Why in-house payroll infrastructure is becoming obsolete in Australia and New Zealand

We’re seeing major payroll vendors retiring their legacy systems, and it's not just another tech update – it really should be a big wake-up call for anyone in payroll. With MYOB Exo Payroll and multiple Ascender solutions hitting end-of-life, businesses across Australia and New Zealand are facing some hard truths about their payroll infrastructure. And if we’re being honest, it's not just about the software getting old – it's about the whole payroll terrain changing faster than older systems can keep up.

 

Here’s a slightly painful thought exercise: have an honest look at your current payroll infrastructure. How old is it? How many workarounds and permanent Post-it notes have you created? How many times have you thought, "Well, it still (mostly) works, so why change it?" The pill most organisations need to swallow is that while your old system might still be “functioning”, it's likely holding you back in ways you haven't even noticed.

The truth is, payroll infrastructure isn't just about getting money from point A to point B anymore. Modern business demands have transformed what we need from our payroll systems. From managing tricky award interpretations to handling remote work arrangements, the requirements have evolved far beyond what legacy systems were designed to handle.

Let's explore why maintaining aging payroll infrastructure might be costing you more than you think, and how you can make the switch to a modern solution that can transform your payroll from a potential liability into a strategic asset.

The hidden risks of ageing payroll infrastructure

Risk #1: The compliance nightmare

If you’re hoping your legacy payroll system is just a bit long in the tooth, the reality might be more serious than that. When a system that's been ticking along for decades starts showing its age, it's rarely just one thing that goes wrong – it's death by a thousand spreadsheet paper cuts.

Modern payroll systems often need to handle payroll services across multiple divisions, comply with numerous pieces of legislation, and manage a tonne of employment agreements with different hours, terms, and conditions. Trying to handle that on a payroll system that was built for the paper age is only going to give it a virtual heart attack. Sound familiar? Even if your business isn’t actively changing or growing, your payroll needs are.

Learn about the hidden dangers of relying on spreadsheets >

Risk #2: The error rate reality

Here's where it gets properly concerning. Manual data entry, which many older systems rely on, has an error rate of 3.7%. That might not sound like much, but let's put that in perspective:

  • Processing payroll for 100 employees? That's nearly four errors every single pay run
  • Got 500 employees with weekly payrolls? You're looking at up to 962 errors a year
  • Each error is a potential compliance issue, a frustrated employee, or both

Risk #3: Security vulnerabilities

And we haven't even touched on system vulnerabilities yet. Older infrastructure often lacks proper integration capabilities, creating security blind spots that would make any IT manager lose sleep. These systems weren't built for a world where cyber threats are a daily reality, or where data protection regulations carry serious teeth.

Risk #4: The cost of holding on

The kicker is that maintaining these aging systems often costs more than replacing them. It's like driving an old car – eventually, the cost of repairs and the risk of breakdown outweigh the price of a new vehicle. Except with payroll, the stakes are significantly higher than being stuck on the side of the road.

Here are 8 proven benefits of integrating business solutions software with Jemini >

Why modern business needs modern payroll infrastructure

The new world of work 

If you’ve been around long enough, you’ll remember when payroll just meant processing a standard 40-hour week with the odd bit of overtime thrown in. Just like the “bzz-krrr-ch-ch-ch” sound of the old dot matrix printers (sorry for aging you), those days are long gone. Work patterns have changed dramatically, and old payroll systems are buckling under the pressure.

Award calculations: not so simple anymore 

Picture this pay calculation:

  • Base hours at standard rates

  • Night shift bonuses

  • Meal payments for long shifts

  • Supervisor step-up rates

  • Higher Duties Allowances

  • Special task allowances

  • Public holiday loadings

  • Job Costing / Plant Costing

  • Different rates for different tasks

  • Multiple Roles & Employments

It’s just not going to be any fun trying to process that with an older, disjointed system – legacy infrastructure is built for basic pay runs and simply can't cope with these layered calculations.

Connected systems matter 

Which leads us to our next point: your payroll system can't operate alone anymore. Your accounting team wants live budget data. Your people team needs instant reporting and analytics access. Your staff want to be able to check their pay details between meetings. Nobody's willing to wait for overnight updates anymore.

Working from... anywhere and everywhere 

2020 proved work happens beyond office walls. Your payroll must now track:

  • Staff in different cities

  • Various regional rules

  • Multiple time zones

  • Adaptable schedules

  • Phone-based access

All while staying accurate and compliant. Still think your aging system's up to the task?

Staff Want More 

Your team now wants:

  • Pay info at their fingertips

  • Self-managed profile updates

  • Phone-friendly systems

  • Complete pay breakdowns

  • Quick answers to questions

When employees can easily access and understand their pay information, it eliminates confusion and builds trust. It saves time for everyone – no more back-and-forth emails about basic pay questions, no waiting for responses, and no frustration over unclear calculations. Payroll teams spend less time answering basic questions and more time adding real value to your business.

 

The cost of maintaining legacy payroll systems

The money pit 

Let's talk numbers – those old systems aren't as budget-friendly as you might think. Going back to that old car analogy, keeping outdated payroll tech running smoothly gets more expensive every year. Parts become scarce, fixes take longer, and the mechanics who know how to service it become harder to find.

The real numbers behind manual processing 

Remember that 3.7% error rate with manual data entry we mentioned earlier? Let's put some dollar signs to that. For a business with 100 employees on weekly payroll, and a single payroll expert, that means:

  • 192 errors per year to fix (3.7 errors per week × 52 weeks)

  • At 15 minutes fix time per error

  • That's 48 hours annually spent just fixing mistakes

  • With a payroll specialist on $80,000 ($40.40 per hour*)

  • You're spending $1,939 annually just on corrections

And that's before we count:

  • Time spent double-checking other entries

  • Extra hours during audit periods

  • Compliance review time

  • Documentation updates

  • Follow-up communications with affected staff

(*Based on a 38-hour week)

The IT support burden 

Old systems need constant attention:

  • Custom patches for security updates

  • Special maintenance for outdated code

  • Extra time to integrate with newer systems

  • Additional backups for unstable platforms

  • More hours spent training staff on workarounds

Staff time costs 

Your payroll team's time is valuable. With old infrastructure, they're spending hours on:

  • Manual data entry

  • Double-checking calculations

  • Fixing system glitches

  • Creating workarounds

  • Answering basic questions that modern systems handle automatically

The biggest hidden cost: lost opportunities 

While your team wrestles with old tech, they're missing chances to:

  • Analyse payroll data for business insights

  • Spot trends in overtime spending

  • Find ways to streamline processes

  • Focus on strategic planning

  • Build better employee experiences

Each day spent maintaining old systems is a day you could have spent improving your business. Sometimes the cost of not changing is higher than the cost of upgrading.

How to successfully implement a new payroll system: The comprehensive guide

Read more

Making the switch: what you need to know

Start with the facts 

Old system acting up? Don't wait for it to break completely. Like many organisations are discovering, it's better to act before you're facing a "critical risk of service failure”.

Check your current setup 

Ask these questions:

  • How old is your current system?

  • Does my system still get regular functional updates?

  • What's your annual error rate?

  • How many hours does your team spend fixing problems?

  • What's your total maintenance cost?

  • How many separate systems are you running?

  • Do we still have to do upgrades ourselves?

Plan your move 

A good transition includes:

  • Full system audit

  • Data cleaning and prep

  • Staff training plans

  • Clear timeline

  • Backup procedures

Choose smart 

Look for systems like Jemini that:

  • Scale with your business

  • Handle multi-company needs

  • Process complex pay rules

  • Provide out-of-the-box analytics

  • Offer clear audit trails

  • Give staff self-service options that are easy to use

Time it right 

The best time to upgrade is now. Why? Because every week you wait costs you:

  • More error corrections

  • Extra maintenance fees

  • Lost productivity

  • Staff frustration

  • Missed opportunities

 

Where to next with Jemini

Moving from old to new doesn't have to be 'all or nothing'. At Jemini, we understand you might have existing systems you need to keep. That's why we've built our cloud platform to play nice with others.

Want to keep your old time-tracking system? No problem. Need to hold onto that custom reporting tool? We can work with that. Our cloud solutions adapt to your needs, not the other way around.

Think of it like building blocks – you can start with basic payroll processing and add more features as you're ready. Maybe you begin with core payroll and employee self-service, then add HR management later. Or perhaps you want the full suite right away. It's your choice.

We get that it’s complex – you’ve got all of those very different employment agreements with different hours, terms, and conditions. And that doesn’t even mention the legislation that changes at the drop of a hat. That's exactly what we take care of, before it’s even an issue. Whether you're dealing with complex award interpretations, multiple business units, or special compliance requirements, we've got you covered.

Want to see what an ideal payroll setup looks like? Watch this 2-minute intro video to Jemini payroll. 

FAQs

Outdated payroll systems create multiple risks, including higher error rates (3.7% with manual data entry), security vulnerabilities, compliance issues with modern legislation, and integration problems with other business systems. For a business with 100 employees, these errors can cost nearly $2,000 annually in corrections alone.

Beyond obvious maintenance costs, legacy systems incur hidden expenses through manual error corrections, IT support requirements, staff time spent on workarounds, security patches, and lost opportunities for business insights. The total cost includes both direct expenses and opportunity costs from inefficient processes.

Modern payroll infrastructure should offer automated calculations, multi-agency support, complex award interpretation, employee self-service options, real-time reporting, mobile access, and seamless integration with other business systems. It should also provide clear audit trails and up-to-the-minute security features.

The transition timeline varies by organisation size and complexity. However, a well-planned implementation includes system auditing, data cleaning, staff training, and parallel running of systems. The key is starting before your current system reaches critical failure, allowing for a controlled, systematic transition.

Yes, modern cloud-based payroll solutions like Jemini can integrate with existing systems like time-tracking or custom reporting tools. The transition doesn't require an 'all or nothing' approach - organisations can maintain necessary legacy systems while upgrading core payroll infrastructure for improved efficiency and compliance.

Share this page

Ready to transform your HR & Payroll process?

Get a demo