Payroll

Ensure seamless payroll processing, compliance with tax laws, and management of employee benefits with Bizprac's comprehensive payroll features.

Payroll Foundations

Bizprac's payroll system is integral for businesses with employees, facilitating not just payroll processing but also superannuation reporting, leave accrual tracking, and Single Touch Payroll (STP) reporting. It requires complete information entry before payroll can be processed, ensuring compliance and accuracy.

Payroll Setting

There are a number of things that will need to be set prior to running any pay runs or lodging STP or creating SuperStream reports. Ensuring that all of these areas are set will help to provide a smooth process for payroll as well as for reporting. Notes can be set to be included on the pay advice for employees. Set reminders for key dates such as Super reporting. Set the file location for the use of ABA files, as well as emailing of pay advices. Add and maintain details of the Superannuation Funds. In the employee’s window, documents can be attached as well as diary notes and normal notes. Reminders can also be set for individual employees.

Adding Employees

Click on employees to open the employee screen. In this screen you can add employees, setup employee profiles, set reminders, add documents, notes and the diary function can be used to record information for the employees. An employee number will automatically be added, if transferring over from another payroll system you may use the employee number previously assigned. Ensure you fill in each of the appropriate drop down fields. Add the relevant address details, contact numbers and email address.

Wage Entry Templates

Wage entries are the components that make up an employee's wage. It is best to keep the wage categories simple. Start with the basics, additional wage entries can be added as required. Any increase to the employees' hourly rate is applied through the employees pay profile.

Set the Employee Profile

The employee profile will allow you to add wage templates and build up the pay profile (how the employee will be paid).

You will be able to individualise each profile to suit the employee; ensuring all leave entitlements, as well as super are calculated correctly.

A pay profile also allows for the setup of salaried employees. If you are thinking of applying a pay increase you can use the pay profile to check the increases on overall wage & Super obligations etc.

Super Guarantee

The Super Guarantee, as of July 1st , 2023, will be 11%, it can be set to automatically calculate for each employee on the relevant base pay or OTE. A super template can be set up in the employer expense wages templates; if the percentage rate changes you only need to make one adjustment. Reporting will report for each employee not only the amount to report but the details of the Super Fund.

Allowances

Allowances are generally paid to compensate an employee for a number of different conditions; such as weather, height, qualifications or to cover anticipated work expenses.

You will need to determine why the payment is being made to ensure the treatment of the allowance is correct. Some allowances will be taxed and form part of the employees gross, as well as in some cases have super included.

The ATO collates allowances into 3 categories.

1. Allowance to compensate for working conditions; such as wet weather, dirt or height

2. Allowances paid for qualifications; such as first aid etc.

3. Allowances to pay for work expenses; such as tool, car etc.

* This information relating to allowances is current at time of publishing and will be subject to change. If you are unsure as to how any allowance should be treated contact the ATO; advice on what allowances should be paid can be obtained from Fairwork or the relevant industry body in your state.

Payroll Processing

To begin a pay run, select the pay period you will be paying; weekly, fortnightly or monthly.

All employees in the same pay period should be paid within one pay run.

If you are terminating an employee it would be best to run a separate pay run for that employee. (Refer to therelevant guide)

Salary Sacrifice

Salary sacrifice or salary packaging is an arrangement between an employee and employer to pay for certain items pre tax. Alternately pre tax dollars are paid into the employees nominated super fund; this is the most common form of salary sacrifice. Salary sacrifice reduces the employee’s gross taxable income; which in turn reduces the tax paid.

A salary sacrifice arrangement needs to be carefully considered to ensure that all of the ATO obligations are met. Some arrangements may occur an FBT obligation; if you are unsure contact your accountant or the ATO.

As an example this guide will assist in setting up the salary sacrifice for additional super. Pease feel free to contact the office for assistance in setting up other forms of salary packaging.

Child Support

Child support is deducted only of directed to do so by the child support agency.

Some things to consider:

1. The amount being deducted will need to be shown on the pay slip

2. A ‘Protected Earnings Amount’ applies; ensure that the Nett pay meets the requirements

3. The deduction amount needs to sit below the PAYG line & is taken as an after tax amount

4. You will need to set up a child support liability ledger

5. Recurring payments for the amount can be setup

6. Child support will either be in the form of a deduction or garnishee

Employee Reimbursements

A reimbursement is paid when an employee purchases an item/goods on behalf of the company from their own funds.

The receipt of the purchase is provided to the appropriate person and authorised. Payment can then be made back to the employee. Receipts can be provided in paper form or submitted through the timecard app.

1. In the form of cash; from petty cash funds or a bank transfer. A corresponding cash receipt is entered

2. Through a reimbursement in payroll along with the employee’s wages; the payment amount will be included in their payment

Where necessary the purchases can be costed back to the job and cost centre. This guide will take you through each option; if a reimbursement needs to be done before a pay run the cash payment method will be the preferred method.

Superannuation Reporting

Superannuation is setup in 4Pay under the Employer Expense Rate.

Once template can be attached to multiple employees, so it is not necessary to have a template for each of the Superfunds that you deal with.

If the percentage changes; simply update the change in the percentage field. This will adjust all the pay profiles attached to the template.

Working Holiday Makers

If you are employing Working Holiday Makers, you will need to have the relevant setting applied in the program settings menu.

Check the box applicable to your business. Once this setting has been applied you will need to setup the employee.

The setting you choose will affect the tax scale of the employee.

Setup of Paid Family Leave

The Fair Work Act has introduced an entitlement of 10 days paid leave for employees experiencing domestic violence.

• Leave entitlement is 10 days paid leave within a 12 month period.

• Eligibility to take this leave, is extended to domestic violence by a member of an employee’s household, or current or former intimate partner.

• Payslips should not identify this as family or domestic violence leave. Instead use an appropriate name; for example, purposes in this guide “Special Leave” has been used.

• Leave is not on a prorate basis, cannot be set to accrue and any unused leave does not accrue to the next year.

This change commences 1st February 2023 for companies who have more than 15 employees or 1st August 2023 for companies with less than 15 employees.

* The information contained in this guide is for informational purposes only and is not intended as a substitute for professional advice.

Termination Templates

When finalising a pay run for an employee who is leaving your employ there are several things that need to be checked.

• What leave does the employee have that will need to be paid out? Annual or long service?

• What amounts are subject to the Super Guarantee?

• Do you need to issue an ETP?

• Is the payment a Redundancy?

• What payments are taxable? The tax rate can vary depending on the type of payout.

• Are they being paid an amount in lieu of notice?

*The information contained in this guide is for informational purposes only and is not intended as a substitute for professional advice.

End of Year Reset

4Pay requires its own “End of Year Reset” independent of the Bizprac End of Year Reset. If a rollover is not completed for the financial year, YTD totals on the payslips will

show the previous year’s totals as well as the New Years. These figures will reset once the rollover is complete.

It is best to complete the rollover as soon as you have finalised your pays for the financial year.

Please note that a rollover cannot be completed prior to June 30 of the current financial year.

Employee Deductions

There could be several reasons to add a deduction to an employee's profile.

• Salary Sacrifice (see guide for Salary Sacrifice)

• Child Support (see guide)

• Additional tax

• Repayment for goods purchased on company accounts

It important to ensure that if a deduction is set up it is place correctly on the employee’s pay profile. A salary sacrifice amount affects the employee’s GROSS amount. An after-tax deduction affects the NETT amount the employee is paid.

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FREQUENTLY ASKED QUESTION

What is Bizprac and who is it for?

Bizprac is an Australian construction platform with fully integrated features built for Australian builders by experts in the industry. Our platform enables builders to run their entire business end-to-end. Bizprac has integrated major functions such as accounting, estimates, invoicing, payroll and all you need to run your business.

What features do Bizprac offer?

Our comprehensive set of key features can be found here. We've designed the Bizprac platform to uniquely cater to Australian construction companies and have included features for builder retentions, estimates with structures, digital takeoff that is powered by ExtrAXION and other features critical to a construction business. We also allow you to manage multiple projects at no additional cost.

Can Bizprac handle payroll and accounting?

Not only can we handle payroll and accounting, but we make it super easy for you! Bizprac's end-to-end accounting gives you real-time insights into your project's health, including job cost controls, estimates, timesheets and easy dashboard reporting. Our Single Touch Payroll allows you to run payroll with a click of a button and automate submissions to the Australian Tax Office (ATO).

Is Bizprac easy to use?

We pride ourselves to be a no-frills, straight to the point platform. We've also assisted and provided hands-on support to all of our clients, starting from implementation and setup to after-sales or technical support thereafter.

How does Bizprac improve construction business management?

Bizprac is here to ensure you deliver projects on time and on budget. We enable construction business owners by ensuring their project never overruns and maximizes profitability.

What is Bizprac and who is it for?
What features does Bizprac offer?
Can Bizprac handle payroll and accounting?
Is Bizprac easy to use?
How does Bizprac improve construction business management?