How fortnightly payroll works (start to finish)
A reliable fortnightly process follows a repeatable flow that your team and provider can stick to. Here’s the typical cycle:
- Cut-off and capture: Lock the timesheet period and import hours from your time & attendance tool (for example, rostering apps commonly used in hospitality, construction and healthcare).
- Award interpretation: Apply base rates, loadings, overtime, penalties, allowances and leave loading according to the correct award or enterprise agreement.
- Review and approvals: Validate changes (new starters, rate changes, terminations, deductions, reimbursements) and obtain approval.
- Calculate and lodge: Calculate tax (PAYG withholding) and super on ordinary time earnings, then lodge the pay event via Single Touch Payroll (STP) Phase 2.
- Pay and notify: Create the ABA or bank file, pay employees, and issue compliant payslips.
- Reconcile and file: Post journals to your accounting software, reconcile wages, PAYGW and super accruals, and prepare W1/W2 data for your BAS.
- Quarterly and year-end: Pay super by due dates, finalise STP at year end, and review payroll settings for any legislative changes.
Common software choices include Xero, MYOB and QuickBooks Online with integrations for rostering and time capture. The best fit is the stack that mirrors how your team actually works.
Australian rules to keep in view
- PAYG withholding: Register and withhold correctly for employees and relevant directors/contractors, and report via STP for every pay run.
- STP Phase 2: Disaggregate gross, set the right income types, and report paid leave types, overtime, allowances and child support when applicable.
- Superannuation: Calculate on ordinary time earnings and pay quarterly by the 28th day after the quarter (some funds require earlier). Payday super is planned from 1 July 2026—start preparing now.
- Awards and Fair Work: Ensure your pay rules reflect the correct award/EA, including penalties, allowances, leave loading and minimum engagement periods.
- Leave and public holidays: Fortnightly cycles affect accrual rates and holiday entitlements—set accrual units and pro‑rata rules carefully.
- BAS linkage: Fortnightly payroll feeds W1/W2 on your BAS. Coordinate with your BAS agent to avoid variances.
What to compare before you choose a provider
Scope
Confirm the exact scope covers onboarding, pay runs, STP, super, terminations/ETP, leave management, reporting, year‑end finalisation and issue resolution.
Software fit
Check hands‑on capability with your payroll and T&A tools. Ask how they configure awards, automate approvals and post journals into your accounting system.
Turnaround and communication
Agree on cut‑offs, approval windows and escalation paths for urgent changes, public holidays and back‑pay events.
Commercials
Understand pricing (base + per‑employee per run, or fixed monthly), inclusions/exclusions, and whether you want compliance‑only or advisory support.
Not sure where to begin? Use our Payroll Services hub or go straight to the form below.
Is fortnightly the right pay frequency?
Choose the cycle that fits your team, industry and cash flow.
- Fortnightly: Balanced admin load and employee cash flow; popular across retail, healthcare and services.
- Weekly: Suits high‑casual or shift‑based workforces (hospitality, construction) but increases processing effort.
- Monthly: Lowest admin frequency, but can be harder for budgeting and may not suit certain awards.
If you are switching frequencies, communicate the change, update contracts where required, and re‑test leave accruals and salary sacrifice settings before the first new cycle.
Typical pricing for fortnightly payroll
Costs depend on headcount, award complexity and software. As a general guide:
- Base fee per cycle, plus a per‑employee amount (common for 26 cycles/year).
- Add‑ons for award configuration, onboarding, terminations/ETP, back‑pay calculations, ROE letters and year‑end STP finalisation.
- Integrations (rostering/time capture) and custom reports may attract setup fees.
Request an itemised quote so you can compare like‑for‑like across providers.
Best next steps
- Write down the outcome you want (for example, accurate award interpretation, fewer payroll errors, faster approvals, or end‑to‑end outsourcing).
- Note the current stack (payroll, accounting and rostering tools) and any problem areas.
- Compare a short list of providers on scope, turnaround, software depth and cost.
- Decide whether you want compliance only or ongoing advice on workforce and reporting.
Explore more via the Payroll hub or related industry pages below. If you’re ready, use the form to get help.
Frequently asked questions
What is fortnightly payroll?
It’s a two‑weekly pay cycle with 26 runs per year. Many Australian businesses choose it to balance admin time, employee budgeting and cash flow.
Is fortnightly payroll compliant with Australian awards and STP?
Yes—when configured correctly. You must apply the right award rules, calculate PAYG and super, and lodge each pay via STP Phase 2 with correctly mapped income and leave types.
Fortnightly vs weekly or monthly—what should we choose?
Weekly suits highly casual or shift‑heavy teams but adds admin. Monthly reduces admin but can be harder for staff budgeting and some awards. Fortnightly is a practical middle ground for many industries.
When are super and STP due?
Lodge STP on or before payday for each run. Pay super quarterly by the 28th day after quarter‑end unless your fund requires earlier. Payday super is planned for 1 July 2026—prepare your processes early.
How much does outsourced fortnightly payroll cost?
Pricing varies. Expect a base per‑cycle fee plus a per‑employee amount, with extras for award setup, terminations/ETP and year‑end STP finalisation. Ask for an itemised quote.
How do we switch from weekly to fortnightly?
Update contracts where required, communicate the change, adjust software calendars and leave accruals, test the first cycle, and continue lodging via STP as normal.