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Payroll management is one of the most critical functions of any organisation. Yet, for many businesses, payroll remains a time-consuming, error-prone process that involves multiple systems and manual workflows.

Integrating payroll with an Enterprise Resource Planning (ERP) system eliminates inefficiencies, ensures compliance, reduces errors, and saves HR teams valuable time. But how exactly does ERP payroll software work, and is it the right fit for your organisation?

This guide explores ERP payroll software, its advantages, and how TechnologyOne’s Human Resources & Payroll (HRP) solution is helping businesses streamline workforce management for the future.

What does ERP mean?

ERP (Enterprise Resource Management) is an integrated software system that helps organisations manage core business processes in a single platform. Traditionally, ERP systems covered finance, supply chain, and operations, but modern ERP solutions have expanded to include HR, payroll, compliance, and workforce planning.

Instead of relying on multiple disconnected systems, ERP brings payroll, finance, and HR into a unified solution, automating payroll processing, ensuring compliance, and reducing administrative workload.

What is ERP payroll software?

ERP payroll software is a payroll management module within an ERP system that automates (or simplifies) things like:

  • Employee wage calculations
  • Tax deductions and superannuation payments
  • Award interpretation and compliance tracking
  • Payroll reporting and workforce analytics
  • Seamless integration with HR and finance

Unlike standalone payroll software, ERP payroll is built for scalability. It supports multi-entity businesses, handling different employment classifications, tax structures, and locations.

This makes it ideal for complex organisations, such as local governments, higher education, and large enterprises, which need to manage multiple pay structures across departments.

TechnologyOne HRP Employee self service

The time-saving benefits of an integrated ERP payroll solution

Managing payroll shouldn’t be an administrative burden. An integrated ERP payroll solution simplifies payroll processing by automating calculations, reducing manual errors, and ensuring compliance with ever-changing regulations.

ERP software can save not just money, but time as well for HR and payroll teams.

Automating payroll for efficiency

One of the biggest time-saving advantages of an ERP payroll system is automation. Instead of manually calculating pay and reconciling errors, an integrated ERP automates:

  • Salary payments and tax deductions
  • Superannuation contributions
  • Payroll approval workflows
  • Leave balances and entitlements

TechnologyOne’s HRP solution allows organisations to process payroll with minimal manual intervention, ensuring timely and accurate employee payments.

Reduced compliance errors

Payroll errors - such as misclassifications, missed deductions, or incorrect tax calculations - can lead to financial penalties and reputational damage.

With ERP payroll automation, compliance is built into the system, ensuring:

  • Employees are paid correctly under relevant awards
  • Taxes and superannuation are calculated automatically
  • Payroll data remains audit-ready for compliance reviews

For example, in higher education, where employees often work across multiple contracts (e.g., teaching, research grants, admin roles), ERP payroll ensures correct pay rates for each role without manual adjustments.

Integration with HR and finance

With an ERP, payroll is no longer an isolated function. Instead, it integrates with:

  • HR systems (onboarding, performance management, leave tracking)
  • Finance systems (budgeting, cost forecasting, financial reporting)
  • Compliance tools (regulatory updates, tax reporting)

This integration removes bottlenecks, allowing HR teams to focus on strategy instead of admin. Depending on your organisation, you can also link your HR and payroll responsibilities with asset management, supply chain management, budgeting, analytics, and much more!

ERP payroll software: Pros and cons

The table below highlights the pros and cons of ERP payroll software:

ProsCons
  • Fully integrated with HR & finance – Reduces errors by synchronising employee data across payroll, workforce planning, and accounting.
  • Higher initial cost – ERP solutions require an investment in implementation and training.
  • Automated compliance tracking – Ensures businesses stay updated with tax laws, wage regulations, and superannuation requirements.
  • Implementation time – Transitioning from a standalone payroll system to an ERP takes time and careful planning.
  • Scalable for complex payroll needs – Supports multi-entity businesses with different employment structures.
  • Includes features that may not be needed – Small businesses with basic payroll needs might not require the full capabilities of an ERP.
  • Reduces manual data entry errors – Payroll calculations, tax deductions, and compliance updates are fully automated.
  • Requires user training – Payroll, HR, and finance teams need time to familiarise themselves with new workflows and system integrations.
  • Real-time payroll reporting & analytics – Provides payroll insights that help businesses better forecast costs.
  • More complex than standalone payroll software – ERP payroll solutions offer advanced functionality that might be unnecessary for smaller businesses.
  • Better security & data accuracy – Centralised payroll systems reduce security risks, improve audit readiness, and ensure compliance.
  • Requires IT support – Depending on the ERP system, businesses may need ongoing IT support for system updates and maintenance.

What’s the difference between ERP software and standalone HR & payroll software?

Both ERP payroll software and standalone HR and payroll software help organisations manage payroll, but they differ in scope, integration capabilities, and scalability.

Also known as standalone human resource management software (HRMS), standalone HR & payroll systems serve a slightly different purpose to ERP software. While ERP payroll integrates payroll into a broader business system, standalone payroll software focuses solely on payroll and employee management and can’t be fully integrated with your other key business functions.

However, there are some benefits to such specialised systems. As they tend to be more basic in size and functionality, they are often used by small to mid-sized businesses that require basic payroll processing without additional HR or financial integration.

Standalone payroll and HR software: Pros and cons

The table below highlights the pros and cons of standalone HR & payroll software to help businesses determine if it’s the right choice.

ProsCons
  • Lower initial cost – More affordable than ERP systems, making it ideal for small businesses with basic payroll needs.
  • Limited integration – Payroll data often needs to be manually transferred to financial systems, increasing the risk of errors.
  • Quick deployment – Standalone payroll software can be faster to implement compared to ERP payroll solutions.
  • Scalability limitations – May not support multi-entity businesses, different locations, or multiple pay structures.
  • User-friendly – Typically designed with simpler interfaces and workflows, making it easier for HR teams to use.
  • Compliance risks – Unlike ERP payroll, standalone systems may require manual updates for tax laws, wage regulations, and compliance changes.
  • Best for payroll-focused teams – Ideal for businesses that only need payroll processing without additional HR, finance, or workforce planning features.
  • No built-in workforce planning – Some of them cannot forecast payroll costs or integrate with financial reports as effectively as ERP solutions.
  • Minimal IT dependency – Requires less IT maintenance than ERP systems, making it easier to manage for small businesses.
  • No automation beyond payroll – May not include advanced features like self-service portals, workforce analytics, or real-time payroll tracking.
  • Good for compliance at a basic level – Handles tax and payroll compliance for single-entity businesses with standard employee contracts.
  • Difficult to manage complex payroll – May lack capabilities for handling more complex things like multi-award employment contracts, part-time, casual, and contractor structures.

Which one is right for your business?

The choice between ERP payroll software and standalone HR & payroll software depends on the complexity of your payroll operations, the size of your workforce, and your need for system integration.

Businesses operating with diverse employment types, multiple pay structures, and complex compliance requirements will benefit more from a fully integrated ERP payroll solution. A university, for example, might employ lecturers, research staff, and administrative personnel, all of whom are on different pay scales and funding models.

Without an integrated ERP payroll system, managing these varying payroll structures would require excessive manual intervention, increasing the risk of errors and compliance breaches.

On the other hand, companies with simpler payroll needs may find a standalone HR & payroll system more cost-effective. A small retail business, for example, employing 20 staff members on fixed wages, may find a standalone payroll system more cost-effective and straightforward to use.

How to choose the right ERP payroll solution

With so many payroll solutions on the market, selecting the right ERP payroll system can feel overwhelming. Ultimately, the right payroll solution comes down to business complexity, long-term scalability, and integration requirements.

Here are the key features you should look for when evaluating an ERP payroll solution.

  • End-to-end payroll automation: Eliminates manual processes, reducing errors and payroll processing time.
  • Real-time compliance tracking: Ensures businesses stay up to date with wage laws and tax regulations.
  • Integration with HR and finance: Unifies payroll with workforce planning, financial reporting, and employee records.
  • Scalability: Supports complex payroll structures, including casual, contract, and multi-entity operations.
  • Self-service capabilities: Empowers employees to manage payslips, leave, and tax details without HR intervention.

For a broader look at what factors can influence your choice of ERP, such as cost and the reputation of the provider, read our article below on how to choose the right ERP system for your business.

How to choose the right ERP system for your business
How to choose the right ERP system for your business

Discover how to choose the right ERP system for your business. Learn key factors, features, and best practices to find the perfect ERP solution.

Learn more

Future-proof your payroll with TechnologyOne

An integrated HR and payroll system is no longer a luxury. It’s a necessity for organisations looking to streamline operations, improve compliance, and enhance employee satisfaction in the modern age.

TechnologyOne’s Human Resources & Payroll (HRP) software is a fully integrated ERP product designed to simplify workforce management. With built-in automation, compliance updates, and real-time reporting, HRP empowers businesses to focus on their people, not paperwork.

Book a demo today to discover how TechnologyOne HRP can transform your HR and payroll operations.

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Human Resources & Payroll (HRP) FAQs

Read some of our most frequently asked questions (FAQs) below or contact one of our friendly team members if you need more information.

HRP (Human Resources & Payroll) by TechnologyOne is a purpose-built solution that automates and simplifies workforce management, payroll processing, and ensures compliance with local labour laws.

HRP is hosted on a secure SaaS+ platform with advanced security protocols, protecting sensitive data and ensuring compliance with government standards.

Whether it’s processing payroll, managing employee data, or ensuring regulatory compliance, Human Resources & Payroll leverages TechnologyOne’s 37 years of unique domain experience to serve the following industries with custom-made solutions:

Explore TechnologyOne solutions for your industry.

Yes, the software is scalable and flexible, making it suitable for small, medium, and large businesses across industries, ensuring compliance with local regulations.

SaaS+ is TechnologyOne’s all-inclusive enterprise solution, providing a fully managed, end-to-end digital transformation experience. Unlike traditional SaaS offerings, SaaS+ includes everything from software implementation, upgrades, support, and security, all for a single annual fee.

For more details, visit the SaaS+ information page .

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