How to choose the right payroll provider for your Australian or New Zealand business

Local regulatory compliance is more important than global capabilities. After all, local laws have real consequences if they're not followed.

Australia and New Zealand have complex, frequently changing payroll regulations. Fair Work Act provisions, modern award interpretations, superannuation guarantee obligations, KiwiSaver requirements, PAYG and PAYE withholding rules, single touch payroll reporting – the list goes on.

Your payroll provider must know all the relevant and current regulations and have the expertise to comply with those laws – not just in your home jurisdiction, but in every state, territory, and region where you operate.

What to look for:

• Local payroll specialists – Staff based in Australia and New Zealand with deep regulatory knowledge
• Regulatory monitoring – Active tracking of Fair Work Commission decisions, ATO updates, IRD changes
• Proactive communication – Provider notifies you of changes that affect your payroll before they take effect
• Award interpretation expertise – Proven capability handling complex modern award provisions
• STP and employment reporting – Compliance with single touch payroll (Australia) and employment information (New Zealand) requirements

Questions to ask:

• • Where is your payroll team located?
• • How do you stay current with regulatory changes?
• • Can you demonstrate your expertise in our specific industry awards?
• • How do you handle multi-jurisdiction complexity (e.g., employees working across state borders)?
• • What happens if there's a compliance issue – who's accountable?

A provider with genuine Australian and New Zealand expertise will speak your language, understand your challenges, and be available when you need them – in your time zone, not on the other side of the world.

How fast does your business expect to grow? Will the mix of your staff continue to be permanent employees, or will you soon be engaging contractors and casual workers? Do you expect to open new offices in different states or regions? Are you planning to expand from Australia into New Zealand, or vice versa?

These questions are important to ask now because your payroll provider must be able to grow with your business.

A smaller payroll outsourcer might be an economical option when your business is in its early stages. But if that provider can't handle a rapid increase in headcount, increased complexity, or expansion into new jurisdictions, you'll need to find a new provider. And switching providers is disruptive and expensive – often costing more than you saved by choosing the cheaper option initially.

What to look for:

• Proven track record – Experience supporting organisations at your current size and your target size
• Multi-entity capability – Can handle multiple legal entities, cost centres, and jurisdictions
• Flexible workforce support – Manages permanent, casual, contractor, and temporary staff arrangements
• Cross-border expertise – Supports expansion into new Australian states or New Zealand operations
• Configuration, not customisation – Solutions that adapt to your needs without expensive custom development

Questions to ask:

• • What's the largest payroll you currently manage?
• • Can you support our growth plans without requiring us to switch platforms or service models?
• • How do you handle organisations operating across multiple jurisdictions?
• • What's involved in adding new entities or locations to our payroll?
• • Can your solution adapt as our workforce structure changes?

A good provider offers a plug-and-play system to standardise your payroll processes and avoid the need to reinvent the wheel – no matter your plans.

Your payroll provider's technology is the foundation of everything they deliver. Outdated systems create manual work, increase error rates, limit reporting capability, and make your payroll inflexible.

Modern payroll technology should eliminate manual processes, provide real-time visibility, integrate seamlessly with your other business systems, and give you the insights you need to make informed workforce decisions.

What to look for:

• Cloud-based platform – Accessible anywhere, automatically updated, no infrastructure overhead
• Self-service capabilities – Employees and managers can view pay slips, submit timesheets, request leave, update details
• Real-time reporting – Access to workforce data and analytics whenever you need it, not just after pay runs
• Integration capability – Connects with your HR, finance, time and attendance, and rostering systems
• Mobile accessibility – Employees can access their information from any device
• Award interpretation engine – Automated application of complex award rules and entitlements

Questions to ask:

• • Is your platform cloud-based or on-premise?
• • What self-service functions are available to employees and managers?
• • Can we access reports in real time?
• • What integrations do you support with other business systems?
• • How often is your platform updated with new features and regulatory changes?

Technology should make payroll easier, not harder. If a provider's platform feels clunky, limited, or overly complex, that's a red flag.

Not every organisation needs the same level of support. Some want to maintain control of payroll operations with powerful technology. Others want expert guidance while keeping payroll internal. And some want to remove payroll from their internal workload entirely.

A quality payroll provider offers multiple service models to match different organisational needs – and allows you to move between models as your needs change.

What to look for:

• Multiple delivery options – SaaS, Supported, and Fully Managed services available
• Clear service definitions – Transparent about what's included in each model
• Flexible transitions – Ability to change service models without disruption
• No lock-in – Freedom to adjust your service level based on changing needs

The three service models:

Questions to ask:

• • What service models do you offer?
• • Can we start with one model and transition to another later?
• • What's the difference in cost and service level between models?
• • How long does it take to transition between service models?

The transition to a new payroll provider is a critical period. A poorly managed implementation can result in pay errors, compliance issues, employee dissatisfaction, and loss of confidence in the provider before you've even started.

Equally important is ongoing support. When you have a question, encounter an issue, or need guidance, you need to know help is available – quickly, and from people who understand your payroll.

What to look for:

• Structured implementation methodology – Clear project plan, defined milestones, realistic timelines
• Dedicated implementation team – Experienced specialists who guide you through the transition
• Data migration expertise – Proven capability transferring data accurately from legacy systems
• Testing and validation – Thorough checking before go-live to ensure accuracy
• Local support team – Australian and New Zealand-based support staff in your time zone
• Responsive helpdesk – Clear SLAs for response and resolution times

Questions to ask:

• • What's your typical implementation timeline?
• • Who will be on our implementation team?
• • How do you ensure payroll accuracy during the transition?
• • Where is your support team located?
• • What are your support response times?
• • Do you offer ongoing training for our staff?

Implementation is where many payroll relationships succeed or fail. Don't underestimate the importance of this phase.

Anyone can make claims in a sales presentation. But a provider's track record tells you what they actually deliver.

What to look for:

• Industry experience – Proven capability serving organisations in your sector
• Longevity – Years of operation indicate stability and experience
• Client retention – High retention rates suggest satisfied customers
• Case studies – Real examples of problems solved and results delivered
• References – Willingness to connect you with current clients

Questions to ask:

• • How long have you been operating in Australia and New Zealand?
• • What's your client retention rate?
• • Can you provide references from organisations similar to ours?
• • Can you share case studies relevant to our industry or complexity?
• • What's the most complex payroll you've successfully implemented?

Don't skip this step. Speaking with current clients gives you insights you can't get any other way.