In early 2022, the Australian government started Phase 2 of its Single Touch Payroll initiative, which required businesses to report more information to the Australian Taxation Office each pay cycle.
As of 1 July 2023, changes to the Fair Work Act have provided further concessions to employees, once again increasing the reporting responsibilities of businesses when it comes to things like superannuation, leave, and deductions.
The payroll software businesses use can significantly impact the time it takes to do payroll, how much visibility they have across their entire business, and how easily they are able to meet these obligations.
Many businesses that do not have an ERP (or have an ERP without payroll integration) are forced to use different software that only slows down efficiency and increases the risk of mistakes.
In this article, I’ll be discussing the benefits of ERP with payroll integration, specifically the Employment Hero Payroll integration written for SAP Business One, and how it can help smaller businesses make payroll compliance easy.
The upside to Single Touch Payroll
The STP initiative was introduced to reduce the reporting burden on businesses, but this, of course, meant businesses needed to find STP-compliant software and make changes to how they managed payroll.
And while this understandably inconvenienced many businesses, it also brought about opportunities to:
- Improve internal processes and systems
- Identify and close compliance gaps
- Get clearer insights into the business
The last point is the most important as STP Phase 2 expands on the items that need to be reported, further increasing the amount of valuable real-time data and insights available to businesses. This data informs decision-making and gives business owners more confidence in the way they manage their business.
But the amount of value businesses get out of STP also hinges on the payroll system that they choose.
Payroll management made easy
Just one payroll mistake risks sending the ATO after you, and one of the ways you increase your chances of making a mistake is by using inefficient payroll software that is not integrated with wider business systems.
Smart business owners realise this and look to implement ERPs with payroll functions or integrations – unfortunately, there’s a misconception that SAP Business One doesn’t have this, leading to many businesses missing out on a superior ERP.
KBS has in fact written an integration that can connect SAP Business One to Employment Hero Payroll, an Australian-owned payroll provider. It comes fully integrated via the SAP B1 Service Layer and is built for the needs of growing businesses.
This payroll system comes with a whole host of useful features, such as:
- Automatic STP-compliant reporting to the Australian Taxation Office
- Automated notification, super payments, and termination and leave calculations
- In-built modern awards interpretation
- Employee self-service for timesheets, leave applications, expense management, and personal details
- Easily built and managed rosters
- Customised Fair Work compliant payslips
- Easy to use and visually pleasing user interface
Packed with functions that make running your business easier, KBS Cloud Payroll is truly a game changer for business owners that want to reduce their paperwork, stay compliant, and centralise their data.
By using Employment Hero Payroll to manage your payroll, you can:
- Reduce errors - this integrated payroll system works perfectly in sync with your ERP, giving you the correct and most up-to-date information available to work with
- Stay compliant - with automated reporting and built-in compliance, it's easier than ever to make sure that you're fulfilling all your legal obligations as an employer and small business
- Make payroll accessible – Employment Hero Payroll is easy to use, and I’ve found that many of my clients have a very quick uptake of this software. The benefit is that if your payroll person is unavailable, you’re able to handle payroll yourself with relative ease
- Get insights into your business - by utilising your ERP across your entire business, you now have full visibility into your financials and employee activities. View the operating costs of your business, the productivity and output of your employees, and upcoming rosters all in one place
- Save hours of time - get your precious time back with automated tasks that make sure you never miss a payment or report, as well as employee self-service. You now have more time to focus on the value only you can provide your business
Improve your visibility and compliance with SAP B1 and Employment Hero Payroll
As an employer, reviewing payrolls processes is a smart move – but in the face of these new Fair Work Act amendments, it’s crucial to review and update your processes to ensure you’re staying compliant.
These amendment changes are being rolled out over the next year, coming into effect at different times. We also never know when they might change or evolve. Having a system that supports this and doesn’t make more work can make the difference in ensuring compliance and are able to make necessary adjustments.
With a starting cost of just $10 per employee per month (including the SAP Business One integration), Employment Hero Payroll returns your investment tenfold with the time savings, visibility, and employee management benefits it provides.