Xero Payroll is a cloud-based software designed to help businesses manage their payroll.
It integrates seamlessly with Xero’s accounting tools, allowing businesses to handle payroll tasks, tax calculations, employee payslips, and submissions to tax authorities in a simple and efficient way.
Xero Payroll is ideal for small to medium-sized businesses that need a streamlined payroll solution.
What is Xero? & It’s Features
Xero is a popular cloud-based accounting software designed for small to medium-sized businesses.
It provides a comprehensive range of tools for managing finances, invoicing, payroll, expenses, and more.
Xero is known for its user-friendly interface, real-time data syncing, and the ability to integrate with numerous third-party applications, making it a one-stop solution for business owners and accountants.
Key Features of Xero:
- Accounting Tools: Xero allows you to create invoices, track expenses, and reconcile bank transactions in real-time.
- Payroll Integration: Xero seamlessly integrates payroll management, enabling businesses to handle employee payments, tax filings, and compliance.
- Cloud-Based Access: As a cloud software, Xero can be accessed from any device, anytime, ensuring your business finances are always up to date and accessible.
- Reporting: Xero provides various financial reports, including profit and loss statements, balance sheets, and tax reports.
- Business Collaboration: Xero enables accountants, bookkeepers, and other team members to collaborate seamlessly, ensuring accurate and timely financial management.
Xero Payroll Pricing Breakdown
Xero offers three main pricing plans, each designed to cater to different business needs.
The following details will help you understand the features available with each plan, as well as the current pricing for each.
1. Starter Plan
- Price: $2.90 USD/month (Originally $29/month, Save $78.30 over 3 months)
- Features:
- Send quotes and up to 20 invoices.
- Enter up to 5 bills.
- Reconcile bank transactions.
- Capture bills and receipts with Hubdoc.
- Short-term cash flow and business snapshot.
2. Standard Plan
- Price: $4.60 USD/month (Originally $46/month, Save $124.20 over 3 months)
- Features:
- Send quotes and invoices.
- Enter bills (with no limits).
- Reconcile bank transactions.
- Capture bills and receipts with Hubdoc.
- Short-term cash flow and business snapshot.
- Bulk reconcile transactions.
- Use multiple currencies.
3. Premium Plan
- Price: $6.90 USD/month (Originally $69/month, Save $186.30 over 3 months)
- Features:
- Send quotes and invoices.
- Enter bills (with no limits).
- Reconcile bank transactions.
- Capture bills and receipts with Hubdoc.
- Short-term cash flow and business snapshot.
- Bulk reconcile transactions.
- Use multiple currencies.
- Claim expenses.
- Track projects.
- Analytics Plus.
Key Features of Each Plan
- Essential Plan:
Provides the basics such as payroll processing, automatic tax updates, and the ability to submit payroll data to government authorities like HMRC (in the UK). - Premium Plan:
Includes everything in the Essential Plan, but with extra features like more customizable options for payroll, multi-user access, and advanced payroll reporting. It also supports businesses that need to manage more employees or complex payroll requirements.
How Much does Xero Payroll cost?
Xero Payroll offers different pricing plans depending on the size of your business. The Essential plan starts at a lower cost, ideal for small businesses, while the Premium plan provides more advanced features for growing companies. Pricing is based on the number of employees, and specific costs can vary by country, so it’s best to check the Xero pricing page for detailed information.
Must Read – Xero vs Sage: Which Accounting Software Fits Your Business?
Xero Payroll for Small vs Large Businesses
- Small Business:
Xero Payroll’s Essential plan is perfect for small businesses with fewer employees. It covers the basics, like tax calculation and payslips, at an affordable rate. - Large Business:
For businesses with more employees, Xero’s Premium plan provides additional features like multi-user access, customizable reports, and more flexible payroll options.
Additional Costs and Hidden Fees
While the core pricing plans are straightforward, there are additional costs you might encounter, such as:
- Extra fees for additional employees beyond the plan’s limit.
- Optional add-ons for advanced payroll functionalities (e.g., leave management or auto-enrollment for pensions).
- Setup fees or fees for payroll reports if needed.
Why Choose Xero Payroll?
- Ease of Use: Xero Payroll is known for its user-friendly interface, making it accessible even for non-technical users.
- Integration: Since it integrates directly with Xero’s accounting software, businesses can streamline their finances and payroll into one system.
- Cloud-Based: Xero Payroll is accessible from anywhere, allowing for real-time updates and remote access to your payroll data.
- Flexibility: It caters to a variety of business sizes and industries, from startups to more established companies.
Xero Payroll Features for Remote Teams
Xero Payroll is a powerful tool for managing payroll, especially for remote teams.
With Xero’s cloud-based platform, you can easily run payroll from anywhere, ensuring your employees are paid on time, no matter their location.
The software supports multi-currency and multi-country payroll, making it ideal for global teams. With automatic tax calculations and compliance updates, Xero ensures that your remote team stays compliant with local tax laws.
Additionally, Xero offers detailed reports and easy employee self-service options, allowing employees to access payslips, tax documents, and leave balances anytime.
Must Read – Xero Review: Is it Best Accounting Software for Small Businesses?
Mobile Access for Xero Payroll
- Employee Access:
Employees can access their payslips, tax forms, and leave balances directly from their mobile device. - Mobile App:
Xero offers a mobile app for payroll processing on the go. You can approve payslips, track employee leave, and view payroll reports from anywhere.
Conclusion
To wrap up, Xero Payroll provides flexible, cloud-based payroll services suitable for small and medium-sized businesses.
The key differences in pricing plans depend on the number of employees and the complexity of your payroll needs.
For many businesses, Xero Payroll offers an easy-to-use and reliable solution, though it’s important to assess your specific needs before committing to a plan.
Consider starting with the Essential plan and upgrading if your payroll requirements grow.
FAQs
Can Xero Payroll Handle Multiple Companies?
This is a common query for users managing payroll for more than one business. Provide details about whether Xero Payroll allows users to manage payroll for multiple companies and if additional fees apply.
What is the Difference Between Xero Payroll and Xero Accounting?
Explain the distinction between Xero Payroll and Xero Accounting, as users often get confused. Discuss how both tools work together but serve different purposes Xero Payroll for payroll management and Xero Accounting for overall financial management.
Who Should Use Xero?
Xero is ideal for small to medium-sized businesses that need an efficient, easy-to-use accounting solution.
It’s particularly beneficial for business owners who prefer cloud-based software that integrates with other tools for seamless workflow automation.