8 Best Payroll Software for Australian Businesses in 2026

Paying employees accurately and on time involves more than calculating wages. Australian businesses also need to manage Pay As You Go (PAYG) withholding, Single Touch Payroll (STP) reporting, superannuation, and applicable employment awards. The right payroll software can simplify these responsibilities while reducing repetitive administrative work.

To find the best payroll software for Australia, I reviewed eight providers, from low-cost options for very small businesses to enterprise payroll platforms. Each stands out for a different reason.

Methodology

To identify the best payroll software for Australian businesses, I researched 14 providers:

• Xero Payroll
• MYOB
• QuickBooks Workforce
• Reckon
• CloudPayroll
• Payroller
• Employment Hero
• Tanda
• ADP Australia
• Rippling
• Dayforce
• Microkeeper
• ELMO
• Employment Innovations

I reviewed available product information, pricing, plan limitations, and integrations using official vendor websites and documentation. I also checked support for Australian payroll requirements, including STP, PAYG withholding, and superannuation processing, where relevant.

To compare the options, I looked beyond basic payroll processing capabilities, such as accounting integration, time tracking, workforce management, automation, and international payroll. I also consulted other Australian payroll software guides to identify potential gaps and verified important claims against official sources.

Then, I narrowed the 14 providers to eight recommendations based on their competitive strengths, limitations, and suitability for different business needs. I focused on where each product stands out, how it compares with similar solutions, and the trade-offs Australian businesses should consider before choosing a payroll system.

Best payroll software in Australia compared

Beyond basic payroll processing and STP reporting, the right software should help businesses manage everyday payroll tasks efficiently. Here’s a quick comparison of the tools that could make the biggest difference to your day-to-day work.

Xero Payroll: Best for integrated accounting and payroll

Xero Payroll is part of Xero’s cloud-based accounting platform. It handles Australian payroll calculations and reporting while keeping employee pay information connected to the business’s financial records. Business owners can manage payroll alongside their regular bookkeeping without maintaining a separate system for wage expenses.

The software supports different pay schedules and employee rates, automatic tax and leave calculations, and superannuation payments. Employees also get access to Xero Me, where they can check payslips, submit timesheets, and request leave from their phones.

Why I chose Xero Payroll

One reason Xero Payroll made my list is how it handles payroll accounting after employees have been paid. Payroll transactions automatically create the appropriate accounting entries, so wage expenses, tax withholding, and super liabilities are reflected in the books. This saves employers from having to transfer those figures manually when reconciling accounts.

Its integration also makes payroll costs easier to review alongside the rest of the business’s finances. An owner preparing monthly reports, for example, can see how wages affect expenses and cash flow without combining reports from separate applications. For businesses already using Xero, there’s also less software setup to worry about because payroll works within the accounting system they know.

The main limitation is cost. Xero Payroll can be a bit pricey, and the number of employees you can pay depends on the package. MYOB makes more sense for very small businesses that don’t need additional accounting software, while Reckon offers employee-count pricing tiers that may be easier to budget for as a team grows.

Pricing

Xero Payroll offers four plans:

• Comprehensive: $107 monthly; payroll covers up to five employees
• Ultimate 10: $143 monthly; payroll covers up to 10 employees
• Ultimate 20: $180 monthly; payroll covers up to 20 employees
• Ultimate 50: $250 monthly; payroll covers up to 50 employees

New clients can choose to get one month free or a discounted rate for the first three months.

Key features

• Flexible pay calendars: Set up weekly, fortnightly, or monthly pay schedules to match how employees receive wages.
• STP reporting: Send payroll information to the ATO as part of the pay process, including the details required under STP Phase 2.
• Xero Me: Let employees view payslips, enter timesheets, and manage leave requests without asking payroll administrators for copies.
• Automated superannuation: Calculate contributions and make supported super payments directly through Xero.
• Payroll reports: Review pay history, deductions, and employee liabilities when preparing records or checking previous pay runs.

Xero Payroll pros and cons

Need more financial management options? Read our list of the best accounting software for Australian businesses.

MYOB: Best for very small businesses needing standalone payroll

MYOB offers Australian businesses a straightforward way to pay up to four employees without purchasing a complete accounting system. Its standalone payroll software calculates wages, PAYG withholding, superannuation, leave entitlements, and overtime. Employers can also generate payslips and submit STP reports to the Australian Taxation Office (ATO).

New hires can enter their banking, tax, and superannuation details through MYOB’s online onboarding process, reducing paperwork for business owners. The software also allows employers to share access with an accountant or bookkeeper and control what information they can view or manage.

Why I chose MYOB

MYOB made my list because it offers affordable standalone payroll for businesses with only a handful of employees. A three-person business, for example, can calculate wages, manage deductions, and submit STP reports without paying for accounting tools it may already have elsewhere. Its monthly subscription also covers all four employees rather than charging a separate software fee for each person.

Another advantage is the amount of routine payroll work MYOB can handle automatically. It updates supported tax and payroll settings when legislation changes and calculates leave entitlements using the employee information in the system. MYOB can also flag certain unusual entries, such as unexpected leave amounts, giving employers an opportunity to review them before finalizing payroll.

However, its payroll-only tier’s four-employee limit leaves little room for businesses planning to expand. Reckon has larger payroll tiers, including one with unlimited employee capacity. Payroller may be a cheaper starting point for a business paying a single worker, provided its free mobile option meets the employer’s needs.

Pricing

For businesses looking for a standalone payroll tool, MYOB has a Payroll Only plan that costs $15 AUD monthly (inclusive of GST) and covers up to four employees.

Important note: Effective November 1, 2026, the MYOB Business Payroll Only plan will cost $20 AUD per month instead of $15.

Key features

• Automatic payroll calculations: Work out PAYG withholding, superannuation, and leave entitlements using supported payroll settings.
• Employee records: Store personal information and employment documents alongside payroll details for easier recordkeeping.
• Payroll adjustments: Correct employee pay details and review payroll reports when a payment needs to be amended.
• Payday Super support: Process contributions through MYOB Pay Super using the supported payment workflow.

MYOB pros and cons

Reckon: Best for growing companies wanting predictable payroll costs

Reckon offers Australian businesses a straightforward way to manage payroll without investing in a full HR platform. It handles wage calculations, PAYG withholding, superannuation, leave entitlements, and STP reporting. Employers can also process pay runs and access payroll records through its web and mobile apps.

Its employee-facing app, Reckon Mate, allows new hires to enter their banking, tax, and superannuation details directly into the system. Employees can also view payslips and leave balances without having to request this information from their payroll administrator. And similar to Xero and MYOB, it has an accounting module that connects easily with its payroll tool.

Why I chose Reckon

I chose Reckon for its employee-count-based pricing, which makes payroll software costs easier to forecast as a business grows. Unlike providers that charge for each employee, Reckon offers plans covering up to four, up to 10, or an unlimited number of employees. For example, a business expanding from five to 10 employees can stay on the same plan without paying additional subscription fees for each new hire.

However, Reckon may not be the best fit for businesses with complicated scheduling and pay rules. Tanda offers more advanced rostering and award interpretation tools for managing changing shifts and penalty rates. Xero Payroll, meanwhile, may appeal more to employers already using Xero’s accounting software who want to manage payroll alongside their financial records.

Pricing

With Reckon, you can choose from three payroll plans:

• Payroll Essentials: $16 AUD per month for up to four employees
• Payroll Plus: $32 AUD per month for up to 10 employees
• Payroll Premium: $60 AUD per month and supports unlimited employees

Key features

• Pay templates: Save recurring wage components to reduce setup work when preparing regular employee payments.
• Employee expense claims: Manage supported reimbursement requests and expenses, with invoicing-related capabilities available in eligible plans.
• Timesheets: Record employee hours for use in pay calculations.
• Payroll reporting: Check employee earnings, deductions, and liabilities when reviewing pay history or preparing records.
• Superannuation processing: Calculate contributions and access supported super payment services.

Reckon pros and cons

Payroller: Best for single-employee businesses

Payroller is an Australian payroll platform that lets employers calculate wages, manage deductions, and submit STP reports through a mobile app or web browser. It offers a limited free mobile option for eligible single-employee businesses, alongside paid subscriptions for employers with broader payroll requirements.

Employees can access payslips and payroll information through a separate app, reducing requests for copies of payment records. Businesses can also manage leave and add timesheet or rostering tools if they start employing workers with changing schedules.

Why I chose Payroller

Payroller earns a spot on my list because its free single-person mobile payroll option gives first-time employers a low-cost way to manage payday. A sole trader who hires one part-time assistant, for example, can calculate wages and submit STP reports without paying a recurring payroll subscription. This makes it appealing to businesses that don’t need an accounting package or a wider HR system.

Its support for Payday Super is another advantage. Payroller advertises one-click superannuation payments as part of its regular payroll workflow, helping employers manage contributions without preparing separate payment information each time. The platform also provides an audit trail for super transactions, making it easier to check payment activity if a question arises later.

The free option has restrictions, including the single-person requirement and mobile-only payroll access. Web payroll and additional workforce tools require a paid subscription, which also has a minimum monthly charge. MYOB is a better fit for businesses with two to four employees that want inexpensive standalone payroll, while Reckon offers more options for growing teams.

Pricing

Payroller has two plans:

• Lite: Free mobile option to run payroll for one employee
• Standard: $5.50 AUD per employee monthly; comes with a monthly minimum of $22

It also has a Timesheets and Rosters add-on, which costs $6 AUD per employee monthly.

Key features

• STP Phase 2 reporting: Lodge payroll information electronically and manage reporting through the pay-run process.
• Leave management: Track employee leave balances and requests for use when preparing wages.
• Payroll reports: Download summaries of earnings, deductions, super contributions, and previous payroll activity.

Payroller pros and cons

Tanda: Best for hospitality and retail businesses

Tanda combines scheduling, time tracking, and payroll to help Australian businesses manage employees with changing shifts and work hours. It supports STP reporting, superannuation processing, and wage calculations based on configured Modern Award conditions, including overtime, allowances, and penalty rates.

Managers can also use Tanda to fill vacant shifts, review employee availability, and approve timesheets before payroll. Its labour-cost tools show estimated staffing expenses while rosters are being prepared, helping businesses make scheduling decisions within their budgets.

Why I chose Tanda

Tanda stands out for helping hospitality and retail employers calculate wages under changing shift arrangements. For example, a restaurant employee working weekday and weekend shifts may qualify for different penalty rates and allowances. Tanda can apply the relevant award conditions to approved work hours, reducing the need to calculate each adjustment manually.

Its workforce management capabilities are another reason I chose it. Managers can see estimated labour costs while preparing rosters and make changes before publishing schedules. If an employee can’t work a shift, Tanda’s shift replacement tools can help identify available workers while considering qualifications, rest requirements, and other scheduling conditions. This gives managers more control over staffing decisions before those hours become payroll expenses.

However, businesses with regular salaried employees may not need Tanda’s advanced scheduling and award tools. MYOB and Reckon offer simpler payroll options at lower starting prices. For large organisations managing multiple enterprise agreements and more complicated pay arrangements, Dayforce provides broader enterprise payroll capabilities.

Pricing

Tanda offers a combined HR, payroll, and workforce management package, which costs $12.80 (exclusive of GST) per employee monthly. Standalone payroll, HR, and workforce management modules are also available, but require calling Tanda’s sales team for a quote.

Key features

• Digital time clock: Capture employee start and finish times, with photo verification and supported location controls.
• Timesheet approvals: Automatically approve eligible shifts that match the roster while flagging unusual hours for review.
• Employee availability: Let workers submit availability and leave information for managers to consider when planning schedules.
• Employee records: Store supported qualifications, licences, and employment documents alongside workforce information.
• Integrated payroll and super: Process wages through supported payroll tools and manage super payments using connected services.

Tanda pros and cons

Rippling: Best for automating payroll across business systems

Rippling connects Australian payroll with HR, IT, finance, and other business applications. Employers can use it to calculate wages, manage PAYG withholding and superannuation, and submit STP reports while keeping payroll information aligned with employee records across supported modules.

Its payroll tools also include configurable approvals, access permissions, and pay-run comparisons. Administrators can review unexpected changes before approving payments, while employees can access payslips and update supported personal information.

Why I chose Rippling

I chose Rippling for its ability to automate payroll-related work across different business systems. When HR approves a salary increase, for example, the updated compensation information can flow into payroll without another administrator entering it again. Similar workflows can support onboarding, employee transfers, and offboarding, reducing duplicate data entry and the risk of inconsistent employee records.

Rippling also offers useful controls for handling payroll changes. Its Australian payroll platform can calculate retroactive pay for backdated compensation adjustments, while pay-run comparisons help administrators identify unexpected differences before approving payments. Businesses can assign multiple payroll approvers, allowing payroll and finance teams to review payments without relying on separate spreadsheets or emailed approvals.

The drawback is that Rippling’s modular pricing can make costs harder to predict, particularly when businesses need several products to automate their processes. Xero Payroll is a simpler choice for employers mainly interested in connecting payroll and accounting, while Tanda offers more specialised tools for managing employee schedules and award-based wages.

Pricing

Rippling doesn’t list its prices upfront, though it does charge an unspecified monthly base fee along with a monthly per-payee fee. Contact the company directly to request a free software demo and custom quote.

Key features

• Australian payroll processing: Calculate PAYG withholding, submit STP Phase 2 reports, and manage supported super payments.
• Custom pay types: Set up recurring or one-off earnings categories to accommodate different compensation arrangements.
• Payroll access controls: Restrict who can view, edit, and approve payroll information to protect sensitive employee data.
• Accounting integrations: Connect payroll with financial applications, including Xero, QuickBooks, and NetSuite.

Rippling pros and cons

ADP Australia: Best for expert payroll support

ADP provides payroll software and services for businesses of different sizes, from small employers to large organisations. Its solutions handle wage calculations, PAYG withholding, STP reporting, and superannuation, with additional HR and workforce management tools available across its product range.

Employees can use supported self-service tools to access payslips and payroll information, while administrators can generate reports and maintain employee records. ADP also offers international payroll solutions for businesses that need to coordinate employee payments across multiple countries.

Why I chose ADP

ADP made my list because it combines payroll software with access to experienced payroll professionals. Employers can get assistance with payroll processing questions, software issues, and supported compliance matters rather than having to resolve every problem internally. This can be valuable for small businesses without a dedicated payroll administrator or larger organisations that need additional expertise during busy payroll periods.

Businesses can also choose how much payroll administration they want ADP to handle. Its Processing service allows internal teams to retain control over selected tasks while receiving technical assistance and regulatory updates. Managed Services can take on more of the payroll process, while Advanced Service can cover wider payroll department responsibilities, including employee payroll queries under the agreed arrangement. That flexibility lets employers access more help without necessarily building a larger internal payroll team.

The level of support and managed services varies by product and agreement, so businesses should confirm exactly what their quote includes. MYOB and Reckon may be more affordable for employers comfortable processing routine payroll independently. Rippling is another alternative if automating work across HR, payroll, IT, and finance is a bigger priority than specialist payroll assistance.

Pricing

ADP doesn’t disclose its payroll plan pricing online. You must contact ADP’s sales team for a customised quote.

Key features

• Payroll calculations and reporting: Process wages, PAYG withholding, superannuation, and STP submissions using supported Australian solutions.
• Third-party payments: Access services for certain payroll deductions and payments to external recipients, depending on the package.
• HR and time management integrations: Connect payroll with supported employee records, attendance tools, and business applications.
• Multinational payroll: Coordinate payroll reporting and processing across supported countries through ADP’s global services.

ADP pros and cons

Dayforce: Best for enterprises with complex payroll needs

Dayforce brings payroll, HR, scheduling, and time tracking together in an enterprise platform. Australian employers can use it to process wages across different employee groups, locations, and employment arrangements, including those covered by Modern Awards and enterprise agreements.

The software also provides payroll reports, audit trails, and role-based access controls to help administrators review pay information and protect sensitive employee records. Managers can approve timesheets and scheduling requests through supported mobile tools, reducing the need to handle these tasks separately.

Why I chose Dayforce

Dayforce is a strong choice for large employers that need to calculate wages using different overtime thresholds, allowances, and employment conditions. Its configurable payroll engine can apply these rules across employee groups, helping organisations manage complex awards and enterprise agreements without relying on separate calculations for each workforce arrangement.

Its continuous payroll calculations provide another advantage. As approved hours and employee information change, Dayforce updates the relevant pay amounts during the pay period. For example, if an employee works unexpected overtime, the payroll team can review the updated amount and investigate possible errors before finalising payment. This gives administrators more time to address discrepancies instead of discovering them only when running payroll.

Dayforce requires careful setup, particularly when configuring complex awards, enterprise agreements, and integrations. ADP Australia is a better alternative for employers prioritising access to payroll specialists or managed processing services. Tanda may be a better fit for hospitality and retail businesses that need strong rostering and award-related payroll tools without a broader enterprise HR platform.

Pricing

Dayforce provides custom pricing for its payroll and workforce management solutions.

Key features

• Workforce scheduling: Build rosters using supported staffing forecasts, labour requirements, and employee availability information.
• Time and attendance: Capture employee hours and flag exceptions such as unexpected overtime or missed shifts.
• Payroll audit tools: Review detailed payroll reports and maintain audit trails for internal checks and recordkeeping.

Dayforce pros and cons

More payroll coverage

• A Complete Guide to Payroll Software
• The Best International Payroll Services
• The Best Payroll Software
• Choosing a payroll service: A guide for business leaders
• Verito vs. Rightworks: Which IT Provider Is Best for Your Firm?

How to choose the best payroll software for your Australian business

Finding the right payroll software starts with understanding where your business needs the most help. When comparing payroll systems in Australia, consider the following:

• Check how the software handles complicated pay runs. If employees receive overtime, allowances, or penalty rates, look for tools that can calculate these amounts based on the applicable Modern Awards or enterprise agreements. Ask the provider to demonstrate a realistic pay scenario, not just a standard pay run.
• Look at how payroll connects with other systems. Payroll information often comes from timesheets, scheduling tools, and employee records. Check whether the software can import this information automatically and transfer payroll expenses to your accounting system, reducing manual data entry.
• Review superannuation payment processing. Under Payday Super, contributions generally need to reach employees’ super funds within seven business days of payday, subject to exceptions. Find out how the software sends payments, tracks their status, and handles rejected contributions. See the ATO’s Payday Super guidance for details.
• Calculate the total monthly cost. Compare subscription fees based on your current workforce and expected hiring plans. Include GST, additional employee charges, paid modules, and super payment fees. For quote-based products, ask about implementation and ongoing support costs.
• Consider how much payroll support you need. Some businesses only need technical assistance, while others prefer help processing payroll or managing unfamiliar pay issues. Check whether the provider offers specialist payroll assistance or managed services and what those arrangements include.
• Find out how payroll errors are corrected. Ask how the system handles underpayments, back pay, STP adjustments, and incorrect super contributions. It should also provide accessible records and a clear history of changes. Australian employers generally need to keep employee time and wage records for seven years under Fair Work requirements.

Frequently asked questions (FAQs)

Is payroll software mandatory for Australian businesses?

Australian employers generally must report employee payroll information through Single Touch Payroll (STP), but they don’t necessarily need standalone payroll software. They can use STP-enabled software or an authorised payroll service to report on their behalf. Certain exemptions and concessions may apply.

How can I check if payroll software is ATO-approved?

Check the ATO’s software product register to see which products are authorised to send information through ATO digital services. However, inclusion doesn’t mean the ATO endorses the software or guarantees its suitability. Confirm that the product supports STP Phase 2 and your specific Australian payroll requirements.

Can I switch payroll software during the Australian financial year?

Yes. You can switch payroll providers at any time, but you’ll need to transfer employee details, year-to-date earnings, tax withholding, and other relevant payroll records correctly. You may also need to notify the ATO about changes to your business management software (BMS) ID or employee payroll IDs to avoid duplicate income statements.

Do Australian employers still need to issue payment summaries?

Generally, no. Employers that report and finalise payments through STP don’t need to provide annual payment summaries for those payments. Employees can access their income statements through myGov once their employer finalises the information. Most employers must complete STP finalisation by July 14 each year, although different deadlines apply to certain closely held payees.

Does payroll software automatically provide compliant payslips?

Not necessarily. Although most payroll systems can generate electronic payslips, employers must ensure they contain the required information and reach employees within one working day of payday. Check whether the software includes details such as gross and net pay, applicable allowances, deductions, and superannuation contributions.