Make the right choice: What to look for in a new payroll system
Selecting the right payroll system is crucial for ensuring compliance, improving efficiency, and supporting long-term business growth. A modern payroll system should go beyond basic pay processing — it must meet key compliance requirements like Single Touch Payroll (STP) reporting, Superannuation Guarantee (SG) obligations, and award interpretation under FairWork laws. It should also integrate seamlessly with your existing finance, HR, and time and attendance systems, while offering automation features to reduce manual work. Choosing a scalable and flexible payroll system will save time, minimise risk, and position your organisation for future success. Let’s explore the essential features to look for when selecting your next payroll system.
Here are the essential considerations when selecting your next payroll system
Ensure the system supports up-to-date compliance with local legislation, such as:
- Single Touch Payroll (STP) reporting
- Superannuation Guarantee (SG) requirements (including Payday Super by July 2026)
- Award interpretation and FairWork compliance
Look for a payroll system that integrates smoothly with existing:
- Finance/accounting software
- HR/ Onboarding / Talent Management / CRM software
- Rostering/Time & Attendance System
- Superannuation Clearing House
Choose a solution that reduces manual work by automating:
- Overtime calculations
- Broken shift allowance and Sleepover disturbance
- Leave accruals and entitlements
- Multi contract award interpretations
Your system should grow with your business:
- The scope of scalability and flexibility
- Does it fit for your purpose
- Can it handle more employees or multiple locations
- Can it manage sub Entity pay groups
- In built BI tool
Ensure the platform is intuitive for both payroll administrators and employees:
- Simple dashboard and reporting features
- Easy access to payslips, leave balances, and personal details update
- Multi-level user set up capability
- Efficient user experience with leave Portal
As payroll data is sensitive, verify security and data privacy:
- Secure data storage and encryption
- User access controls and audit trails
- Compliance with data privacy laws
Consider Customer support and Training:
- Availability and responsiveness of support
- Training resources or onboarding assistance
- Community forums or dedicated account managers
Assess the total cost and Benefit:
- Monthly or annual fees
- Additional charges for features, users, or updates
- ROI in terms of time saved and risk reduction
Selecting the right payroll system is a critical step toward ensuring compliance, improving operational efficiency, and positioning your business for sustainable growth. By carefully reviewing compliance features, integration capabilities, automation tools, scalability, security, and support services, you can make an informed decision when choosing a solution that meets your needs today and into the future.
Need help selecting or switching to a new payroll system?
We’re here to help you select the right payroll system and ensure a smooth transition. Contact us today to discuss your needs and discover how we can support you in making the right choice for your business.