Choosing the right payroll technology isn’t just a software decision, it’s a strategic investment in your organisation’s compliance, efficiency and financial wellbeing. Given the complexity of Australian payroll legislation, the right system can help reduce risk, automate compliance, and elevate the value your payroll team delivers.
Here are five essential tips to help you make the right decision.
1. Define your real requirements — not just what you do now
One of the most common mistakes when buying payroll technology is simply documenting existing processes and shopping for a system to match. This misses the opportunity to question inefficiencies, workaround habits, and legacy limitations. Before you even speak to vendors, identify what you actually need from your system — not just what you currently do. Include compliance needs, reporting, integration with HR and finance systems, and any automation or workflows that would reduce manual handling. As Tracy Angwin explains, assuming a vendor will “just understand” your needs is a costly pitfall .
2. Separate the ‘must-haves’ from the ‘nice-to-haves’
Not all features are created equal. Work with your payroll, HR and IT teams to distinguish critical requirements — such as multi-state compliance or leave accrual accuracy — from desirable features like mobile apps or custom dashboards. Weight these requirements in your evaluation process to avoid being dazzled by functionality that looks good but adds little value. A system that doesn’t meet your core compliance or processing needs is not fit for purpose, no matter how slick the interface.
3. Don’t fall for buzzwords — investigate integration and automation claims
Many vendors will talk about “integration” and “workflow” — but these terms are often loosely defined. Ask specific questions: Will the system automatically calculate superannuation under all award conditions? Can it interface directly with your rostering or time and attendance tools? Will you need to duplicate data entry? Look for technology that not only promises automation but demonstrably reduces manual intervention and the risk of error or fraud .
4. Consider the total cost — not just the subscription price
Price per payslip is a useful benchmark, but it’s not the full picture. Consider implementation costs, training, vendor support, software updates and any hardware requirements. The Australian Payroll Association’s benchmarking data found technology costs ranging from $2.55 to over $30 per employee per year — a huge spread. Factor in the value of vendor support, upgrade responsiveness and flexibility to grow with your business. A slightly more expensive system that delivers efficiencies and avoids costly errors or compliance breaches is often the better investment .
5. Test with real scenarios and demand transparency
When you reach the demonstration stage, insist on seeing your real-world scenarios played out. From onboarding a new employee, to processing a complex termination and calculating leave under a specific award — make vendors show how the system handles your reality. Ensure you get written confirmation of any claims made during demonstrations, and don’t be afraid to ask detailed questions about implementation timelines, training, and what’s included in the quoted price. Misunderstandings at this stage are the number one cause of failed implementations .
Final thoughts
Buying payroll technology isn’t about finding the flashiest interface or the cheapest quote. It’s about choosing a platform that will help safeguard compliance, reduce operational risk, and support your payroll team in delivering accurate, timely, and strategic outcomes. Take the time to get it right — your payroll function is worth
