How much does payroll software cost?

When choosing payroll software, cost is an important consideration, but it’s equally essential to understand the full value that the software offers in terms of efficiency, security, and scalability. At Capium, we offer payroll software that simplifies payroll processing, ensures compliance, and enhances accuracy – all while providing flexible pricing options. This blog will explore the cost of payroll software, the features included, and the factors that influence pricing.

Before getting focused on the pricing, you might find it helpful to read our other payroll related articles:

• Why use cloud payroll software?
• Features of payroll software for accountants
• How to pick the right payroll software

Key factors that influence the cost of payroll software

While pricing structures vary, several factors contribute to the cost of payroll software. If you’ve read our blog on how to pick the right payroll software, you’ll have a good idea of the most important considerations for your firm – but here’s how they can influence the overall price of a payroll software package. 

1. Number of employees

Let’s start with an obvious one: the higher the number of people you need to process payroll for, the higher the cost of your payroll software. It’s an easy way to understand scale of use, and for that reason, many payroll software providers structure pricing around the number of employees or clients. The more employees you manage or process payroll for, the higher the cost, though there are often tiered plans to accommodate different business sizes. 

2. Core features

Payroll software typically includes essential features like automated tax calculations, payslip generation, and filing with HMRC. However, more advanced functionality, such as compliance with Making Tax Digital (MTD), real-time information (RTI) filing, and the ability to manage multiple pay frequencies, will impact the cost. Capium’s payroll solution includes all of these features at different levels, depending on the suite you select.

Essential features in Capium’s payroll software:

• Automated tax calculations: ensures your firm stays compliant with changing tax regulations
• Real-Time Information (RTI) filing: Allows you to submit your payroll data to HMRC instantly, streamlining the entire payroll process
• Payslip generation: Creates and sends electronic payslips, which can be customised to meet your clients’ specific needs
• MTD compliance: Ensures your payroll is fully compatible with the Making Tax Digital initiative.

3. Automation and integration

Automation significantly reduces the time spent on payroll tasks. If you require extensive automation, like auto-generation of reports, automated year-end processing, and integration with other accounting or HR software, the price will be higher. Capium’s payroll software integrates seamlessly with our accounting suite, allowing for smoother workflows and reducing manual data entry. Additionally, the ability to integrate with third-party systems is an added benefit that can improve efficiency, but it may come at an extra cost depending on your provider.

5. Advanced features for larger firms

Larger firms often need payroll software that offers advanced features like multi-company processing, custom payroll rules, and detailed reporting. If your firm works with clients that have complex payroll needs, like managing multiple pay rates, employee benefits, and different tax regimes, you might need a higher-tier plan. 

6. Support and training

Support and training are crucial for the smooth onboarding and effective use of payroll software. Some providers charge extra for customer support, while others include it as part of the package. We offer free, comprehensive onboarding as part of our pricing and our training materials are also available to help your team make the most of the software’s features.

7. Security and compliance

Payroll software providers with enhanced security features, like encryption, secure backups, and compliance with regulations such as GDPR and RTI, may charge more for their services. Capium prioritises data security with robust compliance tools built in, including automatic updates to ensure you stay aligned with the latest regulations.

Finding the right payroll software at the right price

When choosing payroll software, cost is just one piece of the puzzle. It’s essential to consider the features and support that will meet your firm’s needs both now and in the future. We’ve designed our pricing structure to offer flexibility for firms of all sizes, from startups to large enterprises, with scalable solutions that grow with you.

Ready to streamline your payroll processes? Sign up for a free trial of Capium’s payroll software today and see how it can benefit your firm!