There is no doubt that Australian workplace laws are one of the most complex in the world.
With Modern Awards governing most industries across Australia, organisations are spending countless hours ensuring that their payroll processes align with their obligations in terms of award regulations.
Combining the countless hours with extensive payroll resources, a manual process has proven time and time again to be highly inefficient in the context of Australian payroll regulations.
And despite all of this, there is no guarantee that you are 100% compliant.
With the Fair Work Commission’s name and shame policy, you do not want to fall into the non-compliance trap.
So what is the solution? How can you set up payroll processes that are not only efficient but also guarantees compliance?
If you are looking for a way to simplify your payroll process, then cloud payroll software is the answer.
A cloud payroll solution offers many benefits that make it worth considering when deciding on a solution for your company’s needs. In this blog post, we will outline some of the reasons why cloud payroll software is beneficial and how it can help your business.
Manual Payroll Process: Inefficiencies and Risks
Before delving into the benefits of using cloud payroll, it’s important to understand why manual processes pose certain risks to your payroll efficiency and compliance.
The combination of Modern Awards and the National Employment Standards is a minefield for employers to navigate. And unfortunately, with Fair Work’s annual wage review and frequent Award adaptations, it’s nearly impossible for your spreadsheet to cover the entire Modern Award.
One wrong step would not only result in severe penalties but a heavily publicised media release on Fair Work’s website.
Take Woolworths, for example. They were recently exposed for major underpayments of salaried managers.
And they’re not alone. There are countless other companies, including small business organisations, that continue to (intentionally and unintentionally) violate payroll compliance, including cafes, hairdressers and disability services providers.
Some risks include:
- leaving out areas such as casual employee loading and penalty rates,
- underestimated leave entitlements,
- wage theft, and
- poor record keeping.
Beyond the risks associated with manually managing and interpreting pay conditions, there are significant inefficiencies that occur without a centralised cloud payroll system, including:
- drafting manual rosters on spreadsheets,
- copying and pasting hours of timesheets into your payroll software,
- manually checking payslips for potential information errors,
- gathering leave requests and manually ensuring that employees have sufficient leave in their entitlement balance,
- manually adjusting leave entitlements, and
- countless checks and balances between relevant departments.
Organisations with manual processing systems often spend days preparing for the pay cycle. And unfortunately, this sucks up resources and uses up valuable time that could otherwise be spent on growing your business.
For a more in-depth analysis of manual payroll processes, make sure to check out these six risks and inefficiencies.
Cloud payroll software, such as KeyPay or Employment Hero, enables your company to automate the process of calculating and submitting payments to your employees in line with pay condition regulations.
Typically, cloud payroll solutions will enable you to perform tasks such as:
- leave management: tracking leave entitlements and approving leave requests,
- superannuation payments,
- Single Touch Payroll reporting,
- automated pay runs in line with payroll legislation,
- distributing payslips to individual employees (including historical payslips),
- reports generation for all necessary compliant payroll information,
- payroll data record-keeping,
- automatically interpreting Modern Award pay conditions, and
- integration with accounting software such as Xero
In other words, cloud payroll software is designed to help your organisation reduce payroll errors, manual processes and maximise compliance.
Back to top
Employers who process their payroll through cloud software can rest easy knowing that all pay conditions and entitlements will be applied during each run.
Given the regular changes to the Modern Awards, updates are made in just a few clicks and automatically added onto the software, so employees receive all their pay entitlements - no more worrying about missing penalty rates and allowances.
An automated cloud-based payroll solution also allows you to implement a single level of approval for pay runs and payroll reports, saving hours of manual checks because the element of human error is completely removed.
Beyond that, a centralised cloud payroll and roster system also eliminate the painful process of manual rostering. Having the ability to build your roster on cloud payroll software will mean that there’s a centralised place for employees and employers to communicate and adjust availability.
Also, most software options provide employees access to their own self-service portal where they can access their payslips and apply for leave through employees.
Lastly, cloud payroll systems have the added benefit of automating record-keeping, which saves a significant amount of time and improves productivity in the payroll department. Plus, all your records are backed up and kept in a secure cloud server - easily accessible in the event of a Fair Work audit.
With decades of experience under their belt, Pay Cat are experts in Australian payroll compliance and the field of helping organisations minimise the shortcomings associated with manual payroll processes.
We assist businesses and organisations in making the shift to a cloud payroll solution by finding and configuring the software to meet all your needs and payroll compliance regulations.
To further streamline your payroll and rostering process, we strongly recommend using time and attendance software, such as NoahFace, to track hours worked. Seamless integration with your cloud payroll software provides an all in one solution - helping Australian businesses mitigate labour budget blowouts and manage real-time data.
We’ll work closely with your payroll team during set-up or when reviews are needed to ensure specific automated rules are applied based on your specific Modern Award or EBA.
If you're interested in seeing how we can help your business make the transition, get in touch with us today for a free demo.