Software & Technology

Payroll management software

What Is Payroll Management Software?

Payroll management software is a digital solution designed to automate and streamline the process of calculating and distributing employee wages. It handles critical tasks such as gross-to-net pay calculations, tax withholding, superannuation contributions, leave accruals, payslip generation, and compliance with local labour laws like the Fair Work Act 2009 and ATO regulations.

In Australia, payroll software must also support Single Touch Payroll (STP) reporting, Fair Work-compliant award interpretation, and integration with super clearing houses. For businesses of all sizes—especially those with hourly workers, contractors, or complex rosters—payroll software is a vital tool to ensure accuracy, reduce admin, and maintain compliance.

Key Features of Payroll Management Software

Modern payroll solutions offer a wide range of capabilities to support employers:

  • Automatic wage calculations: Includes overtime, bonuses, and penalty rates.
  • Award interpretation: Applies complex pay rules in line with industry awards.
  • Payslip generation: Sends digital payslips to employees automatically.
  • Tax compliance: Calculates and reports PAYG withholding to the ATO.
  • Superannuation management: Automates contributions and integrates with platforms like Beam or other clearing houses.
  • Leave accruals: Automatically tracks personal, annual, and long service leave.
  • Employee self-service (ESS): Empowers employees to view payslips, update bank details, and request leave online.
  • Payroll journal exports: Integrates with accounting software such as Xero, MYOB, or QuickBooks.
  • STP reporting: Ensures ATO compliance with real-time payroll reporting.

Explore Microkeeper's Payroll Software Features

Benefits of Payroll Software for Employers

  1. Time Savings
    Payroll software automates repetitive admin tasks, freeing up hours each week that would otherwise be spent on manual data entry or reconciliations.
  2. Accuracy and Compliance
    Built-in tax tables, award rules, and super calculations reduce the risk of underpayments or legal non-compliance.
  3. Reduced Costs
    Automating payroll can reduce reliance on external accountants or bookkeepers, and minimises costly errors.
  4. Improved Record Keeping
    All payroll data is stored in one secure system, simplifying audits, employee queries, and EOFY reporting.
  5. Employee Satisfaction
    Timely and accurate payments build trust. Plus, with self-service features, employees feel empowered and informed.

Choosing the Right Payroll Software in Australia

When selecting a payroll management solution, Australian businesses should look for:

  • ATO and STP Compliance
    Confirm the provider is registered with the ATO and supports STP Phase 2 reporting.
  • Award Interpretation Capabilities
    Especially important for industries like hospitality, retail, or healthcare that follow modern awards.
  • Integration with Rostering and Timesheets
    A system that connects with your employee scheduling and time tracking processes provides a seamless workflow.
  • Scalability
    Whether you have 5 or 500 employees, the system should grow with your business.
  • Security & Support
    Ensure the software uses data encryption and offers support from local payroll experts.

Payroll Software in Action: How Microkeeper Helps

Microkeeper’s all-in-one payroll platform is designed specifically for Australian businesses. It goes beyond basic payroll to offer a fully integrated system that includes:

  • Award-compliant calculations
  • Automated super payments via Beam
  • STP Phase 2 compliance
  • Built-in rosters, timesheets, and HR onboarding
  • Employee self-service console
  • Instant payroll journal exports to major accounting platforms

Microkeeper is ideal for businesses in industries with complex pay conditions and fluctuating rosters, such as retail, hospitality, construction, and healthcare.

Common Challenges Solved by Payroll Software

Challenge Payroll Software Solution
Miscalculating super or PAYG Automated compliance with ATO rules
Late payslips Auto-generated, employee-accessible payslips
Award misinterpretation Real-time award engine with built-in rules
Time theft or manual timesheets Linked clock-in/clock-out data for accurate payroll
Disorganised employee records Centralised HR and payroll documentation

FAQs About Payroll Management Software

Is payroll software mandatory in Australia?

While not legally required, it is highly recommended. With STP now mandatory for most employers, ATO-compliant payroll software is the easiest way to remain compliant.

Can small businesses use payroll software?

Absolutely. Many providers, including Microkeeper, offer flexible plans for small businesses with limited staff.

Does payroll software include super payments?

Yes. Most platforms integrate with a super clearing house to automate super contributions.

Final Thoughts

Payroll management software is more than just a convenience, it’s a cornerstone of efficient and compliant business operations. Whether you're looking to streamline pay runs, stay ATO-compliant, or give your employees a better experience, investing in the right payroll software can deliver long-term savings and peace of mind.

With Microkeeper, Australian businesses gain access to a powerful, integrated platform that takes the complexity out of payroll—so you can focus on growth, not admin.

Disclaimer: This glossary entry is intended for informational purposes only. For tax or legal advice, consult with a registered professional or the ATO.