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Workstream 3: Coordinating payroll procurement

The Government Chief Digital Officer (GCDO) coordinated payroll procurement to make government more effective by setting a good practice benchmark for payroll functions, delivering cost savings by avoiding development of bespoke payroll processes, and simplifying procurement.

Workstream 3 was completed in June 2021. Payroll and payroll-related services can now be found on Marketplace.

Who and what was involved

The programme team developed a payroll framework representing a minimum viable product for payroll. Both agencies and suppliers provided input on the framework to ensure it encapsulates the current payroll landscape.

This model informs government’s requirements for:

  • payroll and payroll-related enterprise software
  • payroll and payroll-related managed/outsourced services
  • payroll professional services.


The programme team produced a fit-for-purpose payroll Marketplace model, and established commercial arrangements with payroll suppliers who are able to support it.

Agencies can use the Marketplace model and the commercial arrangements to commence secondary procurement processes in their search for new payroll systems.

Use the Marketplace

The Marketplace is organised in channels. Payroll services are found in 3 catalogues within the channels — enterprise software, managed services, and consultancy and professional services.


Enterprise software catalogue

Agencies procure payroll enterprise software along with related software support services.

Services in the enterprise software catalogue include:

  • payroll
  • time and attendance
  • award interpretation
  • rostering
  • human resources (HR)
  • workforce management
  • self-service
  • data management.

Enterprise software services are hosted in the cloud (private, public or hybrid), by a provider, or on the agency’s infrastructure.

Payroll enterprise software catalogue — Marketplace

Managed services catalogue

The managed services catalogue includes outsourced payroll services — also known as payroll bureau services.

The managed services catalogue includes:

  • payroll
  • time and attendance
  • award interpretation
  • rostering
  • human resources (HR)
  • workforce management
  • self-service
  • data management.

You can procure fully or partially outsourced managed services.

What is a fully outsourced payroll service?

A fully outsourced payroll services is when the provider allows employee and employer access to self-service with workflow. For example, time and leave approvals.

The data captured is used to run the complete payroll process with all third-party distributions (such as tax and payment to employee bank accounts) usually made on behalf of the agency.

What is a partially outsourced payroll service

Partially outsourced services vary, depending on the kind of support you need.

Examples of a partially outsourced payroll service:

  • The agency uploads files for processing, the provider processes pay and third-party distributions.
  • The agency uploads files for processing, the provider processes pay, you complete third-party distributions.
  • They agency uploads and runs trial pays, the provider processes final pay and completes third-party distributions

The level of support can be driven by risk management. For example, do processes need segregation of duties? Or, what processes are you prepared to let someone else do?

Managed payroll services catalogue — Marketplace

Consultancy and professional services catalogue

The consultancy and professional services catalogue includes products and services delivered by a professionally qualified person or business.

Services in this catalogue usually support payroll implementation, technical or administration support as needed or on an agreed-term basis — for example, hiring a payroll admin officer, or payroll training courses.

Payroll professional services catalogue — Marketplace

Who to contact for support

For support, contact the Marketplace team.

Contact us — Marketplace

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