Why Payroll Is More Complex Than It Looks
Most business owners think payroll is simple — pay the right amount, lodge super, done. In reality, payroll for Australian small businesses involves: correct award interpretation, STP Phase 2 reporting to the ATO every pay run, superannuation calculated correctly and lodged before quarterly deadlines, annual and personal leave tracked accurately, and PAYG withholding calculated at the right rate for each employee.
Get any of these wrong and you're facing Fair Work back-pay claims, ATO penalties for late super, or STP non-compliance notices. True Tally handles payroll as part of your monthly bookkeeping — so it's never the thing that keeps you up at night.
What's Included in Payroll Processing
- Pay run processing — weekly, fortnightly, or monthly, depending on your schedule
- STP Phase 2 reporting — reported to the ATO automatically every pay run via Xero
- Superannuation calculation — correct rate applied to ordinary time earnings
- Super lodgement — submitted via SuperStream before quarterly deadlines
- Leave tracking — annual leave, personal/carer's leave, and long service leave balances
- PAYG withholding — correct tax withheld based on tax file declarations
- Payslips — compliant payslips sent to employees each pay run
- Termination processing — final pay, unused leave payout, and STP finalisation
- EOFY STP finalisation — individual income statements finalised so employees can lodge their tax returns
Superannuation Deadlines — Don't Miss Them
Late superannuation is one of the most common and costly payroll mistakes for Australian small businesses. The ATO's Superannuation Guarantee Charge (SGC) adds interest and administration fees on top of the unpaid super — and unlike regular super, SGC is not tax deductible.
| Quarter | Pay Period | Super Due Date |
|---|---|---|
| Q1 | 1 Jul – 30 Sep | 28 October |
| Q2 | 1 Oct – 31 Dec | 28 January |
| Q3 | 1 Jan – 31 Mar | 28 April |
| Q4 | 1 Apr – 30 Jun | 28 July |
Frequently Asked Questions — Payroll
What is Single Touch Payroll (STP) in Australia?
STP is an ATO system requiring employers to report wages, PAYG withholding, and superannuation to the ATO every pay run. STP Phase 2 — which expanded reporting — became mandatory from 1 January 2022. True Tally processes all payroll through Xero Payroll which is STP Phase 2 compliant.
When does superannuation need to be paid in Australia?
Currently, super must be paid quarterly: 28 October, 28 January, 28 April, and 28 July. From 1 July 2026, payday super requires super to be paid on each payday. Late payments attract the SGC — which includes the unpaid amount, interest, and an administration fee, and is not tax deductible.
What employee records must a small business keep?
Australian employers must keep payroll records for 7 years including: employee name and TFN, pay rate, hours worked, leave balances, super contributions, and termination details. These must be accessible to the Fair Work Ombudsman if requested.
How much does payroll processing cost for a small business?
For businesses with 1–10 employees, payroll is typically included as part of a monthly bookkeeping package. Standalone payroll for a small team starts around $150–$250/month. True Tally quotes based on your specific employee count and pay frequency.
Take Payroll Off Your Plate
Book a free 20-minute call. We'll assess your current payroll setup and take it from there.
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