8 Best Payroll Software for Small Businesses in Australia (2025)

In Australia, there are many complicated labour laws. And these can be a real nightmare for small businesses, especially when it comes to payroll. Businesses need to have a full grasp of them so they can get payroll right and process it on time to avoid any penalties.

Thankfully, payroll software can make the whole process a lot easier. It can reduce the risk of manual errors and help your business stay on the right side of compliance. For small businesses, payroll software can really change the game.

In this article, we provide a detailed overview of payroll software for small businesses. We explain why it's important and list some of the best payroll software solutions out there. We also share some pro tips to help you select the right payroll software for your business.

Note: The information provided in this article is accurate as of 08/01/2025

The importance of payroll software for small businesses 

Payroll management is intricate and can create many challenges for small businesses. It involves many tedious tasks. And each task requires accurate execution, as harsh penalties can apply for non-compliance. 

Below, you can find some of the key payroll challenges small businesses experience. You can also review how payroll software helps overcome these challenges.

Staying on the right side of Australian labour laws

Australia has a web of intricate and rapidly transforming labour laws. So, businesses need to fully understand the National Employment Standards (NES) and Modern Awards. This can cause confusion and consume a lot of time for small businesses.

Solution: Payroll software takes a lot of the guesswork out of the equation. It can enhance the accuracy of tax filing and super contributions. And it can also help businesses adhere to the national minimum wage and award pay rates.

Time-consuming payroll processing

Effective payroll management comes with an extensive to-do-list. Businesses need to calculate employees' wages, entitlements, and deductions. This is something they must do each pay period. Doing each of these tasks manually uses up considerable time. This is time that businesses could otherwise spend on strategic growth initiatives.

Solution: Innovative payroll software enables businesses to manage their payroll processes efficiently. It can put wage calculations, pay runs, and payroll report generation on autopilot. This can save a lot of time and lighten the administrative load.

Risk of errors

The sheer complexity of Australia's payroll landscape is error inducing. Add manual payroll processing to the mix and the risk of errors increases. The Fair Work Ombudsman and Australian Taxation Office (ATO) don't take lightly to payroll inaccuracies. A simple miscalculation can mean errors in wages, taxes, or super contributions. This can lead to penalties, fines and unhappy employees.

Solution: Businesses can decrease typical payroll errors by using payroll software. Good payroll software typically offers built-in checks and precise calculations. This can help businesses maintain compliance and safeguard employee satisfaction.

Coping with expansion

As businesses expand, so do their payroll needs. With a growing workforce comes an increasingly complex payroll. For small businesses transitioning to expansion, this can be difficult to manage.

Solution: The right payroll software can grow alongside the business. It can accommodate new employees, different locations, and evolving payroll requirements.

8 best payroll software 

Here's a detailed review of some of the best payroll solutions available in Australia for small businesses. Each review includes a breakdown of key features, pros, and cons. 

1. Rippling

Rippling delivers an all-in-one, cloud-based HR and payroll platform. It's built on a single source of truth and can deal with the complexities of Australian payroll with ease. Beyond payroll and HR, it integrates with IT and finance functions. Its versatility makes it an excellent choice for businesses of all sizes. Especially those that seek to manage their workforce in one unified system.

Key features

• Compliance automation: Rippling can calculate award rates, tax, and superannuation contributions automatically.
• Customisable pay runs: The platform offers endless customisation and configurability. It also supports all workers, from full-time, part-time, and casual employees, to contractors.
• Time tracking sync: Rippling's time tracking feature syncs with its payroll function. This ensures accurate pay calculations for ordinary hours worked, overtime, or specific projects.
• Global payroll: With Rippling, businesses can pay employees and contractors in many countries. The platform helps businesses maintain compliance with local labour laws in each region.
• Benefits administration: The platform makes managing employee benefits simple. Its centralised system merges benefits management with payroll.
• Smooth integration: The platform integrates with more than 600 third-party applications. This includes accounting software like Xero and QuickBooks.
• Employee self-service: Employees can serve themselves in a secure, user-friendly, and mobile interface. They can access their payslips, update their personal details, and manage their leave.

Pros

• Rippling offers a total HR and workforce management system, without silos. It incorporates HR, IT, Spend, as well as payroll functions, all in one place.
• The platform offers innovative tools for automation. Businesses can run accurate payroll in minutes with a few clicks.
• Rippling provides a scalable payroll solution. It can adapt and grow alongside businesses of all sizes.

Cons

• Rippling's modular pricing can mean that extra features may increase costs.
• The platform requires internet connectivity for most functionalities.

2. BambooHR

BambooHR provides a workforce management solution. It merges critical HR functions with basic payroll capabilities in a single system. It focuses on ease-of-use and contributes to employee engagement through thoughtful features.

Key features

• Automates routine payroll processes: BambooHR's payroll solution automates many payroll tasks. These can include calculating withholdings, filing taxes, and processing direct deposits.
• Time tracking: The platform enables employees to record the hours they work in the app. These hours automatically sync with payroll for accurate wage calculations.
• Benefits administration: BambooHR centralises the enrollment of employee benefits. Employees can review and manage their benefits elections in one place.
• Employee self-service: The platform provides a secure self-service platform. Employees can access their payslips, update their personal details, and lodge leave requests.
• In-depth payroll reporting: BambooHR offers over 100 standard reports. Businesses can use these to track payroll costs, taxes, deductions, and time off accruals.

Pros

• BambooHR offers an easy-to-navigate user interface that's typically without a steep learning curve.
• The platform keeps things simple for small businesses. It offers basic payroll functionality and a few HR tools. These include things like onboarding and performance management.
• BambooHR offers some unique, thoughtful features. For example, it links paid leave requests to Google calendar.

Cons

• The simplicity of BambooHR's payroll tools means it lacks more in-depth features. For instance, it doesn't offer award interpretation or comprehensive compliance automation.
• BambooHR may have limited scalability for businesses with complex or global payroll needs.
• The platform has few features tailored to Australian labour laws.

And each task requires accurate execution, as harsh penalties can apply for non-compliance. 

3. MYOB

MYOB offers payroll and accounting solutions with a focus on small Australian businesses. It emphasises integration. This enables businesses to manage payroll in cohesion with their existing workflows.

Key features

• Automated payroll: MYOB puts major payroll functions on autopilot. These include tax calculations, super contributions, and annual leave accruals.
• STP compliance: Businesses can generate their STP reports and submit them directly to the ATO. This includes payroll data, like wages, tax, and superannuation.
• Employee onboarding: MYOB streamlines information collection from new hires. A secure online form allows employees to input tax, bank, and super details.
• Timesheets and scheduling: The platform helps businesses create rosters and manage time tracking. The data from these systems syncs with payroll for accurate wage calculations.
• Leave management: Employees can track their annual leave balances and lodge leave requests. Managers can review and approve these requests through a unified system.

Pros

• MYOB offers payroll software with a local focus. Its features can help businesses align with Australian payroll regulations.
• The platform offers a comprehensive financial management solution. Businesses can access payroll and accounting capabilities within a single platform.
• MYOB can integrate with existing business workflows. This can minimise disruption.

Cons

• MYOB focuses on payroll and accounting rather than providing a unified HR solution.
• MYOB may have scalability limits for complex payroll or global expansion plans.
• Some users report MYOB's interface feels dated compared to other payroll systems.

4. Elmo

ELMO is a flexible and scalable cloud-based HR and payroll platform. It caters to businesses with a broad range of workforce management requirements. The platform's payroll solution merges with the general ELMO suite. As such, it can handle onboarding, leave management, and compliance in a single system.

Key features

• Unified cloud-based payroll: ELMO’s payroll system merges with its HRIS platform. This means that onboarding and leave data transfers directly to payroll for processing.
• Compliance management: ELMO helps businesses follow Australian regulatory requirements. It facilitates STP Phase 2 reporting, SuperStream compliance, and ABA bank file integration.
• Employee self-service: Employees can track their leave balances and lodge leave requests. The platform also enables managers to review and approve these requests.
• Customised reporting: Businesses can generate detailed reports with ELMO's reporting tools. For example, audit reports, variance analyses, payroll tax data reports, and compliance insights.
• Attendance and roster management: ELMO supports time tracking and roster creation and management. These tools merge with payroll, ensuring accurate pay calculations.

Pros

• ELMO offers a comprehensive employee management system. Its payroll software forms part of a full-suite of HR products.
• The platform offers advanced compliance tools that focus on Australian regulatory requirements.
• ELMO can offer flexibility. It can scale and adapt as businesses grow or evolve.

Cons

• Small businesses with basic needs may find ELMO too comprehensive and complex.
• Some users say that ELMO’s interface feels unintuitive. This can make it difficult to locate specific features or complete tasks with ease. 
• ELMO's pricing structure may not be cost-effective for small businesses. This is especially true for those only requiring payroll functions.

5. Gusto

Gusto aims to simplify workforce management with its payroll and HR platform. It can help businesses with payroll management, benefits administration and basic HR functions. It does this through automation and a range of easy-to-use tools.

Key features

• Payroll automation: Businesses can calculate taxes and deductions, and generate pay runs automatically. The platform takes care of direct deposits and keeps payroll records.
• Time and attendance tracking: Employees can track their working hours within the platform. Gusto's time tracking app syncs with payroll to calculate pay.
• Employee benefits administration: Businesses can process and track employee benefits within the platform. These may include health insurance and other employee perks.
• Self-onboarding: Employees can enter their personal, tax, and bank details into the system. This feature eliminates the need for manual entry by employers.
• HR tools: Businesses can manage employee records, track performance, and handle job applications. The platform integrates these tools with the payroll system, centralising workforce data.

Pros

• Many users report that Gusto offers a simple user interface that's easy to navigate. This can make payroll and HR processes easier for non-experts.
• Gusto offers scalable subscription plans that support extra employees and growing payroll needs.
• The time to implement Gusto is usually short.

Cons

• There are some vital tools that businesses can only access on Gusto's most expensive plan. One of these tools is compliance alerts.
• The platform is available to Australian businesses, but it focuses on US-based businesses. This can mean limited functionality, especially with payroll compliance.
• Gusto’s mobile payroll app is mostly useful for employees, not employers.

6. foundU

foundU is a payroll solution built for Australian businesses. It addresses the intricacies of local labour laws. foundU fuses payroll with onboarding, rostering, and time tracking.

Key features

• Award interpretation and pay rules: foundU offers an award interpretation engine. It automates wages, overtime, and entitlement calculations in alignment with Australian workplace regulations.
• Integrated workforce tools: The platform incorporates onboarding, rostering, attendance, and payroll tools. This means that workforce data flows into payroll for accurate pay calculations.
• STP compliance: foundU automates STP reporting. It sends salaries, wages, PAYG, and superannuation details straight to the ATO.
• Leave management: Businesses can manage leave requests through a centralised portal. It reflects leave approvals or rejections in payroll and rostering.
• Scalability: foundU aims to grow with businesses. They can add team members and locations while maintaining a unified payroll structure.

Pros

• foundU merges payroll and workforce management into a single system. This eliminates the need for several systems.
• foundU caters to Australian businesses. It offers in-built compliance tools like award interpretation and STP automation.
• Users report that the company offers accessible customer support.

Cons

• The mobile app needs an internet connection to function. This can limit its usability in areas with poor connectivity.
• The platform offers extensive options for configuration. This can be overwhelming for some small businesses who don't have a dedicated HR team.
• For some users, the reporting feature can feel clunky and unintuitive. This can make it challenging for them to generate custom reports.

7. QuickBooks

Powered by Employment Hero, QuickBooks Payroll offers cloud-based payroll software. It integrates with QuickBooks Online, providing key payroll features alongside accounting functions. The platform generally targets small to medium businesses looking to simplify payroll.

Key features

• Automated payroll: QuickBooks Payroll automates pay runs. This includes calculating tax, super contributions, and termination payments.
• STP compliance: The platform helps businesses adhere to ATO regulations. It automates STP reporting, which includes wages, PAYG withholding, and superannuation.
• Employee self-service: QuickBooks payroll offers an integrated EH Work app. Employees can access their payslips, submit leave requests and manage their timesheets.
• Built-in award interpretation: QuickBooks automates Modern Award interpretation. But, this feature is only available on the platform's advanced payroll plan.
• Scheduling and time tracking: Businesses can manage rosters and shifts. They can also track employee hours. Data from these systems syncs with payroll for accurate wage calculations.

Pros

• The platform offers a range of plans. Businesses can start with basic payroll features and upgrade as their requirements develop.
• Many users appreciate QuickBooks' easy-to-use interface. This can make it easier for those without prior experience to manage payroll tasks.
• The platform offers deep integration with QuickBooks Online and QuickBooks Time.

Cons

• QuickBook's post-payroll wrap-up process may lack efficiency. Some users report limitations in reconciling and reviewing payroll data after pay runs.
• Businesses needing extensive HR features or extensive integrations may need extra tools.
• Some small businesses may find QuickBooks' pricing high for the features it provides.

8. ADP Payline

ADP Payline is a cloud-based payroll solution. The platform offers compliance features, secure data management, and an employee self-service portal. It helps businesses conduct their payroll processes while adhering to Australian employment laws.

Key features

• Payroll automation: ADP Payline automates payroll calculations. This includes PAYG tax, superannuation contributions, and other statutory deductions.
• Customisable pay schedules: Businesses can create and manage flexible pay runs. The platform accommodates various payroll frequencies (i.e., weekly or monthly).
• STP compliance: The platform integrates with the ATO for STP reporting. It populates employee income statements within MyGov.
• Employee self-service: ADP Payline provides a secure, mobile-enabled self-service portal. Employees can access payslips, update their personal details, and track their leave balances.
• Onboarding integration: The platform enables employees to input their information into the system. This information pre-populates forms and routes data to payroll, supporting the onboarding process.

Pros

• ADP Payline offers customisable features. It also offers add-ons that allow businesses to scale the platform as needed.
• The platform caters to Australian businesses. It offers compliance tools for PAYG, superannuation, and STP reporting.
• Its intuitive design facilitates easy navigation and efficient payroll processing.

Cons

• ADP Payline lacks broader HR tools, such as performance management or recruitment features. As such, businesses may need to use extra systems.
• Employers may find mobile capabilities limited for payroll tasks.
• Configuring ADP Payline to fit specific needs may take considerable time.

Key features to look for in small business payroll software

There are some important features to look for when shopping for payroll software. You can find some of them, below:

Compliance

Australian businesses have to navigate extensive and tricky labour laws. Because of this, an important consideration is a payroll software's compliance capabilities. Make sure it can help with PAYG tax, super contributions, and STP reporting. There are over +100 Modern Awards in Australia. So, payroll software that has built-in award interpretation is key! Payroll software that automates these processes can support your business's compliance efforts.

User-friendly interface

Your payroll software should make it easier for your business to process payroll. The software's interface can play a big role in this. If it's too complex to use, it can take ages to implement and create a steep learning curve for your team. This can result in frustrations and also low adoption rates. Consider software that lets your team complete payroll tasks with minimal steps. It should offer clear navigation and provide helpful prompts along the way.

Integration capabilities

The payroll software you choose should work well with your existing tools. For instance, say you use Xero for accounting. It's helpful if your payroll software can 'talk to' your accounting software. And without things getting lost in translation! When payroll data flows well between the platforms, you can reduce the risk of errors and save time.

Scalability 

Opting for payroll software that can grow with your business is essential! Otherwise, if your business has a growth spurt, a payroll system overhaul may be on the cards. Favour payroll systems that won't sweat over changing payroll needs. These changes may come about because of a growing workforce or new locations.

Real-time syncing

Prioritise payroll software with real-time data transfer. For example, say a manager approves an employee's annual leave request. Real-time syncing means that this information flows to the payroll system without prompting. This means that their next pay run will include an accurate leave balance. This feature can give you peace of mind that data is up-to-date across systems.

Customisability

No two businesses have identical payroll needs. So, it's important to choose payroll software that's customisable. This flexibility means you can mould it to your business' specific requirements. Consider software that lets you create custom pay types, like bonuses or overtime. It's also helpful if it gives you the freedom to configure pay schedules and set rules. It's also helpful if it gives you the freedom to configure pay schedules and set rules.

Employee self-service

Payroll software that enables employees to 'help themselves' can offer many benefits. For example, self-service portals can give employees access to their payslips. It can allow them to update personal details and submit leave requests. This level of accessibility can save time for both employees and administrators. A byproduct of this convenience is job satisfaction.

How to choose the best payroll software

There's more to choosing payroll software than accessing product features. There are also important internal factors to consider. Here are some of them:

• Payroll priorities: Be clear about what your business's core payroll needs are. They may be compliance and automation, or they could be scalability and integrations.
• Your team’s structure: Consider how big your team is and what the composition of your workforce. For instance, does it hire mostly employees or contractors?
• Industry requirements: The industry your business operates in can shape your payroll requirements. For example, construction businesses might need payroll software to have job-costing capabilities.
• Budget: Consider how much your business can invest in payroll software. Then take a holistic approach to determining payroll software costs. This can include accounting for potential add-ons or scalability costs.
• Involve your team: Choosing payroll software should be a team effort. Get input from your HR, finance, and IT teams. This helps you know about critical needs and can encourage smooth adoption of the new system.

Automate payroll with Rippling

Rippling is an all-in-one workforce management platform. It combines HR, Payroll, IT, and Spend into a single system. Built on a single source of truth, it ensures employee data accuracy across all systems. With Rippling, you can hire, pay, and manage employees and contractors in Australia and around the world.

Rippling makes complex payroll easy, all while maintaining a 100% error-free guarantee. It empowers you to run payroll accurately, on time, every time. Rippling eliminates manual work and puts compliance tasks on autopilot. The best part? It's fully customisable. So it adapts to your business—not the other way around. You can customise pay types, pay schedules and reports. You can even run off-cycle payrolls at zero extra cost!

Rippling automates important and repetitive processes. These include award pay rates, PAYGW calculations, STP2 submissions, and super contributions. The result? Payroll takes minutes instead of days. It connects payroll with other essential functions. These include expense management, time tracking, and approved time-off syncing. This means less human error and unbeatable accuracy.

And that's just the tip of the iceberg. With Rippling, the world is your oyster. It has scalable global capabilities. Rippling's employer of record (EOR) services help you maintain compliance across many jurisdictions. Then there's the integration with over 600 apps, including Xero, QuickBooks, and NetSuite. Aligning payroll with your existing workflows has never been easier.

With Rippling, you can accelerate every part of your business. Whether you're an Australian team of two or a global team of 2,000, Rippling has you covered.

Payroll software FAQs

Which payroll software is best for payslips?

There are several providers of payroll software that have comprehensive payslip capabilities. For example, Rippling offers compliant payslip templates. You can customise these templates to suit your business. Employees can also access their payslips independently through Rippling's secure self-service portal.

How do I set up payroll in Australia?

First, you need to apply for an Australian Business Number (ABN). You may also need to register for Goods and Services Tax (GST). Next, you need to register for PAYG withholding and a Tax File Number (TFN). Once you complete these steps, it's time to open a business bank account. Now, you can collect information from your employees to start paying them. You can either do this manually, or via payroll software.

How secure is payroll software?

Generally, payroll software is secure. For example, Rippling uses encryption and cloud storage. It also offers role-based access controls. This can help you protect sensitive payroll data from unauthorised access.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.