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Payroll Software

System
Description
Preference
Xero Payroll
Simple but effective payroll system for small businesses
Our preferred system for a simple business.
Payfit
Growing startup themselves
Our preferred software for larger businesses - 30 plus employees
Pento
Growing Startup challenging Payfit
Like Payfit good for larger business or more complex payroll. Integrates with HR Software. Able to calulate P11Ds
Quickbooks Payroll
Integrated module in Quickbooks
Useful for smaller companies but functionality is limited. Works well up to 30 plus employees. Can pay extra for additional payroll modules.
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Xero Payroll

Xero contains an integrated payroll software in Xero payroll. This can be activated by following the instructions in
this helpsheet
⁠
.
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.
Advantages
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

Disadvantages
only online support
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

How much does it cost?
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 30 or 50 employees
You have employees on flexible or irregular shifts

Payfit

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.
Advantages
Responsive and helpful support team
Inclusive migration from a different payroll system
New features are constantly being developed
Robust reporting features

Disadvantages
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.

Pento

Pento aims to centralise the HR process. No longer taking on businesses under 30 employees.
Advantages
Responsive and helpful support team
Inclusive migration from a different payroll system
New features are constantly being developed
Robust reporting features
Manages P11D
Integrates directly with HR software

Disadvantages
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.

Quickbooks Payroll


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