If you’ve ever felt payroll eats too much time and keeps you awake at night worrying about compliance, you’re not alone. Payroll managers across Australia and New Zealand juggle constant pay cycles, shifting legislation, and pressure to avoid costly errors.
Fully managed payroll is one way to take that weight off your shoulders. It hands the complexity to accredited specialists backed by modern technology, ensuring accuracy, compliance and continuity while giving you and your team time back.
In this guide, we’ll explain what fully managed payroll means, how it works, the benefits for AU and NZ enterprises, and how to decide if it’s right for you.
What is fully managed payroll?
Fully managed payroll is when a specialist provider runs your end-to-end payroll operations – people, process, technology and compliance – so your team doesn’t have to.
It’s different from other models:
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In-house payroll: you keep everything on your team’s shoulders, including compliance checks, software maintenance and reporting.
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Supported payroll: a shared model, where your team still owns inputs and validations while getting some expert guidance.
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Fully managed payroll: your provider becomes your payroll department, handling everything from calculations and filings to employee queries.
In the AU/NZ context, managed payroll means staying on top of:
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Australia: Fair Work record-keeping (7 years), ATO tax record obligations (5 years), Single Touch Payroll (STP) Phase 2, and the Superannuation Guarantee (12% from July 2025).
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New Zealand: IRD record-keeping (7 years), Employment NZ wages/leave records (6 years), KiwiSaver, and mandatory payday filing.
How does managed payroll work?
A fully managed service combines human expertise with advanced payroll software. At Affinity, this means accredited payroll professionals supported by a platform built for AU and NZ legislative complexity.
Typical set-up and operation includes:
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Discovery and mapping – understanding your awards, contracts, and processes.
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Integration – connecting payroll to HRIS, T&A and GL systems.
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Parallel run – testing calculations against your current system.
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Go-live – provider assumes responsibility for pay cycles.
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Business-as-usual support – ongoing processing, updates, helpdesk.
Who does what?
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Provider: calculations, filings, payslips, helpdesk, legislative updates.
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Client: provide source data (new starters, terminations, allowances), approve outputs.
Security & privacy
Providers must comply with Australian Privacy Principles (APPs) and the NZ Privacy Act 2020, with strong internal controls and local data residency.
Benefits of fully managed payroll
Compliance confidence
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AU: STP Phase 2, SG increases, Fair Work record-keeping.
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NZ: Payday filing, IRD 7-year records, Employment NZ 6-year rules.
Your provider ensures compliance updates are applied on time, reducing the risk of breaches and penalties.
Error prevention & accuracy
Automation plus expert review means payroll is 100% correct every cycle. Mistakes that damage trust – like underpayments – are avoided.
Efficiency & time back
Payroll managers often spend 20-30 hours per cycle on manual checks. Managed payroll gives you that time back to focus on strategy, audits, and workforce planning.
Cost predictability & ROI
Fully managed payroll reduces total cost of ownership by lowering reliance on internal headcount, avoiding penalties, and providing predictable OPEX instead of high fixed costs.
Enterprise-ready support
Multi-entity structures, complex awards, and audit reporting are built-in. Your team gains the assurance of accredited specialists and service-level agreements.
Fully managed vs supported vs in-house
| Factor | In-house payroll | Supported payroll | Fully managed payroll |
|---|---|---|---|
| Ownership | Internal team | Shared | Provider-led |
| Compliance risk | High | Medium | Low |
| Continuity | Staff-dependent | Shared | Guaranteed |
| Cost profile | High fixed cost | Moderate | Predictable OPEX |
| Time to value | Slow | Moderate | Fast |
| Analytics | Limited | Some | Advanced, real-time |
Is managed payroll right for your enterprise?
You should consider fully managed payroll if you have:
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200+ employees, with multiple awards or EBAs.
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Multi-entity or multi-site operations.
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Frequent compliance audits or governance reviews.
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Payroll continuity risks (single-person dependency, staff turnover).
Finance leaders will value predictable costs, clear ROI, and reduced risk exposure.
Why Affinity Payroll?
We’ve been partnering with Australian and New Zealand enterprises for more than 30 years. Our managed payroll service combines:
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Accredited people: local payroll experts with award and Holidays Act expertise.
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Enterprise-ready platform: real-time, event-driven, STP-enabled, NZ payday filing-ready.
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Integrated model: payroll connects with HRIS, T&A, finance, and analytics.
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Dedicated support: we act as your payroll department, managing employee and manager queries.
Book a call with a payroll advisor
Frequently asked questions
What does fully managed payroll include?
End-to-end services: processing, compliance updates, reporting, payslips, super/IRD filings, and employee query management.
How is it different from payroll outsourcing?
Traditional outsourcing is often offshore and cost-driven. Fully managed payroll combines local compliance expertise and integrated technology.
Is managed payroll more expensive than in-house?
Not usually. Enterprises often save once you factor in system costs, headcount, and penalties avoided.
How long does it take to transition?
Typically 8–12 weeks, including discovery, integration and parallel run.
What risks does it reduce for AU/NZ enterprises?
Compliance breaches, payroll continuity risks, data security gaps, and cost overruns.
Does Affinity manage compliance with NZ Holidays Act reforms?
Yes – our specialists stay ahead of legislative changes and configure payroll rules accordingly.
Disclaimer
This article provides general information only. Seek independent advice for decisions about your organisation’s payroll.
