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.

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.