Top 10 Payroll Software Solutions for Small Businesses in Australia

Managing payroll is a critical aspect of running a small business, yet it can be time-consuming and complex—especially when ensuring compliance with Australian tax regulations and employment laws. 

Payroll software simplifies the process, automating tasks such as calculating wages, withholding taxes, and generating payslips, allowing business owners to focus on growth rather than administrative burdens.

In this article, we’ll explore the top 10 payroll software solutions designed specifically for small businesses in Australia. Each software platform offers unique features that make payroll processing faster, more accurate, and compliant with local regulations. 

Let’s dive into these payroll solutions and find out which one is the best fit for your business.

Why Payroll Software is Essential for Small Businesses in Australia?

Payroll software provides several advantages for small businesses, from saving time and reducing human error to ensuring compliance with Australia’s tax and superannuation requirements. Here’s why payroll software is indispensable for small businesses:

• Automates Payroll Processing: Payroll software handles complex calculations, automating tasks such as gross-to-net calculations, tax deductions, and super contributions.
• Ensures Compliance: With automatic tax updates and reporting tools, payroll software ensures you stay compliant with the Australian Tax Office (ATO) and other regulatory requirements.
• Improves Accuracy and Reduces Errors: Automated calculations reduce the risk of errors that can lead to costly fines and penalties.
• Saves Time: By automating payroll tasks, software frees up valuable time that can be spent on other business priorities.

Let’s take a closer look at the 10 best payroll software options available for small businesses in Australia.

1. Xero Payroll

Xero is a well-known accounting platform that also offers comprehensive payroll features specifically designed for small businesses. With Xero Payroll, you can automate tax calculations, streamline leave management, and provide employees with an easy-to-use self-service portal.

• Automatic Tax and Super Calculations: Xero Payroll automatically calculates PAYG tax and super contributions, helping businesses remain compliant.
• Employee Self-Service: Employees can access payslips, submit leave requests, and update personal details through the Xero app.
• Integration with Xero Accounting: Xero Payroll integrates seamlessly with Xero Accounting, providing a unified financial solution.

How Xero Payroll Works

Xero Payroll allows businesses to process payroll, manage leave, and calculate taxes from a single platform. Automatic PAYG tax and super contributions are updated regularly, ensuring compliance with ATO requirements. The software’s employee portal empowers employees with access to payslips and leave management, reducing administrative work for employers.

2. MYOB Essentials Payroll

MYOB Essentials is a popular choice among Australian businesses for its user-friendly interface and payroll capabilities. MYOB Essentials Payroll offers simplified payroll management, automatic tax updates, and a streamlined superannuation process.

• Single Touch Payroll (STP) Compliance: MYOB Essentials Payroll is compliant with STP reporting, making it easy to submit payroll information directly to the ATO.
• Automated Super Payments: The software handles super contributions automatically, ensuring compliance with government regulations.
• Employee Self-Service Portal: Employees can access payslips, request leave, and view their personal information.

How MYOB Essentials Payroll Works

MYOB Essentials Payroll provides a simple interface for managing payroll, super, and taxes. It ensures compliance with Australian regulations through features such as STP and automatic tax updates. The self-service portal also gives employees access to payslips and personal data, reducing the burden on HR staff.

3. QuickBooks Online Payroll

QuickBooks Online is a versatile accounting tool that includes comprehensive payroll features tailored for Australian small businesses. QuickBooks Online Payroll provides tax and super calculations, seamless payroll processing, and integration with QuickBooks Accounting.

• Automatic Payroll and Tax Calculations: The software calculates taxes, deductions, and super contributions automatically.
• ATO Compliance: QuickBooks Online Payroll meets Australian compliance requirements, including Single Touch Payroll.
• Flexible Payment Options: Payroll can be processed weekly, biweekly, or monthly, offering flexibility for businesses.

How QuickBooks Online Payroll Works

QuickBooks Online Payroll simplifies payroll by automating tax calculations and reporting. It integrates directly with QuickBooks Online Accounting, allowing businesses to manage payroll and financials from one platform. The software’s compliance features ensure that tax and super contributions are up-to-date.

4. Reckon One Payroll

Reckon One is a cost-effective accounting software that includes payroll functionalities for Australian businesses. Its modular pricing allows small businesses to add payroll features without the need for a full accounting suite, keeping costs low.

• Affordable and Scalable: Reckon One’s modular pricing makes it one of the most affordable payroll solutions.
• Single Touch Payroll Compliance: Reckon One ensures STP compliance, allowing direct reporting to the ATO.
• Basic Payroll Features: Ideal for small businesses needing straightforward payroll processing.

How Reckon One Payroll Works

Reckon One Payroll is suitable for small businesses looking for a simple and budget-friendly payroll solution. The platform offers basic payroll functionalities, including pay calculations and tax compliance, and it integrates with the broader Reckon accounting suite.

5. Employment Hero Payroll

Employment Hero Payroll, formerly known as KeyPay, provides payroll automation with a strong focus on employee self-service and compliance. It is designed for small businesses aiming to streamline payroll management and enhance employee experience.

• Automated Payroll Processing: Employment Hero Payroll automates payroll tasks, including tax calculations and payslip generation.
• Employee Self-Service Portal: Employees can access their payroll details, request leave, and view payslips online.
• Compliance with Australian Regulations: The software meets ATO requirements, including Single Touch Payroll compliance.

How Employment Hero Payroll Works

Employment Hero Payroll simplifies payroll processing with automated calculations and employee self-service. Employees can access their information directly, reducing the workload on HR teams. The software also ensures compliance with tax and superannuation requirements.

6. Zoho Payroll

Zoho Payroll offers a comprehensive suite of payroll features, including tax calculations, time tracking, and employee self-service. Known for its affordability and flexibility, Zoho Payroll is ideal for small businesses that need a reliable payroll system.

• Automatic Tax and Compliance Updates: Zoho Payroll stays up-to-date with Australian tax laws and superannuation requirements.
• Employee Portal: Employees can access payslips, submit leave requests, and view tax forms.
• Integration with Zoho Ecosystem: Zoho Payroll integrates seamlessly with other Zoho products, including Zoho People and Zoho Books.

How Zoho Payroll Works

Zoho Payroll automates payroll calculations and tax compliance while offering a user-friendly interface. It integrates with Zoho’s suite of products, allowing businesses to manage payroll, HR, and accounting seamlessly. The employee self-service portal further streamlines payroll management.

7. Payroller

Payroller is a cost-effective, user-friendly payroll software designed for small Australian businesses. It offers straightforward payroll features, including Single Touch Payroll (STP) compliance and a basic employee portal, making it a simple yet effective tool.

• Affordable Pricing: Payroller is one of the most budget-friendly options for small businesses.
• STP Compliance: Payroller ensures compliance with ATO regulations, simplifying tax reporting.
• Easy-to-Use Interface: Designed with simplicity in mind, Payroller is intuitive for small business owners.

How Payroller Works

Payroller provides a simple platform for processing payroll, ensuring ATO compliance through STP reporting. The software’s easy-to-navigate interface and affordability make it a popular choice among small business owners with limited payroll needs.

8. Sage Business Cloud Payroll

Sage Business Cloud Payroll offers reliable payroll services tailored for Australian small businesses. The software includes tax and compliance updates, pay processing, and reporting tools that make payroll management easy.

• STP Reporting: Sage Business Cloud Payroll is STP-compliant, providing peace of mind for small business owners.
• Easy-to-Use Platform: The platform’s interface is designed for ease of use, making payroll processing straightforward.
• Access to Sage’s Ecosystem: Sage Business Cloud Payroll integrates with Sage Accounting, offering a holistic financial management solution.

How Sage Business Cloud Payroll Works

Sage Business Cloud Payroll automates payroll processing, including tax and super calculations. It integrates with Sage Accounting, allowing small businesses to manage payroll alongside their other financial tasks.

9. ADP Payroll

ADP Payroll is known for its reliability and comprehensive features. It’s well-suited for small to medium-sized businesses that need advanced payroll functionalities, such as compliance tools, employee benefits, and reporting.

• Comprehensive Payroll Solution: ADP Payroll offers advanced payroll features, including automated tax calculations and employee benefits administration.
• STP Compliance: ADP Payroll meets ATO reporting requirements with ease.
• Strong Customer Support: ADP provides dedicated support, which can be valuable for businesses that need assistance.

How ADP Payroll Works

ADP Payroll provides a full-service payroll solution, managing tax calculations, compliance, and employee benefits. Its dedicated support ensures that small business owners have access to assistance whenever they need it.

10. Payworks Payroll

Payworks offers a flexible, easy-to-use payroll solution that ensures tax and superannuation compliance for Australian small businesses. It is particularly beneficial for those who prioritize customer support and affordable pricing.

• User-Friendly Interface: Payworks is known for its ease of use and quick setup.
• Automatic Tax Compliance: The software stays updated with ATO requirements, ensuring payroll compliance.
• Affordable for Small Businesses: Payworks offers competitive pricing that fits within small business budgets.

How Payworks Payroll Works

Payworks is designed for ease of use, providing a streamlined payroll process with tax and super compliance. It’s a suitable choice for small businesses needing a budget-friendly payroll solution.

Conclusion

Each payroll software solution on this list offers unique benefits for small businesses in Australia, from budget-friendly options like Reckon One and Payworks to more comprehensive solutions like Xero and ADP. 

By evaluating your business’s needs—whether it’s integration with accounting tools, STP compliance, or employee self-service portals—you can choose the payroll software that will simplify your payroll processes and improve overall efficiency.

By investing in the right payroll software, small businesses in Australia can save time, reduce errors, and ensure compliance, ultimately freeing up more time to focus on growth and success.