Accounting technology / Glossary / Accounting software with payroll

Accounting software with payroll: which ledgers include it?

Definition

Accounting software with payroll runs pay in the same system as the ledger, or through an add-on that posts wages, taxes and liabilities straight to the books. Xero includes payroll in its UK and Australian plans, QuickBooks and Xero sell US payroll add-ons, and FreeAgent includes UK payroll in its plans.

Also calledAccounting and payroll softwarePayroll and bookkeeping software

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UK built in: Xero, FreeAgent
US add-ons: QuickBooks, Xero via Gusto
Xero US payroll: $36 + $6 a person

How payroll works in each ledger

In the UK, Xero puts payroll in its plans. Ignite at £18 a month charges £1.50 per person paid; Grow at £39 includes payroll for 1 person, Comprehensive at £55 for 5 people and Ultimate at £70 for 10 people, all excluding VAT, with £1.50 per extra person (£1 on Ultimate). Xero's Australian Comprehensive plan includes payroll for 5 people and its Ultimate plans for 10, 20 or 50 people. In the US, Xero Payroll is powered by Gusto and costs $36 a month plus $6 per employee or contractor, covering all 50 states, with federal and state payroll tax filings and year-end W-2s and 1099s. QuickBooks sells US payroll through QuickBooks Workforce: Workforce Payroll with Simple Start costs $88 a month plus $6.50 per employee, and Workforce Premium with Plus costs $203 plus $10 per employee. FreeAgent includes payroll in its UK plans, from £19 a month excluding VAT for sole traders, and files PAYE and National Insurance to HM Revenue and Customs. Odoo Payroll has localisations for around 25 countries, and Zoho Payroll covers 10 countries including the UK, US, Canada and India. Separate payroll platforms such as Rippling sync payroll to Xero, QuickBooks and NetSuite.

Common questions

Does Xero include payroll?+

Yes in the UK and Australia, where payroll is part of the plans with a set number of people included. In the US, Xero Payroll powered by Gusto is an add-on at $36 a month plus $6 per employee or contractor.

Does QuickBooks Online include payroll?+

QuickBooks sells payroll through QuickBooks Workforce plans that combine payroll with a QuickBooks Online plan, from $88 a month plus $6.50 per employee. Existing QuickBooks Online users can add Workforce.

Is payroll included in FreeAgent?+

Yes. FreeAgent's plans for limited companies, partnerships and sole traders include monthly payroll with PAYE and National Insurance filed to HM Revenue and Customs. Landlord plans and accounts on the cash basis do not include payroll.

Can separate payroll software connect to my ledger?+

Yes. Rippling syncs payroll to Xero, QuickBooks and NetSuite, and Zoho Payroll integrates with Zoho Books, so wages and liabilities post to the general ledger.