In 2025, Australian businesses will face a complex payroll landscape with strict compliance requirements and the need for efficient processes. Choosing the right payroll software is crucial for streamlining operations, reducing manual errors, and ensuring compliance with local labour laws. This article reviews the best payroll software solutions available in Australia, with a special focus on Workstem, a leading platform that excels in managing complex payroll structures, award compliance, and Single Touch Payroll (STP) reporting.
Workstem
Key Features:
• Advanced Award Interpretation: Workstem’s AI-driven engine is designed to handle complex Australian Awards, ensuring accurate wage calculations for full-time, part-time, and casual employees. It supports custom pay items and formulas, making it ideal for businesses with intricate payroll needs.
• Comprehensive STP Compliance: Workstem’s ATO-certified STP software automates Phase 2 reporting, reducing manual errors and ensuring timely submissions to the ATO. Error warnings help identify and rectify mistakes before reporting, minimising the risk of penalties.
• Casual Management: Workstem simplifies the management of casual employees by automating calculations for overtime, allowances, and loadings. It also integrates attendance data directly into payroll, ensuring accurate and compliant payments.
• Integrated HR Modules: Workstem combines payroll with HR functions such as onboarding, attendance tracking, leave management, and expense claims. This holistic approach reduces administrative burdens and improves overall efficiency.
• Mobile Accessibility: The Workstem Mobile App allows employees and managers to access key features anytime, anywhere. Supervisors can approve leave requests, manage shifts, and view payroll data directly from their mobile devices.
• Customisable Payroll: Workstem’s AI engine supports custom pay items like bonuses, commissions, and statutory payments. It also automates the calculation of complex items such as annual leave, personal leave, long service leave, ETP, and more.
Pros:
• Strong compliance features tailored to Australian regulations.
• Comprehensive solution for managing complex payroll structures and awards.
• Scalable and adaptable to growing business needs.
• User-friendly interface with extensive customisation options.
Cons:
• Some advanced features may require additional setup.
• Limited availability of free trials.
Market Performance and Customer Feedback:
Workstem has gained significant traction in the Australian market, particularly in industries such as hospitality, retail, and construction. Its ability to handle complex payroll needs and ensure compliance has earned it high praise from clients.Customers highlight Workstem’s ease of use, robust compliance features, and significant time savings.
Customer Testimonials:
• Elaine, Compliance Manager: Workstem has transformed our payroll process. It’s so convenient to manage everything from attendance to payroll in one system.The mobile app is a game-changer for our team.”
• Mike, Director of Operations: The system has made our HR management more efficient. We used to rely on Excel, but now everything is automated and compliant. The STP reporting is seamless, and the system is very user-friendly.”
Xero Payroll
Key Features:
• Compliance: Automatically calculates taxes, superannuation contributions and adheres to Single Touch Payroll (STP) regulations.
• Integration: It seamlessly integrates with Xero’s accounting software, providing a unified platform for financial management.
• Customisation: Offers flexible payroll plans to accommodate businesses of various sizes.
• Employee Self-Service: Employees can access payslips, submit leave requests, and manage their details.
Pros:
• Comprehensive financial management capabilities.
• Strong compliance features tailored to Australian regulations.
• User-friendly interface with extensive third-party integrations.
Cons:
- Additional costs for advanced features like detailed reporting.
- Limited scalability for very large enterprises.
MYOB Payroll
Key Features:
- Automated payroll: handles tax calculations, superannuation contributions, and leave accruals.
- STP Compliance: Generates and submits STP reports directly to the ATO.
- Employee Onboarding: Simplifies data collection from new hires.
- Timesheets and Scheduling: Integrates roster data with payroll for accurate wage calculations.
Pros:
- Locally focused solution with strong compliance features.
- Comprehensive payroll and accounting capabilities in one platform.
- Integrates seamlessly with existing business workflows.
Cons:
- Interface may feel outdated compared to modern cloud solutions.
- Limited scalability for complex or global payroll needs.
QuickBooks Payroll
Key Features:
- Automated Payroll: Calculates wages, taxes, and superannuation contributions.
- STP Compliance: Automates STP reporting to the ATO.
- Employee Self-Service: Employees can access payslips, submit leave requests, and manage timesheets.
- Integration: Seamless integration with QuickBooks accounting software.
Pros:
- User-friendly interface suitable for businesses of all sizes.
- Strong integration capabilities with accounting tools.
- Scalable plans to meet evolving business needs.
Cons:
- Some users report limitations in post-payroll reconciliation.
- Advanced features may require additional costs.
- White-label Limitations: The payroll module is designed for integration into third-party platforms. This may limit direct access to some advanced features.
ADP Payline
Key Features:
- Payroll Automation: Calculates PAYG tax, superannuation contributions, and statutory deductions.
- Customisable Pay Schedules: Supports various payroll frequencies.
- STP Compliance: integrates with the ATO for STP reporting.
- Employee Self-Service: Secure portal for accessing payslips and updating personal details.
Pros:
- Strong compliance tools tailored to Australian regulations.
- Scalable and customisable features.
- Intuitive design for easy navigation.
Cons:
- Limited HR features; additional systems may be required.
- Some users find mobile capabilities limited for payroll tasks.
foundU Payroll
Key Features:
- Award Interpretation: Automates wage calculations based on Australian workplace regulations.
- Integrated Workforce Tools: Combines onboarding, rostering, attendance, and payroll.
- STP Compliance: Automates STP reporting to the ATO.
- Scalability: adapts to growing teams and locations.
Pros:
- Comprehensive solution tailored to Australian businesses.
- Strong compliance features and accessible customer support.
- Unified system for payroll and workforce management.
Cons:
- Reporting features may be less intuitive for some users.
- Extensive configuration options can be overwhelming for small businesses.
Employment Hero
Key Features:
- Integrated Payroll and HR Management: Employment Hero offers a comprehensive solution that integrates payroll with HR functions such as onboarding, performance management, and employee benefits.
- Global Hiring Capabilities: With the acquisition of KeyPay, Employment Hero now offers global hiring solutions, allowing businesses to manage international teams seamlessly.
- SmartMatch Technology: Utilises AI to match job seekers with suitable roles, streamlining the recruitment process.
- Swag Employment Superapp: A superapp that integrates work, pay, savings, and exclusive benefits for employees.
Pros:
- Comprehensive HR and payroll management capabilities.
- Strong compliance features tailored to Australian regulations.
- Scalable and adaptable to growing business needs.
- User-friendly interface with extensive customisation options.
Cons:
- Some users report limitations in customisation options.
- Limited availability of free trials.
Humanforce
Key Features:
- Unified Payroll Processing: Humanforce offers a comprehensive payroll solution that integrates seamlessly with HR functions, ensuring accurate and compliant wage calculations.
- Smart Scheduling System: Automatically generates optimal schedules based on employee skills,availability,and labour regulations.
- Employee Benefits Management: Provides a platform for managing employee benefits, offering personalised options, and enhancing employee engagement.
- Data Analytics and Reporting: Offers detailed insights into workforce data, helping businesses make informed decisions.
Pros:
- Strong compliance features tailored to Australian regulations.
- Comprehensive solution for managing complex payroll structures and awards.
- Scalable and adaptable to growing business needs.
- User-friendly interface with extensive customisation options.
Cons:
- Some advanced features may require additional setup.
- Limited availability of free trials.
- White-label Limitations: The payroll module is designed for integration into third-party platforms. This may limit direct access to some advanced features.
Tanda
Key Features:
- Smart Scheduling: Tanda provides intelligent scheduling tools that optimise workforce allocation and ensure compliance with labour regulations.
- Time Tracking: Supports multiple time tracking methods, including biometric and mobile app integration, ensuring accurate and real-time data synchronisation.
- Payroll Integration: Integrates seamlessly with payroll systems, ensuring that time tracking data is accurately reflected in wage calculations.
Pros:
- Strong compliance features tailored to Australian regulations.
- Comprehensive payroll and HR management capabilities.
- Scalable and adaptable to growing business needs.
Cons:
- Some users report limitations in customisation options.
- Limited availability of free trials.
Micropay
Key Features:
- Automated Payroll Processing: Micropay automates wage, tax, and superannuation calculations, ensuring accurate and compliant payroll processing.
- STP Compliance: Ensures compliance with Single Touch Payroll (STP) regulations through automated reporting to the ATO.
- Customisable Reports: Generates tailored reports for payroll trends and employee compensation, providing valuable insights for business decision-making.
Pros:
- Strong compliance features tailored to Australian regulations.
- Comprehensive payroll and HR management capabilities.
- Scalable and adaptable to growing business needs.
Cons:
- Some users report limitations in customisation options.
- Limited availability of free trials.
Elmo
Key Features:
- Comprehensive Payroll Management: Elmo automates payroll processing, tax calculations, and superannuation contributions, ensuring compliance with Australian regulations.
- STP Compliance: Ensures compliance with Single Touch Payroll (STP) regulations through automated reporting to the ATO.
- Employee Self-Service: Employees can access payslips, leave balances, and other details through a user-friendly interface.
- Integration: Seamlessly integrates with other HR and accounting systems, providing a unified platform for payroll and HR management.
Pros:
- Strong compliance features tailored to Australian regulations.
- Comprehensive payroll and HR management capabilities.
- Scalable and adaptable to growing business needs.
- User-friendly interface with extensive customisation options.
Cons:
- Some users report limitations in customisation options.
- Limited availability of free trials.
- White-label Limitations: The payroll module is designed for integration into third-party platforms. This may limit direct access to some advanced features.
Conclusion
Choosing the right payroll software in Australia depends on your business’s specific needs, budget, and scaleability requirements. While solutions like Xero and MYOB offer comprehensive features and strong compliance capabilities, Workstem stands out for its advanced award interpretation, robust STP compliance, and seamless management of complex payroll structures. Its integrated HR modules and user-friendly interface make it an ideal choice for businesses looking to streamline their operations and focus on growth.Evaluate each option based on its features, ease of use, integration capabilities, and compliance features to find the best fit for your business.
FAQs
Which payroll software is best for Australian businesses?
The best payroll software for Australian businesses is Workstem. It excels in managing complex payroll structures, stay in compliance with Australian regulations, and integrating seamlessly with HR functions. Its AI-driven engine and user-friendly interface make it a top choice for businesses of all sizes.
How do I choose the right payroll software for my business?
When choosing payroll software, consider the following factors:
- Core Payroll Needs: Evaluate your specific payroll requirements, including the complexity of your payroll structure and the need for award compliance.
- Compliance Features: Ensure the software offers robust compliance tools tailored to Australian regulations, such as Single Touch Payroll (STP) reporting.
- Ease of Use: Look for a user-friendly interface that reduces the learning curve and minimises manual errors.
- Integration Capabilities: Choose a solution that integrates seamlessly with your existing HR and accounting systems.
- Scalability: Ensure the software can grow with your business, accommodating increasing employee numbers and expanding payroll needs.
- Customisation Options: Opt for a platform that allows customisation of payroll items and formulas to match your business’s unique requirements.
Is payroll software secure?
Most payroll software solutions, such as Workstem, use encryption and cloud storage to ensure data security. They also offer role-based access controls to protect sensitive information from unauthorised access.This ensures that your payroll data remains secure and compliant.
How can I get started with Workstem?
To get started with Workstem, you can:
- Sign Up for a Free Trial: Many users find it helpful to try Workstem before committing.Sign up for a free trial to explore its features.
- Request a Demo: Schedule a demo to see Workstem in action and understand how it can benefit your business.
