Answer
If your business operates multiple locations under a single ABN, the recommended setup in most cases is to use one company profile in Lightning Payroll and allocate each location using departments or costing categories.
This approach keeps payroll reporting simple while still allowing you to track wages and costs for each location.
Why a single company profile is usually the best option:
- STP reporting aligns with the ABN. Single Touch Payroll reporting is linked to the payer ABN and branch registered with the ATO. If all locations operate under the same ABN and PAYGW account, they generally belong in the same payroll file.
- Simpler STP reporting. Using one company profile means submitting one STP report per pay run rather than multiple reports for each location. Employees will also see one income statement under the business name in their ATO Online Services.
- Easier year end processing. Keeping all employees in one payroll file avoids duplicate employee records and multiple income statements, helping ensure accurate year to date payroll reporting.
- Location based costing. Departments allow you to track payroll costs by location, run reports for accounting purposes, and keep a single employee record even if staff work across different locations.
When separate company profiles may be appropriate:
- Each location runs completely separate payroll cycles
- Different staff manage payroll independently for each location
- The business has separate PAYGW branches registered with the ATO
- Locations operate almost like independent businesses
Typical setup example:
- 1 company profile
- Departments created for each location
- Employees or hours allocated to the relevant department for reporting and costing
This structure keeps STP reporting straightforward while still providing clear payroll reporting by location.
