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.


 

Video: Answering your common questions about payroll prices and costs
Feature/ProviderSage PayrollMHR iTrentAdvanced PayrollZellis ResourceLinkCivica HR and PayrollIRIS Payroll ProfessionalCapita PayrollMoorepay
Target MarketSMEs to large organisationsAll sizes, especially complex structuresSMEs to mid-sized organisationsAll sizes, tailored for UK marketPublic sector organisationsLarge councils and authoritiesEducation sector, adaptable to broader useCouncils of all sizes
DeploymentCloud, On-premisesCloud, On-premisesCloudCloud, On-premisesCloud, On-premisesCloud, On-premisesCloud, On-premisesCloud
Key FeaturesCompliance, Training resourcesFlexibility, Pension administrationScalability, HR integrationPayroll and pensions integration, ComplianceUser-friendly, Self-service portalSupport for various payment frequencies, Comprehensive reportingSimplicity, Education sector focus, IntegrationEasy to use, Compliance expertise
Pricing ModelSubscription-based, Additional modules costCustom pricing, Implementation feesSubscription, Setup costsTailored pricing, Setup and training feesBespoke pricing, Implementation costsVariable pricing, Setup chargesCustomisable, Implementation and training feesFlexible options, Setup and integration costs
Ideal ForOrganisations seeking robust compliance and supportEntities with diverse and complex payroll needsThose looking to modernise with a scalable cloud solutionPublic sector with complex pension needsPublic sector entities valuing integrated HR and payrollLarger councils needing flexibility and comprehensive reportingEducation sector entities and those needing simple integrationAny council needing straightforward, compliant payroll management
SupportExtensive training and support networkCustomisable support based on packageCloud support, Integration assistanceUK-focused support, Advanced reporting toolsUser support, Online portalComprehensive customer service, Reporting assistanceEducation-focused support, Modular integrationDedicated support team, Legislative updates
Best local government payroll solutions compared

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 EmployeesMonthly 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
Sage Business Cloud Payroll prices for local government
  • 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.

Compare quotes for payroll solutions
  • Takes 2 minutes
  • Receive quotes to compare
  • Easy and no commitment
Get Started

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 TypeCost ComponentEstimated Cost Range (£)
SoftwareInitial Setup Fees£0 – £1,500
Licence Fees£100 – £500 per year
Software UpdatesIncluded
Add-ons & Modules£50 – £200 per year
OutsourcingFixed Monthly Fees£200 – £1,000 per month
Transactional Fees£1 – £3 per payslip
Additional Services£200 – £1,000
MHR payroll prices for councils and local authorities
  • 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.

Get tailored payroll prices to compare
  • Give your requirements
  • Receive quotes to compare
  • Choose a provider or walk away - your choice!
Get My Quotes

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.

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
Zellis payroll pricing for local government (estimated)
  • 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 OptionEmployee LimitMonthly CostFeaturesBest For
IRIS Payroll BasicsUp to 10FreeBasic PayrollSmall businesses
KashFlow Payroll CoreUp to 5£8.12Core PayrollSmall businesses
KashFlow Payroll Plus AccountingUp to 5£29Core Payroll + AccountingSmall businesses with accounting needs
IRIS Business PayrollUp to 100£99Advanced PayrollMedium to large businesses
IRIS Cascade HRiCustomCustomComprehensive HR + PayrollLarge organisations
IRIS PayRiteCustomCustomAdvanced PayrollLarge businesses
Staffology HR and PayrollCustomCustomCloud-based HR + PayrollVarious business sizes
IRIS payroll prices for local government
  • 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 TypeCost ItemEstimated Cost RangeRemarks
SaaS Payroll SoftwareSubscription Fee£50 – £200+ per monthVaries based on the number of employees and features
Set-Up Fee£150 – £300 one-timeInitial set-up
Additional Modules£20 – £50 per monthOptional HR and time-tracking add-ons
Outsourced ServicesPer Employee, Per Month (PEPM)£5 – £8 per employeePrice increases based on services
Additional Services£100 – £300 annuallyCustom reports, end-of-year processing
Implementation Costs£500 – £1,000 one-timeOne-off fee for transitioning
Bundled ServicesCombined Monthly Fee£100 – £500+ per monthIncludes both payroll and HR services
Moorepay price list for local government
  • 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.

Compare Prices ⓘ