Payroll for One Employee: Is a Free Monthly Plan Enough?
Check employee count, pay frequency and posted-run capacity before choosing Payroll Free. Follow an example monthly run without confusing reporting with payment.
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Start with the required pay frequency
Having one employee does not automatically make a monthly payroll plan suitable. First check the employee's award or agreement and the pay schedule your business must follow. Fair Work explains that awards and agreements usually set the frequency; where they do not, employees must be paid at least monthly.
Ledra Payroll Free allows one employee and one successfully posted pay run per Australia/Sydney calendar month. Weekly and fortnightly schedules need more posting capacity. Do not change the reporting schedule simply to fit the free allowance.
Count posted runs, not ATO transmissions
The allowance counts successful payroll posts. A draft does not use it. An STP retry does not consume another posting allowance, and voiding a posted run does not restore usage. It is not a one-transmission-to-the-ATO limit.
STP Phase 2 reporting is included. Prepare the underlying payroll records and review the returned response after submission. A sent or queued report is not the same as an accepted result. The STP workflow explains the distinction between reporting, corrections and finalisation.
A monthly payroll example
Example: an employer has confirmed that monthly pay is appropriate for their employee. Before the run, they check the employee's tax and employment details, pay template and pay date. They prepare the run, review earnings, deductions, withholding, super and net pay, then post once for that calendar month.
The employer checks the payslip and follows the STP submission result. They arrange wage and super payments separately and check those services for payment completion. A payroll record or calculated liability is not a bank receipt.
Fair Work says payslips must be provided within one working day of payment. Check the required payslip details and your delivery arrangements; software capacity does not replace those responsibilities.
When to review the plan
Reassess capacity before adding another employee or preparing another posted run in the same month. Also check whether you need leave, timesheets or other tools that vary by plan. The live Payroll Free inclusions and paid-plan comparison show the current choices.
Sources: Fair Work: frequency of pay; Fair Work: paying wages and payslips; ATO: Single Touch Payroll. This is general product information, not employment or tax advice.