Payroll software: migration, records and local requirements
Payroll software should be assessed against the requirements that apply to your business and workforce. Plan how employee records and opening balances will move, which integrations are needed and how calculations will be checked before relying on a new system. Before comparing providers, define what the proposal should cover and which details need individual assessment. Ask for a written breakdown of the included services, exclusions and ongoing commitments.
Moving to new payroll software involves more than just picking a product with a friendly interface. Businesses in Australia need to consider how the system handles compliance, employee data, and the technical process of migrating historical records without disrupting pay cycles.
What are local payroll requirements in Australia?
Australian payroll software must align with obligations set by the Australian Taxation Office (ATO), including Single Touch Payroll (STP) reporting, superannuation guarantee contributions, and PAYG withholding calculations. Award rates and modern award interpretations under the Fair Work Act also influence how pay rules are configured. Choosing software that is regularly updated to reflect changes in tax tables, super rates, and award conditions helps reduce the risk of non-compliance and manual correction work later.
How are employee records and access managed?
Employee records typically include personal details, tax file numbers, banking information, leave balances, and employment history. Role-based access controls are important so that only authorised personnel can view or edit sensitive payroll data. Many systems also offer self-service portals, allowing employees to view payslips, update personal details, and submit leave requests directly, reducing administrative workload for payroll teams while improving data accuracy.
Handling opening balances and migration
Migrating to new payroll software requires careful transfer of opening balances, including year-to-date earnings, tax withheld, leave accruals, and superannuation contributions. Errors at this stage can lead to incorrect payment summaries or STP reporting discrepancies. It is generally recommended to run a parallel pay cycle, comparing outputs from the old and new systems before fully switching over, to catch any calculation mismatches early.
Why do integrations and test calculations matter?
Payroll software often integrates with accounting platforms, time and attendance systems, and human resources software. Testing these integrations before going live helps confirm that data flows correctly between systems, particularly for hours worked, leave taken, and general ledger postings. Running test calculations across a sample pay run, including edge cases like overtime, allowances, and terminations, can reveal configuration issues before they affect real employee payments.
Pricing for payroll software in Australia varies depending on the number of employees, feature set, and whether the platform includes additional modules such as rostering or superannuation clearing house services. Smaller businesses with straightforward pay structures generally pay less than organisations with complex award interpretations or multi-state operations. Subscription models are common, with costs scaling based on employee headcount or pay run frequency.
| Product/Service | Provider | Cost Estimation |
|---|---|---|
| Xero Payroll | Xero | From approximately AUD 15 to 78 per month depending on plan |
| MYOB Payroll | MYOB | From approximately AUD 13 to 130 per month depending on plan |
| KeyPay | Employment Hero | Pricing varies, typically per employee per month |
| Reckon Payroll | Reckon | From approximately AUD 10 to 30 per month for small teams |
Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.
What ongoing support and subscriptions should you expect?
Most payroll software is offered on a subscription basis, with ongoing updates to reflect changes in tax legislation, super guarantee rates, and award conditions. Support options generally include email or chat assistance, help centres, and sometimes phone support for higher-tier plans. Businesses should confirm whether updates for compliance changes are included in the subscription price or charged separately, as this can affect long-term budgeting.
Selecting and migrating to payroll software is a process that benefits from careful planning around compliance requirements, data accuracy, and system testing. Taking time to verify opening balances, test integrations, and understand ongoing subscription terms can help Australian businesses transition smoothly while maintaining accurate and compliant payroll operations.
