There are many advantages of using Payroll Software, small business payroll software is easy to handle. It helps you to manage time, expenses and balances with ease. This will make it easier for you to market your products or services at higher employee satisfaction.
Here are the best payroll software that provides excellent service.
According to Sage, half of all businesses in the UK use Sage Payroll, which it describes as: “The UK’s most trusted payroll solution”. And when you use it you become “part of a big club: from start-ups to household names, thousands of businesses trust Sage payroll solutions”.
Sage offers dedicated payroll solutions for businesses with fewer than 25 employees, more than 25 employees and accountants that offer payroll services.
Get three months free, then £7 +VAT per month for up to five employees (£12 +VAT a month for up to 10 employees; £17+VAT a month for up to 15 employees and £27+VAT a month for up to 25 employees – all with three months free initial offer).
Key selling points:
- Easy to use yet comprehensive web-based solution.
- Available as a standalone solution.
- Alternatively, integrates with Sage accounting software.
- Print or email your payslips, P60s and reports.
- Easy to amend previous pay runs; adjustments are handled automatically.
- Seamless integration with pension providers.
- Free trial. You can also get Sage payroll free for three months, when you sign up. No commitment, cancel anytime.
You can communicate with Sage’s UK-based team over the phone, by email or live chat. Sage also has an online help centre.
“Payroll is easy to use, it guides you through the process and it really makes it quicker to complete that side of the business.”
Jane Middlehurst – London-based Architects Poulsom Middlehurst
The solutions offered by ADP, and specifically their small-business oriented RUN, are very similar to those offered by above mentioned Paychex – expensive but popular. This solution is for you if you prefer to send employees physical paychecks rather than direct deposit as ADP can (for an additional fee) print, sign, and mail paychecks on your behalf.
Pros & Cons
Easy to use
Can be expensive for large teams
In order to receive a price quote you must speak to a representative.
Free trial: Yes
Free plan: No
MoneySoft Payroll Manager
Payroll Manager is a “comprehensive, easy to use, HMRC-recognised RTI compliant payroll software package used by thousands of SMEs, agents, accountants and CIS contractors across the UK”, according to its Hampshire-based makers, Moneysoft.
Payroll Manager costs £72 + VAT per year for a single company, with multi-company licenses available from £144 + VAT per year. There are no hidden or additional costs. Only available as a desktop package.
Main selling points:
- RTI compliant payroll software.
- Easy to use; data entry is straightforward.
- RTI filing, payslips, comprehensive reporting, automatic calculation of statutory sick, maternity, paternity, adoption and shared parental pay, etc.
- Supports auto enrolment of workplace pensions.
- The main screen provides a complete year’s pay history at a glance, “so that you can print payslips and reports for any period, at any time”.
- Always kept up to date with the latest legislation by quick, automatic updates.
- Low-cost option.
- Free trial available.
Free email support, but no telephone support. Wealth of free payroll information available on the Moneysoft website.
“We are lucky to have used Payroll Manager, which has saved us a lot of time and effort. Our previous software was bloated and inflexible and caused a great deal of frustration for our management and staff. By contrast, Payroll Manager is easy to use and versatile.”
Don Powell – Direct Painters
HMRC Basic PAYE Tools
This suite is developed by HMRC itself. It’s a good option if you’re on an extremely tight budget and only require the basics. Try here.
KashFlow allows you to carry out your payroll tasks in the cloud. The company makes a range of different accounting and payroll tools at different prices. There’s also a time-limited free option, as listed later in this article. Try here
Sage is one of the biggest players in the accounting and bookkeeping world. It’s RTI compliant, allows you to complete payslips and manage pension deductions, and claims to require no training to use. For businesses with up to five employees, it’s available for as little as £6 per month. Try here.
BrightPay is a prominent payroll software provider. They have a simple but attractive interface that will seem familiar if you’re used to software like Excel. The price is the same regardless of the number of employees you have. Try here.
FreeAgent is a fully-fledged bookkeeping and accounting solution that also comes with a payroll add-on. It’s cloud-based, and also includes a mobile app which can be useful if you’re on the go.
Remember, though, that if you want to use FreeAgent’s payroll solution, you’ll need to move your accounting onto their platform too. Read more.
Xero is an extremely popular cloud-based accounting solution – you might have even seen their adverts on bus stops. Just like FreeAgent, they offer a payroll plug-in if you choose them as your accounting software provider.
Xero plans are available from £10 per month, but you’ll need to pay an extra £5 per month for payroll for up to five employees, and £1 per month for each additional employee over that number. Try here.
The Square Payroll app works seamlessly for both W-2 employees and 1099 contractors. They log their hours in the employee app, you import the hours, and you pay them. Not only that, but Square Payroll is fully integrated with the Square point-of-sale app. You can accept payments and use those funds to pay your employees directly.
Of course, you might not want to manually take care of payroll every pay period. In that case, you can take advantage of Square Payroll’s automatic payroll feature. Provided your employees earn a consistent hourly rate or regular salary, you’ll be all set. The only time you’ll need to open the app is when someone is hired, fired, or gets a raise.
Along with straight time and salaried pay, Square Payroll also tracks alternative types of time. You can use the app to manage overtime, paid time off, and sick time.
Many people are already familiar with Paychex. They’re a brand name, full-service payroll company that provides services to thousands of businesses. But in addition to their app for employees, they also provide an employer-facing app.
One notable feature of this app is that it integrates completely with Paychex Flex. Paychex Flex is Paychex’ web-based payroll processing platform. Through there, you can track time, adjust benefits, and take care of your tax withholdings. Through the employer app, you can access all of Paychex Flex’s features.
Meanwhile, employees can use the employee app to view all of their information. Through the app, they can access their pay stubs and print their tax forms. Employees can even make limited changes, like changing their contributions to retirement plans.
One of the cheapest payroll solutions out there for small businesses, Sage Payroll (now isolved). Now it may lack the bells and whistles that other payroll software have to offer, but for many businesses, it is more than enough in terms of functionality. One of its main strengths is security – your payroll information in the cloud is fully encrypted, and user access permissions can be customized to ensure data security and integrity.
Billing & invoicing
Pros & Cons
Difficult to use
Poor customer service
To receive a price quote you must speak to a representative.
Free trial: No
Free plan: No
QuickBooks Payroll offers a wide variety of features for small business owners. It offers services like direct deposit and online tax filing, so it’s fairly robust. When you reach various payroll deadlines, QuickBooks Payroll will even send a reminder to your mobile device.
Another thing you’ll appreciate about this app is that it’s easy to use. Unlike many online payroll services, the layout is designed for normal people, not accountants.
That said, there’s a downside. And it’s a big one.
Most modern payroll and tax apps offer an industry standard tax filing guarantee. Basically, if the software makes a mistake calculating your taxes, you’re not responsible for any penalties. On the other hand, QuickBooks Payroll only provides a guarantee with their top-tier plan. That’s an additional cost most small businesses will want to avoid.
Payroll software…do you really need it? If you own a multi-location company or are an accountant then the answer is yes. Payroll is one of the most important aspects of running an ongoing business. If not done properly, you can lose money. For multi-location businesses payroll can be complex. The number of employees total, taxes, and other state requirements make payroll challenging enough to deal with on its own. Payroll software helps make it easier to file all these various reports.