners time and resources.
The platform is able to offer free service through paid advertising, which users will encounter periodically while using the software.
Pros
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- Direct deposit and tax calculations are available as free basic services
- Basic service includes unlimited customer support by phone, email, and online chat if you hit any roadblocks.
- Customer data and information is encrypted.
- Provides preset tax forms for submission.
ALSO READ: Best Accounting Software for Craft Business
Cons
- Mac users will need to use Windows operating software since iOS isn’t compatible.
- Direct deposit through Payroll4Free’s own bank is not free
Payroll4Free Features & Pricing
Payroll4Free offers all of its basic services free of charge, which it achieves by hosting advertisements within its software for companies who pay them for their exposure. The free version of Payroll4Free places no limits on payroll or direct deposit processing and doesn’t require that you upgrade to a higher-tier plan to enjoy its basic features. Features that Payroll4Free offers at no additional cost include:
- Direct deposits and paper checks
- Tax calculations and required forms
- Time tracking for vacation and time off
- Employee dashboard portal
- Customer service
- Employee enrollment
The above basic services are for free for clients who staff 25 or fewer employees, although not all of Payroll4Free’s benefits are free.
Despite its name, Payroll4Free places two optional services behind a paywall. Employers that don’t want to deal with depositing and filling out payroll taxes themselves need to pay a $15/month fee for Payroll4Free to take care of it for them. However, Payroll4Free does offer free tools as a basic service that you can use to make this process easier.
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If you don’t want to rely on your own bank to transfer direct deposit funds to your employees, you will need to pay another $15 dollars per month for Payroll4Free to complete these transfers using their bank. So, if you decide to opt-in for all paid services that Payroll4Free offers, you’ll be paying $30 every month at the very most.
Payroll4Free Summary
Payroll4Free is the best choice for small businesses with fewer than 25 employees that want an easy-to-use payroll application that gives them the tools they need to succeed. Free features like direct deposit and a self-service portal are absolute must-haves for small companies that need to invest in other areas of their business. Payroll4Free is the best overall payroll software choice for businesses that need basic features with a simple, easy-to-use interface.
OnPay
Automate all the hard stuff of making payments to your team at the right time with OnPay payroll software. It lets you run your payroll even from your smartphone with just a few clicks by entering hours, reviewing, and approving every pay run.
OnPay can easily handle the federal, local, and state taxes via guarantee calculations so that you can avoid mistakes. Bring every book into a single window and say goodbye to the double data entry headache. Besides, Xero and QuickBooks are flexible accounting integrations so that you keep the books looking good and save time.
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OnPay’s Report Designer helps you check all the information you care about. You can set up and save the custom payroll reports to highlight the numbers that matter to your business. It also provides employee self-service so that they can sign HR paperwork, request PTO, and onboard themselves.
Manage your team workflows, audits, etc., to stay organized. OnPay introduces COVID compliance by providing cloud-based and mobile-friendly payroll software. You can track medical or FFCRA sick leave and automate FFCRA tax credits. Get HR tools like e-signing, in-app offer letters, online W-4, and I-9 forms, personnel checklists, direct messaging, compliance audits, document templates, and many more.
Get everything at a low monthly fee of $36/month base fee and $4/month for every member.
Conclusion
While payroll services are affordable and a great option for very small businesses, they often impose entry fees, monthly subscription fees and withdrawal charges. This is where Single Touch Payroll Software for Small Business comes in. A different approach to paying employees that allows business owners to access all of the features of a regular payroll service without breaking the bank.