Costs of Outsourcing STP Offshore: What Australian SMEs Should Budget For
The costs of outsourcing STP offshore come from four places: the provider's fee, your payroll software subscription, the local time spent reviewing and approving each pay run, and any fees from a registered tax or BAS agent. The provider's fee is usually the largest line, and it is priced per employee, per pay run, per hour or as a monthly dedicated rate. The offshore team prepares pay runs and STP data, and you or your authorised person approve and lodge.
This guide breaks down each cost, the extras to watch for and how to build your own estimate before you sign.
Key Takeaways
Outsourcing STP offshore has several cost lines, and only the provider fee moves offshore.
Providers price per employee per pay run, per pay run, per hour or as a monthly dedicated rate.
Your software subscription, local review time, lodgement and any agent fees stay with you.
Check setup fees, off-cycle runs, rejected super payments and year-end preparation before signing.
Payday Super means super is processed every pay cycle, so confirm it is in scope.
The employer stays responsible for STP, so budget for a review step before every pay run.
Compare total cost across providers, not the headline rate.
What Does It Cost to Outsource STP Offshore?
Outsourcing STP offshore is a set of cost lines, not a single price. Some are paid to the provider, and some stay with your business.
Cost line | What it covers | Who it is paid to |
Provider fee | Preparing pay runs, calculating wages, allowances and leave, calculating super, preparing STP data and reconciliations | The offshore provider |
Setup and onboarding | Loading employees, pay items, award rules and access to your payroll file | The offshore provider (may be included or charged separately) |
Payroll software | Your Xero, MYOB or QuickBooks payroll subscription | The software vendor |
Local review and approval | Your time, or a staff member's, to check each pay run before release | Internal cost |
Registered agent fees | Review or lodgement support, if you use a registered tax or BAS agent | The agent |
Security and access controls | Role-based access, two-factor authentication and a written data agreement | Often part of the provider fee, so confirm |
The only line that moves offshore is the provider fee. Every other line stays with your business, so a quote should always be compared against your full cost, not just the provider's price.
How Do Offshore Providers Price STP and Payroll Work?
Offshore payroll work is typically priced under one of four models, and each suits a different payroll pattern.
Pricing model | How it works | Best suited to | Budget predictability |
Per employee, per pay run | A set fee for each employee on each pay run | Small, stable headcount | Medium, moves with headcount |
Fixed fee per pay run | One price for a defined payroll scope | Predictable pay cycles | High |
Hourly | Billed for hours worked | Variable or project-based payroll work | Low |
Dedicated team member | A specific person working for your business at a fixed monthly rate | Ongoing payroll and wider accounting work | High |
A dedicated team member makes the most sense when payroll is one part of a broader workload, such as reconciliations, GST coding and BAS preparation.
For a business with only a handful of employees, a per-pay-run model can be a tighter fit, because you pay for payroll work only.
Which Costs Stay With You After Outsourcing?
Outsourcing moves the preparation work offshore. It does not move accountability or the surrounding costs. After outsourcing, you still carry:
Your payroll software subscription: The offshore team works inside your Xero, MYOB or QuickBooks file, so the subscription remains yours.
Review and approval time: The employer stays responsible for STP, so someone local still checks and approves each pay run.
Lodgement. You, or your authorised person, approve and lodge the STP report.
Wages and super payments: These are your payroll obligations, not a cost of outsourcing, but your cash flow still needs to cover them on time.
Registered agent fees: If a registered tax or BAS agent reviews your payroll or handles lodgement, their fees sit alongside the provider's fee.
What Hidden Costs Should You Check Before Signing?
The quoted rate rarely tells the whole story. Ask each provider whether the following are included or charged extra:
Setup or onboarding fees
Documenting award rules and building pay templates
Off-cycle pay runs, terminations and final pay calculations
Fixing rejected SuperStream payments
Year-end finalisation preparation
Hours beyond an agreed cap, under an hourly model
Minimum contract terms or exit fees
Whether the quote includes or excludes GST
A fixed "from" price is a starting rate. Scope, headcount and complexity can move the final figure, so ask for the quote in writing against your actual pay cycle.
How Does Payday Super Affect the Cost?
From 1 July 2026, the ATO requires employers to pay super with each payday, calculated on qualifying earnings, and funds must receive contributions within 7 business days. That changes the workload, and therefore the cost conversation, in three ways:
Super is now processed every pay cycle, not quarterly, so there is more payment preparation to price in.
STP reports include year-to-date qualifying earnings and super liability, which raises the importance of accurate pay code mapping.
The super guarantee charge applies when a fund doesn't receive contributions in time, so a late or rejected payment carries a real cost.
Ask each provider whether SuperStream preparation each cycle and fixing rejected payments are covered by the fee.
What Is the Cost of Getting STP Wrong?
The employer stays responsible for STP, whoever prepares the pay run. That means errors can land on you even when a provider caused them. The cost of a mistake can include:
Super guarantee charge when super reaches the fund late
Award underpayments that need correcting
Staff time spent fixing pay events and answering ATO queries
Lost trust with employees when pay is wrong or late
A review step before every pay run is a modest cost compared with these. Budgeting for it up front is part of an honest cost comparison.
How Does Offshore Compare With Software-Only and a Local Bureau?
The table below shows where the cost sits under each option, rather than quoting figures that vary by provider and business.
Software only | Local payroll bureau | Offshore provider | |
Main cost | Software subscription plus your own time | Bureau fees from a local team | Provider fee plus local review time |
Who prepares pay runs | You or your staff | The bureau | A dedicated offshore team |
Cost behaviour as you grow | Your time grows with headcount | Fees typically grow with headcount | Capacity scales with the team, priced per model |
Cost that remains with you | Everything | Software, review and approval | Software, review, approval and lodgement |
The right choice depends on headcount, pay complexity and whether payroll is part of a wider offshore workload.
How Can You Build Your Own Cost Estimate?
Use the same steps for every provider so the comparison is fair:
Count your pay runs: Note headcount, pay frequency and any off-cycle runs.
List the work you want moved offshore: Pay run preparation, super, STP data, reconciliations and year-end preparation.
Ask each provider for a written quote against that scope, including setup, extras and GST treatment.
Add your payroll software cost: It applies under every option.
Add local review time: Estimate the hours per pay run and value them at your own staff cost.
Add any registered agent fees.
Compare the total, not the headline rate.
Conclusion
The cost of outsourcing STP offshore is the provider's fee plus everything that stays with your business: software, review time, lodgement and any agent fees.
Get written quotes against the same scope, ask about setup, extras and Payday Super, and compare the total rather than the headline rate. Done that way, you will know what offshore payroll preparation really costs before you commit.
Why BOS Resources?
BOS Resources prices a dedicated team member from $2,400 a month plus GST, with Indonesian statutory costs (BPJS and THR) already included, in line with the market.
Team members bring a minimum of one year's direct experience working with Australian businesses, work Australian business hours, and operate inside your existing Xero, MYOB or QuickBooks file from a secured, dedicated office in Jakarta.
Payroll preparation moves offshore, while approval and lodgement stay with you or your authorised person. Our guide on how to choose a top-rated offshore STP provider covers what to ask before you commit, and our guide to local employment compliance in Indonesia explains how the team's own employment obligations are covered.
Ready to Cost Out Offshore Payroll for Your Business?
If you want a clear, written estimate for offshore payroll preparation, it's worth talking through your pay cycle, headcount and software. Get in touch with BOS Resources to explore your options.
Frequently Asked Questions
What are the main costs of outsourcing STP offshore?
The main costs are the provider's fee, your payroll software subscription, local review and approval time, and any registered agent fees. The provider's fee is usually the largest line.
How do offshore payroll providers charge?
Common models are a fee per employee per pay run, a fixed fee per pay run, an hourly rate or a dedicated team member at a fixed monthly rate. The right model depends on your headcount and how much other accounting work the team will handle.
Do I still pay for payroll software if I outsource offshore?
Yes. The offshore team works inside your Xero, MYOB or QuickBooks payroll file, so the software subscription stays with your business.
Are there hidden costs in offshore payroll?
Possibly. Ask whether setup, award templates, off-cycle pay runs, rejected SuperStream fixes, year-end preparation and hours beyond a cap are included, and whether the quote includes GST.
Does Payday Super change the cost of outsourced payroll?
It can. Super is now paid with each payday and must reach the fund within 7 business days, so there is more payment preparation each cycle. Ask whether SuperStream preparation and fixing rejected payments are covered.
Who lodges the STP report when payroll is outsourced offshore?
You, or your authorised person, approve and lodge it. The offshore team prepares the pay run and STP data beforehand, and the employer stays responsible for STP compliance.
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