The payroll professional’s guide to software
Choosing the right payroll software is a big decision and one you shouldn’t take lightly, shaping your organisation’s operations for years to come. And changing providers isn’t easy. So, it’s important to get it right first time. Here’s all the insights and practical advice you need to make a confident, informed choice and find the ideal partner for your payroll needs.
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Why it's important to choose the right payroll software
Understand why choosing the right payroll software is important.
Why payroll accuracy and compliance matter
From retention to costly fines, payroll accuracy and compliance are vital.
The benefits of good payroll software
Learn more about the benefits good payroll software can bring to your organisation.
Find out the difference between on-premise and cloud-based software.
Dive into the core features you should look for when researching your next provider.
Looking beyond the basic functionality, here's other features to consider.
Understand what to expect in the implementation process.
Our checklist helps you compare providers against your unique needs.
Find out why Cintra should be your next software provider.
Payroll is one of the most critical functions in any business, and a lot of responsibility lies in getting it right. So, understandably, it’s become standard for organisations to use sophisticated software to manage the process for them.
Payroll software is used to automate the various aspects of people payment, from calculating pay, making the necessary deductions, and then transferring these funds to employees on time and to the penny.
But, the right provider will give you the capability to do so much more. From handling bonuses, benefits, and expenses to dealing with holiday pay, sick pay, maternity pay, final pay—the list goes on! Plus, with many packages now integrating with HR, finance, and expense management, the capabilities are becoming seemingly endless.
Sounds great, right? There’s little doubt that payroll software is a sound investment for any business, but its success lies in which software you choose. And with so many options on the market, it’s important to find the right fit for your organisation.
Our software buyers guide brings together everything a payroll professional needs to choose software you can rely on today, next year, and 10 years from now.
It’s no shock that businesses that fail to pay their people correctly and on time tend not to hold onto them for too long. In fact, 49% of employees consider leaving their employer after just two payroll errors, showing that the link between payroll accuracy and workforce stability is clear. Beyond employee trust, the stakes with regulators are even higher; HMRC can impose penalties of £100–£400 per month for late or incorrect Real Time Information (RTI) submissions as well as additional fines for repeated non-compliance, too.
Payroll compliance in the UK is governed by strict obligations, including:
Compliance and accuracy aside, payroll is complex enough. With tax bands, national insurance contributions, pensions, and statutory leave (to name a few) to manage, manual processes are simply no longer the smartest choice. And this is where the benefits of payroll software shine.
Mathematical mistakes are inevitable in manual payroll; with good software the risk is non-existent, increasing payroll accuracy massively. And, any errors that do manage to slip through are caught by reporting functions like variance analysis or data flagging ready for you to correct.
Data security is essential when it comes to storing your people data. And, with a rise in increasingly sophisticated cyber-attacks, it’s not something you can afford to compromise on. The best payroll software is accredited with ISO27001/9001, HMRC recognition, and CIPP Payroll Assurance Scheme.
The glory of automation is that it frees up valuable time, so you and your team don't have to spend hours wrestling with spreadsheets, calculating and recalculating totals. With HR integrations too, you can save even more time, allowing employees to self-serve their personal data.
The best software comes with statutory rates, reporting requirements, and GDPR compliance built-in, so you have all the legislation knowledge you need at your fingertips. Providers will even provide regular updates to meet new requirements so you can rest assured that you’re always up-to-date.
A user-friendly system reduces the learning curve for your team, helping them get up to speed quickly and work confidently. Intuitive dashboards, guided workflows, self-serve features, and clear error prompts mean fewer mistakes and less time spent troubleshooting. The result? Smoother pay runs, faster onboarding for new users, and a payroll process that feels effortless rather than overwhelming.
By choosing a sophisticated payroll system, you get access to insights without the need to manually analyse spreadsheets. This means that the right stakeholder has access to the data they need, when they need it. No more waiting around for the full report, just real-time access to specific data. Most software will give you insights into trends like absence, pay variance, pension details, and more—some allow custom report creation, too.
The first big decision you have to make is whether you want an office-based solution or a cloud-based solution. Put simply, will you run the software the old-fashioned way from a computer on your own premises, or have it hosted online like all modern software?
On-premise software is the older approach to payroll processing. This is where the system is loaded onto a PC or server in your workplace. As your data is stored locally, it’s accessible only within your workplace.
While that in itself provides security, it’s not always effective if you have a remote or global team. With this type of software, you won’t benefit from the software provider’s own cybersecurity systems and any automatic updates or patches they make to improve the integrity of their system. Any updates will need to be done manually by a member of your team—who will also handle data security, backups, and maintenance, too.
Typically, you’ll pay for the software as a one-time purchase, with an annual support contract that might involve software enhancements and updates on tax thresholds etc. as well as technical advice—it all depends on the supplier and the contract.
Of course, don’t let this dissuade you, you can still do it that way (although we wouldn’t recommend it).
Unlike on-premises software, cloud-based payroll systems are hosted online via remote servers. This allows you to access your software and data anytime, anywhere—all you need is an internet connection.
With a cloud-based payroll software package—often described as software-as-a-service, or SaaS—your data is held on secure, encrypted servers managed by the provider, giving you confidence that sensitive information is protected.
Cloud software also allows for any updates and new releases to be available automatically in the platform—that covers security patches and compliance updates, too. There’s no more checking if you’ve downloaded the latest update or feature. It’s all done for you, so you’re always working with the newest version to the latest legislation.
Basically, your software provider handles the background compliance and cybersecurity for you; just be sure they take things as seriously as you do.
With the eliminated need for an extensive in-house infrastructure, cloud software generally works out more cost-effective over time, giving you flexibility, scalability, and security without disruption. Just one annual subscription for ongoing predictability.
With a market saturated by providers all offering the same (or near-about) features, it can be hard to know which are right for your team and the challenges they face. So, we’ve highlighted some of the core features to look out for. Some of these are basic features you’ll find in all payroll software; while others are only included in some packages (or are simply done much better by particular providers).
Simple errors can easily happen when you’re doing your payroll manually, especially with frequent changes to tax codes or head count.
When choosing payroll software, robust core payroll processing is a necessity. This makes sure all essential tasks, from managing employee data and tax codes to calculating gross-to-net pay, are handled accurately and efficiently. Your software will automatically process deductions for tax, National Insurance, pensions, and other contributions, as well as manage statutory payments such as sick pay, maternity pay, and holiday pay.
Non-compliance with HMRC and other governing bodies can create issues not only financially but also in making sure your people are paid correctly.
With reliable payroll software, compliance worries are a thing of the past as it’s all done for you. From applying the latest legislative changes like updated leave rates or national insurance thresholds to making sure all data is handled in accordance to GDPR, you have all the compliance knowledge you need at your fingertips.
It should also support Real Time Information (RTI) submissions to HMRC, and manage multiple different pension types, so it’s important to consider how the software handles pension payments too.
When your reporting offering is limited or inflexible, it can be hard to spot trends, errors, or compliance issues early. Or even, at all.
With payroll software, everything you need for compliant reporting will come built into your reporting suite. From variance reporting to help you spot errors to compliance reports designed to HMRC and even custom report creation, the software makes checking your data a breeze. And with many offering advanced analytics for trends in absence or pensions, you get a comprehensive look at your people data with real time updates.
Manual processes are time-consuming and increase the risk of human error slipping in, especially during peak periods.
One of the beauties of payroll software is that it automatically does the time-consuming tasks that would take payroll professionals hours if not days. Automated calculations are just the start: you can also manage deductions, benefits, employment allowances, payslips—and that’s not all. Plus, with date-driven functionality, any backdated pay is calculated automatically for complete accuracy and compliance.
If your business offers hybrid or remote working—which is most modern businesses nowadays—having a payroll system that supports mobile access is something to look out for. While your payrollers might not need to update a pay run on the go, it’s almost guaranteed that members of your team will need to check their payslip or access their own personal information. Mobile features, like employee self-service, makes sure that your processes run smoothly, no matter the location.
Payroll data is highly sensitive, making breaches or non-compliance with GDPR a gateway to reputational and financial damage.
Good payroll software will come with everything you need to be compliant, including built-in statutory rates and reporting requirements to regular updates to reflect any new compliance requirements. The easiest way to know if the software is right for you? Look out for HMRC recognition, ISO27001/9001 accreditation, BACS approval, or CIPP Payroll Assurance Scheme. If security isn’t front and centre of their offering, it’s a sign it’s not right for you.
Disconnected HR and payroll systems can create a whole host of problems for your payroll like duplicate data entry and inconsistent records.
Payroll software should make it easier for your team to maintain their own data at any point in their employee lifecycle. From managing their onboarding data to viewing their payslips and submitting leave requests, self-service modules help to take the administrative burden off your teams and give employees control over their own data.
A user-friendly system reduces the learning curve for your team, helping them get up to speed quickly and work confidently. Intuitive dashboards, guided workflows, self-serve features, and clear error prompts mean fewer mistakes and less time spent troubleshooting. The result? Smoother pay runs, faster onboarding for new users, and a payroll process that feels effortless rather than overwhelming.
Poor integration can create inefficiencies and increase the risk of costly errors; instead of keeping HR, finance, and payroll aligned, it can disjoint the flow of data between departments.
The best payroll software makes integration pain-free, offering compatibility with a wide range of existing platforms—from HR and finance systems to time-tracking and accounting tools. Look for solutions that offer customisation to fit your business needs, and support for multiple users and workflow management. These features allow your payroll operations stay smooth, accurate, and scalable as your organisation grows.
Managing benefits and pensions for every employee can be not only complex but overwhelming. With multiple payrolls, different shift patterns, various pay rates, the bigger the risk of non-compliance if something slips through the net.
That’s why it’s important to make sure your software has the flexibility you need. Some systems produce a payment file compatible with your bank, and some integrate directly with BACS. No matter which yours does, it means payments are sent directly to your employees’ bank accounts with no fuss and no mistakes.
Plus, with benefits-in-kind becoming mandatory, it’s important that your provider can manage employee benefits (and their tax implications); applying the necessary calculations to payrolled benefits and deals with them alongside your regular payroll.
There’s so much more to consider beyond the basic functionality of the payroll software.
You can’t be expected to get to grips with new software alone, and nor should you have to. Your provider’s support model is one of the most important considerations in the buying process. After all, poor onboarding or a lack of responsive support can cause delays and disrupt processes even more. That’s why you should be armed with an implementation team that guides you through every step of the process—and ideally, beyond that too.
Support will vary from provider to provider, so it’s important to be clear on what support you have beyond implementation. Asking for information about service level agreements (SLAs) and any support statistics (like response times or helpdesk queries) can give you a good idea of the support you can expect to receive. It’s also worth asking if your provider has a UK-based support team, and if you get access to a dedicated account manager. Emergency payroll services are a great optional extra to have too!
There are many natural overlaps between payroll, finance, and HR—including employee benefits, expenses, and even recruitment, so the most advanced payroll software will integrate the various functions, or perhaps even have their own products in these areas. This means one point of data entry to sync information across all aspects of payroll and HR. You might already have a provider you use, so make sure your new provider can integrate with them or alternatively, offer a solution that fills all these gaps in one offering.
The truth is, there’s no definitive ballpark to look out for payroll software as it’s entirely dependent on a number of factors; from the size and complexity of your organisation, to the type of software and the quality of capabilities it offers, you’re going to see a whole host of quotes when looking at different providers. As much as saving where you can is optimal for businesses, providers are usually the cheapest option for a reason, so don’t be tempted by low fees without understanding the reason behind it.
Remember that the right package will save you money in the long term by streamlining your workloads and preventing expensive mistakes—rather than causing them.
Reputable payroll software should have a combination of accreditations, security certifications, and compliance standards to prove it meets legal, data protection, and quality requirements.
Here’s a list of accreditations and standards to look for in your software partner to make sure they take cybersecurity seriously, and you know your data is fully safeguarded:
Outgrowing a payroll system can force costly migrations and disrupt the flow of your business’s operations. From delays to data loss, it’s something you can avoid from the outset by making sure your software has the scalability to grow alongside you tomorrow and five years down the line.
But, if switching providers is unavoidable, you need to be clued up on what’s involved in uncoupling from your old provider as it can be a great way to understand exactly what you need in a new provider. It’s also important to know any contractual obligations and notice periods you have with your current provider to make sure the handover is pain-free.
We’d suggest making the switch just before the next tax year so you can start fresh with your new provider but if it needs to be now, your new provider will work with you to make sure everything runs smoothly and with limited disruption.
You’re not just buying a product but entering into a relationship with another business. The right supplier will see it that way too, and be happy to have a detailed dialogue about your needs and how they can meet them as part of the sales process. Here are some questions to kick off that dialogue:
This table compares the top considerations for payroll software selection between Cintra and other providers, based on the buyers guide content.
| Consideration | Cintra | Other Providers |
|---|---|---|
| Support | UK-based support team that answers 90% of calls first time and returns 100% within 2 hours. A dedicated point of contact with your own account manager. Clear SLAs, so there’s no ambiguity. An implementation team who tailors the software to what you need today, tomorrow, and in the future. Business Continuity Payroll Service for unforeseen emergencies, so everything runs smoothly, no matter the scenario. | Many providers offer offshore support teams who may work different hours. Emergency payroll services may not always be available. Paid support tiers can limit access to the support you need. A dedicated account manager is not guaranteed. |
| Integrations | Proven compatibility with UK systems. Our platform, Cintra People, combines payroll, HR, and expenses to minimise data juggling and create one unified people system. | Compatibility with other systems, but depth and availability will differ from solution to solution. |
| Pricing | Transparent, per payslip-based cloud pricing, so you’re always clear on the total annual cost with no surprise add-ons to catch you up. | The costs per provider will differ with many offering different pricing models where hidden fees or unclear cost structures can slip in. |
| Security and data protection | GDPR compliant, ISO27001 & ISO9001, CIPP Payroll Assurance Scheme, HMRC recognised, BACS approved, Cyber Essentials Plus | All providers should have all necessary UK & Global standards and accreditations. Be sure to ask what certifications they have. |
| Scalability and switching provider | Complete guidance on transition planning, contractual obligations, and timing. | Transition support varies; may lack detailed planning or UK-specific advice, so it’s important to review the transition support and approach on offer. |
Implementation can be a time-consuming process, especially if the platform needs to be customised to meet your unique payroll needs. It’ll be worth it for the right system, but implementation shouldn’t be unnecessarily painful. Here are some points to think about.
Ask for an estimate of how long it will take to get you set up and ready to go. Depending on what’s needed and, of course, the implementation team’s availability, it can take weeks to months to get running. While the faster choice might seem best, it might mean compromising on the suitability of the software, so start planning as early as you can.
Make sure you get a detailed outline of all the steps involved in your implementation. This will help you understand the volume of work needed, and you can track the process step-by-step to make sure everything is running as it should be.
What’s needed from your own team during the implementation process? Who needs to be available? These are the questions to ask to make sure the implementation team have everything they need to keep the process running as smoothly as possible.
Before you can use your new system, you’ll have to get your data onto it. No matter the process—manual input or automated wholesale from your old system—it’s a complicated task. Be sure to ask your provider what to expect during this stage.
Even with an intuitive and user-friendly system, it’s likely that your team will need an induction or basic training in how to use it. A good provider will include this as part of the package and be on hand to support your team as you get to grips with your new software.
Use the checklist below to help you compare providers against your unique needs.
No matter how complex your payroll needs, Cintra has every feature you could need—now and in the future.
Accurate, reliable, scalable
With an average user accuracy rate of 99.99%, you can count on our features to keep your paydays accurate, every single time. No matter how you grow, we're here to keep everything running smoothly.
Deep functionality
We're one of the most advanced in-house payroll software solutions on the market; with the greatest depth of features, you can get from a single platform. It’s truly best of the best.
Holistic support
Our support team aren’t just real people, but real payrollers. And, they are on hand whenever you need us—yes, really. We answer 90% of calls first time and return 100% within 2 hours.
Advanced security
You shouldn’t have to worry about the security of your data—and with Cintra, you don’t have to. We invest £500,000 in cybersecurity every single year, so we’re ahead of the curve.
Our guide covers everything you need to consider in your buyers journey when choosing a new payroll software. From the key features you’ll need, the top considerations you’ll want, what to expect during implementation, and more.
