Changing payroll is one of the few business projects where a small mistake shows up in everyone’s bank account. Set it up well and pay runs become routine. Set it up badly and you can spend months correcting underpayments, fixing Single Touch Payroll reports and answering questions from staff.
This guide is for Australian businesses setting up payroll for the first time, moving from one payroll software to another, or fixing a payroll system that was implemented badly. It covers the eight steps a payroll implementation consultant follows, how long each takes, what payroll implementation costs in 2026, and the mistakes that cause most problems after go-live.
The short answer: a straightforward payroll implementation takes two to four weeks and typically costs $1,500 to $3,000 ex-GST. A complex one, with several awards, an enterprise agreement or multiple entities, takes six to twelve weeks and can cost $6,000 to $15,000 or more. Whichever applies, every implementation should include data cleansing, award configuration, STP Phase 2 and Payday Super setup, and at least one parallel pay run.
What is payroll implementation?
Payroll implementation is setting up a payroll system so that it pays every employee correctly from the first pay run. It is much more than installing software. A complete implementation covers award and agreement pay rules, employee and leave data, integrations with accounting and rostering, Single Touch Payroll (STP) Phase 2 and super, testing against your current payroll, and training.
Payroll software makes it easy to sign up. Whether people are paid correctly depends on the configuration underneath, and that is where a payroll implementation consultant earns their fee.
Three types of payroll implementation project
The same eight steps apply to every project, but where the effort goes depends on your starting point.
New payroll setup. You are moving off spreadsheets or a manual process, or setting up payroll for a new business. Most of the work is in scoping and award configuration.
Payroll migration. You are switching software, such as from an older desktop product to Employment Hero Payroll. The risk sits in the data: year-to-date figures, leave balances and pay history must move across exactly, and the change must be handled correctly in STP. Start planning three to four months before your current contract ends.
Payroll re-implementation. Your current system was set up badly. The work starts with a review of what was configured, what is wrong and whether past pays need correcting. Often the software is fine and only the setup needs redoing. Common warning signs:
- pay runs need manual overrides to come out right
- penalty rates, overtime or allowances are calculated outside the system
- leave balances do not match what employees expect
- STP reports or super payments are regularly rejected
- nobody can explain how the awards were configured
Why getting it right matters more in 2026–2027
Australian payroll rules have changed quickly. A new or rebuilt system has to work for the rules as they stand now, not as they were when your old payroll was set up.
- Payday Super. From 1 July 2026, super is paid with wages and must reach the employee’s fund within 7 business days of payday (20 business days for a new employee’s first contribution). The ATO’s Small Business Superannuation Clearing House closed on the same date, so many employers also need a new way to pay super.
- Super guarantee at 12%. The rate rose to 12% on 1 July 2025, the final scheduled increase.
- STP Phase 2. Every pay run is reported to the ATO with pay broken down by type, such as overtime, allowances and paid leave. If pay categories are mapped incorrectly, the errors go straight to the ATO.
- Underpayment risk. Intentionally underpaying wages has been a criminal offence since 1 January 2025. Most underpayments are not intentional, but many begin with an award rule configured incorrectly.
- Pay slips and records. Pay slips must be issued within one working day of payday, and records kept for seven years, so migrated payroll history must be complete and easy to find.
What a payroll implementation consultant does
A payroll implementation consultant sits between your business and the software. The provider supplies the platform and general help guides. The consultant designs and builds payroll around how you actually pay people: turning award rules such as penalty rates, overtime and allowances into pay rules the system applies automatically, cleaning and migrating your data, running parallel pay runs, and staying with you through the first live pay runs.
You will see the titles payroll implementation consultant and payroll implementation specialist used for the same role. The title matters less than experience with your awards and your chosen platform, and a clear written scope.
The step-by-step payroll implementation plan
A well-run payroll implementation follows the same eight steps, whether the system is new, migrated or rebuilt.
1. Discovery and scope
We map how you pay people today: pay cycles, awards and agreements, classifications, allowances, salary sacrifice, entities and cost centres, and connected systems. For a re-implementation, we also review the existing configuration and list what needs fixing. The result is a written scope with a fixed price and a go-live date.
Typical time: 1 to 2 days. We need recent payroll reports, sample pay slips and your awards or agreements.
2. Data audit and cleansing
Employee records are checked before import: tax file number declarations, super fund details, bank accounts, award classifications, start dates and leave balances. A problem found now costs minutes to fix. Found after go-live, it can cost weeks.
Typical time: 2 to 4 days, depending on your data.
3. Award and agreement configuration
Each award or enterprise agreement is built as pay rules, then tested against worked examples: a weekend shift, a public holiday, overtime after a long day, a casual loading, an allowance. Enterprise agreements are checked clause by clause.
Typical time: 2 to 5 days, longer for several awards or an enterprise agreement.
4. System setup and integrations
Pay categories are mapped for STP Phase 2, and super is set to pay with every pay run for Payday Super. Payroll is connected to accounting software such as Xero or MYOB, and to rostering and timesheets, with general ledger mapping agreed with your accountant.
Typical time: 1 to 3 days.
5. Data migration
Employee details, year-to-date figures and leave balances are imported and reconciled to your old system, employee by employee, to the cent.
Typical time: 1 to 2 days.
6. Parallel pay runs
The new system calculates a real pay run alongside your current payroll, and every difference is explained. Most problems are found and fixed here, which is why this step should never be skipped.
Typical time: one or two pay cycles.
7. Go-live
The first live pay run is processed with the consultant alongside your team. The STP report and super payment are checked, pay slips issued, and the change of system handled in STP so year-to-date amounts are not reported twice.
Typical time: your first live pay run.
8. Training and handover
Your team is trained on your own pay runs, and you receive documentation of how your awards are configured, a pay run checklist, and support through the first few cycles.
Typical time: during and after go-live.
How long does payroll implementation take?
A straightforward payroll implementation usually takes two to four weeks, and a complex one six to twelve weeks. The biggest factor is your data: clean records keep a project short, while missing tax, super or leave details stretch it. Re-implementations take longer if past pay errors must be corrected. Other factors are the number of awards and agreements, integrations beyond standard accounting software, multiple entities or ABNs, and how quickly your team reviews parallel pay runs.
Start planning three to four months before your current payroll contract ends. Going live at the start of a financial year means fewer year-to-date figures to migrate, but a mid-year switch works well when the migration is reconciled carefully.
How much does payroll implementation cost?
Implementation is a one-off fee to the implementation partner, separate from the software subscription. Pricing depends on complexity more than headcount.
| Business profile | Indicative market range (ex-GST) | With Employment Star |
|---|---|---|
| 1 to 20 staff, single award, standard integrations | $1,500 to $3,000 | From $2,340, live in 14 business days |
| 21 to 50 staff, single award with penalty rates, allowances, timesheets or rostering | $3,000 to $6,000 | From $2,340 plus scope, live in 14 business days |
| 51 to 200 staff, multiple awards or an enterprise agreement | $6,000 to $15,000 | Quoted on scope, 20 to 25 business days |
| NDIS and SCHADS, multiple entities, or fixing a bad implementation | $12,000 and above | Quoted on scope, 20 to 25 business days |
Indicative ranges based on publicly advertised Australian partner pricing in 2026, as a guide for comparing quotes, not a rate card. For a detailed breakdown, see our Employment Hero implementation cost guide.
Price rises with several awards or an enterprise agreement, custom integrations, poor-quality data, multiple entities, and correcting past payroll errors. The best way to control cost is a fixed price against a written scope. Hourly implementations have no ceiling.
Common payroll implementation mistakes
- Skipping the parallel pay run. It is the only reliable way to prove the new system pays correctly.
- Importing data without checking it. Old errors are copied straight into the new system.
- Configuring awards from memory. Rules must be built from the award text and tested.
- Leaving super on a quarterly process. Since 1 July 2026, super must be paid with each pay run.
- Mapping STP Phase 2 pay categories incorrectly. Mistakes reach the ATO every pay run.
- Going live without trained people. The second pay run, without the consultant in the room, is the real test.
- No documentation. If nobody knows how awards were configured, every change becomes guesswork and the next re-implementation is only a matter of time.
Payroll implementation go-live checklist
Use this list to confirm a new, migrated or rebuilt payroll is ready before the first live pay run.
- Written scope, price and go-live date signed off
- Employee tax, super, bank and classification details checked
- Award and agreement rules tested against worked examples
- Pay categories mapped for STP Phase 2
- Super set to pay every pay run, within 7 business days of payday
- Accounting, rostering and timesheet integrations tested
- Year-to-date figures and leave balances reconciled
- Every parallel pay run difference explained
- Pay slips ready to issue within one working day of payday
- Payroll team trained and documentation handed over
- Support booked for the first live pay runs
When to bring in a payroll implementation consultant
A handful of salaried staff on fixed pay can often be set up using the provider’s guides. Bring in a consultant when your staff are on an award with penalty rates or allowances, you have several awards or an enterprise agreement, you are switching mid-year, you run several entities, you operate under SCHADS or in the NDIS sector, or you have had underpayments or STP errors.
Not sure where your current payroll stands? A payroll review with a consultant is a sensible first step, and our payroll audit guide explains what one covers.
How Employment Star can help
Employment Star is a certified Employment Hero implementation partner based in Parramatta, working with businesses across Australia. We set up new Employment Hero Payroll accounts, migrate from other payroll software, and rebuild payroll that was implemented badly, with award configuration, STP Phase 2, Payday Super and parallel testing included.
Standard single-award implementations are a fixed price from $2,340 ex-GST and go live in 14 business days, with no lock-in. Prefer to hand payroll over completely? Our outsourced payroll service starts at $350 a month ex-GST for up to 20 employees.
Setting up, switching or fixing payroll?
Book a free 30-minute payroll check and we will give you a fixed price and a go-live date.
+61 466 614 475 · info@employmentstar.com.au
This article is general information only and does not constitute legal, tax or financial advice. Obligations vary by business, industry and applicable modern award. Check your circumstances with the ATO, the Fair Work Ombudsman, or a qualified adviser.
Frequently asked questions
How long does payroll implementation take in Australia?
Usually two to four weeks for a straightforward implementation, and six to twelve weeks for several awards or an enterprise agreement. Employment Star goes live in 14 business days for a standard single-award implementation and 20 to 25 business days for complex builds.
How much does payroll implementation cost?
Indicatively $1,500 to $3,000 ex-GST for a small business on a single award, rising to $6,000 to $15,000 or more for multiple awards or an enterprise agreement. Employment Star’s fixed fee starts at $2,340 ex-GST.
What does a payroll implementation consultant do?
They scope your payroll, clean and migrate your data, configure awards and agreements, set up STP Phase 2 and super, run parallel pay runs, and support your team through go-live.
Can a badly implemented payroll system be fixed?
Yes. A consultant reviews the existing setup, finds incorrect pay rules, leave balances and STP mappings, works out whether past pays need correcting, and rebuilds the configuration, often without changing software.
Does payroll implementation include Payday Super and STP Phase 2?
It should. Since 1 July 2026, super must be paid with each pay run and reach the fund within 7 business days, and every pay run is reported through STP Phase 2. Both must be tested before go-live.
Can I switch payroll software part-way through the financial year?
Yes. Switching on 1 July means fewer year-to-date figures to migrate, but a mid-year switch works well when balances are reconciled carefully and the change is handled correctly in STP.
About Employment Star — We’re a certified Employment Hero implementation partner based in Parramatta, NSW, working with small and medium businesses across Australia. We handle Employment Hero setup, modern award configuration, data migration, STP Phase 2 and Payday Super — fixed price from $2,340 ex-GST, live in 14 business days.
Published 22 October 2026 · Last updated 22 October 2026
