How do I set up payroll management in MYOB Essentials?

by MEEYAKHAN KUTTUVAM September 12, 2024

Designed to ease financial administration for small to medium-sized companies, MYOB Essentials is a potent, cloud-based accounting tool. Payroll administration is one of its main advantages since it lets companies effectively handle tax responsibilities, employee payments, superannuation, and leave entitlement management. This article will help you through the processes to set up payroll administration in MYOB Essentials, therefore guaranteeing a compliant and seamless payroll process.

Introducing MYOB Essentials

Understanding the foundations of MYOB Essentials and its features will help you before delving into payroll configuration. For accounting, invoicing, and payroll, MYOB software offers a whole array of tools. It provides a variety of tools to enable companies to keep on top of their finances and is meant to be user-friendly even for people with less accounting knowledge.

Major characteristics of MYOB Essentials:

Quests and invoicing
Managing expenses
Bank feeds and reconciliation is done here.
GST and BAS reporting, in general
Managers of payroll
Corporate self-service portal

These tools let MYOB Essentials simplify business processes so owners may concentrate more on expansion and less on administrative chores.

Step-by-Step Guide to Setting Up Payroll Management

Step 1: Sign Up and Log In

If you have not previously, first register for MYOB Essentials. Visit the MYOB website to choose the subscription plan that best fits your company's requirements. Register, then log in using your MYOB Essentials account.

Step 2: Access the Payroll Setup

Click the "Payroll" tab in the main menu to access the payroll area once logged in. This will lead you to the payroll dashboard, from which you may start the setup procedure.

Step 3: Enter Business Details

Make sure your company data submitted into MYOB products is accurate before configuring payroll. This comprises:

Business name and location
Australian Business Number (ABN) Payroll transaction bank account information
See 'Settings' and choose 'Business Details' to amend or confirm these specifics.

Step 4: Set Up Payroll Settings

Under "Payroll settings" on the payroll dashboard. Here, you will arrange the fundamental payroll settings:

The frequency of payment: Whether you pay your staff weekly, fortnightly, or monthly, decide how often.
Default superannuation fund: Choose the default superannuation fund for your staff. Make sure you are enrolled with the fund to enable contributions.
Types of payroll: Specify the payroll categories, including regular time income, overtime, allowances, deductions, and accruals of leaves.

Step 5: Add Workers

Click 'Add employee' under the 'Employees' tab in the payroll area to add staff members. You must enter the following information for every staff member:

Personal information, including full name, address, birth date, and phone numbers.
Start date, type of job—full-time, part-time, casual—and pay rate are employment details.
Superannuation and tax details: Tax withholding preferences, tax filing number (TFN), and details about superannuation funds.
Leaving entitlements: Set leave accruals for personal, yearly, and any other relevant type of leave.
Proceed this way for every staff member.

Step 6: Create Pay Items

Essential elements of payroll management and pay items represent the several forms of income, deductions, and taxes applicable to employee pay. Click "Pay Items" in the payroll settings to define:

Regular pay, overtime, bonuses, and commissions comprise earnings.
Deductions include union fees, salary sacrifice, and other items.
Employer superannuation contributions.
Taxes: PAYG withholding tax choices.

Step 7: Develop Pay Runs.

Create pay runs using all the required data that have been entered now. Click "Create pay run" under "Pay runs" to accomplish this. Please follow these guidelines:

Pay period of choice: Indicate the pay period and payment date.
Choice staff members: Choose the staff members to be included in the pay run.
Add pay details here. Review and enter the relevant compensation information for every employee: hours worked, overtime, allowances, and deductions.
Check and review to confirm. To guarantee correctness, go over the pay run summary. MYOB Essentials will figure out each employee's net salary, taxes, and superannuation once confirmed.

Step 8: Payments for Processes

You can handle the payments after verifying the pay run. MYOB Essentials offers choices for manual payment using generated pay slips or direct deposit for staff members. Processing payments:

Export a MYOB Essentials bank file straight to your bank's online banking system.
Create and email or print pay slabs for staff members.

Step 9: Compliance and Reporting

MYOB Essentials streamlines reporting and compliance with built-in tools for:

Report payroll information straight to the Australian Taxation Office (ATO) following every pay run using Single Touch Payroll (STP).
Create Goods and Service Tax (GST) reports and Business Activity Statements (BAS).
Handle superannuation contributions and reporting.
To remain in compliance with legal obligations, make sure you routinely examine and balance payroll records.

Step 10: Employee Self-Service

Through an employee self-service portal, MYOB Essentials lets staff members access pay stubs, update personal information, and file leave requests. Motivational tools help your staff members to further simplify payroll handling.

To Conclude

Small to medium-sized companies would gain the most from MYOB Essentials' simple payroll management setup. Following this advice will help you guarantee accurate and quick payroll processing, regulatory compliance, and increased employee happiness. Businesses trying to simplify their financial administration would find MYOB Essentials' extensive capabilities and easy-to-use interface perfect.

Using MYOB Essentials will allow you to concentrate on expanding your company and guarantee that your staff is paid on time and correctly. MYOB Essentials offers the tools and support you need to succeed, whether your current procedures want to be improved or you are new to payroll management.