Payroll systems for local government – Top 8 payroll solutions for councils and local authorities

Local government, councils, and local authorities in the UK face unique challenges when managing payroll. These entities need robust, compliant, and efficient payroll systems to handle everything from basic salary processing to complex pension schemes. With the aim of aiding these institutions in finding the right payroll solution, here is an overview of the top 8 payroll systems tailored for councils and local authorities.

Feature/Provider	Sage Payroll	MHR iTrent	Advanced Payroll	Zellis ResourceLink	Civica HR and Payroll	IRIS Payroll Professional	Capita Payroll	Moorepay
Target Market	SMEs to large organisations	All sizes, especially complex structures	SMEs to mid-sized organisations	All sizes, tailored for UK market	Public sector organisations	Large councils and authorities	Education sector, adaptable to broader use	Councils of all sizes
Deployment	Cloud, On-premises	Cloud, On-premises	Cloud	Cloud, On-premises	Cloud, On-premises	Cloud, On-premises	Cloud, On-premises	Cloud
Key Features	Compliance, Training resources	Flexibility, Pension administration	Scalability, HR integration	Payroll and pensions integration, Compliance	User-friendly, Self-service portal	Support for various payment frequencies, Comprehensive reporting	Simplicity, Education sector focus, Integration	Easy to use, Compliance expertise
Pricing Model	Subscription-based, Additional modules cost	Custom pricing, Implementation fees	Subscription, Setup costs	Tailored pricing, Setup and training fees	Bespoke pricing, Implementation costs	Variable pricing, Setup charges	Customisable, Implementation and training fees	Flexible options, Setup and integration costs
Ideal For	Organisations seeking robust compliance and support	Entities with diverse and complex payroll needs	Those looking to modernise with a scalable cloud solution	Public sector with complex pension needs	Public sector entities valuing integrated HR and payroll	Larger councils needing flexibility and comprehensive reporting	Education sector entities and those needing simple integration	Any council needing straightforward, compliant payroll management
Support	Extensive training and support network	Customisable support based on package	Cloud support, Integration assistance	UK-focused support, Advanced reporting tools	User support, Online portal	Comprehensive customer service, Reporting assistance	Education-focused support, Modular integration	Dedicated support team, Legislative updates

1. Sage Payroll

Sage Payroll stands out for its comprehensive feature set that caters to the specific needs of the public sector, including local governments. It’s known for its strong compliance capabilities, ensuring that councils remain up-to-date with legislation changes. Sage also offers exceptional support and training resources, making it a reliable choice for entities that value ongoing education and assistance.

Why it’s good for local government:

• Sage Payroll is particularly suited to local government due to its robust compliance features and extensive support network.
• It understands the complex regulatory environment that councils operate within, offering updates and guidance on legislative changes, including pensions and tax requirements.
• Additionally, its comprehensive training resources are invaluable for public sector organisations that often face resource constraints and require their staff to wear multiple hats, ensuring that payroll processes are managed efficiently and accurately.

Pricing

The pricing for Sage Business Cloud Payroll is as follows:

Number of Employees	Monthly Price (£)
1-5	£8.00
6-10	£13.00
11-15	£19.00
16-25	£29.00
26-35	£39.00
36-50	£55.00
51-75	£80.00
76-100	£106.00

• Subscription-based pricing: Monthly or annual fees based on the number of employees.
• Additional costs for modules: Such as pension management or advanced reporting.
• Training and support fees: May incur extra charges.

Further information

Read our Sage Payroll review or visit the website.

2. MHR iTrent

MHR‘s iTrent payroll system is another top contender, offering a highly flexible platform that can be customised to meet the specific requirements of local authorities. It includes features such as pension administration and complex contractual arrangements, making it ideal for the varied needs of public sector employees.

Why it’s good for local government:

• MHR iTrent is designed with flexibility at its core, making it an ideal choice for local governments with diverse and complex payroll needs.
• It supports a wide range of contract types and working patterns typical in the public sector, from casual workers to full-time employees with varying pension contributions.
• This flexibility, combined with its pension administration capabilities, ensures that local authorities can manage their payroll in a manner that’s both compliant and tailored to the specific needs of their workforce.

Pricing

Service Type	Cost Component	Estimated Cost Range (£)
Software	Initial Setup Fees	£0 – £1,500
	Licence Fees	£100 – £500 per year
	Software Updates	Included
	Add-ons & Modules	£50 – £200 per year
Outsourcing	Fixed Monthly Fees	£200 – £1,000 per month
	Transactional Fees	£1 – £3 per payslip
	Additional Services	£200 – £1,000

• Custom pricing model: Tailored to the organisation’s size and requirements.
• Implementation fees: Initial setup and customization charges.
• Annual licensing or subscription fees: Depending on the package and services chosen.

Further information

Read our MHR Payroll review or visit the website.

3. Advanced Payroll

Advanced Payroll is known for its cloud-based payroll solution that provides local governments with the tools needed for efficient payroll processing. Its strength lies in its scalability and the ability to integrate with other HR functions, offering a holistic approach to workforce management.

Why it’s good for local government:

• The cloud-based nature of Advanced Payroll makes it a strong contender for local governments looking to modernise their payroll systems.
• The platform’s scalability allows councils to easily adjust to changes in workforce size or structure without the need for significant IT overhauls.
• Furthermore, its integration capabilities mean that payroll can seamlessly work alongside other HR functions, such as recruitment and performance management, facilitating a more holistic approach to employee management.

Pricing

• Cloud-based subscription: Fees based on the number of users and the extent of functionalities required.
• Setup and implementation costs: One-time charges for system configuration and training.
• Optional add-ons: Additional features may increase monthly costs.

Further information

Visit the website.

4. Zellis ResourceLink

Zellis ResourceLink is favoured for its ability to manage payroll and pensions within one system. It’s designed specifically for the UK market, ensuring compliance with local regulations. Its comprehensive reporting capabilities allow for detailed analysis and management of payroll data.

Why it’s good for local government:

• Zellis ResourceLink’s strength lies in its comprehensive approach to payroll and pensions, making it well-suited for local governments that manage complex employee benefits schemes.
• Its focus on the UK market ensures that the system is always aligned with local regulations, reducing the risk of compliance issues.
• The platform’s advanced reporting features also enable councils to gain deeper insights into their payroll operations, aiding in strategic decision-making and operational efficiency.

Pricing

Feature/Package	Small Business (up to 50 employees)	Medium Business (51-200 employees)	Large Business (201+ employees)
Basic Payroll Subscription	£50/month	£100/month	£200/month
Real-time Reporting Add-on	£10-£20/month	£20-£40/month	£40-£80/month
Employee Self-service Portal	£25-£50/month	£50-£100/month	£100-£200/month
Premium Support	£20-£40/month	£40-£80/month	£80-£160/month
Basic HCM Cloud	£200/month	£400-£600/month	£800-£1,200/month
Customised HCM Modules	£50-£100/month	£100-£200/month	£200-£400/month

• Tailored pricing strategy: Based on the scale of deployment and specific modules selected.
• Initial setup and training fees: Costs for customisation and employee training.
• Ongoing support and maintenance fees: Charged annually or monthly.

Further information

Read our Zellis Payroll review or visit the website.

5. Civica HR and Payroll

Civica offers a combined HR and payroll solution tailored for public sector organisations. It excels in handling complex pay structures and pension schemes inherent in local government employment. Additionally, its user-friendly interface and self-service portal enhance the overall user experience for both HR staff and employees.

Why it’s good for local government:

• Civica HR and Payroll is tailored for public sector organisations, offering a user-friendly interface and a self-service portal that enhances the payroll experience for both HR staff and employees.
• Its ability to handle complex pay structures and pension schemes common in local government makes it a valuable tool for ensuring accurate and compliant payroll processing.
• The integrated HR and payroll functions promote efficiency by reducing data duplication and streamlining administrative processes.

Pricing

• Bespoke pricing: Determined by the specific needs and size of the local government.
• Implementation and customisation costs: Initial charges based on system complexity.
• Subscription fees: For continuous software updates and support.

Further information

Visit the website.

6. IRIS Payroll Professional

IRIS Payroll Professional caters to the needs of larger councils and local authorities, offering a powerful and flexible payroll solution. It supports a wide range of payment frequencies and types, as well as comprehensive reporting options, ensuring that all payroll requirements are met efficiently.

Why it’s good for local government:

• IRIS Payroll Professional offers the robustness and flexibility needed by larger councils and local authorities.
• Its capability to support various payment frequencies and types, along with its comprehensive reporting options, ensures that local governments can manage their payroll operations effectively, regardless of their complexity.
• The platform’s focus on compliance and its ability to adapt to legislative changes are crucial for public sector entities that must navigate a constantly evolving regulatory landscape.

Pricing

Software Option	Employee Limit	Monthly Cost	Features	Best For
IRIS Payroll Basics	Up to 10	Free	Basic Payroll	Small businesses
KashFlow Payroll Core	Up to 5	£8.12	Core Payroll	Small businesses
KashFlow Payroll Plus Accounting	Up to 5	£29	Core Payroll + Accounting	Small businesses with accounting needs
IRIS Business Payroll	Up to 100	£99	Advanced Payroll	Medium to large businesses
IRIS Cascade HRi	Custom	Custom	Comprehensive HR + Payroll	Large organisations
IRIS PayRite	Custom	Custom	Advanced Payroll	Large businesses
Staffology HR and Payroll	Custom	Custom	Cloud-based HR + Payroll	Various business sizes

• Variable pricing model: Depending on the number of employees and functionality required.
• Setup charges: For system implementation and training.
• Annual or monthly subscriptions: Covering ongoing service and support.

Further information

Read our IRIS Payroll review or visit the website.

7. Capita Payroll

Capita Payroll is specifically designed for the education sector but is also well-suited for broader local government use. It simplifies payroll processing while ensuring accuracy and compliance with UK payroll legislation. Its integration with other SIMS modules offers a seamless administrative experience.

Why it’s good for local government:

• Though primarily designed for the education sector, Capita SIMS Payroll’s simplicity and integration capabilities make it an excellent choice for local governments.
• Its ease of use helps reduce the administrative burden on council staff, while its accuracy and compliance features ensure that payroll operations are managed effectively.
• The ability to integrate with other SIMS modules allows for a cohesive administrative experience, streamlining processes across different departments within the council.

Pricing

• Customisable pricing: Based on the educational institution or local authority’s specific needs.
• Implementation and training fees: One-time costs for setting up and educating staff.
• Annual licence fees: For software updates and customer support.

Further information

Visit the website.

8. Moorepay

Moorepay provides a payroll solution that’s easy to use and rich in features, making it suitable for local councils of all sizes. It prides itself on its compliance expertise, ensuring that users are always ahead of legislative changes. Moorepay also offers a dedicated support team to assist with any payroll challenges.

Why it’s good for local government:

• Moorepay is suited to local councils of all sizes thanks to its easy-to-use platform and comprehensive compliance support.
• Its dedication to staying ahead of legislative changes relieves local governments of the burden of monitoring these developments themselves, ensuring that their payroll operations remain compliant.
• Moorepay’s dedicated support team is another key benefit, offering specialised assistance to tackle any payroll challenges that may arise, thereby ensuring smooth and efficient payroll management for councils.

Pricing

Service Type	Cost Item	Estimated Cost Range	Remarks
SaaS Payroll Software	Subscription Fee	£50 – £200+ per month	Varies based on the number of employees and features
	Set-Up Fee	£150 – £300 one-time	Initial set-up
	Additional Modules	£20 – £50 per month	Optional HR and time-tracking add-ons
Outsourced Services	Per Employee, Per Month (PEPM)	£5 – £8 per employee	Price increases based on services
	Additional Services	£100 – £300 annually	Custom reports, end-of-year processing
	Implementation Costs	£500 – £1,000 one-time	One-off fee for transitioning
Bundled Services	Combined Monthly Fee	£100 – £500+ per month	Includes both payroll and HR services

• Flexible pricing options: Tailored to the size and complexity of the payroll operations.
• Setup and integration costs: Initial fees for system customisation.
• Monthly subscription fees: Including ongoing support and legislative updates.

Further information

Read our Moorepay Payroll review or visit the website.

Conclusion

Choosing the right payroll system is critical for the smooth operation of councils and local authorities. The best solution will depend on the specific needs of the organisation, including the size of the workforce, the complexity of the payroll requirements, and the need for integration with other HR systems. By considering one of the top 8 payroll solutions listed above, UK local governments can ensure efficient, compliant, and effective payroll management.