What to look for in a new payroll system for FY27 and beyond

Planning ahead for new financial year? Or just looking for a better alternative to your existing payroll? Here's how to find a payroll solution that works well for your team. 

If you're thinking about switching payroll systems before FY27 begins, you're not alone. A new financial year is the perfect reset point and with the pace of change in compliance requirements, workforce structures, and employee expectations, the system that got you through the last few years might not be the right fit for your organisation any longer. But with so many platforms on the market, it can be hard to know where to start. 

Here's a practical breakdown of what matters when evaluating a new payroll system.

Before you move, here are a few things to check when switching payroll:

1. Compliance that keeps up with your organisation

For FY27, look for a provider that:

• Automatically updates for IRD and legislative changes
• Supports electronic payday filing
• Has a clear track record of releasing compliance updates before effective dates. 

Ask vendors directly: "How do you handle mid-year legislative changes, and how quickly are updates rolled out?" The answer will tell you a lot.

2. Integration with your existing databases

Your system needs to talk to your HR platform, time and attendance tools, accounting software, and potentially your ERP. challenging integrations (or worse, manual data entry between systems) are a recipe for errors and frustrated staff.

Before committing, map out some of the following:

• Does this platform have native integrations with your HR and accounting tools?
• Is there an open API for custom connections?
• How does data sync work? real-time or batch?

Seamless data flow saves time, reduces errors, and makes month-end so much smoother.

3. Support for modern workforce structures

The workforce looks different than it did five years ago. If your organisation has a mix of part-time employees, employees who work variable hours, or employees are casuals, or remote workers, your payroll system needs to handle that complexity without breaking a sweat.

Look for:

• Flexible pay run scheduling (weekly, fortnightly, monthly or a mix of pay frequencies)
• Clear handling of leave entitlements across different employment types

If your workforce is likely to grow or evolve in FY27, build for where you're headed, not just where you are now.

4. A self-service experience employees will use

Modern employees expect to access their payslips, and submit leave requests without having to email Payroll. A good employee self-service portal reduces admin load on your team and gives employees the autonomy they expect.

When evaluating this feature, go beyond the demo. Ask to see:

• The mobile experience (is it actually usable on a phone?)
• How easy it is for employees to find historical payslips
• Whether managers can approve timesheets and leave in the same portal

5. Reporting that gives you real insight

Payroll data is valuable beyond just paying people correctly. The right system should let you slice and dice your data for workforce planning, budgeting, and executive reporting.

Look for:

• Built-in dashboards for headcount costs, leave liabilities, and overtime trends
• Custom report builders you can use without IT support
• Easy exports in formats your finance team can work with
• Audit trail reporting for compliance peace of mind

If you're spending hours building reports manually each month, that's a red flag about your current system and a key question to ask vendors about theirs.

6. Security and data privacy standards

Any new system should meet current security and privacy standards as a baseline.

Check for:

• Data residency clarity (where is your data actually stored?)
• Role-based access controls so people only see what they need to
• Multi-factor authentication as standard

Don't skip this step! It's worth a conversation with your IT or security team before signing any contract.

7. Transparent pricing and a clear implementation plan

Switching payroll systems is a project, not just a software purchase. Hidden fees, long implementations, and poor onboarding support can turn what looked like a great deal into a costly headache.

When comparing vendors, ask for:

• All-in pricing (including implementation, training, and ongoing support)
• A realistic implementation timeline with key milestones
• References or case studies from organisations of a similar size and complexity
• What the ongoing support model looks like after go-live

The cheapest option upfront isn't always the most cost-effective over a 3-year contract.

Making the call

Start by getting clarity on your biggest pain points with your current system, involve your team in the evaluation process, and don't be afraid to push vendors for specifics.

FY27 is a great opportunity to set your payroll function up for the future.

Take the time now to find a solution that will grow with you, not one you'll be replacing again in two years.

Have questions about evaluating payroll systems for your organisation? We'd love to help, reach out to our experts.