Xero contains an integrated payroll software in Xero payroll. This can be activated by following the instructions in
Traditionally many organisations outsource their payroll to third parties, and software has therefore been tailored to suit the needs of these organisations rather than small businesses or entrepreneurs.
Xero payroll is a solid, albeit unsophisticated, option for small businesses.
As it integrates directly into Xero accounting you don't need to post manual journals
Compared to other systems it has a relatively intuitive interface
Xero benefits from a comprehensive training programme and good online resources
automatic payroll journals only allocate gross salaries to different departments, not associated costs such as Employers NI and Pension Costs
inability to export reports vs gross and net before a pay run has been posted, which means you can't review the draft pay run easily
At the time of writing the subscription costs £5 a month plus £1 for each employee after 5. It's frustrating that Xero add a marginal cost for each additional employee, but it remains a good value option for businesses with relatively few staff.
Triggers for switching to something more complex
You have more than 40 or 50 employees
You have employees on flexible or irregular shifts
Payfit aims to centralise HR and payroll into one software. They are a growing startup themselves and have raised more than $100 million to date since their founding in 2015.
Responsive and helpful support team
Inclusive migration from a different payroll system
New features are constantly being developed
Robust reporting features
No integration into accounting systems. However, they do provide a csv export in the correct format to be imported
On occasion, we've spotted some bugs. Being a payroll software, there should be no room for errors. To their credit, their development team have resolved them quickly.