6 of the best online payroll software providers in the UK

If you’re on the hunt for the best online payroll software provider for your SME, we thought we’d make a quick guide to help you out. Of course, we’re at the top, but we had to be honest; we think we’re the best. All of the software providers below are HMRC approved for your peace of mind. We hope you find it useful.

1. Employment Hero Payroll

We’re an integrated HR and payroll platform, offering various features aimed at simplifying payroll processes and employee management. Some key features include:

Automated payroll software: No more manual payroll processing and managing complex payroll tasks. From automatically creating pay runs and importing timesheets, to managing pay rate changes and tracking bank holidays, our software tackles tedious tasks for you.

RTI payroll reporting: Simplify your RTI reporting process as you automatically submit essential documents including pensions, FPS, EPS, P11, P11D, P32, and P60s, directly to HMRC. Plus, run online payroll reports any time for a quick submission of your National Insurance data and PAYE.

Automated pension submissions: Navigate workplace pensions with automatic enrolment for UK pension schemes. With Employment Hero PensionSync, setting up a new pension scheme or connecting to an existing one becomes seamless. Automate the calculation of pension contributions per pay run, including National Insurance rebates.

Holiday pay calculation: Our payroll software simplifies leave management with instant reports on balances and clear holiday pay calculations. Use standard or custom leave allowance templates, such as the 52-week average report, for streamlined adjustments for all your employees.

Time and attendance: Access comprehensive attendance reports to resolve any uncertainties about shifts worked – benefit from real-time employee location tracking and alerts for missed shifts. Our employee self-service portal submits timesheets when employees clock out, simplifying the review process for managers.

Rota and shift management: Allocate shifts based on skills, encourage staff shift swapping, and automate timesheets with logged work times. Use data-driven insights to schedule the right number of staff during busy periods and easily create schedules with ready-made templates.

Custom pay conditions: Automate pay calculations, bulk pay rate increases, and date-triggered wage adjustments to streamline payroll processes, eliminate errors, and save time.

Best for

We’re an all-in-one HR and payroll solution that help SMEs streamline payroll processes with automated calculations. You can enjoy the flexibility of running payroll from anywhere using our online system. We’ll help you submit all required reports to HMRC with our RTI (Real-Time Information) compliance. Our payroll services are also GDPR compliant and are regularly kept up-to-date. With automated cloud backups, you can rest easy knowing your data is safe. With numerous accounting, payroll and payment integrations, we’ll fit into your existing tech stack with ease; and you can reap the benefits of our recruitment and HR platform all in the same place, if you’d like!

2. Xero

Xero Payroll is an integrated payroll solution offered by Xero, a popular accounting software provider.

Key features

Some key features of Xero Payroll include:

Automated pay runs: Easily create and automate pay runs, including options for weekly, bi-weekly or monthly pay schedules.

Self-service employee portal: Employees can access their payslips, update personal details and apply for leave through the employee portal, reducing administrative tasks for HR.

Tax and statutory compliance: Xero Payroll helps in automating tax calculations and deductions, ensuring compliance with HMRC regulations. It keeps track of PAYE (Pay As You Earn) and National Insurance contributions.

Pension management: The software helps with auto-enrolment for workplace pensions and manages contributions.

Reporting: Access various reports related to payroll, including PAYE summaries, employee earnings, tax and more.

Integration with Xero Accounting: Seamlessly integrate payroll data with Xero’s accounting software for a complete financial picture of the business.

Mobile access: The platform is accessible via mobile devices, allowing for on-the-go management and approvals.

Security and compliance: Xero maintains high-security standards for payroll data, ensuring encryption and compliance with data protection regulations.

Best for

Xero Payroll excels in serving small and medium-sized businesses (SMEs), offering user-friendly payroll management tailored to their needs. Its strength lies in simplicity and accessibility, making it ideal for SMEs with straightforward payroll requirements. Xero Payroll’s intuitive interface, automated processes and integration with Xero accounting suit smaller enterprises seeking an efficient cloud-based payroll solution. While capable of handling larger businesses, its focus on streamlined functionalities makes it particularly beneficial for smaller entities aiming for straightforward and manageable payroll processes without extensive complexities.

3. Sage

Sage, a prominent software provider, offers several features within its payroll solutions tailored for various business sizes.

Key features

Some key features of Sage Payroll include:

Automated payroll processing: Sage Payroll facilitates automated calculations for salaries, tax deductions and statutory payments, streamlining the payroll process and reducing manual errors.

HMRC compliance: The software keeps up-to-date with HMRC regulations, ensuring that businesses stay compliant with tax laws and statutory requirements. This includes handling PAYE, National Insurance contributions and RTI submissions.

Payslip generation: Easily generate and distribute electronic payslips to employees, offering a clear breakdown of earnings, deductions and taxes.

Employee self-service: Employees can access their payroll information, view payslips, update personal details and request leave through a self-service portal, reducing HR administrative tasks.

Tax filing and reporting: Sage Payroll provides tools for generating and submitting various reports required by HMRC, including P60s, P45s and year-end reports. It helps in facilitating accurate tax filing and compliance.

Integration with Sage Accounting: Seamless integration with Sage’s accounting software allows for synchronised data, providing a comprehensive view of financial information.

Pension management: The software assists in managing auto-enrolment for workplace pensions, including tracking contributions and compliance with pension regulations.

Security and data protection: Sage Payroll maintains high-level security measures to protect sensitive payroll data, ensuring encryption and compliance with data protection laws.

Support and training: Sage offers customer support, training resources and guides to assist users in understanding and using the software effectively. Please note that the features offered by Sage Payroll may vary depending on the specific product or version. It’s advisable to check Sage’s official website or contact their support for the most up-to-date and detailed information about their payroll software and its features.

Best for

Sage Payroll excels in catering to medium to large businesses due to its robust features, customisation, and scalability. Tailored for complex payroll needs, it handles varied pay structures, multiple deductions, and compliance across regions. The software’s adaptability and integration with Sage’s accounting and ERP systems suit larger enterprises requiring comprehensive payroll solutions. While suitable for smaller businesses, its feature set and pricing favour medium to larger companies with intricate payroll requirements.

4. Quickbooks

QuickBooks offers a range of features within its payroll software to simplify and streamline payroll processes.

Key features

Some key features of QuickBooks Payroll include:

Automated payroll calculations: QuickBooks automates payroll calculations for salaries, wages, taxes and deductions, reducing the risk of human error and saving time.

Tax filing and compliance: The software helps in calculating and filing taxes, including federal and state payroll taxes, ensuring compliance with tax regulations.

Direct deposit and payments: Facilitates direct deposit of employee salaries, enabling timely and secure payments directly into their bank accounts.

Employee self-service portal: Provides employees with access to view pay slips, update personal information and manage their payroll details, reducing administrative tasks for HR.

Customisable payroll reports: Generates various reports related to payroll, such as payroll summaries, tax liabilities and employee earnings, assisting in financial analysis and reporting.

Automatic payroll updates: QuickBooks Payroll stays updated with the latest tax rates and regulatory changes, ensuring accurate payroll calculations and compliance.

Integration with QuickBooks Accounting: Seamlessly integrates with QuickBooks accounting software, allowing for synchronised financial data between payroll and accounting functions.

Pension and benefits management: Helps in managing employee benefits, retirement plans and contributions, ensuring compliance with pension regulations.

Mobile accessibility: Offers mobile apps for both iOS and Android, enabling users to manage payroll tasks on the go.

Customer support and training: QuickBooks provides customer support and training resources to assist users in navigating and using the software effectively. Please note that the specific features and functionalities offered by QuickBooks Payroll may vary depending on the plan or version chosen by the user. For the most up-to-date and detailed information, it’s advisable to refer to QuickBooks’ official website or contact their support for accurate details regarding their payroll software.

Best for

QuickBooks excels in providing user-friendly and efficient payroll solutions, particularly suited for SMEs. Its primary strength lies in simplifying payroll processes with straightforward payroll needs. QuickBooks Payroll’s ease of use, automation and integration with accounting functions cater well to smaller businesses aiming for a streamlined and manageable payroll system. While capable of serving larger enterprises, QuickBooks Payroll is particularly beneficial for SMEs seeking a cost-effective and straightforward solution. Its intuitive interface, automated calculations and seamless integration with QuickBooks accounting software make it an ideal choice for small to medium-sized businesses looking for efficient payroll management without extensive complexities.

5. IRIS

IRIS offers a range of features within its payroll software tailored for businesses of different sizes.

Key features

Some key features of IRIS Payroll include:

Automated payroll processing: IRIS facilitates automated payroll calculations, handling various pay structures, tax deductions, and statutory payments, resulting in fewer manual errors and freeing up time that is better spent elsewhere.

Real-time reporting: Provides real-time reporting capabilities, allowing users to access up-to-date information on payroll expenses, tax liabilities and employee earnings.

HMRC compliance: Ensures businesses are compliant with HMRC regulations, managing PAYE (Pay As You Earn), National Insurance contributions and RTI submissions.

Employee self-service portal: Offers employees access to their payroll information, allowing them to view payslips, update personal details and manage leave requests, reducing HR administrative tasks.

Auto-enrolment for pensions: Assists in managing auto-enrolment for workplace pensions, including tracking contributions and compliance with pension regulations.

Integration with accounting software: Integrates with accounting software, allowing for synchronised data and a comprehensive financial view.

Customisable reporting: Provides customisable reporting options, enabling businesses to create tailored reports based on specific payroll requirements.

Security and data protection: Prioritises data security with robust measures to safeguard sensitive payroll information, ensuring compliance with data protection laws. Please note that the features offered by IRIS Payroll may vary depending on the specific product or version chosen by the user. It’s recommended to refer to IRIS’s official website or contact their support for the most up-to-date and detailed information about their payroll software and its features.

Best for

IRIS excels in offering sophisticated payroll solutions tailored for medium to large enterprises with complex payroll needs. Its strengths lie in catering to businesses requiring advanced functionalities, compliance adherence and customisable payroll processes. Specifically designed for more extensive operations, IRIS Payroll’s robust features, compliance management and intricate reporting suit businesses with diverse pay structures and regulatory demands. While capable of serving smaller entities, its emphasis on scalability and handling complex payroll operations best aligns with the requirements of medium to larger enterprises seeking advanced functionalities.

6. BrightPay

BrightPay, a payroll software provider, offers various features tailored for small and medium-sized businesses.

Key features

Some key features of BrightPay include:

• Automated payroll processing: BrightPay automates payroll calculations, including salaries, wages, taxes and deductions, minimising errors and freeing up time.
• HMRC compliance: Ensures compliance with HMRC regulations, managing PAYE, National Insurance contributions and RTI submissions.
• Employee self-service portal: Provides employees access to their payroll information, enabling them to view payslips, update personal details and manage leave requests, reducing HR administrative tasks.
• Automatic updates: Stays updated with the latest HMRC changes and legislative updates, ensuring accurate payroll calculations and compliance.
• Auto-enrolment for pensions: Assists in managing workplace pension schemes, including auto-enrolment and contributions, to comply with pension regulations.
• Reporting tools: Offers various reporting options for payroll summaries, tax liabilities and employee earnings, aiding in financial analysis and compliance reporting.
• Integration with accounting software: Integrates with accounting software, allowing synchronised data between payroll and accounting functions for a comprehensive financial overview.
• Cloud-based access: Enables access to payroll information from anywhere with internet connectivity, providing flexibility for remote work and accessibility. It’s recommended to refer to BrightPay’s official website or contact their support for the most up-to-date and detailed information about their payroll software and its features.

Best for

BrightPay excels in providing user-friendly payroll solutions tailored for small to medium-sized businesses. Its standout feature lies in offering simplified yet comprehensive payroll management suitable for smaller enterprises with straightforward payroll needs. Designed specifically for SMEs, BrightPay’s intuitive interface, automation and compliance tools cater to businesses seeking efficient payroll solutions.

What should you look for when choosing a payroll solution?

HR and payroll software integration

Selecting a payroll solution that seamlessly integrates with HR software can significantly enhance efficiency. Look for systems that offer a cohesive platform, integrating HR and payroll functionalities. Streamlining data across both areas eliminates redundancies, simplifies processes and provides a comprehensive view of employee information, from attendance records to salary details. This integration ensures consistency and accuracy in managing payroll and HR tasks.

Pricing and cost

Understanding the pricing structure of a payroll solution is crucial. Assess whether the pricing aligns with your business needs and budget. Some systems may charge based on the number of employees, while others might offer tiered pricing based on features. Consider hidden costs, such as fees for additional services or support. Ensure the chosen solution not only fits your current financial capabilities but also remains scalable as your business grows.

Ease of implementation

Ease of implementation plays a pivotal role in transitioning to a new payroll system. Opt for a solution that offers a smooth onboarding process, providing adequate training and support. Look for user-friendly interfaces and straightforward setup procedures. Assess the vendor’s support resources, including documentation, tutorials and customer service, to facilitate a hassle-free transition for your team.

Automatic tax filing

An efficient payroll solution should automate payroll tax filing processes. Look for systems that handle tax calculations and deductions accurately, ensuring compliance with local tax regulations. Ensure the software facilitates direct submission of tax reports and payments to relevant authorities, simplifying the often complex and time-sensitive tax filing procedures.

Global payroll management

For businesses with an international presence or remote employees, selecting a payroll solution that supports global payroll management is crucial, like Employment Hero’s Global Teams Employer of Record (EOR) service. Consider systems that accommodate multi-currency payments, comply with diverse tax laws across regions, and offer localisation features. An ideal solution should provide centralised control while adapting to various regulatory requirements and currencies, ensuring smooth payroll operations worldwide.

Automate payroll processes with Employment Hero

Automate as much of your payroll processes as you like by harnessing the power of Employment Hero, a fully integrated payroll software and HR platform. Run payroll reports in a few clicks, and never lose a timesheet or leave request again. Our award-winning payroll management software is recognised globally for providing outstanding product and customer experience. So why not join the league of successful businesses who’ve transformed their payroll operations with the best payroll software? Reach out to a member of our team today.