PaySauce offers two methods for funding your payroll: PayTo and Internet banking. Understanding how each works helps you choose the best option for your business.
PayTo (recommended)
How PayTo works
PayTo uses Australia's New Payments Platform (NPP) to provide fast, secure payments directly from your bank account. It's designed to replace traditional direct debits and offers real-time payment processing.
When you process a pay run with PayTo:
You select Process Pay Run in PaySauce
PaySauce automatically initiates fund transfers from your authorized bank account
Funds are distributed to:
Your employees (via their bank accounts)
The ATO (for tax withholdings)
Superannuation funds (for super contributions)
All transfers happen in real-time (almost instant)
Benefits of PayTo
No manual transfers: After initial setup, everything is automatic
Fast processing: Real-time payments, available 24/7
Simple workflow: One click processes your entire payroll
No delays: No waiting for fund transfers to clear
Reduced errors: No manual transfer steps where mistakes can occur
PayTo requirements
Your bank must support PayTo for business accounts (most major Australian banks do)
You must authorise a PayTo agreement through your online banking
The agreement must be accepted before you can process pay runs
When to use PayTo
PayTo is recommended for most businesses because of its simplicity and speed. It's particularly beneficial if you:
Want to minimise manual payroll tasks
Process payroll outside business hours
Need fast, reliable payments to employees
Want to reduce the risk of transfer errors
Internet banking
How internet banking works
With internet banking, you manually transfer funds into a PaySauce virtual account before processing each pay run. PaySauce then distributes those funds when you process the payroll.
The process for each pay run:
Prepare your pay run: Fill in all employee details as normal
Note the gross amount: This is shown on the pay run summary
Transfer funds: Manually transfer at least the gross amount from your bank account to your PaySauce virtual account
Account details are shown on the Payments page
Transfers typically take 4-6 hours or more to appear
Wait for funds to clear: Check the Balance on the Payments page
Process the pay run: Once your balance shows at least the gross amount, the Process Pay Run button becomes active
Complete the payroll: PaySauce distributes your deposited funds to employees, the ATO, and superannuation funds
Receive refunds: Any remaining balance is automatically transferred back to your bank account
Internet banking requirements
Your business bank account details must be entered in payment setup
You need access to internet banking to transfer funds
You must allow time for transfers to clear (typically 4-6 hours minimum)
When to use internet banking
Internet banking is appropriate if:
Your bank doesn't support PayTo for business accounts yet
You prefer to manually control when funds are transferred
You're comfortable with the additional time and steps required
Important notes about internet banking
Allow extra time: Plan your payroll processing to account for transfer delays. If you need to pay employees on a specific day, transfer funds well in advance.
Accurate bank details: Ensure your bank account details in Company Settings are correct, as excess funds are refunded to this account.
Transfer the full amount: You must transfer at least the gross amount shown on the pay run. Partial transfers will delay processing.
Bank file download
PaySauce offers a third payment option: downloading an ABA file that you can upload to your internet banking to manually process payments.
How it works
Process your pay run in PaySauce
Download the ABA file generated by PaySauce
Upload the file to your internet banking
Manually transfer funds according to the file
Important considerations
PaySauce will complete all regulatory filings (STP, superannuation) when you process the pay run
This assumes you'll actually use the ABA file to make payments
If any payment errors occur, they happen outside PaySauce and must be resolved independently
This option provides maximum control but requires the most manual work
Comparing payment methods
| PayTo | Internet Banking | Bank File |
Speed | Instant | 4-6+ hours delay | Depends on your processing |
Manual transfers | None | Required each pay run | Required each pay run |
Works 24/7 | Yes | Limited by banking hours | Limited by banking hours |
Setup complexity | Requires bank agreement | Minimal | Minimal |
Best for | Most businesses | Banks without PayTo | Manual control |
Common Questions
Is PayTo safe?
Is PayTo safe?
Yes. PayTo is built on Australia's New Payments Platform and uses bank-grade security. You maintain full control through the authorized agreement with your bank, which you can review or cancel at any time.
What if I transfer too much with internet banking?
What if I transfer too much with internet banking?
Any excess funds are automatically refunded to your business bank account after the pay run is processed.
Can I use different methods for different pay runs?
Can I use different methods for different pay runs?
Yes, but you must configure the payment method you want to use in your payment setup before processing each pay run. It's simpler to choose one method and stick with it.
What happens if my PayTo agreement expires?
What happens if my PayTo agreement expires?
You'll need to reauthorise the agreement through your online banking before you can process pay runs. PaySauce will notify you if your agreement needs renewal.
Which method is most popular?
Which method is most popular?
PayTo is the recommended and most popular method because it's the fastest and requires the least manual work.
Need help?
If you have questions about which payment method to choose or need help setting up your payment configuration, contact PaySauce support.