Introduction
As compliance requirements, award interpretations and workforce models become more complex, many organisations are questioning whether their payroll systems can keep up. While switching systems involves effort, staying with an outdated one can lead to manual workarounds, compliance stress and inefficiencies that hinder strategic focus.
1 in 3 Australian businesses cite the reliability of their payroll software and ongoing reliance on manual processes as key areas of concern when it comes to underpayments.
Yellow Canary’s 2025 State of Payroll Compliance Report
Switching payroll or workforce management solutions is not a small decision. It involves implementation time, training, change management and investment, and affects one of the most critical functions in any business.
However, staying with a system that is not future-ready also comes at a cost, from manual workarounds and compliance stress to the hours spent keeping things afloat rather than focusing on strategic work. As payroll complexity continues to grow, the bar for what 'good enough' means in payroll systems continues to rise.
Why Australian businesses are rethinking payroll software
Australian payroll is constantly changing, with multiple compliance, regulatory and workforce shifts happening all at the same time. Here are key reasons businesses are rethinking their payroll and workforce management solutions:
- Payday Super has changed payroll processes
From 1 July 2026, superannuation must be paid with every pay run instead of every quarter, with contributions reaching employees' super funds within seven business days. This change aims to address an estimated $6.25 billion in unpaid superannuation each year, affecting around 2.5 million Australian workers. - The ATO is watching more closely
Single Touch Payroll provides real-time visibility into payroll data, reducing the window for identifying and correcting errors. - Wage theft is now a criminal offence
Since January 2025, intentional underpayment has been a criminal offence under the Fair Work Act, carrying severe penalties, including fines and imprisonment. - Awards are becoming more complex
Australia has more than 120 modern awards, which are regularly updated by the Fair Work Commission, adding layers of complexity for businesses managing multiple awards. - Workforce models are changing
Businesses are managing diverse employment types, including permanent employees, casuals, contractors and hybrid work arrangements, requiring payroll systems to handle greater complexity.
What this means for businesses
Payroll systems built 5-10 years ago were not designed for today's requirements. They were built for quarterly super payments, less intensive compliance oversight and simpler workforce structures. Today, many legacy systems struggle to keep pace with growing compliance demands and workforce complexity. Moving forward, businesses must adapt to meet these new challenges effectively.
Five questions to help you decide on switching solutions
1. Is your system handling compliance, or is your team doing all the work?
If your team is constantly managing compliance tasks manually, their workload and risk will only grow.
your team is constantly fixing compliance issues, the workload and risk only grow.
Why it matters: Compliance should be built into the system, not reliant on manual effort.
Signs to watch for:
- Award updates need manual reconfiguring.
- STP lodgements frequently need corrections.
- Payday Super feels like a manual process.
- Compliance knowledge is tied to individuals, not the system.
2. How much time does each pay run really take?
Payroll effort adds up fast, and outdated systems only make it worse.
Why it matters: Modern systems reduce manual work, not shift it around.
Signs to watch for:
- Pay runs take days to complete.
- Spreadsheets are a must to close payroll.
- Errors and follow-ups are routine.
- Employees often query their pay.
3. Will your system scale as the business grows?
Payroll complexity increases with growth—your system needs to keep up.
Why it matters: A system that works today should support workforce complexity.
Signs to watch for:
- Managing multiple sites or awards is a struggle.
- New employment types need workarounds.
- Reporting can’t keep up with business needs.
- System limits feel restrictive.
4. Do you know the true cost of running payroll?
Software licence fees are just the start, there’s more to the story.
Why it matters: Hidden costs like time, risk, and manual effort all contribute to the true cost of payroll.
Signs to watch for:
- Support or consultancy costs keep rising.
- Maintaining the system drains internal resources.
- Manual work offsets perceived affordability.
- Upgrades or fixes come at extra cost.
5. Is your payroll data actually useful?
If your data is hard to access, you’re making decisions without the full picture.
Why it matters: Payroll data should support better decisions, not create obstacles.
Signs to watch for:
- Reporting relies on Excel exports.
- Labour cost visibility is delayed or retrospective.
- Payroll data doesn’t integrate with finance or HR systems.
- Insights need IT support to extract.
If these sound familiar, it might be time to rethink your payroll system.
Signs it might be time to switch payroll systems
✔ The same issues keep popping up
The same award fixes or corrections appear every pay cycle. Small frustrations happen, but recurring problems show the system is creating extra work for the team.
✔ Payday Super is exposing inefficient processes
More frequent super payments can quickly highlight manual workarounds, process gaps and payroll inefficiencies.
✔ Pay runs are taking too long
Manual entry, reconciliations and error corrections are stretching pay runs across multiple days, leaving less time for strategic work.
✔ Manual workarounds have become the norm
Spreadsheets and cross-checks are fine occasionally. If they are needed every cycle, the system is not performing as it should.
✔ Compliance keeps everyone on edge
Award updates require manual configuration whenever Fair Work makes changes, and payroll teams feel the need to double-check everything before processing.
✔ The system can't scale with growth
As headcount, locations, and award complexity increase, systems without clear scalability or a roadmap can slow the business rather than support it.
✔ Technology feels outdated
Systems built 5-10 years ago weren't designed for today's requirements. Limited automation and modern integrations can result in more manual work and inefficiencies.
What modern payroll makes possible
The businesses rethinking their payroll approach aren't just upgrading software. They're changing how payroll operations work. According to the 2026 Australian Payroll Association Survey, only 48.2% of payroll professionals are satisfied/very satisfied with their payroll technology, while 26.2% are dissatisfied or very dissatisfied. For many teams, "good enough" is getting harder to maintain.
Here's how modern platforms close that gap:
Integration across the business
Time and attendance data flows directly into payroll. HR and payroll share the same employee information. Super processing happens as part of the pay run, not as a separate monthly task. The data doesn't need to be moved, matched, or reconciled—it's already there.
Automation handles the repetitive work
Award interpretation, super calculations, compliance checks, leave accruals—these happen automatically. Teams focus on decisions that need judgment, not tasks that don't.
Real-time visibility replaces guesswork
Labour costs are visible now, not retrospectively. Compliance status updates continuously. Workforce trends show up as they develop, not weeks later in a report.
Access payroll solutions like Definitiv Evo and MicrOpay Evo are built this way—not as separate tools stitched together but as integrated platforms where payroll, workforce management, and compliance work together from the start.
AI is elevating payroll capabilities
According to the APA 2025 AI Adoption Report, 74% of payroll professionals recognise AI could improve compliance and reduce errors. The technology exists to strengthen fraud detection, automate complex calculations, and provide real-time monitoring.
How to successfully switch payroll solutions
Switching payroll doesn't have to be difficult. A well-managed transition removes the roadblocks, reduces stress, and gets you up and running faster.
1. Assemble the right team
Bring together everyone involved in payroll, including HR, Finance, Operations, IT, and key business stakeholders. Early alignment helps avoid delays and surprises later.
2. Audit and prepare your data
Review payroll data, pay rules, employee records, and system configurations before migration. Clean up any issues and back up critical data to ensure accuracy and compliance.
3. Define the transition plan
Set clear timelines, responsibilities, milestones, and success measures. Work closely with your provider to identify and manage potential risks before they become roadblocks
4. Test before you switch
Run parallel pay runs and test real-world payroll scenarios to validate calculations, identify discrepancies, and build confidence before go-live.
5. Go live with confidence
Transition to your new payroll platform once testing is complete. Closely monitor the initial pay runs to ensure everything performs as expected.
6. Equip your people for success
Provide practical training for payroll teams, managers, and employees so everyone can confidently navigate the new system and processes.
7. Keep employees informed
Communicate early and often. Make sure employees understand what's changing, why it matters, and how to access payslips, leave balances, timesheets, and other payroll information.
Bottom line: A successful payroll migration comes down to preparation, testing, and communication. With the right plan, switching can be a smooth, low-risk transition that positions your business for future growth.
What should you look for in a new payroll solution?
Payroll is one of the largest costs in any organisation and one of the most critical functions to get right. Yet for 65% of Australian businesses, payroll is complex and time-consuming, particularly when navigating multiple awards, entities, enterprise agreements, allowances, penalty rates, and intricate time and attendance requirements.
The challenge goes beyond processing pays. Disconnected systems, manual processes, compliance risk, and administrative overhead all add hidden costs that impact productivity and efficiency across the business. A modern payroll solution should do more than keep up. It should simplify complexity, automate repetitive work, strengthen compliance, and give your team the tools to operate more effectively.
If you're considering a change, don't settle for a like-for-like replacement. Look for a solution that delivers:
- Accurate, compliant payroll processing
- Automation that reduces manual effort and saves time
- Robust award interpretation and pay rule management
- Integrated workforce management and time & attendance
- Real-time reporting and actionable insights
- A modern, intuitive user experience
- Scalability to support future growth
- Expert support and a seamless transition experience
The right payroll platform isn't just a system upgrade. It's an opportunity to reduce risk, drive efficiency, and future-proof your payroll operation.
Automation
Choose a solution that automates payroll processing and connects seamlessly with HR, workforce management, and time and attendance systems. The result? Less manual work, faster processes, and more time for strategic priorities.
Cost efficiency
Look beyond software fees. Legacy systems, disconnected applications, and manual workarounds can create significant hidden costs. The right platform reduces complexity and lowers the total cost of payroll.
Compliance
Payroll legislation is constantly changing. Select software with built-in compliance tools that help keep you aligned with awards, regulations, and reporting requirements while reducing the risk of errors and penalties.
Scalability
Your payroll solution should grow with your business. Whether you're adding employees, entities, locations, or new workforce structures, it should handle increased complexity without increasing administrative effort.
Security
Payroll data is some of your organisation's most sensitive information. Robust security, role-based access controls, and cloud-based protection are essential to safeguard employee and business data.
Data and insights
Payroll data should be more than a record of what you've paid. A modern solution should deliver real-time visibility into labour costs, workforce trends, productivity, turnover, resource allocation, and budgeting, helping drive smarter business decisions.
Payroll that gives you peace of mind
The Access Group payroll solutions are designed to take the stress out of payroll with automated compliance, Payday Super support, Beam integration, and AI-powered tools, freeing your team to focus on more strategic work.
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