Most business owners don't think much about payroll — until a pay run goes wrong. Then it's all they think about.
Getting payroll right means more than pressing a button in Xero. It means correct award rates, accurate super calculations, timely Single Touch Payroll (STP) reporting to the ATO, and pay cycles that match your workforce. When any of those slip, the exposure is real — Fair Work penalties, ATO interest charges, and staff who lose trust in you.
We've been handling payroll for Melbourne businesses since 2012. This is what we offer, and what you should know heading into 2025.
What payroll management actually covers
There's a gap between "processing a pay run" and actually managing payroll. Here's what the full service looks like:
- Pay run processing — calculating gross pay, tax withholding, and net amounts for each employee per cycle
- Superannuation calculation and lodgement — correct rates applied, lodged on time to avoid the super guarantee charge
- Single Touch Payroll (STP) reporting — every pay event reported to the ATO in real time, as required by law
- Award rate compliance — ensuring base rates, overtime, penalty rates, and allowances meet Fair Work requirements
- Leave accruals — annual leave, sick leave, and long service leave tracked accurately
- PAYG withholding summaries — end-of-year payment summaries finalised via STP so employees can lodge their tax returns
Every one of those items has compliance implications. Miss super lodgements and you're exposed to the super guarantee charge — which is not deductible. Get award rates wrong and Fair Work audits are unpleasant and expensive. STP reporting errors can trigger ATO reviews.
Three pay cycles — choose what fits your business
We process payroll across three cycles, depending on your workforce structure:
Weekly payroll
Best for businesses with casual or high-turnover staff — hospitality, construction, retail. Employees paid weekly, with STP reported each cycle. The administrative load is higher, but for some teams it's the only structure that works.
Fortnightly payroll
The most common cycle for Melbourne small businesses. Balances cash flow predictability with manageable admin. Works well for a mix of full-time and part-time staff.
Monthly payroll
Suited to smaller teams where salaried employees are paid once a month. Lower frequency, but the same compliance obligations apply — super, STP, PAYG — just consolidated into one run.
"Getting payroll right means correct rates, accurate super, and timely ATO reporting. When any of those slip, the exposure is real."
What changes in 2025: superannuation hits 12%
This one matters. From 1 July 2025, the superannuation guarantee rate increases from 11.5% to 12% — the final step in the legislated schedule that began with 9.5% in 2014.
For a full-time employee on $70,000 a year, that's an additional $350 per year in super contributions. Multiply that across your team and it adds up. Your payroll system needs to be updated before July 1 — not after the first pay run at the wrong rate.
We update super rates for all clients ahead of each annual change. But if you're running payroll yourself, put a reminder in your calendar now.
Super guarantee rate history
The rate has been climbing for years: 9.5% (2014–21) → 10% (2021–22) → 10.5% (2022–23) → 11% (2023–24) → 11.5% (2024–25) → 12% (from 1 July 2025). Each change requires a payroll system update — and the ATO does check.
Why outsourcing payroll makes sense for most Melbourne businesses
In-house payroll made sense when it was paper-based and someone had to be on site to handle it. Today, it's different. Payroll software is cloud-based, and a registered practitioner can handle your pay runs remotely with the same accuracy as someone in your office.
What you get when we handle it:
- No staff dedicated to a task that takes 2–4 hours per pay cycle
- Compliance checks built in — we're across Fair Work updates and ATO requirements as they change
- A single point of contact who knows your team's structure, not a ticketing system
- Integration with your existing accounting software — Xero, MYOB, QuickBooks, or SAP
If payroll is currently your problem — or you're growing to the point where it's about to become one — you can see what our payroll service covers, or book a free 15-minute call to find out what it would cost to hand it over.
