One of the most time-consuming aspects of business management may be payroll management. Whether it is in calculating wages and superannuation, or monitoring leave and ensuring compliance with Australian payroll laws, errors will result in dissatisfied workers, fines, and unwarranted stress. For small businesses and SMEs that are growing, managing tasks manually may soon become too much to handle.
Here, payroll software comes to the rescue. The right platform automates the process, makes reporting easier, and ensures compliance, which saves time and minimises errors. Most current solutions also feature employee portals, timesheet tracking, leave management, and integrate seamlessly with accounting software, making payroll easier to manage.
Choosing the best payroll software depends on the size of your business, your budget, and your growth strategies. In this blog, we will discuss the top 10 payroll software options for businesses in Australia, including their features, advantages, disadvantages, costs, and suitability for various business types.
We will also discuss what to consider when choosing payroll software, pitfalls to avoid, and other options, such as outsourced payroll services, to make the right decision about payroll for your business.
Before digging into the list of software, you should know the factors that you need to put into consideration when selecting payroll software to use in your business:
STP Compliance: The STP reporting is compulsory in all Australian enterprises. Ensure that the program includes the option to submit the STP to the ATO automatically.
Accounting Software Integration: Built-in connectivity with accounting software enables time savings and reduces errors, such as those found in Xero, QuickBooks, or MYOB.
Scalability: As your business expands, the software must be able to accommodate multiple employees, various pay rates and extended HR capabilities.
Automation: Automatic superannuation computations, leave management, and payroll save time and decrease errors.
User Interface: This is essential because ease of use is paramount, particularly when payroll is handled internally without a dedicated unit.
Employee Self-Service: Functions such as employee portals or mobile applications enable employees to access payslips, leave balances and update personal information.
Price: Compare software prices based on the size of your team and the features you need.
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Best for |
Small to medium businesses already using Xero accounting who want a simple, cloud-based solution. |
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Features |
Single Touch Payroll (STP) compliance, automatic superannuation contributions, timesheet management, and employee self-service portal. |
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Pros: |
Easy integration with Xero accounting; intuitive interface for non-accountants; reduces manual data entry and errors; automated compliance. |
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Cons |
Limited advanced payroll functionality for larger businesses |
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Pricing |
From approx. $15/month (add-ons may apply). |
2. MYOB Payroll
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Best for |
Australian SMEs who need payroll integrated with accounting and accurate award interpretation. |
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Features |
STP reporting, leave management, timesheet tracking, correct pay rates, superannuation processing, and MYOB integration. |
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Pros |
Strong Australian compliance support, flexible reporting, and automated accounting. |
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Cons |
Interface feels dated, and it has limited mobile features. |
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Pricing |
Starts approx. $30/month (depending on the plan). |
3. QuickBooks Payroll
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Best for |
Small businesses already using QuickBooks accounting are seeking an easy way to manage their payroll operations. |
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Features |
Tax computations, STP, leave management, self-service portal and real-time reports with QuickBooks integration. |
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Pros |
It is user-friendly, minimises payroll mistakes, automates compliance and is cost-effective with small teams. |
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Cons |
Limited advanced features; not ideal for complex payroll structures. |
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Pricing |
Starting at approximately 20/month per employee. |
4. Payroller
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Best for |
Small businesses who are looking for fully cloud-based payroll with automation and compliance support. |
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Features |
Automated pay runs, STP reporting, superannuation management, leave tracking, employee portal, HR integration, and detailed reporting dashboards. |
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Pros |
Cloud-based and accessible anywhere; designed specifically for Australian payroll compliance; fast onboarding; automates repetitive tasks. |
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Cons |
Fewer integrations with third-party accounting platforms; can be pricey for very small teams. |
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Pricing |
From approx. $25/month per employee. |
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Best For |
Growing Australian businesses want payroll combined with HR and benefits management. |
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Features |
STP compliance, payroll automation, superannuation, leave management, HR modules, and reporting dashboards |
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Pros |
Combines payroll with HR tools; scalable for growing teams; strong automation; good support |
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Cons |
Can be overwhelming for very small teams; some advanced HR features require premium plans |
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Pricing |
From approx. $35/month per employee (depending on modules). |
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Best for |
Small to medium Australian businesses seeking a simple and affordable payroll solution. |
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Features: |
STP reporting, leave processing, superannuation processing, pay running, employee self-service and integration with Reckon accounting software. |
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Pros |
Low price; simple interface; excellent adoption of Australian compliance; integrates with Reckon accounting. |
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Cons: |
Limited advanced payroll or HR functionality; reporting features can be basic. |
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Pricing |
From approx. $20/month per employee. |
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Best for |
Small businesses, particularly those who are in the retail, hospitality, and service industries, require straightforward payroll management. |
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Features |
STP reporting, automated superannuation, employee self-service, time tracking, pay scheduling, integration with Square POS, and reporting dashboards. |
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Pros |
Seamless POS integration; easy setup; mobile-friendly; fast onboarding for small teams. |
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Cons |
It will be expensive for smaller teams; some setup complexity. |
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Pricing |
From approx. $25/month per employee. |
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Best for: |
Small businesses and accounting firms are seeking a flexible cloud payroll platform with workflow automation capabilities. |
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Features |
STP compliance, leave management, timesheets, automated pay runs, HR integration, rostering, award interpretation, superannuation, and payroll analytics. |
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Pros |
Highly customisable; strong automation; integrates with accounting and HR systems; scalable for growing businesses. |
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Cons |
Semi-advanced payroll or HR capacity; reporting might be simple. |
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Pricing |
From approx. $25/month per employee. |
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Best For |
Small to medium businesses looking for cost-effective payroll integrated with the Zoho suite. |
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Features |
STP reporting, pay run automation, superannuation, leave management, employee self-service, reports, and integration with Zoho Books. |
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Pros |
Affordable; easy integration with Zoho ecosystem; simple interface; automation reduces errors. |
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Cons |
Limited advanced payroll features; fewer third-party integrations outside Zoho |
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Pricing |
From approx. $15/month per employee. |
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Best For |
Medium to large businesses needing a full-service, reliable payroll and HR solution. |
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Features |
STP compliance, automated tax and superannuation, leave management, employee self-service, HR modules, reporting, onboarding, and global payroll options. |
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Pros |
Highly reliable; scalable; strong support and compliance features. |
|
Cons |
Higher pricing; interface can be complex for small teams; some features require add-ons |
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Pricing |
From approx. $35/month per employee (plan-dependent). |
Several Australian companies make unnecessary errors when selecting payroll software:
1. Ignoring Integration: One weakness is selecting software that does not integrate with accounting, human resources, and time-tracking systems. This results in duplication of data entry, manual reconciliation, and possible errors.
2. Focusing More on Cost Than Functionality: Although price matters, choosing the cheapest alternative can result in the loss of features such as automated compliance, STP reporting, or interpreting awards, which can be more expensive in fines and fixes.
3. Neglecting Employee Experience: Payroll Software Must Make Life Easier for Employees. The absence of self-service portals or mobile services may lead to frustration and HR requests.
4. Failure to meet Compliance Requirements: Australian laws on payroll change frequently. Some businesses do not even bother using the software to verify that it automatically updates to support STP reporting, superannuation changes or award rules, potentially incurring regulatory penalties as a result.
5. Minimising the Importance of Scalability: A system that works well with 10 employees may not work with your team of 50 or more. Scalable software can be chosen at an initial stage, which will save expensive system migrations in the future.
For businesses seeking peace of mind, outsourcing payroll to a service provider can be more efficient than managing software in-house.
Expert Handling of Compliance: Providers like Aone Outsourcing Solutions keep up with all Australian payroll regulations, STP reporting, superannuation, and award compliance.
Time and Resource Savings: Payroll service providers handle all calculations, filings, and reporting, allowing your internal team to focus on core business activities.
Employee Support: They offer good employee portals, helpdesk support, and automated notifications, which can help you reduce your administrative workload.
Custom Reporting: Outsourced service providers can generate reports tailored to your business needs, providing better insights into labour costs, payroll trends, and compliance status.
It is your business needs that determine which option is the best software or the most suitable outsourcing services. You may always look at your business requirements and then make your decision on what to select:
You take care of payroll in-house by the software.
Less expensive, but needs to be monitored manually and by trained personnel.
Appropriate for companies that are sure of compliance management and internal HR.
Why Should You Outsource Payroll Services:
A professional provider manages payroll end-to-end.
Ensures compliance, accuracy, and faster processing.
Frees up your internal resources and helps in reducing errors.
Ideal for growing businesses or firms with complex payroll requirements.
Most of the businesses do a combination of both: they have internal visibility through software and outsource difficult-to-implement compliance tasks to a trusted vendor.
The selection of the appropriate payroll solution might make or break your business efficiency. The trick lies in knowing what is unique to you; i.e., do you need a simple software solution, such as Xero or QuickBooks, or a comprehensive, outsourced solution, like Aone Outsourcing Solutions. Using Aone, one can simplify the payroll process, maintain compliance, minimise errors, and save valuable time that could be spent on business expansion.
By using the appropriate software, you will be able to streamline administrative ks, collect the information about remaining costs in a practical way, and enhance the efficiency of the working process. Effective payroll software is also used to enable you to concentrate on expanding your business.
Evaluate your current payroll solution, look at software alternatives or have Aone Outsourcing Solutions evaluate your payroll system and relax more.
The cost of payroll software typically ranges from $10 to $25 per employee per month for small to medium-sized businesses. Enterprise solutions or platforms with advanced features are custom-priced.
Xero, MYOB, and QuickBooks are popular accounting software options for Australian businesses. The best choice depends on your business size, employee complexity, and integration requirements.
Outsourcing ensures compliance, reduces administrative workload, minimises errors, and enables accountants to focus on advisory services rather than repetitive payroll tasks.
Not necessarily. Outsourced providers use their systems to process payroll while giving you access to reports and employee data. Internal software is optional unless you need in-house visibility or integration.
