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
- Time Savings
Payroll software automates repetitive admin tasks, freeing up hours each week that would otherwise be spent on manual data entry or reconciliations. - Accuracy and Compliance
Built-in tax tables, award rules, and super calculations reduce the risk of underpayments or legal non-compliance. - Reduced Costs
Automating payroll can reduce reliance on external accountants or bookkeepers, and minimises costly errors. - Improved Record Keeping
All payroll data is stored in one secure system, simplifying audits, employee queries, and EOFY reporting. - 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.
