Choosing the Right Payroll Solution in Australia. What SAP Offers

Ensuring Payroll Compliance with the Right Payroll Solution

More than just a back-office function, payroll is a compliance-critical operation as the global employment landscape becomes increasingly complex and highly regulated.

Hybrid work environments, evolving modern awards, and the Australian Taxation Office's (ATO) digital reporting mandates have made choosing the right payroll solution essential for business continuity, employee trust, and, most importantly, legal compliance.

Why Payroll Compliance Is Mission-Critical in Australia

While payroll across the board has become filled with complexity, Australia’s payroll environment is one of the most intricate in the world. Between enterprise bargaining agreements (EBAs), modern awards, superannuation, and ATO Single Touch Payroll (STP) requirements, even the smallest errors can mean significant penalties and reputational damage.

In fact, the Fair Work Ombudsman recovered over $500 million in unpaid wages in 2023 alone, highlighting the urgent need for accurate, automated payroll systems.

Dealing with Modern Awards or EBAs? Discover our proven payroll compliance strategy and how we help businesses stay compliant with confidence.

Common Pitfalls in EBA & Award Interpretation

Interpreting and applying EBAs and modern awards correctly is one of the biggest challenges facing employers because these documents often outline complex rules around:

Manual interpretation or outdated systems can result in underpayments, overpayments, or non-compliance. That's why award interpretation automation is becoming a must-have feature in modern payroll software.

ATO Requirements & Single Touch Payroll (STP)

The ATO’s Single Touch Payroll (STP) initiative requires employers to report payroll data, including salaries, PAYG withholding, and superannuation, every time they pay employees.

With STP Phase 2, even more granular data is required, including income types and employment conditions.

This means your payroll system must be:

SAP's payroll solutions are fully STP-compliant and designed to meet the evolving demands of the ATO.

SAP Payroll + WorkForce Software. A Proven Combination

When paired with WorkForce Software, SAP's payroll engine offers a powerful, end-to-end solution that includes:

SAP HCM Payroll Integration

SAP's Human Capital Management (HCM) suite integrates payroll with core HR, time, and benefits data to ensure continuous accuracy and consistency across the employee lifecycle.

Award Interpretation & Compliance

WorkForce Software provides award interpretation automation and workforce rostering software that aligns with Australian labour laws and EBAs.

Real-Time Visibility

Managers and HR teams gain real-time visibility into payroll costs, compliance risks, and workforce trends.

Learn more about WorkForce Software.

Explore our Workforce Management and Human Capital Management services.

How SAP BTP Adds Agility to Payroll Environments

The SAP Business Technology Platform (BTP) enhances payroll agility by enabling:

With BTP, organisations can adapt their payroll systems quickly as business needs change without core operation disruption.

Future-Proofed Compliance

With the right payroll software, you can keep your business consistently compliant, build trust and enable strategic workforce decisions.

SAP's payroll solutions, combined with WorkForce Software and the flexibility of BTP, offer a future-ready foundation for businesses navigating complex payroll environments.

Have questions about payroll compliance? Contact us to schedule a free consultation and discover how we can help assess your current system and reduce compliance risk.

Frequently Asked Questions (FAQs)