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Outsourced Payroll Services for Australian Small Business

Payroll services cover the full cycle of paying your employees - calculating wages, withholding PAYG, lodging STP reports with the ATO, managing super, and staying across award changes. Get it wrong in Australia and you're looking at Fair Work penalties, ATO interest charges, and back-pay claims that can stretch back years


Our payroll specialists take the whole process off your plate. Fully managed with compliance assurance, a reliable team running your pay cycles, or an independent review of your current setup - we match the service to where your business is right now

Digit payroll team
Leave
Annual14.2 days
Personal6.8 days
Pay run
12 employeesProcessed
STP lodgementLodged
Next run28 Mar

What outsourced payroll covers

Every pay cycle -

  • collect and process timesheets from Deputy, Tanda, or Employment Hero
  • calculate wages, overtime, penalties, and allowances per your award
  • prepare bank payment files and distribute payslips
  • lodge Single Touch Payroll (STP) reports to the ATO
  • calculate and submit superannuation through a compliant clearing house
  • process salary sacrifice, child support, and other recurring deductions
  • track leave balances across all entitlement types

As needed -

  • onboard new employees including TFN declarations and super choice
  • process terminations and Employment Termination Payments (ETPs)
  • calculate and lodge payroll tax returns across states
  • finalise payroll at year end and reconcile all accounts

Why businesses outsource payroll

Most businesses don't outsource payroll because they can't do it. They outsource because the cost of getting it wrong keeps rising, and the time it takes to stay compliant keeps growing. STP Phase 2 changed how every payment category is reported. Fair Work now pursues criminal penalties for deliberate underpayment. The Superannuation Guarantee sits at 12%, and Payday Super arrives in July 2026

A dedicated payroll team stays across all of it. Your office manager or bookkeeper has other things to do. And when they go on leave, take a sick day, or resign, your payroll doesn't stop

Outsourced payroll runs on cloud-based systems with automation handling the volume, regular compliance reporting every cycle, and secure audit trails. Our team processes over 4,000 payslips a month for businesses across Australia, spanning dozens of modern awards. They spot issues your in-house team won't, because they've seen them before

"We tried running payroll ourselves for two years. Between award changes and STP reporting, it was taking a full day every fortnight and we still weren't confident it was right. Digit took it off our plate completely"

Digit client, professional services, 22 employees

How our managed payroll services work

Business discovery and payroll review

  1. explore your business, your goals, and the current payroll processes of your business
  2. build a customised payroll solution for you, to manage all payroll and employee related obligations for a scalable fixed fee
  3. recommend apps and best-practices to implement, and let you know if we spot any issues. We agree to a start date for a smooth handover

On-boarding with your payroll team

  1. introduce you to our payroll team. We review your employment contracts, agreements and start managing your payruns
  2. communicate fast early on to confirm our understanding, and ensure we're delivering on your goals
  3. invest time getting to know how you like to work and communicate with us to quickly find our groove together

Management of your payroll

  1. continue to ensure your people are paid on time, every time
  2. communicate proactively when things come up, so you have peace of mind
  3. send you payroll reports, and chase you up for timesheets, payroll obligations, approving superannuation and other payroll related tasks

Continuous improvement

  1. let you know if things change, and ask you for regular feedback
  2. adjust how we work with you over time, and suggest improvements to how we work together as your payroll platform improves, or new apps are released
  3. add people to your payroll team to maintain a consistent service as you grow

Why choose Digit for payroll?

Payroll is becoming increasingly complex in Australia, with Single Touch Payroll, complex awards, and increasing risk to businesses to get payroll right While many businesses might have a bookkeeper or accountant do payroll, our payroll team are dedicated payroll specialists. It's all they do. So you have peace of mind that your people are being paid right the first time

Get in touch

Your employees paid on time, every time

We understand how critical payroll is to your business We get your employees paid on time, correctly, each payrun

No minimum term, cancel anytime

We work month-to-month on fixed fee agreements with no hidden fees. If you don't love us, leave us! No strings attached, and no hard feelings

Customised for your business

We don't do packages. We customise our payroll services to what you need, as you grow

Cloud payroll technology and apps

Streamline timesheets, leave approvals, and pay runs with integrated cloud tools Less manual work for you, fewer errors, and a clear audit trail

Dedicated payroll specialists

Our team are dedicated payroll professionals who know the leading cloud platforms inside and out When tricky payroll issues come up, we resolve them fast because we've seen it all before

Common questions about Payroll Services

You can run payroll yourself in Xero, but Australian payroll compliance is complex enough that most businesses with more than five employees outsource it. Xero handles basic pay runs, but you must correctly interpret modern awards (Australia has 155), calculate overtime and penalty rates for your specific award, manage superannuation at the current 12% Superannuation Guarantee rate, track leave accruals across different employment types, and lodge Single Touch Payroll (STP) to the Australian Taxation Office (ATO) every pay run. Getting any of these wrong creates underpayment liability - Fair Work civil penalties for small businesses reach $93,900 per standard contravention, or $469,500 for serious contraventions involving knowing or reckless conduct
Payroll outsourcing means an external provider runs your entire payroll function - processing pay runs, calculating tax withholding, lodging Single Touch Payroll (STP) reports to the ATO, paying superannuation contributions, tracking leave entitlements, and maintaining compliance with modern awards and Fair Work obligations. In Australia, businesses with 5 to 50 employees outsource payroll most often because the compliance complexity of modern awards, state-based long service leave rules, and superannuation obligations exceeds what a non-specialist can manage reliably
We run end-to-end managed payroll across Xero, Employment Hero, Deputy, Microkeeper, Tanda, and other major platforms: collecting and processing timesheets, calculating and lodging pay runs, distributing payslips, uploading bank payment files for your approval, reporting Single Touch Payroll (STP) to the ATO, calculating and paying superannuation, onboarding and terminating employees including Employment Termination Payment (ETP) reporting, interpreting modern awards, tracking leave accruals, and finalising payroll at year end. We also manage industry-specific requirements like portable long service leave schemes and redundancy fund contributions
We charge from $12.50 per person per pay run for basic salaried payroll, scaling to $19.50 per person per pay run for complex award-based payroll with timesheet processing. A business with 15 employees on fortnightly pay typically pays $375 to $585 per month. That fee covers pay processing, Single Touch Payroll (STP) lodgement, superannuation management, employee onboarding and terminations, and payroll year-end finalisation. All pricing is fixed-fee with no hidden charges
Yes. Payroll tax is a state-based tax that kicks in when your total Australian wages exceed the threshold for your state or territory. In Western Australia, that threshold sits at $1 million in annual taxable wages. We calculate your payroll tax liability, prepare the monthly or annual returns, and lodge them with the relevant state revenue office. If you operate across multiple states, we manage the grouping provisions and interstate wages allocation for you
Yes. We process payroll across all major Australian payroll platforms including Xero, Employment Hero, Microkeeper, and others. For timesheet collection, we integrate with Deputy, Tanda, FastTrack360, and other workforce management tools - running end-to-end from timesheet approval through to pay run lodgement. If your payroll runs on a separate system to your accounting, we bring the payroll journals into Xero to keep your accounts reconciled