Top 7 Cloud-Based Payroll Software in 2024

All businesses have three options for paying their staff: fully-managed UK payroll services, part-managed payroll services, or using the best cloud-based payroll software to manage your team’s pay internally.

Cloud-based payroll software enables you to securely manage employee data, comply with the latest legislation, and run payrolls automatically. Being cloud-based, it’s accessible from any device with an internet connection, unlike on-premise software.

Our independent research found that Iris Staffology is the best cloud-based payroll software on the market. It boasts hands-on training features, an intuitive mobile app, plentiful integrations, super secure data processing, as well as transparent pricing (a real boon in the world of payroll software).

Best 7 UK Payroll Software: Comparison

Here’s a quick look at what each top-ranked payroll software option offers:

Prices correct as of September 2024

1. Iris Staffology: Best cloud-based payroll software overall

Iris Staffology’s key features

• Comprehensive, feature-rich system
• Deep-dive and customisable reporting tools including payslips, HMRC, pensions, tax, P11D, audits, BACS and compliance
• Unlimited users, employees, and companies (for a price)
• Mobile app

How does Iris Staffology compare to its competitors?

In an industry that largely operates on a quoted basis, our research found Iris Staffology’s payroll software pricing to be very straightforward, which is incredibly useful for small businesses with a limited budget and who want to move forward fast, without going through a demo request (though the provider also offers this). This makes Iris Staffology more transparent than Frontier and Moorepay, which only provide pricing through a requested quote and helped it shine brighter among the providers our experts tested.

Its pricing has changed recently, however – and to the benefit of small businesses. Previously it had a base price of £10 per month, with a further £2 per employee for up to 20 employees and £1.75 per employee for any more up to 50 employees (it was quote-based thereafter). For businesses with 20 employees, that would amount to £50 per month in spending. Now though, the base price of £35 per month includes 19 staff free of cost, so you’ll be spending £15 less than you would have otherwise.

Perhaps even more appealing is that it packs more accounting and HR integrations than any of the providers we researched (seven and five, respectively) – which allows it to work alongside more programs than ADP (three and three) or MHR (one and three). Business owners who want to keep their current accounting or HR software and integrate it with Iris Staffology will benefit massively from this.

Iris Staffology’s pricing

2. ADP: Best payroll software for security

ADP’s key features

• Sells HR, recruitment, benefits management, and learning management solutions
• Provides CIPP-accredited expert payroll advice
• Mobile app
• Efficient time and attendance features

How does ADP compare to its competitors?

Following extensive testing, we can conclude that ADP is a payroll provider that’s big on security – attested by its ISO 27001 certification (something Qualitas Payroll Service doesn’t have) and its efficient data encrypting. Also, unlike Advanced, it wasn’t hit by any data breaches in the last two years.

Like Iris Staffology, ADP can be combined with several other types of software so you can run many strands of your company together. However, unlike this competitor, it does so through natively-developed platforms, not third-party ones. This is crucial for businesses keen on keeping the number of their suppliers low, thereby saving money.

Finally, through its time and attendance feature, our researchers recommend ADP for companies with rotating shifts, which can use ADP as a clock-in system.

ADP’s pricing

You’ll need to contact ADP directly for a quote as its pricing is dependant on factors such as payroll frequency and the number of employees you have.

3. MHR: Best payroll software for reporting

MHR’s key features

• Packs a highly-detailed reporting platform
• Offers educational material
• Provides CIPP-accredited expert payroll advice
• Mobile app

How does MHR compare to its competitors?

Our in-depth research established that, in iTrent, MHR has one of the most detailed report-generating payroll software on the market. In our testing, we used it to track KPIs, assess risks, establish costs, and produce legislative reports and it excelled in all those tasks, with the bonus that you can action them through the same platform. Due to its sheer breadth, this makes MHR more suited to large businesses, as such deep reporting prowess is likely to be lost in smaller organisations.

Unfortunately, our researchers noted that MHR is very light on the accounting and HR integrations: it packs only one and three, respectively – way less than Iris Staffology (seven and five). This is bad news for business owners who want to coordinate payroll with these related activities. For its part, however, MHR makes it easy for payroll data to be shared with different systems, which mitigates the lack of integration to some degree.

If you’d like to find out more about the platform’s features, check out our MHR Payroll review.

MHR’s pricing

You can fill out a quick from on MHR’s website to get an accurate quote.

4. Frontier: Best payroll software for international businesses

Frontier’s key features

• Mobile app
• Native HR software
• Allows for payment of international employees
• Provides payroll changes report

How does Frontier compare to its competitors?

Frontier allows payment of international employees – a must if you have staff across different countries. Among the providers we tested, Frontier shares this feature with Iris Staffology and ADP, but beats out Advanced and Moorepay, which don’t come with this capability.

On the other hand, like Advanced, Frontier doesn’t provide an open API, dealing a killer blow to business owners hoping to integrate with their own HR and accounting software. For those, ADP will be a better choice. Also, like MHR, it doesn’t offer advice on how to stay compliant with payroll laws.

Find out more about this provider’s features in our in-depth Frontier payroll review.

Frontier’s pricing

Frontier’s pricing is bespoke so you’ll need to contact the provider directly for accurate pricing.

5. Advanced: Best payroll software for training

Advanced’s key features

• Pensions auto enrolment software as standard
• In-depth reporting
• Easy integration with other Advanced business software products
• Dedicated support centre with 300 staff

How does Advanced compare to its competitors?

During our extensive testing process, we were impressed by Advanced’s training prowess, which makes it great if you’re running a small accounting team. In that regard, it beats Moorepay by having a live training feature. However,  in our deep analysis, we found Iris Staffology also offers this.

Advanced provides integrations with its native suite of other applications like ADP does. However, it lacks the free trial that Iris Staffology offers, which, combined with the fact that its pricing is bespoke, can delay knowing if it’s right for you. Similarly to MHR, however, Advanced offers in-depth reporting which can especially benefit larger companies.

Crucially, it lacks the mobile app that many of its competitors (such as Iris Staffology and Moorepay) offer. And as far as data security goes, it could be better: of all the providers we researched, it’s the only one that had a data breach in recent years, being a victim of a ransomware attack in 2022.

Advanced’s pricing

You’ll need to contact Advanced directly as it only offers bespoke pricing.

6. Moorepay: Best payroll software for expertise

Moorepay’s key features

• Extensive advice offering
• Offers large suite of HR/people management solutions
• Mobile app
• Offers tax-related educational resources

How does Moorepay compare to its competitors?

Moorepay boasts an array of consultants ready to give insightful information to its customers, making it ideal for businesses that require hands-on guidance. Like ADP, Moorepay provides CIPP-accredited expert payroll advice and offers tax-related educational resources.

When testing the software, we found that, unfortunately, Moorepay doesn’t allow for the payment of international employees nor does it offer live training – features that Frontier offers. Also, it lacks the transparent pricing that Iris Staffology packs, although for its part, this fact does align it with most of the providers we analysed and tested in our in-depth expert research.

Moorepay’s pricing

Moorepay’s pricing is based on factors including processing, add-ons, and setup. You’ll need to contact Moorepay directly for a bespoke quote – or if you want to learn more about the provider, check out our Moorepay payroll review.

7. 1 2 Cloud: Best payroll software for small businesses

1 2 Cloud’s key features

• Cheaper pricing suitable for small businesses
• Competitive pricing for larger businesses
• Free phone support within working hours
• “Rollback facility” for easily amending errors in pay

How does 1 2 Cloud compare to its competitors?

1 2 Cloud is an HMRC-approved payroll software provider suitable for small businesses with fewer than 10 employees. When testing the software, our researchers liked its intuitive dashboard layout, similar to ADP’s.

On the flip side, 1 2 Cloud doesn’t pack a lot of integrations: it only syncs up with Sage on the accounting front. As far as accounting integration goes, this is the same offer as Moorepay’s, but that competitor also allows for HR and time and attendance integration (which 1 2 Cloud doesn’t).

Find out more about the provider’s strengths and weaknesses in our 1 2 Cloud Payroll review.

1 2 Cloud’s pricing

Cloud Payroll Software Buying Guide

Managing payroll can be a complicated and time-consuming task for businesses of all sizes. To pick the right software, it’ll need to have a handle on all the features that will make that process easier from dealing with taxes, pensions, and statutory deductions to the core functionality of paying employees accurately and on time.

Here are the features we believe you should look out for:

HMRC compliance

A basic functionality, and one that we have made sure is a part of all the options on this page, is compliance with HMRC regulations. This will allow for accurate tax calculations and reporting. Namely, the cloud payroll software should be able to:

• Automatically update with the latest tax codes and thresholds.
• Handle statutory payments such as SSP (Statutory Sick Pay) and SMP (Statutory Maternity Pay).
• Submit RTI (Real Time Information) to HMRC.

Automation capabilities

You’ll want the software to make your life easier, automatically solving payroll tasks for you including:

• Calculating PAYE (Pay As You Earn), National Insurance contributions, and pension deductions.
• Generating payslips and P60s automatically.
• Automatically updating payroll records when there are changes in tax laws or employee data.

Integration with other systems

Ideally, any payroll you choose will integrate with your existing software systems. This could include:

• Accounting software: Integrations with systems like Xero, QuickBooks, or Sage ensure seamless flow of financial data.
• HR tools: If you use HR software, ensure your payroll solution can synchronise with it to manage employee data, leave tracking, and expenses.

Pension auto-enrolment

Since pension auto-enrolment is a legal requirement for most UK employers, your payroll software must:

• Automatically enrol eligible employees into a pension scheme.
• Send the necessary communications to employees.
• Deduct pension contributions and submit reports to your pension provider.

Ease of use

If you are using cloud payroll software instead of a payroll service, you and/or your team will be completing payroll tasks yourself. That means you’ll want software that has an intuitive, user-friendly interface. A clean, simple layout can save time and reduce the chance of errors, especially if you don’t have a dedicated payroll team.

Customer support

You never know when you might need some help with managing your payroll. Opt for software that provides comprehensive customer support through:

• Phone, email, or live chat.
• Online resources such as tutorials, webinars, and FAQs. Good support is crucial if you run into technical issues or need guidance on payroll processes.

Reporting

Reporting can allow you to easily break down where business spending is going on the payroll. That can be especially important for companies that are large and need a birds-eye view of their bulging payroll. Most software offers some kind of functionality here, including detailed reporting features like:

• Payroll summaries and breakdowns.
• Tax and National Insurance reports.
• Pension contributions and RTI submissions. Reporting capabilities are essential for tracking expenses, auditing, and compliance.

Data security

Securing your payroll data is crucial since you need to comply with GDPR (General Data Protection Regulation) rules. Software that allows for this is therefore necessary to safeguard sensitive employee information. All the options we suggest on this page adhere to such standards.

Costs

And most crucial of all: how much will the software cost your business? This will vary depending on the pricing model of the software:

• Subscription-based: Most cloud-based payroll software has monthly or yearly payments based on the number of employees or payroll runs you need.
• Pay-per-use: Some software charges per payroll run or report generation. We suggest factoring in both upfront costs and ongoing fees and checking if there are any hidden costs for additional features or users.

Important Payroll Dates In 2024

With over 15 years of covering the payroll industry, we know how crucial keeping HRMC’s deadlines is. When one approaches, you have to be extra careful with your reporting and make sure everything is kosher to withstand the government’s scrutiny.

Cloud-based payroll systems can certainly help you meet the relevant deadlines, but in any case, you need to be on the ball when it comes to them. As a refresher, here’s a brief recap of the most important payroll dates.

How We Ranked the Best Payroll Software