Aug 6, 2023

Top HR Software with Payroll Features to Streamline Your Payroll Process

As a small business owner or HR manager, you know how time-consuming and complex payroll processing can be. The process can be overwhelming, from calculating taxes and deductions to issuing payslips and keeping track of employees' time off. Fortunately, there are HR software solutions that can help streamline your payroll process and save you time and money.

This article will explore the top all-in-one HR and payroll systems that can help you automate payroll processes, ensure compliance with the legislation, and provide accurate and timely payslips to your employees. With these powerful tools, you can transform your payroll process from a headache to a hassle-free experience. So, let's dive in and discover the best software packages to help you take your human resources to the next level.

Benefits of using HR software with payroll features

Using HR software with payroll features can offer a variety of benefits to your business. One of the most significant advantages of using this type of software is the ability to streamline human resources management. By using an all-in-one system capable of processing real-time HR and payroll employee information, you can reduce the time and effort required to manage your payroll, freeing up time for other essential tasks.

In addition to saving time, HR software with payroll integration can improve accuracy. Running payroll is a complex task that requires careful attention to detail. With the help of payroll software, you can ensure that your payroll is accurate and error-free, reducing the risk of costly mistakes.

Compliance is another critical benefit of using HR software integrated with a payroll system. HMRC changes the rules governing payroll frequently. Therefore, with the right HR and payroll software, you can stay current with these regulations, ensuring that your small business remains compliant and avoids costly penalties.

Top HR software with payroll features

There are many HR software solutions available that offer payroll features. Here are some of the top options to consider:


Moonworkers is an excellent option for customer support and a personalised HR and payroll experience. Unlike industry giants such as IRIS and ADP, Moonworkers operates on a smaller scale, allowing customers to enjoy a more individualised and tailored customer experience.

The software provides various features, including standard payroll solutions like automatic enrolment and year-end tax reporting. Additionally, all employees gain unrestricted access to the Shop Street app upon enrolment. This app offers unlimited discounts on over one thousand brands, potentially saving employees up to 6% on everyday essentials.

More importantly, Moonworkers is the only solution to automate simple staff payroll. Thanks to its integrated rota planner and attendance tracking tool, Moonworkers generates timesheets and takes care of the 52-week average holiday pay.

Moonworkers enables creating and customising automated workflows for HR processes, such as onboarding checklists and performance reviews. Including eSignature functionality adds an extra layer of security, which is particularly beneficial for remote businesses.

Moreover, Moonworkers offers a range of other intelligent features designed to streamline and optimise HR and payroll solutions. With exceptional customer service and transparent pricing, Moonworkers is a reliable choice for small businesses.

MHR iTrent

MHR iTrent is highly recommended for its extensive features that effectively streamline HR and payroll processes. With over 35 years of experience in the industry, MHR specialises in talent management and serves over 1,000 companies.

For small businesses in the UK, MHR offers a comprehensive suite of payroll services. Their award-winning payroll and HR software, iTrent, is the top solution for integrated payroll and HR needs.

iTrent's modular system has numerous features catering to diverse requirements. Notably, it includes a unique salary modelling feature that assists with financial planning by estimating people's costs, including salary and pension payments.

In addition, iTrent provides automated quarterly software updates to ensure compliance with payroll legislation. It also offers an HR chatbot, enabling employees to receive instant answers to their queries. This feature saves the HR and payroll team valuable time, as they no longer need to address every employee's concern individually.


IRIS Software is very relevant for small businesses looking for a comprehensive solution to their administrative responsibilities. IRIS has provided administration solutions to businesses, charities, and the public sector for over 40 years as one of the UK's longest-running private software companies.

Catering to companies of all sizes, IRIS offers a specialised integrated payroll and HR software called IRIS Software, designed specifically for small businesses.

This all-in-one platform incorporates the features of IRIS' standalone payroll product, including auto-enrolment, Real-Time Information (RTI) and HMRC compliance, comprehensive reporting functionality, and automated month-end processes (P32).

Additionally, IRIS Software enables effective management of HR processes, simplifying tasks such as onboarding and holiday booking. It streamlines lengthy administrative procedures by granting employees access to their self-service portal, empowering them to handle various HR-related tasks independently.

Furthermore, IRIS Software goes beyond payroll and HR responsibilities by providing innovative bookkeeping features to address your bookkeeping needs.

With its extensive range of features and long-standing reputation, IRIS Software stands as a reliable and comprehensive solution for small businesses administrative requirements.


ADP UK suits businesses seeking software with proficient employee training and development functions well. With over 70 years of industry-specific experience, ADP is one of the UK's largest and most esteemed payroll and HR specialists. Its client base includes renowned companies like Coca-Cola, Innocent, and Amazon.

ADP caters to companies of all sizes, making it an ideal software solution for small businesses aiming to scale. Its global offering sets ADP apart, allowing businesses to manage HR and payroll worldwide. Unlike many competitors that operate solely in the UK, ADP has a presence in over 140 countries, providing access to thousands of implementation team professionals who offer advice and support.

ADP's iHCM cloud-based platform is accessible on any device, offering customers a comprehensive solution. This all-in-one platform complies with HMRC regulations and boasts a simple implementation process. Its user-friendly interface enables accurate payroll processing while facilitating HR management tasks such as time and attendance tracking and employee performance management.

Businesses choose ADP UK to access robust software that addresses payroll and HR needs and provides employees with professional training and development functions.


TopSource Worldwide is highly recommended for small businesses expanding their operations globally. The standout feature of TopSource Worldwide is its international HR and payroll capabilities, making it an ideal provider for companies already operating globally or planning to expand into global markets. In addition, their team of experts ensures compliance in over 150 countries, alleviating the complexities of managing global payroll.

In terms of features, TopSource covers all essential payroll requirements, including HMRC compliance, pension calculations, and end-of-year processing. Additionally, they provide customers with a range of reporting dashboards as standard, offering valuable insights. Their dedicated HR solution assists in completing employment contracts and managing employee benefits, further streamlining HR processes.

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Comparison of HR software with payroll features

When choosing your HR and payroll software, it's essential to consider your business's specific needs and compare the features offered by different software solutions. Here are some key factors to consider when comparing HR software with payroll features:

Payroll processing

The payroll processing feature is the core of any payroll software solution. This feature should include all the necessary tools to manage your payroll process, including calculating taxes and deductions, generating payslips, and processing payments. Your payroll software should comply with all HMRC regulations, including Real Time Information (RTI) reporting and Automatic Enrolment for workplace pensions. Additionally, your payroll solution should at least generate documents, including P60s, P11s, P45s or P30s. Additionally, you might want to consider payroll software that offers real-time calculation updates when you change your employee information or HR policies.

Compliance management

Compliance management is another critical factor when choosing HR software with payroll features. Look for software offering compliance management features, including HMRC coding notices updates and reporting. This can help ensure your business complies with regulations and avoids costly penalties.

Employee self-service app

A self-service app allows employees to update their information, access their payslips, view their current and past payments, submit timesheets or leaves, and more. This feature can be handy for businesses with remote workers or multiple offices.

Accounting software integration

Integrating your payroll solution with accounting software can be very beneficial, as it allows you to save time and reduce errors. Look for HR and payroll software that offers an accounting software integration feature, allowing you to synchronise data between the two systems and generate reports.

Workplace pension providers' Integration

Integrating your payroll solution with workplace pension providers can streamline setting up and managing employee pensions. Look for software that integrates with popular workplace pension providers, such as NEST or The People's Pension.


Cost is another crucial factor to consider when choosing HR and payroll software. Look for software that offers transparent pricing and a range of pricing plans to fit your business's needs. You may also want to consider software that offers a free trial or demo period to test the software before committing to a subscription.

Key features to look for in HR software with payroll features

When choosing an all-in-one HR and payroll software, there are several key features to look for depending on your HR needs. Here are some of the most important:

Employee information

Look for software that stores employee information in a centralised database. This includes contact details, salary information, and any other relevant data. The software should also allow you to add new employees or update existing employee information easily.
Document management and e-signatures

Look for software to manage and store key documents such as contracts, timesheets, payslips, P60s, and P11s. Additionally, consider software with e-signature capabilities enabling you to sign employee documents electronically.

HR checklists and workflows

HR checklists and workflows help ensure that all HR processes comply with regulations. Look for software offering ready-made checklists and workflows to simplify setting up and managing your HR tasks.

Time tracking

Look for software with time-tracking capabilities to track employee hours worked, sick leave, time off, vacations, etc. This can help you ensure accurate payroll  calculations and efficient attendance tracking.   

Organisation charts

Look for software that can generate organisation charts to visualise the structure of your company and keep track of employees' departments and managers.

How to choose the right HR software with payroll features for your business

Choosing the right HR and payroll solution for your business can be daunting.

To make the process easier, consider the following steps:

Identify your business's specific needs

Identify your business's specific needs before choosing HR software with payroll features. Consider the size of your business, the number of employees, and the specific payroll processing tasks you need help with.

Research software options

Once you've identified your business's specific needs, research software options that fit those needs. Look for software with the features you need and a track record of success in your industry.

Consider the cost

Cost is another important factor when choosing HR software with payroll features. Look for software that offers transparent pricing and a range of pricing plans to fit your business's needs.

Test the software

Before committing to a subscription, test the software with a free trial or demo period. This can help determine whether the software fits your business and meets your needs.

Implementation and integration of HR software with payroll features

Implementing and integrating HR software with payroll features can be a complex process. To ensure a smooth transition, consider the following steps:

Plan ahead

Before implementing HR software with payroll features, plan ahead. Consider how the software will integrate with your existing systems and processes, and develop a plan for training employees on how to use the software.

Train employees

Training employees is a crucial step in implementing HR software with payroll features. Ensure employees understand how to use the software and its features and provide ongoing support as needed.

Monitor progress

After implementing HR software with payroll features, monitor progress and adjust as needed. Regularly review the software's performance and solicit employee feedback to ensure that it meets your business's needs.

Common challenges and how to avoid them

Implementing HR software with payroll features can come with its own set of challenges. Some common challenges include:

Resistance to change

Resistance to change is a common challenge when implementing new software. To avoid this, involve employees in decision-making and provide training and support to help them adapt to the new software.

Integration issues

Integration issues can arise when HR software integrates payroll features with existing systems and processes. To avoid this, thoroughly research software options and plan for integration.

Cost overruns

Cost overruns can occur when implementing HR software with payroll features. To avoid this, consider the software's cost and any additional costs associated with implementation and training.

Best practices for using HR software with payroll features

To get the most out of your HR software with payroll features, consider the following best practices:

Regularly review performance

Regularly review the performance of your HR software with payroll features and make adjustments as needed. This can help ensure that the software meets your business's needs and provides the desired benefits.

Provide ongoing training and support

Provide ongoing training and support to employees to ensure they use the software effectively and efficiently.

Stay up to date with regulations

Stay updated with tax regulations and other payroll laws to ensure your business remains compliant and avoids costly penalties.


HR software with payroll features can help streamline your payroll process, improve accuracy, and ensure compliance with tax regulations. When choosing HR software with payroll features, consider your business's specific needs, compare software options, and test the software with a free trial or demo period. Implementing and integrating HR software with payroll features can be a complex process, but you can ensure a smooth transition by planning ahead, training employees, and monitoring progress. By following best practices, you can get the most out of your HR software with payroll features and take your payroll process to the next level.

Give us a shot.

Choose Moonworkers online payroll services for professional, reliable, and knowledgeable service.
We have been using Moonworkers for quite some time and compared to other software in the market, we found it very simple to use and excellent. Moreover, the customer service is great.
Shabir D.

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