Running your payroll is one of the most popular choices among small businesses in the UK.
Globalization brought the best payroll software for small businesses to the UK marketplace. The marketplace has become a lot more universal in the last few decades.
The payroll is a business-critical procedure for every organization. You must pay your employees accurately and on time without any errors.
So, potential payroll software helps you carry out your pay run speedily with confidence and efficiency.
In the UK, it is not difficult to get one payroll software. But while looking for payroll software, whether free or paid-for, you must be sure that it can report to HMRC every time you pay an employee in real time.
Every payroll software is designed with some unique, and distinct features. So, you need to choose the right one that perfectly matches your business needs, and demands.
That is why, to help you, here, I will wrap together an understanding of payroll software, the benefits of using payroll software, factors to consider when choosing payroll software, and the top 10 payroll software for small businesses in the UK.
Understanding Payroll Software
Payroll software is a complete solution, either an on-premises, or a cloud-based software that manages, maintains, and automates employee payments.
The HRs of the company use this software to manage the complete lifecycle of the payroll system.
Payroll software performs a wide range of activities to look after an organization’s most important resource employees.
If you do the payroll manually or with the help of outdated spreadsheet software, handling the payroll can be difficult, complex, time-consuming, and sometimes inaccurate.
Here comes the payroll software solutions. Beyond paying your employees accurately, the software solutions perform a lot of operations too.
These include automating payroll, tracking payroll expenses, making taxes less taxing, integrating with relevant business apps, securing your payroll data, and more.
The Benefits of Using Payroll Software
Various businesses choose to use payroll software over manual payment procedures. Payroll software helps small businesses to:
- Workout payroll calculations quicker
- Calculations for the decisions quicker
- Generating accurate payslips
- Calculate expenses, bonuses, incentives, and holiday pay at a shorter period
- Send the returns to the HMRC and print P45, P60, and some other forms for the employees.
- Eliminate the burden of compliance
- Reduce the need to understand the tax legislation
- store data such as payslips and annual reports, and more
- Automate certain tasks including year-ending reports
Factors to Consider When Choosing The Best Payroll Software for SMEs
The shift from a manual payroll system to an automated solution can save a lot of time.
There are plenty of payroll packages that can be integrated with time, attendance, and leave management systems.
However, there are a few factors that you need to consider when choosing the right payroll software for your organization.
1. Ease of Operation
The payroll procedure must have a system that is very comprehensive but comes with a very straightforward workflow.
If the payroll software is intuitive, there is no need for training and extra guidance.
Also, you need to be sure that the software provider has provided an updated solution that is easily accessible.
2. Employee Self-Service AModule
The primary input provider to the payroll software is the employee.
The employees of your small business will provide information such as types of flexible benefits opted, tax saving declarations, and more.
The manual entry and form submission are the most critical issues faced by the employees.
So, you need to look for an employee self-service portal that automates and expedites various tasks.
3. Scalability
As your small business will increase in size, the software must address the changing needs.
The needs may include features for leave and attendance management, reimbursement, etc.
So, you must look for the one that offers optional advanced features at an affordable price.
4. Time Management
The time management module is used to track the time spent on specific projects or activities.
So, you can consider getting payroll software that comes with a time management module. It will help you to track the time.
Also, you can use this data to bill the clients.
5. Integration with The Accounting System
The ERP or accounting system needs to record every financial transaction of the business, including payroll.
However, some payroll software has integration with accounting software through an API.
So, you must look for this feature in the intended payroll software of your small business.
In the absence of this integration, the payroll officer must provide all the details of the payroll to the accounts department.
Then the account manager will manually upload the data in the system.
6. Customer Support
When choosing the best payroll software for your small business, there is another important factor that you should consider customer support.
You must research whether the software providers offer excellent customer support to their clients.
During the running of the software, you can face issues at times. So, you need help from the provider to solve the issues.
You must check whether the software provider provides 24/7 customer support.
Top 10 Payroll Software for Small Businesses in The UK
1. Sage Business Cloud Payroll
Sage has long been a business software market leader.
The payroll software of this provider is admirably approachable for small to medium-scale businesses.
You can pay and manage your employees with Sage Business Cloud Payroll. It comes with an in-built HR features.
Key features:
- Process weekly, bi-weekly, and monthly payrolls of your employees
- Helps you to pay your employees very quickly and efficiently following just four easy steps
- Automatic Payroll tracking in the Sage account
- Easily checks any historically paid runs
- Access payslip for every individual employee
- Manage payroll for employees of up to 150.
Pricing:
- Start plans such as Payroll Essentials at 10 Pounds up to Payroll Premium for 30 Pounds.
- Additional employees can be added to the plan per month with an additional cost of 2 Pounds
Ratings: 4.9 Star
2. Rippling
Rippling can be the best choice for you if you want the maximum versatility from the HR department.
Rippling offers remote laptop management, and local tax registration instantly. So, you can manage your staff irrespective of their location.
Rippling calculates your payroll taxes with the right federal, state, and local agencies. Rippling is scalable too.
The payroll software providers offer the complete payroll solutions that any organization would expect.
The customer support team is very professional, well-trained, and friendly.
Key features:
- Integrated HR and payroll management
- time tracking
- tax
- Simplified on-boarding
- Workflow automation
- Global workforce management
- Customer support and training
Pricing:
- Rippling pricing begins at 8 Poundsa per month, custom quotes according to needs
Ratings: 4.8 Star
3. Paychex
Paychex is one of the best payroll software for small businesses in the UK. Paychex offers a complete package of full HR solutions for small businesses. It covers the entire employee lifecycle, including payroll.
So, you can understand that this payroll software covers from recruitment to onboarding procedures, payroll, and other benefits, and ensures regulatory compliance.
Paychex mitigates any risks, so you can consider this payroll software for your business to get help in administrative tasks that take time away from your day.
Key features:
- Quickly complete payroll
- Automate taxes
- Stay compliant with changing regulations
- Add time tracking to ensure the payroll the accurate
- Automate tasks to save more time
- Customer support and training
Pricing:
- Paychex for small business packages starts at 39 Pound per month and if the number of employees increases, 5 Pounds per employee
Ratings: 4.2 Star
4. Payroo
Payroo is another payroll software that you can consider for your business, it is designed to combine payroll and pensions.
It is a very simple, easy-to-access payroll solution that suits every business. Payroo’s automation capabilities offer you a streamlined payroll process while reducing operational expenses.
Payroo’s automated payroll system provides seamless ATO integration and streamlines your compliance process.
So, you can go forward with Payroo and have streamlined payroll software for your business. It provides 24/7 customer support to its clients.
Key features:
- Attendance management
- Payroll management
- Performance management
- Payslip
- Taxation management
- Salary information and history
- Customer support and training
Pricing:
- Plans start from 5 Pound per month (1 to 2 employees), 10 Pounds (3 to 5 employees), 15 Pounds (6 to 9 employees), and upwards
Ratings: 3.8 Stars
5. Xero
Xero payroll software is an integrated payroll solution for small to medium-scale businesses.
It is one of the most popular accounting software providers. It offers user-friendly payroll management to every business tailored to their needs and demands.
It is very easy to access, and it is the strength of this software. Its intuitive interface automates processes and integration with accounting software makes it the ideal one for small enterprises.
Key features:
- Automated pay runs
- Self-service employee portal
- Tax and statutory compliance
- Reporting
- Pension management
- Integration with Xero accounting software
Pricing:
- Plans start at 7.50 Pounds, The Standard package is available at 15 Pounds, the Premium is at 21 Pounds, and the Ultimate plan is at 27.50 Pounds.
Ratings: 4.4 Stars
6. QuickBooks
QuickBooks comes with a range of features within its payroll software to streamline your business’s payroll processes.
QuickBooks is an efficient and effective payroll solution that is particularly suited to small-scale industries.
It is very user-friendly, so its primary strength lies in its capability to simplify the payroll processes.
QuickBooks Payroll software’s automation and integration with accounting software cater well to small businesses.
So, as a small business owner in the UK, if you are opting for a straightforward and cost-effective solution for your business, QuickBooks can be your ultimate choice.
Key Features:
- Automated payroll calculations
- Tax filing and compliance
- Employee self-service portal
- Customizable payroll reports
- Automatic payroll updates
- Integration with Quickbooks accounting
- Customer support and training
Pricing:
- Plans start at 10.80 Pounds per year, Essential plans at 30.20 Pounds/ year, Plus plans available at 41 Pounds/year, Advanced plans available at 97.20 Pounds/year
Ratings: 4.8 Stars
7. IRIS
IRIS is a free payroll software for small businesses in the UK. IRIS payroll software comes with a range of features tailored for businesses of every size.
While designed for small enterprises, this software emphasizes scalability.
It performs customizable payroll processes, compliance management, and intricate reporting suits to businesses with diverse pay structures.
It also manages regulatory demands. So, if you are looking for payroll software designed for more extensive operations, go forward with IRIS.
Key features:
- Automated payroll processing
- HMRC compliance
- Real-time reporting
- Employee self-service portal
- Integration with accounting software
- Customizable report
Pricing:
- IRIS Payroll Basics is free, however, IRIS Payroll Business plans are available from 99 Pounds per year, and Upwards
Ratings: 3.8 Stars
8. Papaya Global
Papaya Global is one of the best payroll solutions for small businesses in the UK. The platform handles global payroll services, onboarding, immigration, compliance, contract workers, and benefits.
One of the best assets of Papaya Global is its straightforward and user-friendly interface. The platform is well-organized, so payroll, arranging benefits, and onboarding become easy to navigate.
Moreover, the customer support team of this platform is very professional, friendly, and well-trained. It provides 24/7 customer support to its clients.
Key features:
- Global payroll platform
- Automated onboarding
- Payroll management
- Global compliance
- Integrations
- Employee self-service portal
Pricing:
- Full-service payroll plans start at 12 Pounds per month, and Payroll Platform License starts at 3 Pounds per month per employee
Ratings: 4.6 Stars
9. Gusto
Gusto is a renowned payroll software that is well-suited for small businesses in the UK.
Gusto offers a full-service payroll and compliance, so it manages taxes and other benefits including medical, dental, and vision plans.
Gusto also integrates with a range of accounting software such as Quickbooks, Freshbooks, Xero, and more. There are a variety of plans available in Gusto, so you can get the right one according to your organization’s needs.
The full-service payroll software comes along with an employee self-service portal, onboarding, directories, payslips, and more.
Key Features:
- Automated payroll, taxes, and filing
- Simplify workload
- Benefits and time tracking
- Integration with various accounting software
- Pay by direct deposit, check, or pay card
- Payroll reports
Pricing:
- Gusto simple plans start at 40 Pounds/per month, Plus plans at 60 Pouns per month, and Premium plans are exclusive pricing
Ratings: 4.7 Stars
10. Kashflow Payroll
Kashflow payroll is one of the most affordable solutions if you take the features into account.
The software includes robust reports, employee self-service, portal, payroll management, HMRC compliance, holiday pay, automated payroll, and more.
The streamlined and comprehensive payroll approach performs everything from employee payslips to workplace pensions.
It is a cloud-based payroll software, and you can automatically assess employees and enrol them in a qualifying scheme.
So, if you are looking for an exclusive package beyond running the payout at an affordable rate, you can consider Kashflow Payroll.
Key features:
- Automated payroll
- Employee self-service
- Easy-to-use
- Real-time payroll updates
- Integrates with Kashflow Bookkeeping
- Customer support
Pricing:
- The Kashflow Core plan starts at 6.75 Pounds per month, and Core Plus Accounting plans start at 22.50 Pounds per month.
Ratings: 3.8 Stars
FAQ
What is payroll software and how does it work?
Ans: Payroll software is a cloud-based software that manages, maintains, and automates payments to the employees of an organization.
A properly configured payroll software can help enterprises of all sizes maintain compliance with tax law, and eliminate costs, and other financial regulations.
Payroll software integrates with other core business systems to ensure that the employees receive an accurate salary on time.
Employees can access the software to edit their personal payment preferences, personal information, and more. The payroll software needs to be reliable, and flexible enough to manage and automate payments to the workers.
Is payroll software suitable for all types of businesses?
Ans: If you pay employees of your organization, even if you pay yourself as an employee, then you can use payroll software.
You will get a range of benefits from using the payroll software. Robust, integrated, and properly developed payroll software can help organizations in payroll management, compliance with tax laws, providing pay slips to employees, and real-time payroll updates.
How can payroll software help in tax compliance?
Ans: The payroll software streamlines payment processing, ensuring accurate tax deductions, and filings. The software automates tasks and provides you a clear visibility into your company’s compliance status.
Can payroll software handle multiple payment structures?
Ans: Yes, there are some effective payroll software that can handle multiple pay structures, pay slips, tax slips, reimbursement slips, and more. For eg, TalentPro is a payroll software that is capable of handling multiple payment structures.
How secure is payroll software in terms of data protection?
Ans: Generally, payroll software comes with a range of security features, however, you need to update the software regularly. Without regular updates, the software becomes outdated.
Outdated software exposes organizations to new security threats and cyberattacks. So, to keep your payroll data safe, you need to regular checks for updates.
What customer support options are available with payroll software?
Ans: The potential payroll software offers a range of customer support options for payroll software clients to ensure their payroll is processed accurately. These include:
- Phone support: With phone support, you can easily and quickly get connected with a customer support representative. You can speak to them directly regarding your problem. They will provide personalized solutions to your issues.
- Email Support: You can send an email to the customer service team of the company. The team will instantly initiate to solve your issues.
- Live Chat Support: You can easily and quickly get connected to the customer service team. Live chat gives you the chance to speak in real time. It’s much easier to troubleshoot technical issues over live chat.
- On-site training: For clients who need more extensive help, opt for on-site training. An experienced professional will come to the client’s location and offer one-on-one training and support.
Conclusion
If you are on the hunt for the best payroll software for small business UK then you can go through my article. Here, I have provided every detail regarding payroll software for small businesses including the 10 best payroll software for SMEs.
You can select one or more payroll software options from the list and decide which suits the most to your business needs and demands. You can get that one with an affordable plan option. Enhance the efficiency of your business with the right payroll software approach!
