5 Questions to Ask Your Payroll Provider Before PayDay Super Goes Live

PayDay Super is coming. For Australian staffing and labour-hire agencies, it’s more than a compliance update.

From 1 July 2026, employers will be required to pay superannuation contributions on payday, rather than quarterly. While that may sound straightforward, the operational impact is particularly significant for high-volume, contingent workforces.

If you're taking some time off over the holidays, now is the perfect time to review whether your payroll system is genuinely PayDay Super-ready. Implementing new software is not an overnight process so you want to give yourself the necessary time to have the right systems in place before EOFY. 

Here are five critical questions every agency should be asking their payroll technology provider well before PayDay Super goes live.

1. Can your system calculate and pay super on every pay cycle (and ensure it’s received on time)?

Under PayDay Super, superannuation contributions must be:

• Calculated each pay run, and

• Received by the employee’s super fund within 7 business days of payday

This is a fundamental shift away from quarterly processing. Naturally, not payroll systems are built to adapt to such a major change.

According to the Australian Government’s PayDay Super guidance, compliance is based on when the contribution is received by the fund, not when it’s sent. Delays caused by manual processing, batching or clearing house lag can quickly become compliance risks.

What to ask your provider:

• Is super calculated automatically per pay run?

• How is payment timing tracked and verified?

• Can you demonstrate real-world examples at scale?

For staffing agencies processing hundreds (or thousands) of pays per week, this capability is non-negotiable.

2. How does your payroll system support Single Touch Payroll (STP) and qualifying earnings accuracy?

PayDay Super increases the importance of data accuracy per pay event, particularly around:

• Ordinary Time Earnings (OTE)

• Qualifying earnings

• Super Guarantee (SG) liability reporting via Single Touch Payroll (STP)

Errors that previously surfaced quarterly may now surface every week or fortnight, increasing compliance exposure.

Super funds and payroll specialists have highlighted that incorrect earnings classification is one of the most common causes of super errors under the new model.

What to ask your provider:

• How does the system calculate qualifying earnings automatically?

• How are awards, loadings and allowances handled?

• How does STP reporting align with PayDay Super requirements?

For labour-hire agencies, complexity across roles, awards and shifts can magnify these risks. 

3. What clearing house or payment solution do you use? Can it consistently meet the 7-day rule?

One of the most overlooked aspects of PayDay Super is payment infrastructure.

Many employers currently rely on the ATO’s Small Business Superannuation Clearing House, which is being phased out. Others use third-party clearing houses that may not be designed for high-frequency payments.

If your clearing solution introduces delays, your business remains liable. Even if payroll was processed correctly, your business would be liable for the compliance breach.

It is of the utmost importance that your operators understand how payments flow from payroll to fund.

What to ask your provider:

• Is the clearing house fully integrated with payroll?

• Can it scale for weekly or daily pay cycles?

• What happens if a payment fails or is delayed?

For staffing agencies operating on tight margins, even small delays can impact cash flow and compliance.

4. How does the system prevent data errors before they become compliance issues?

Under PayDay Super, data quality becomes mission-critical.

Incorrect super fund details, invalid USIs, missing TFNs or outdated employee information can delay payments. Those delays can and likely will result in penalties.

Super funds consistently warn that data validation is one of the biggest hidden risks for employers.
👉 Prime Super’s employer guide explains common data issues and employer responsibilities.

What to ask your provider:

• Does the system validate super fund details automatically?

• Are errors flagged before payments are sent?

• Is there visibility and auditability across payroll and super data?

For agencies managing large, mobile workforces, automated validation is essential.

5. What support will you provide to help us transition before July 2026?

PayDay Super isn’t just a software change; it affects processes, people and cash-flow planning.

The Fair Work Ombudsman has made it clear that employers are expected to prepare ahead of the July 2026 start date.

What to ask your provider:

• Is there a PayDay Super transition plan?

• Will training or guidance be provided?

• How will existing workflows need to change?

Providers who treat PayDay Super as “just another update” may leave agencies scrambling at the last minute.

Why This Matters More for Staffing and Labour-Hire Agencies

PayDay Super disproportionately affects:

• High-volume payroll environments

• Weekly or fortnightly pay cycles

• Contingent, casual and shift-based workforces

For agencies, payroll isn’t back-office admin, it's mission-critical operational infrastructure. Systems that aren’t purpose-built for compliance at scale can quickly become a business risk. Entire OnHire has a proven track record of adapting to these major legislative changes and partnering with clients to ensure the transitions are smooth. Not all payroll software is built for the complexities of labour hire, and PayDay Super will quickly show the limitations of a generalist provider. Your business cannot afford to learn that the hard way.

Final Thought: Use the Quiet Period to Ask the Hard Questions

The lead-up to Christmas and the start of the new year is when many agencies quietly reassess their systems (before regulatory deadlines force rushed decisions).

By asking these five questions now, you’ll be better positioned to:

• Reduce compliance risk

• Protect cash flow

• Support worker trust and transparency

• Choose payroll technology built for the future of staffing

For further reading, Prime Super also offers employer fact sheets and resources to support PayDay Super preparation.