Australiaโs payroll requirements arenโt a walk in the park. Between Single Touch Payroll (STP), PAYG withholding, superannuation guarantee, and Fair Work compliance, thereโs a lot to stay on top of. According to a 2024 study, 48% of businesses still rely on manual input for their payroll systems, even though automated software can slash admin time by at least 50%.
Hereโs the real kicker: failing to lodge your STP reports on time can land you with hefty fines from the ATO. Using the right payroll software doesnโt just save you stress. It keeps you compliant and keeps those ATO penalties off your back.
Finding the best payroll software for your business isn’t just about ticking boxes. Itโs about choosing a tool that fits your team, saves you time, and keeps you on the right side of the ATO.
What to look for in the best payroll software for small businesses
Not all payroll tools are built for small businesses. Some are clunky. Others are overpriced or lack local compliance features, which, letโs be honest, is a deal-breaker.
How should you evaluate payroll software?
When comparing options, I looked at the needs of typical small businesses in Australia:
- ATO compliance: It must support Single Touch Payroll (STP), correctly calculate PAYG withholdings, and make superannuation contributions easy.
- User experience: It should have good design and high usability on both desktop and mobile. No steep learning curve.
- Transparent pricing: Flat fees or per-employee pricing thatโs affordable, without surprises.
- Customer support: Reliable help when things go sideways. Bonus points for chat support and local teams.
- Scalability: Can a solopreneur use itโฆ and then scale up when hiring a second, third, or tenth employee?
- Integration potential: Does it play well with other accounting platforms? Seamless exports and syncs matter.
I gave extra weight to small business-friendly pricing, automation features, and mobile ability, because Iโve seen firsthand how many business owners manage payroll in-between orders, invoices, or customer calls. If it canโt work on mobile, it probably doesnโt work in real life.
What are the must-have payroll software features?
Updated ATO compliance
Since the ATO made Single Touch Payroll mandatory for all Australian employers, this oneโs not optional. The best payroll software should automatically send STP reports to the ATO every time you process pay runs, helping you meet deadlines without the extra stress. Cloud payroll software is ideal because it keeps your records all in one place, accessible from anywhere with an internet connection, anytime you need.
Up-to-date ATO compliance will save you the mental load of remembering what to send, when, and how to do it correctly.
Easy scalability
Even if you only have a handful of employees to pay, look for software that can grow with you in terms of solution pricing. That way, your payroll system can support casuals, part-timers, contractors, or a lack thereof without upgrading to a more expensive plan.
Automated wage and super calculations
Doing the math manually is too risky for payroll. Your software should calculate wages, tax withheld, and super contributions automatically. This will help you stay within Fair Work guidelines and avoid underpayments in the future. Each pay cycle should result in a clear breakdown for each paid employee, so you know exactly where your payroll budget goes.
This is where time savings and error reduction really kick in. No more late-night number crunching over spreadsheets!
Mobile-friendly access
More and more small business owners run their own admin on the go, whether from job sites, cafes, or the back of an Uber. Good payroll software should work just as well as a payroll mobile app on your phone or tablet. With a fully mobile-capable payroll process, you can process pay runs, add new employees, or update rosters when youโre out and about.
Have an employee requesting a copy of their payslip? It should only take a few taps to get it done. If your payroll app doesnโt work on your phone, then itโs definitely old news.
Employee self-service tools
Empowered employees mean fewer admin questions in your inbox. Win-win. Your ideal payroll software should allow your staff to access their own payslips, payment summaries, and timesheets anytime and online. Thatโs the bare minimum, and should satisfy most of the day-to-day admin needs of employees.
Some of the best payroll options for small businesses also allow employees to submit leave requests and update their personal details through an online portal. Since these things also affect the outcome of payruns, itโs best to have all the data centralised in one place while also cutting down on back-and-forth emails.
Timesheet tracking and rostering
If your team works shifts or hourly, this is non-negotiable. Strong payroll tools offer payroll-integrated rostering so you can plan ahead and avoid overstaffing. These digital timesheets sync in real-time to pay runs to get the most accurate calculations, leading to fewer disputes.
Seamless integration with accounting tools
Double data entry is a productivity killer. If you already have an accounting system set up, make sure your payroll software connects to it. This makes it so your wage data, PAYG, and super contributions feed into your bookkeeping system.
What is the best payroll software for businesses in Australia?
1. Payroller: A leader in small business payroll
If you’re a small business owner or accountant in Australia and you’re still wrestling with spreadsheets or clunky payroll systems, you’re going to want to hear about Payroller.
Iโve chatted with hundreds of business owners whoโve told me they just want a payroll tool that works. No jargon. No running between systems. Just fast, accurate pay runs that donโt suck hours out of your week. Payroller gets that.
Compliance made simple with STP and super automation
STP Phase 2 has added an extra layer to payroll reporting, but Payroller has you covered. It keeps everything compliant with ATO standards while automating super payments, so no more logging into multiple portals. Just set it up and let Payroller keep your reporting clean and your super contributions on time.
Built by Aussies, for Aussie businesses
This isnโt a U.S. product trying to fit into the Australian market. Payroller was designed locally and understands the unique needs of our businesses, from interpreting industry awards to ABN matching. The interface is also functional and clean, so youโre not left guessing what to click next.
Frustration-free user interface
You donโt need to be tech-savvy or payroll-qualified to use Payroller. Thatโs what I really love about it. The UI is built for humans, not payroll robots. Everything is laid out clearly with prompts that make it hard to get things wrong.
And yes, the mobile app is perfect for business owners juggling work from their phone. Itโs especially handy for tradies and service-based businesses who rarely sit behind a desk.
What are the pros of using Payroller?
- Native compliance features including STP 2 and superannuation, 100% designed for Australian users
- Automated tax, super, and leave management means fewer admin headaches
- Business-ready reports at the click of a button
- Strong employee self-service portal that doubles as a staff-facing roster app
- Support team based in Australia who actually understand your questions
What are the cons of using Payroller?
- Limited customisation for enterprise-level organisations
- Slightly more expensive on the monthly plan, but it offers significant savings on a yearly subscription.
- Mobile app could offer more detailed functions (but theyโre working on updates!)
2. Rippling
If youโre expanding globally, hiring remotely, or running a medium-sized business with fast-moving parts, Rippling steps in as more than just payroll. It’s a global HR-tech engine packed with automation tools, integration options, and scalability baked right in. While itโs not built just for Australia, it has capabilities that support Australian businesses operating across borders or preparing to grow.
What makes Rippling stand out compared to other options on best payroll software lists? Itโs basically the Swiss Army knife of HR tools. It connects the two departments so that they donโt live in a silo.
Rippling offers a high level of control through custom rules, field settings and dynamic workflows. Things like:
- Setting up permission levels based on roles
- Custom workflows for onboarding or time-off approvals
- Automated alerts and tasks tailored to your process
Is Rippling the right fit for your business?
Rippling is a big tool with significant capability. But that does come with a few things to weigh up, especially if youโre a local, small operation needing something lean and laser-focused on the Australian market.
What are the pros of using Rippling?
- All-in-one platform for HR, IT, and payroll with global payroll capabilities and multi-currency support
- Extensive customisation for workflows and permissions that reduces manual admin
- Onboarding, offboarding, and other HR workflows are streamlined
What are the cons of using Rippling?
- Comes at a higher cost with modular pricing, especially for full feature access
- Not tailored specifically to Australian compliance like local options are
- May feel overwhelming or heavy for very small business setups
3. MYOB
What sets MYOB apart is how tightly it links payroll with accounting. That level of integration isnโt just convenient, itโs a great time saver. MYOB has nailed the combo of payroll and accounting, which means less toggling between systems and way fewer errors from transferring data manually.
This is especially handy if youโre running the books yourself or youโve got a growing team and want your payroll to tie seamlessly into your general ledger, BAS reporting, and superannuation obligations. You donโt need to stitch together data from different apps or worry about version control.
Add to this tools for:
- Superannuation tracking and payment
- Leave calculations according to Fair Work rules
- Automatic tax table updates
Is MYOB the right fit for your business?
MYOB is generally considered user-friendly, particularly for businesses seeking a comprehensive, locally tailored accounting solution to satisfy their accounting needs. Most users find it easy to use for everyday tasks, though some may encounter a learning curve or desire more flexibility and faster support.
What are the pros of using MYOB?
- Deep integration with accounting functions (no duplicate data or double handling)
- Well-established in the Australian market with broad industry use
- Frequent updates that keep you aligned with ATO changes
What are the cons of using MYOB?
- Some users new to accounting software report an initial learning curve
- Reportedly slow response times from customer service
- May be less flexible than MYOB competitors, especially regarding custom reports or handling exceptions
4. Xero Payroll
If you’re already using Xero for your accounting, adding Xero Payroll can feel like a natural next step. It’s built directly into the Xero ecosystem, so everything from general ledger updates to super calculations feeds seamlessly into your books. That tight integration can seriously simplify end-of-month admin. But is it the best payroll software choice for your business?
For Xero, the minimum plan that includes payroll is the Grow plan at $70/month, which covers payroll for just one employee. For payroll of up to five employees, the Comprehensive plan is $90/month. Payroll pricing in Australia has increased significantly in recent years, and itโs been a major reason for business owners to look for a Xero alternative.
Is Xero Payroll the right fit for your business?
Xero Payroll is a top choice for Australian small businesses seeking a user-friendly, compliant, and efficient payroll solution. Setup is fast, especially with automated onboarding, and the platformโs intuitive design, automation, and cloud access make payroll management straightforward. The only thing to consider is that Xero Payroll is now considered expensive for small businesses in Australia, especially for those with fewer than five employees.
What are the pros of using Xero Payroll?
- Seamless integration with Xero accounting, which saves loads of time
- Easy-to-use interface that doesnโt require a payroll expert to operate
- Decent mobile access for both business owners and employees
- Extensive online guides, webinars, and a strong community for peer support
What are the cons of using Xero Payroll?
- Recent changes to Xero Payroll Only have made it significantly more expensive for small businesses
- Some advanced payroll features (such as complex awards, advanced leave management, or commission calculations) are not available natively
- Can be confusing with certain essential features locked in higher-tiered plans
5. ADP Workforce Now
If you’re at a point where local systems just arenโt cutting it anymore, then ADP Workforce Now might be on your radar. Itโs not your average payroll toolโitโs built for businesses managing complex teams across multiple locations and needing payroll to do so much more than just process pay runs. So if youโre thinking big or already operating across countries, this could be the system that fits.
From chatting with accountants supporting rapidly growing businesses, I know how challenging it can be to stay on top of compliance rules when teams are spread across states or even countries. ADP provides enterprise-level control with built-in rules, reporting power, and customizability.
While itโs powerful, itโs not plug-and-play like systems geared for smaller businesses. Youโll need setup time, significant team buy-in, and budget.
Is ADP Workforce Now the right fit for your business?
ADP Workforce Now is a powerful, feature-rich platform well-suited for mid-sized and larger businesses seeking comprehensive HR and payroll management. It excels in compliance, reporting, and integration, but its complexity, cost, and occasional support and usability issues may be drawbacks, especially for businesses seeking flexibility.
What are the pros of using ADP Workforce Now?
- Comprehensive compliance capabilities that integrate payroll, HR, benefits administration, and talent management
- Extensive reporting options that provide customisable visual assets
- Strong mobile accessibility features for employees
- Global payroll-friendly, complete with streamlined onboarding and document management
What are the cons of using ADP Workforce Now?
- Often considered expensive for small businesses, especially with modular pricing
- Advanced modules can be complex, requiring training
- Some users mention an outdated and less intuitive interface
6. KeyPay
KeyPayโs award interpretation engine is a lifesaver for businesses juggling multiple awards or penalty rates. Instead of manually checking if you’re complying with Fair Work conditions every payroll cycle, KeyPay does the heavy lifting for you. It automatically calculates:
- Penalty rates based on award type and time worked
- Overtime thresholds across rotating rosters
- Allowances, leave loading, and shift differentials
If youโve had even one late-night Google session stressing about Fair Work audits, KeyPayโs compliance tools are built for peace of mind.
Is KeyPay the right choice for your business?
KeyPay is a highly automated, affordable, and compliant payroll solution ideal for Australian small businesses that want to save time and reduce compliance risks. Its main drawbacks are limited customer support and some learning curve for new users, but its robust automation and integration capabilities make it a strong choice for most small to medium enterprises.
What are the pros of using KeyPay?
- Excellent award interpretation and attendance tools
- Solid compliance automation that updates with Fair Work changes
- Clean, modern interfaceโeasy to pick up and run with
- Great value if your business is award-heavy or contractor-based
What are the cons of using KeyPay?
- Users frequently report limited customer support options, which can be slow to resolve
- No built-in time clock tool; relies on the WorkZone mobile app for employees to manually enter start/end times
- Pricing details are not always easily found on the website, requiring potential customers to contact sales for a quote
7. Gusto
If youโve ever opened up a payroll system and instantly felt overwhelmed, Gusto is a breath of fresh air. The dashboard is visually clean, the menus are logical, and onboarding a new client or staff member doesn’t eat up your entire Monday.
Hereโs what stands out:
- Built-in guided onboarding: Staff get a link to fill in their own details
- Pre-built templates for letters and contracts that auto-fill using your teamโs info
- Automatic tax calculations and updates are built in
Gustoโs core strength is streamlining US and international payroll from one hub. However, keep in mind that theyโre still newer to Australia. They’re rolling out more compliance-focused tools bit by bit, but if your payroll has complex award structures or runs over multiple EBAs, you may feel those limits quickly.
Is Gusto the right choice for your business?
Gusto is a strong, user-friendly payroll option for small businesses in Australia, especially those with international or remote teams. Its global payroll features are a plus for cross-border hiring, but businesses needing deep local benefits or large-scale HR support may find limitations.
What are the pros of using Gusto?
- Exceptional user experience with strong onboarding features that skip repetitive admin
- Self-service portal so staff can update their own info and access payslips
- Modern interface that doesnโt feel dated and a growing integration ecosystem
- International payroll compliance through Gusto Global
What are the cons of using Gusto?
- Newer to the Australian market, so not everythingโs localised yet
- Cost increases with growth, becoming expensive for bigger teams
- Still building compliance tools to match complex Aussie award coverage
- Limited phone or local support, so most help is online and US-based
8. QuickBooks Payroll
If you’re already running the books through QuickBooks, then QuickBooks Payroll might feel like a natural next step. It’s built to work seamlessly with QuickBooks Online, which can save you loads of time juggling data between tools. This combo works well if you want your numbers to line up without needing to export, upload or manually enter them twice.
Once you set up your payroll in QuickBooks, several things start ticking along on autopilot. If youโre a one-person show or managing a growing team, this kind of automation keeps you away from spreadsheet chaos and lets you focus on running the business.
Is QuickBooks Payroll the right choice for your business?
QuickBooks Payroll is a robust solution for Australian small businesses, offering strong compliance, automation, and integration with QuickBooks Online. Its main drawbacks are occasional glitches, limited customisation, and potentially higher costs as your team grows. For businesses already using QuickBooks Online, it provides a seamless payroll experience with strong compliance and reporting.
What are the pros of using QuickBooks Payroll?
- Widely praised for its intuitive, easy-to-learn interface
- Fully compliant with Australian tax laws
- Time tracking and rostering features, including GPS for higher-tiered plans
- Advanced plans include pre-built modern Award interpretation and the ability to automate complex pay conditions
What are the cons of using QuickBooks Payroll?
- Occasionally slow processing and system glitches require support intervention
- The per-employee cost can add up for larger teams
- Essential features like Award interpretation are locked in more expensive plans
How to choose the best payroll solution for your small business
Ask yourself the following questions:
- How many employees or contractors do you pay? Some software charges per employee, while others offer flat-rate pricing (which might be better if you’re growing fast).
- How often do you run payroll? Weekly? Fortnightly? Monthly? Make sure your software handles multiple pay runs without extra charges.
- Do you manage pay rates under modern awards? If yes, look for a payroll system that handles award interpretation accurately, especially if youโre in hospitality or health.
- Do you also manage rostering, timesheets or HR admin? You might want a solution that bundles those features.
Only choose software that ticks these non-negotiables. When you’re wearing all the hatsโbusiness owner, bookkeeper, HR, and sometimes staff memberโit can feel like payroll software is just another thing to figure out. Iโve been in your shoes, and Iโve helped thousands of Aussie small businesses and accountants make the switch to simpler systems.
The good news? You donโt need to โlearn everythingโ to make the right choice.
Key takeaways
Letโs not sugar-coat it: Picking the best payroll software for your business can feel like a big decision. You want a system that saves you time, doesnโt mess up wage calculations, works seamlessly with your accounting software, and wonโt blow out your budget.
Payroller does exactly that because it was built with small businesses and Aussie accountants in mind. From automated wage calculations to seamless ATO reporting, Payroller gives you what you need, minus the complexity.
If youโre a solo tradie with a couple of apprentices, a local cafรฉ owner juggling weekend shifts, or an accountant managing multiple clients, Payroller was built with your needs front and centre. Iโve seen enough businesses move from spreadsheets or clunky legacy systems to Payroller and wonder why they didnโt switch sooner.
If your payroll process feels like a time drain, or if youโre feeling unsure about staying compliant with every single Fair Work change, itโs time to upgrade. The best payroll software doesnโt have the fanciest interface or the longest list of features. Itโs the one that works for you, right now, without the stress or price tag.
