How this usually works
Payroll for professional services typically starts with a short review: headcount and roles, employment agreements, contractor mix, pay cycles, current software, timesheets, leave processes, and any backlogs or ATO deadlines.
Delivery then moves through three stages:
- Stabilise and set up: fix data issues, set earning types and leave rules, connect STP Phase 2, map super funds/clearing house, load opening balances and bring contractors into the right flow.
- Run and reconcile: collect approved timesheets, process payroll, lodge STP, schedule super, reimburse expenses, and post journals by project or cost centre so billable analysis is reliable.
- Review and improve: monitor exceptions, leave liabilities, effective salary packaging, and reporting accuracy. Align payroll with invoicing rhythms to reduce write‑offs.
If you also need onboarding, see Payroll for New Employees. For wider support, start at the Payroll Services hub.
Australian context to keep in view
- Register for PAYG withholding before paying employees or directors, and ensure tax scales are current.
- Single Touch Payroll (STP) Phase 2 requires accurate income types, allowances and disaggregation of gross — use an STP‑enabled system and finalise at year‑end.
- Superannuation Guarantee applies to most employees and some contractors; pay via a compliant clearing house by the due dates.
- Award coverage varies. Many professional roles are award‑free; others may fall under the Professional Employees Award, Clerks—Private Sector Award or industry awards such as Legal Services. Confirm coverage and contract terms.
- Record‑keeping: maintain timesheets/approvals, leave records, contracts and pay slips that meet Fair Work requirements.
- State payroll tax may apply once group wages exceed thresholds; also manage workers compensation declarations.
What to compare before you commit
Scope
Confirm the scope fits a professional services workflow: timesheet integration, contractor assessments, STP Phase 2, super, leave policies, expense reimbursements and year‑end finalisation.
Software fit
Check experience with your stack (e.g. timesheets, HRIS and accounting). You want working integrations, cost centres/projects, and clear workflows — not just a list of logos.
Turnaround and communication
Agree on cut‑off times, approval steps, pay‑run calendars and escalation paths during busy periods. Make sure you know who to contact and how quickly they respond.
Commercial fit
Compare fixed vs variable pricing, implementation fees, reporting packs, and whether you need compliance‑only or broader advisory that links payroll to profitability.
If you’re still weighing options, use our comparison pages or go to Find Payroll Services to shortlist providers.
Best next steps
Define the outcome first. Examples: clean up STP and super, move payroll into Xero or MYOB, integrate timesheets, set project/cost‑centre reporting, fix contractor treatment, or reduce pay‑run errors.
Then match providers to that outcome. Ask them to explain the process, timelines and ownership clearly, with examples relevant to professional services firms.
If your needs extend beyond payroll, see Bookkeeping Services, BAS Agent Services and Tax Accountants to align payroll with compliance and reporting.
Frequently asked questions
What does payroll for professional services usually involve?
It covers setup or clean‑up, onboarding, pay‑run processing, STP Phase 2 reporting, super payments, leave accruals, expense reimbursements, contractor assessments, project/cost‑centre journals and year‑end finalisation.
Are professional services employees covered by an award?
Some roles are award‑free, while others may be covered by the Professional Employees Award, Clerks—Private Sector Award or industry awards such as Legal Services. Always check Fair Work guidance and contracts for your specific roles.
How should we treat contractors?
Do not rely on ABNs alone. Review each engagement; some contractors are employees for super purposes. Confirm PAYG withholding, super and STP obligations case‑by‑case.
Which pages should I read next?
Start at the Payroll Services hub, look at Payroll for New Employees if you’re hiring, and use Find Payroll Services to get matched. If your question is broader, visit the Help Centre.