What is the Best Payroll Software for UK SMBs?

1. Allows you to complete essential payroll activities

Functionality is key when looking for payroll companies for small businesses. The best payroll software should offer a range of features that make it easy to complete essential payroll activities.  

These might include:  

• Producing payslips
• Recording and storing employee details
• Calculating pay and relevant deductions
• Calculating statutory pay
• Producing payment reports
• Generating year-end reports 

These features combined will help you streamline and manage your payroll to ensure your employees are paid on time and accurately.

2. Use HMRC-approved payroll software

Payroll software must follow government guidelines and requirements set by HMRC to ensure accurate and lawful processing of employee wages and taxes. . By failing  to report to HM Revenue and Customs (HMRC) can result in legal action, so it is essential to choose  HMRC-approved payroll software to prevent any issues.

It’s important to note that for small businesses seeking reliable and cost-effective solutions, the free HMRC payroll software can be very useful.

3. Real-time reporting (RTI) compliant

A good payroll system for small businesses  will offer real-time reporting (RTI) functionality. This means that pay as you earn (PAYE) submissions can be made more efficiently, and HMRC can receive information instantly. RTI compliance ensures that your business is up to date with the latest legislation and requirements, and it helps to reduce the risk of errors or late submissions.

4. Offers automation

Automation is a key feature when selecting a payroll for a small business. This allows HR teams and business owners to automate time-consuming processes, such as calculating pay and deductions. By automating these tasks, you can save significant amounts of time and resources, and reduce the risk of errors or inaccuracies.

5. Offers an advance payment solution

Paying advances can be a messy and difficult process, but the best payroll software providers offer a solution to this issue. For example, EasyPay allows for the seamless payment of advances, ensuring that your employees are paid accurately and on time. With this functionality, you can simplify your payroll processes and improve your business operations

6. Can be easily integrated

Integrating your payroll software with your existing software is essential for ensuring the safe transfer of sensitive information. This includes integration with overall HR software and absence or time and attendance software. By integrating your software solutions, you can ensure that all relevant data is transferred easily and quickly, allowing you to calculate the relevant pay accurately and efficiently.

Choose a payroll software provider that offers easy integration with your existing software to make the most of this feature.

In this section, we'll help you identify the best payroll software for your business needs. We understand that with so many options available in the market, it can be overwhelming to choose the provider and/or solution.

Here are some factors that you should consider before making a decision:

1. Set out your business requirements

First, let's talk about setting out your business requirements. Your business requirements could include things that are non-negotiable or specific features that are desirable for your business.

Other factors to consider when finding  payroll solutions for small businesses include:

• The size of the organisation  
• Payroll budget 
• Number of employees  
• Number of seasonal/temporary employees 
• Whether the software needs to integrate with other software
• How often payroll is conducted
• Whether the organisation is remote, hybrid or office-based

2. Is the software secure?

Next, consider whether the software is secure. To do this, you should ask prospective software providers what security measures are in place.

Examples of security measures within the software include:

• Two-factor authentication and encryption of sensitive data  
• Regular security audits
• Employee training on data protection

3. Is the software accessible?

In addition to security, accessibility is another important factor. With hybrid work environments becoming the norm, the payroll software must be accessible via an HR app or cloud-based system. Employees should be able to view their payslips, even when they're not at work.

4. Does the software provider offer support?

Support is another important consideration. Think about the level of expertise in your business and whether you need training and support. A great payroll software provider should offer comprehensive support, including onboarding assistance, ongoing support, and training resources.

5. Try before you buy

Finally, it's important to try the software before purchasing it. The best payroll software providers offer a free trial or demo to help SMBs understand whether the software can give them what they need. Taking the software for a test drive can help you make an informed decision and ensure the software meets your specific business needs.

6. Set your budget

Your budget can easily determine the different payroll software providers your business can compare. The cost of payroll software can vary greatly, and ensuring you fully understand your requirements, and your chosen pricing model is crucial to getting the most for your money.