If you are one of the payroll services Australia has then you know you have to create a payroll register to keep track of all the information related to all the payrolls you have issued to your employees. This includes anything from gross pay, deductions, taxes withheld, unemployment and other related insurances. It also includes the total gross and net payments made in a specific period of time. It is very important to have all this information tracked for tax and government monitoring purposes.
But first, why should you keep track of all that?
This information is primarily useful to provide to prepare your payroll tax deposits as required by the government. It is also needed for your quarterly tax reports as well as providing employees and governments with payroll records at the end of the year which for their own tax purposes.
Perhaps, the main and most important reason to keep track of all this information is to ensure that your employees get access to the same data when they need to submit that to the government. It is absolutely crucial that you and your employee submit the same data to the government as any errors will be flagged and you can get in trouble. If you are working with a payroll service they can also help you identify those reasons. More details!
What should you include in the payroll register?
For each payroll register you need to keep track of the following:
- Total wages: the total gross income, total benefits and total net earnings each employee is making over the tax year.
- Total deductions: the gross total deductions related to taxes, unemployment and social security insurances.
- Total voluntary deductions: the total deductions made for donations, association fees and charitable organizations.
Accounting for additional liabilities
Whenever you create a payroll register, you must account for any additional liabilities that you are required to report for governments and for your employees. You should also put aside specific amounts equivalent of the deductions for the payroll tax payable accounts.
You must account for all categories of payments and deductions. As stated above it is important to report all the information to the relevant tax departments at the specific time. It is also important that your employees have access to all this information on time so they can use it when they need to file their own taxes. When in doubt working with a payroll service may give the help you need.
Remember that payroll registration, payment and tracking are generally very important tasks to follow. It is crucial that they are done properly and that all the data you have there is accurately reported on. This is the best way to avoid any problems and to keep your record with the government and the tax system clear. If you have any doubts you should look into working with one of the many payroll services Australia has to make sure you get all the right and accurate information. You can know more at: https://www.glblresources.com/when-is-it-the-right-time-for-companies-to-hire-a-payroll-business/
