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, eg maternity or sick pay
HMRC tests payroll software to check it can report PAYE information online and in real time (RTI).
You should consider which features you need, eg some software won’t produce payslips or record pension deductions.
HMRC can’t recommend one software product or service over another and isn’t responsible for any problems you have with software that you’ve bought.