Outsourced Payroll Services Australia

Paying staff in Australia is not like paying them anywhere else. You must report every pay run to the ATO, withhold tax, and pay super with each payday.

AusBusinessRegister.com.au provides outsourced payroll services in Australia for foreign employers. We run your Australian payroll end to end, so your staff are paid correctly and on time. You stay compliant with the Australian Taxation Office (ATO) and the Fair Work Act.

Our service starts at $200 a month. It is built for overseas companies with staff in Australia, whether through an Australian subsidiary, a registered branch or a foreign employer with no local entity.

What Is Payroll Outsourcing?

Payroll outsourcing means a specialist provider runs your payroll for you. You send hours, changes and approvals. The provider calculates pay, tax and super, pays staff, and reports to the ATO.

For a foreign employer, outsourcing removes the need to learn Australian payroll rules from scratch. It also means a local team is awake and working during Australian business hours.

Who our payroll service is for

• Australian subsidiaries (Pty Ltd) of overseas groups.
• Foreign companies registered as a branch in Australia (ARBN).
• Foreign employers with no Australian entity that pay staff here under a withholding payer number (WPN). See employing staff without an entity.

We work only with overseas businesses and their Australian operations.

The Payroll Outsourcing Process: Step by Step

1. Discovery. We review your Australian staff, contracts, pay rates and the award or agreement that applies to each role.
2. ATO registrations. We confirm you are registered for PAYG withholding. The ATO requires this before your first payment that needs withholding. Without an ABN, a foreign employer uses a WPN.
3. Employee onboarding. We collect each employee's TFN declaration, super fund choice, bank details and personal details.
4. Payroll setup. We set up pay rates, allowances, leave entitlements, super funds and your pay calendar in STP-enabled payroll software.
5. Each pay run. You approve hours and changes. We calculate gross pay, PAYG withholding and super, and send you the pay run for approval.
6. Payment and payslips. Staff are paid on payday. Each employee gets a payslip within 1 working day.
7. STP report. We lodge the Single Touch Payroll report with the ATO on or before payday.
8. Super payment. We process super so it reaches each employee's fund within 7 business days of payday.
9. Reporting and year end. You receive pay run, super and leave reports each cycle. We finalise STP at the end of each financial year.

What you provide

• Employment contracts and agreed pay rates for each employee.
• New starters, leavers and any pay changes before each cut-off.
• Approved timesheets or hours for staff paid by the hour.
• Leave requests you have approved.
• Approval of each pay run, and funds for wages, tax and super in your Australian bank account.
• Your ABN or WPN and ATO access, or authority for us to act for you.

Pay Cycles in Australia

Employers must pay employees at least monthly. Most awards and agreements also say when staff must be paid: weekly, fortnightly or monthly.

• Weekly: common for hourly and casual staff.
• Fortnightly: the most common cycle in Australia.
• Monthly: common for salaried professionals, if the award or agreement allows it.

We check the award before we set your pay calendar. We can run different cycles for different groups of staff.

Australian Payroll Rules Foreign Employers Must Meet

Australia has detailed payroll rules and real penalties for getting them wrong. There are four main areas.

Single Touch Payroll (STP)

STP is the ATO's payroll reporting system. You report each pay event to the ATO, and the report is due on or before payday.

Under STP Phase 2, you report gross pay, PAYG withheld and super. Income is split into types such as wages, paid leave, allowances, overtime, bonuses and directors' fees. The ATO uses this data to pre-fill employees' tax returns.

From 1 July 2026, you also report qualifying earnings and super liability through STP. Failure to lodge penalties can reach $1,820 per report for a small entity (5 penalty units at $364), and more for larger employers.

Superannuation Guarantee (12%)

Employers must pay super of at least 12% of each eligible employee's qualifying earnings. The rate has been 12% since 1 July 2025.

Payday Super started on 1 July 2026, under the Treasury Laws Amendment (Payday Superannuation) Act 2025. You now pay super for each payday, not each quarter. The contribution must reach the employee's fund within 7 business days after payday. There are some exceptions, such as for new employees.

Qualifying earnings is a new term. It brings together ordinary time earnings (such as base pay, commissions and shift loadings, but generally not overtime) and some other payments, such as salary sacrificed amounts.

If super arrives late or short, the super guarantee charge applies. From 1 July 2026, the ATO assesses that charge.

The maximum contribution base for 2026-27 is $270,830 a year. Most employees, whatever their visa, are eligible for super.

PAYG Withholding

Pay As You Go (PAYG) withholding means you deduct income tax from wages and pay it to the ATO. The amount comes from ATO tax tables. It reflects the tax-free threshold, foreign resident status and study loans (HELP).

You must register before your first payment that needs withholding. This applies even if you end up withholding nothing. Withheld amounts are then reported and paid to the ATO. A foreign employer that is not entitled to an ABN registers with a withholding payer number (WPN).

Fair Work Act and awards

The Fair Work Act 2009 sets minimum standards that affect pay. These include minimum wages, penalty rates, leave and public holidays.

Modern awards set minimum pay and conditions for most industries and jobs. Award rates usually change from the first full pay period on or after 1 July each year. Weekend and public holiday work can attract 150% to 250% of the ordinary rate, depending on the award.

The Fair Work Ombudsman investigates underpayments. A corporation that is not a small business faces civil penalties of up to $546,000 per breach (or 3 times the underpayment), and more for serious contraventions.

State payroll tax

Payroll tax is a separate state and territory tax. It applies once your Australian wages pass the threshold in that state. See our payroll tax by state guide.

What Our Outsourced Payroll Service Includes

• Pay processing. Gross pay from hours, award rates and allowances, net pay after deductions and salary sacrifice, and payment on payday.
• Super. Fund choice checks, contributions through SuperStream, and payment within the Payday Super deadline.
• PAYG withholding. Correct withholding each pay run, TFN declarations, and records for remitting to the ATO.
• Leave. Annual, personal and long service leave balances, leave loading, and final pay on termination.
• Payslips. Compliant payslips within 1 working day of payment, with records kept for 7 years.
• STP reporting. An STP report for every pay run, and end-of-year finalisation.
• Reports. Pay run summaries, cost breakdowns, super and PAYG summaries, and leave liability, in formats your accountants can use.

Need someone else to be the legal employer? Our Employer of Record (EOR) services manage the whole employment relationship. For tax returns and BAS, see our taxation services.

Superannuation Fund Choice

Employees can choose their super fund, and you must offer them the choice. If an employee does not choose, contributions go to their stapled fund found through the ATO, or to your default fund.

We manage fund choice and SuperStream payments for you. For broader support, see our HR compliance services.

Getting Started

Setup usually follows the steps above. We start with your employment arrangements, then configure the payroll and run checks before your first live pay run.

Where you already have a payroll, we can run a parallel pay run and compare results before switching. After go-live, you have a payroll specialist and updates when the rules change.

Contact AusBusinessRegister.com.au to discuss your Australian payroll.

Frequently Asked Questions

How much do outsourced payroll services cost in Australia?

Our outsourced payroll service starts at $200 a month. The final fee depends on the number of employees, pay frequency and award complexity. Ask us for a fixed quote.

What is Single Touch Payroll and why does it matter?

Single Touch Payroll (STP) is the ATO's payroll reporting system. You report wages, PAYG withholding and super each time you pay staff, on or before payday. Penalties for not reporting can reach $1,820 per report for a small entity.

How much superannuation must I pay for Australian employees?

At least 12% of each eligible employee's qualifying earnings. Since 1 July 2026 (Payday Super), you pay super for each payday. It must reach the employee's fund within 7 business days after payday. Late or short payments attract the super guarantee charge.

Do I need to register for PAYG withholding as a foreign company?

Yes. Any employer paying wages in Australia must register for PAYG withholding before the first payment that needs withholding. A foreign employer without an ABN registers for a withholding payer number (WPN) instead.

How often must payroll be processed in Australia?

Employees must be paid at least monthly. Most awards and agreements set the frequency: weekly, fortnightly or monthly. Payslips are due within 1 working day of payment.

What are modern awards and how do they affect payroll?

Modern awards set minimum pay and conditions for specific industries and jobs. They cover pay rates, penalty rates, overtime, allowances and leave. Underpaying an award can lead to penalties of up to $546,000 per breach (or 3 times the underpayment) for corporations that are not small businesses.

Can foreign employees on working visas receive superannuation?

Yes. Super applies to most employees whatever their visa. When a temporary resident leaves Australia for good, they may claim their super as a Departing Australia Superannuation Payment (DASP), which is taxed.

What is the difference between employees and contractors for payroll?

Employees need PAYG withholding, super, leave and workers compensation cover. Contractors usually invoice and manage their own tax. Calling an employee a contractor (sham contracting) attracts heavy penalties. The real nature of the relationship decides it, not just the contract.

What records must I keep for Australian payroll?

Keep payroll records for 7 years. They include employee details, TFN declarations, hours and leave, pay rates and payments, super contributions and STP reports. Records must be in English and easy to access.

What happens if I underpay employees in Australia?

You must back-pay the full amount. Civil penalties can reach $546,000 per breach (or 3 times the underpayment) for corporations that are not small businesses. Directors and managers can be personally liable, and the Fair Work Ombudsman can name employers publicly. Foreign companies are not exempt.

Related Services

Foreign companies often combine this service with:

• HR Compliance Services: employment law compliance and Fair Work Act guidance
• Employer of Record Services: hire Australian employees without a local entity
• Taxation Services: Australian tax compliance, BAS and annual returns
• Bookkeeping Services: ATO-compliant record keeping and GST tracking

This content is general information only and is not legal, financial or tax advice. Laws and regulations change often. For advice on your circumstances, speak to a qualified adviser.