Find payroll software

Overview

If you decide to run payroll yourself, you need payroll software to report to HM Revenue and Customs (HMRC). The software will help you with tasks like:

• recording your employees’ details
• working out your employees’ pay and deductions
• reporting payroll information to HMRC
• working out how much you need to pay HMRC
• calculating statutory pay, for example maternity or sick pay

HMRC-recognised software

HMRC tests payroll software to check it can report PAYE information online and in real time (RTI).

You can choose from free payroll software (if you have fewer than 10 employees) and paid-for software that has been tested and recognised by HMRC.

You should consider which features you need. For example, some software won’t let you:

• produce payslips
• record pension deductions
• make pension payments
• pay different people over different periods (for example both weekly and monthly)
• send an Employer Payment Summary (EPS) report or Earlier Year Update (EYU) to HMRC

HMRC cannot recommend one software product or service over another and is not responsible for any problems you have with software that you’ve bought.

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Part of Get your business ready to employ staff

1. Step 1 Decide what type of employee you need

   1. Check whether you need full time or part time staff
   2. Check the different types of employment status

2. and Check you can afford to take on employees

   1. Check how much the National Minimum Wage is
   2. Find out how much National Insurance you need to pay for your employees
   3. Check how much sick pay your employees are eligible for
   4. Check how much you need to pay towards your employee's pension
   5. Check how much Maternity Leave you need to pay your employees
   6. Check how much Paternity Leave you need to pay your employees

3. Step 2 Make your workplace safe and accessible for employees

   1. Prevent discrimination
   2. Make your workplace accessible for employees with disabilities or health conditions
   3. Keep employee information and data safe
   4. Fire safety
   5. Health and safety

   You also need to make checks when you recruit and employ someone.

   1. Find out what you need to check when you employ someone

4. Step 3 Register as an employer and set up PAYE

   You need to register with HMRC so you can pay tax and national insurance for your employees.

   1. Register as an employer and set up PAYE
   2. Choose how to run payroll

5. Step 4 Check your responsibilities around workplace pensions

   1. Understand your pension responsibilities as an employer

6. Step 5 Get Employers' Liability insurance

   1. Find out about Employers' Liability insurance

7. Step 6 Recruit and employ staff

   1. Employ someone