How much do payroll services cost in Australia?
Most providers price payroll using one of three approaches: a fixed monthly package, a per‑employee per‑run fee, or a hybrid of both. Here are realistic ranges Australian businesses commonly see:
- Micro (1–4 employees): $120–$250/month base + $5–$12 per employee per pay run
- Small (5–20 employees): $250–$600/month base + $6–$10 per employee per pay run
- Medium (21–50 employees): $600–$1,500+/month (hybrid or scoped pricing)
- Setup and migration: $250–$1,200 depending on software, awards, and data quality
- Cleanup or back‑pay remediation: $95–$150/hr based on complexity and urgency
- STP EOFY finalisation: $150–$600 depending on headcount and adjustments
- STP‑only lodgement (micro): typically $25–$60 per event if payroll is already prepared
Expect the lower end when payroll is straightforward (single award, salaried staff, clean timesheets, fortnightly pay). Expect the higher end where award interpretation, overtime rules, multiple locations, or frequent changes apply.
Australian context to keep in view
- PAYG withholding: Register before withholding tax from employees, directors, and some contractors.
- Single Touch Payroll (STP) Phase 2: Report payroll data via STP‑enabled software to the ATO each pay event.
- Superannuation Guarantee: Confirm the current rate (12% from 1 July 2025 onwards) and payment frequency; late super can trigger penalties.
- Awards and Fair Work: Correct award interpretation (penalties, allowances, overtime) is essential and affects cost and risk.
- Payroll tax: State‑based thresholds and lodgements may apply as you grow; this may be an added service line.
- Contractors: Some arrangements may attract super or payroll tax; check before assuming “contractor” means no payroll obligations.
The more tightly your provider aligns software, awards, and ATO reporting, the smoother and cheaper payroll becomes over time.
What to compare before you commit
Scope
Confirm inclusions: onboarding, standard pay runs, STP Phase 2, super processing, leave calculations, reporting, EOFY finalisation. Ask what counts as “extra” (award audits, back‑pay, payroll tax, workers comp, TPAR, urgent cleanups).
Software fit
Check confidence with your stack (Xero, MYOB, QuickBooks, KeyPay/Employment Hero, Deputy, Tanda). Good providers explain the workflow and controls, not just the app names.
Turnaround and communication
Clarify cut‑offs for timesheets, who approves changes, how errors are handled, and escalation during pay week and EOFY.
Commercial fit
Understand pricing model (fixed vs hybrid), minimum terms, off‑cycle run fees, change fees, and whether you want compliance only or advisory support.
Best next steps
Write down the outcome you want (e.g. reliable weekly pay runs, STP lodgements handled, super paid on time, compliant awards, or a full cleanup before EOFY). Then shortlist providers against that outcome, not just their title.
For small teams with standard needs, a bookkeeper or payroll specialist is usually the best value. For complex awards, restructures, payroll tax, or director payments, loop in an accountant early.
- Have ready: number of employees, pay frequency, awards/agreements, current software, and any overdue items.
- Ask for a clear scope with inclusions/exclusions and how off‑cycle changes are billed.
- Confirm who approves pay runs and how final checks occur before STP lodgement.
Frequently asked questions
How much do payroll services cost in Australia?
Typical ranges: 1–4 employees $120–$250/month (+$5–$12 per employee per pay run); 5–20 employees $250–$600/month (+$6–$10 per employee per pay run); 21–50 employees $600–$1,500+/month. Setup/migration is commonly $250–$1,200; cleanup $95–$150/hr; EOFY STP $150–$600.
What drives payroll pricing up or down?
Headcount, pay frequency, award/EA complexity, casual vs salaried mix, timesheet integration, number of adjustments, whether super and STP are already in place, and whether you need advisory support beyond compliance.
What’s usually included vs extra?
Inclusions often cover onboarding, standard pay runs, STP Phase 2, super processing, basic amendments, and EOFY finalisation. Extras can include award audits, back‑pay calculations, payroll tax lodgements, workers comp renewals, TPAR, urgent cleanups, or software migrations.
Is per‑employee pricing or a fixed monthly fee better?
Per‑employee pricing is simple for stable teams. Fixed fees help when you want predictability and support bundled in. A hybrid (base fee + small per‑employee per‑run) is common and balances both.
Can you just lodge STP for me? How much is it?
Yes. If the payroll is already processed and clean, STP‑only lodgement is often $25–$60 per event. If the provider must prepare the pay run too, standard per‑run pricing applies.
Who should I use: bookkeeper, payroll specialist or accountant?
For day‑to‑day payroll and STP, a bookkeeper or payroll specialist is ideal. Use an accountant when payroll decisions affect tax, structure, payroll tax, director payments, or FBT.