Payroll software

What Is Payroll Software?

Payroll software is a digital solution that automates and streamlines the process of calculating employee wages, managing tax withholdings, superannuation, generating payslips, and lodging reports with government agencies. It plays a critical role in helping Australian businesses remain compliant with regulations like the Fair Work Act, Single Touch Payroll (STP), and superannuation guarantee obligations.

Designed for businesses of all sizes, payroll software reduces manual errors, saves time, and ensures employees are paid accurately and on time.

Core Features of Payroll Software

The best payroll software solutions in Australia typically offer the following capabilities:

• Automated Pay Calculations
  Calculates gross pay, tax deductions (PAYG), superannuation, leave entitlements, and net pay based on timesheets and award rules.
• Award Interpretation
  Automates compliance with complex Fair Work awards or enterprise agreements, ensuring accurate payment for penalties, overtime, allowances, and minimum wage.
• Payslip Generation and Delivery
  Creates compliant payslips and delivers them to employees via secure portals, email, or apps.
• Leave and Entitlement Tracking
  Tracks annual leave, sick leave, long service leave, and other entitlements based on hours worked.
• STP Integration
  Automatically sends payroll data to the ATO each pay cycle under Single Touch Payroll Phase 2 requirements.
• Superannuation Payments
  Integrates with super clearing houses (e.g. Beam) to make on-time contributions in line with Payday Super obligations.
• Reporting and Compliance
  Generates payroll summaries, tax reports, leave accruals, super reports, and audit trails to assist with end-of-year financials and BAS preparation.
• Employee Self-Service (ESS)
  Allows employees to access payslips, manage bank/super details, view leave balances, and update personal info online.
• Payroll Journal Integration
  Syncs with accounting software like Xero, MYOB, or QuickBooks to streamline bookkeeping.

Benefits of Payroll Software for Australian Businesses

1. Compliance Assurance

Australian workplace laws and tax rules are complex and constantly evolving. Payroll software helps employers stay compliant with:

• Fair Work award conditions
• Minimum wage updates
• STP reporting obligations
• Superannuation rules
• Leave entitlement accruals

2. Time Savings

Manual payroll processing is time-consuming and error-prone. Automated payroll drastically reduces admin hours, especially for growing teams.

3. Accuracy

Prevents overpayments or underpayments by using real-time data from integrated timesheet software, ensuring accurate wage calculations.

4. Improved Employee Satisfaction

Timely and correct pay builds trust and engagement. Features like self-service access to payslips, leave balances, and job history foster transparency.

5. Scalability

From small businesses to national enterprises, modern payroll systems can scale to handle complex rosters, multiple job roles, and award conditions.

Microkeeper: Payroll Software Built for Australian Employers

At Microkeeper, we offer a powerful all-in-one HR, Payroll, and Rostering solution designed specifically for Australian businesses. Our payroll platform includes:

• Award-compliant payroll engine for retail, hospitality, trades, and more
• Integrated timesheets and biometric time clocking (e.g. Facial Recognition)
• Automated super contributions via Beam
• Seamless STP Phase 2 reporting
• Mobile access and employee console

Explore our Payroll Software Features to learn how we simplify compliance and boost efficiency.

Choosing the Right Payroll Software

When evaluating payroll software for your business, consider the following:

FAQs About Payroll Software

Is payroll software mandatory in Australia?

‍No, but using ATO-compliant payroll software is highly recommended, especially for STP reporting and superannuation compliance.

What’s the difference between payroll software and accounting software?

‍Payroll software focuses on employee wages, taxes, and leave. Accounting software handles general business finances. Some systems (like Microkeeper) integrate with both.

Can payroll software calculate leave accruals?

‍Yes. Quality software tracks leave in real-time and automatically accrues entitlements based on employee work hours and classification.

Is payroll software suitable for contractors or freelancers?

‍Some platforms, including Microkeeper, support contractor payments, ABN recording, and GST-inclusive billing.

Final Thoughts

Payroll software is more than a tool, it’s a strategic investment in your business’s compliance, efficiency, and employee experience. Whether you're running payroll weekly, fortnightly, or monthly, the right software can save time, reduce risk, and help your business grow with confidence.

Microkeeper's payroll software is designed for the unique demands of Australian employers. From automation and award compliance to STP reporting and leave management, it's everything you need in one platform.

_{Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Please consult a qualified professional for guidance tailored to your business.}