You don't want any surprises when you get your first bill, so always ask for a detailed breakdown of all the costs involved in the payroll software. This should include any setup fees or hidden costs like additional charges for correcting payroll errors.
Our best payroll software for small businesses
Find the right payroll software for your small business
Payroll software can help your business to scale as it streamlines complex processes
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Cintra
Price
Custom
Employee self-serve portal
Yes
Auto-enrolment pension management
Yes
Accounting software integration
No
Trustpilot score
4.9/5
More Information
Key features
- Fully outsourced and managed payroll service
- Dedicated payroll manager or point of contact
- Focus on compliance and accuracy
- Bacs bureau for direct payment processing
Eligibility
| Recommended for | Businesses of any size that want to completely outsource the payroll function and prefer a dedicated human expert over software. |
| Not recommended for | Companies that want hands-on control over the payroll process via a software interface and deep integrations with other apps. |
| Integrations | Focus is on providing data files for import into other systems rather than direct API connections. |
employment hero
Price
From £0.00 per employee per month
Employee self-serve portal
Yes
Auto-enrolment pension management
Yes
Accounting software integration
Yes
Trustpilot score
4.6/5
More Information
Key features
- All-in-one HR, benefits, and payroll platform
- Strong focus on employee engagement and self-service
- Automated payroll and compliance workflows
- Includes recruitment (ATS) and onboarding tools
Eligibility
| Recommended for | SMEs looking for a single, modern platform to manage the entire employee lifecycle, from recruitment to payroll. |
| Not recommended for | Very small businesses that only need basic payroll without the extensive HR features. |
| Integrations | Xero, Quickbooks Online, FreeAgent, Sage 50 Export |
Moorepay
Price
Custom
Employee self-serve portal
Yes
Auto-enrolment pension management
Yes
Accounting software integration
Yes
Trustpilot score
4.8/5
More Information
Key features
- Flexible choice of software, managed service, or both
- Integrated HR and payroll modules
- Strong reporting and analytics capabilities
- Additional HR and health and safety consultancy available
Eligibility
| Recommended for | Businesses that want flexibility to choose between managing payroll in-house or outsourcing it. |
| Not recommended for | Startups on a tight budget who may find leaner, software-only solutions more cost-effective. |
| Integrations | Xero, QuickBooks, Sage, Various HR and Time & Attendance systems |
What is payroll software and how does it work?
Payroll software is all about how you pay your employees. It is a digital solution that manages the entire process from working out how much money each person is owed to filing the correct taxes. This means you don't need to worry about manually paying you employees, and it reduces the risk of error, as it's easy to make a mistake if you have a DIY payroll spreadsheet for your small business.
Instead, payroll software works by automatically performing the calculations needed for each employee. This includes working out gross pay, net pay and tax. Once these calculations are completed the software can then process the payments via direct deposit and digital payslips.
Payroll software can also include a self-service portal which means your employees can access their payslips and update their personal information. This can reassure your employees that they will be paid on time and it reduces any extra admin.
Why use payroll software as a small business?
Payroll software does normally come at an extra cost, but there are some key benefits that small business owners should consider if they want to address common pain points. For example:
Reduces errors - manual payroll can lead to human error, which then impacts the efficiency of your business
Saves time - payroll can be a time-consuming process, but payroll software automates repetitive tasks
Scales with you - as your business grows, so do your employees, which makes a manual payroll system more difficult to manage
Extra security - most payroll software solutions come with security measures that protect your employees' confidential information
Gives peace of mind - it's important your employees are paid on time, and payroll software offers consistent payments via direct deposits
What are the key features of payroll software?
When comparing free and paid payroll software solutions, you'll find that free payroll software may offer limited functionality but paid plans have more advanced tools that can support growing teams. Here are some features to look out for...
Automated pay calculations
This takes care of regular wages, overtime, commissions and any extra bonuses. It can also deduct tax, national insurance and any pension contributions.
Employee self-service
This means employees can access their personal and payroll information. It allows them to update their details and view payslips easily.
Customisable reporting
Payroll software comes with different reports and you can use these to track tax, analyse labor costs and gain insights for budgeting.
Integration with other systems
Some solutions offer the ability to integrate with other platforms, like accounting software or HR systems. This means all your financial operations can be in one place.
How to choose the right payroll software for your small business
The right payroll software for you business will depend on your own requirements and what budget you have available. Here are some things to consider when you're comparing the market:
1. Review your business needs
It's important to understand your business needs before looking at software as this will help you to decide on what features are essential. For example, how many employees do you have and how often do you pay them? This will determine the type of software you'll need.
2. Decide on a budget
Your budget will always play a key role during the decision-making process, and the cost of payroll software can vary. Compare the different prices by reviewing what is included in each package. Unsurprisingly, free payroll software will have limited features, but it depends on your business needs as this could still be suitable.
3. Compare different features
Once you understand your needs and budget, you can review the features on offer. Payroll software can include robust reporting, compliance support and extra security - but weigh this up with what your small business needs to succeed.
4. Think about the future
You'll want payroll software that grows with your business, so make sure there aren't any limitations when you're choosing the software.
Explore other top payroll software providers
Sage
Sage streamlines the process of paying employees as it handles everything from tax to payments. It also simplifies complex tasks like pension deductions, and ensures compliance with tax laws, so you can manage employees on one platform.
QuickBooks
QuickBooks' payroll solution works with its accounting software, meaning you can manage payroll and overall finances in one place. This maintains accuracy and provides a clear, real-time view of your company's financial health.
Xero
Xero's payroll software also integrates with its accounting software, providing a platform for managing both finances and employee payments. Small businesses can benefit from its tax and pension calculations and there's a employee self-service app to reduce administrative tasks.
ADP
ADP has a payroll and HR solution that automates key tasks for small businesses. It streamlines payroll processing with scalable HR tools and there's 24/7 support to help you manage your growing workforce with confidence.
IRIS
IRIS offers a range of solutions and it's fully compliant with UK-specific regulations like RTI and automatic enrolment. It automates pension reports, and offers a roll-back feature to easily correct any mistakes.
Key questions to ask before you commit to a payroll provider
What is the total cost?
You don't want any surprises when you get your first bill, so always ask for a detailed breakdown of all the costs involved in the payroll software. This should include any setup fees or hidden costs like additional charges for correcting payroll errors.
What payroll services are included?
Does the payroll software include everything you need to handle your essential needs? For example, does it calculate wages, manage deductions and process direct deposits? Always check the details to make sure it aligns with your requirements.
What are the tax services?
Tax plays a big role in your business, so you need to be sure that your payroll software has this covered. Always check with the provider what system they use the automate the calculations of taxes.
What security measures are in place?
Payroll software uses a lot of sensitive personal data, so you need to be confident in its security measures. Ask about the data encryption protocols, data backup procedures and whether there is multi-factor authentication.
What customer support is available?
If something unexpected happens, it's good to know what support is available. Find out whether you can call or email someone and if this support is available every day.
Key questions to ask before you commit to a payroll provider
What is the total cost?
What payroll services are included?
Does the payroll software include everything you need to handle your essential needs? For example, does it calculate wages, manage deductions and process direct deposits? Always check the details to make sure it aligns with your requirements.
What are the tax services?
Tax plays a big role in your business, so you need to be sure that your payroll software has this covered. Always check with the provider what system they use the automate the calculations of taxes.
What security measures are in place?
Payroll software uses a lot of sensitive personal data, so you need to be confident in its security measures. Ask about the data encryption protocols, data backup procedures and whether there is multi-factor authentication.
What customer support is available?
If something unexpected happens, it's good to know what support is available. Find out whether you can call or email someone and if this support is available every day.
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