Selecting the right payroll software for your school is a crucial decision that impacts not only the financial management of the institution but also the satisfaction of its staff. Schools have unique needs that differ significantly from other businesses, such as managing term-time contracts, dealing with various types of leave, and incorporating specific pay scales. This article compares leading payroll solutions tailored for the educational sector, helping UK schools make an informed choice.
Understanding the needs of schools
Before diving into comparisons, it’s important to understand the specific requirements of payroll systems in educational settings. Schools need software that can handle fluctuating hours, term-time only contracts, and maternity or sickness leave, while also being compliant with UK tax laws. Additionally, integration with other HR and financial systems is essential for a seamless administrative experience.
Features to look for when choosing school payroll software
When choosing a school payroll solution, potential customers should consider a comprehensive set of features that cater specifically to the unique needs of educational institutions. Here’s a list of critical features to look for:
- Education-Specific Payroll Processing: Ability to handle diverse and complex payroll requirements unique to schools, such as term-time contracts, varying pay scales, and different types of staff (e.g., teaching, administrative, and support staff).
- Compliance with UK Tax Legislation: Ensures that the payroll system is up-to-date with the latest HMRC regulations and guidelines, including PAYE, National Insurance contributions, and pension auto-enrolment.
- Data Security and Privacy: Advanced security measures to protect sensitive employee data, in compliance with GDPR and other relevant data protection laws.
- Integration Capabilities: Seamless integration with existing financial, HR, and time-tracking systems to ensure efficient data flow and reduce manual input errors.
- Flexible Payment Schedules: Support for various payment schedules, including monthly, weekly, and term-time payments, to accommodate the diverse contract types within the education sector.
- Leave and Absence Management: Features to manage and track different types of leave, including sick leave, maternity/paternity leave, and holiday entitlements, with the ability to adjust payroll accordingly.
- Customisable Pay Slips: Ability to customise pay slips with school branding and provide digital access for employees, enhancing the transparency and accessibility of payroll information.
- Reporting and Analytics: Comprehensive reporting tools that offer insights into payroll expenses, staff cost analysis, and budget forecasting, assisting schools in financial planning and management.
- User-Friendly Interface: An intuitive and easy-to-navigate interface that minimises the training time and allows for efficient payroll management.
- Scalability: The system should be able to grow with the institution, accommodating increases in staff numbers or changes in payroll complexity without significant upgrades or system changes.
- Customer Support and Training: Access to robust customer support and training resources to ensure that school staff can effectively use the payroll system and troubleshoot any issues that arise.
- Pension Scheme Management: Support for managing teacher pension schemes and other employee pension plans, including automatic enrolment and contribution calculations.
- Real-Time Information (RTI) Submission: Capability to automatically submit payroll data to HMRC in real-time, ensuring compliance and up-to-date employee tax records.
Considering these features will help ensure that the selected payroll solution not only meets the specific needs of a school but also provides a secure, compliant, and efficient payroll process.
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With those criteria in mind, here are our top four picks for schools seeking a new and powerful payroll solution.
Best payroll software for schools
| Feature / Solution | BrightPay | IRIS Education Payroll Solutions | Sage Payroll for Education | Moorepay |
|---|---|---|---|---|
| Education-Specific Features | Yes, including term-time contract support | Tailored to complex school payroll needs | Designed for unique education sector needs | Bespoke solutions for schools |
| Compliance with UK Tax Legislation | Up-to-date with HMRC regulations | Fully compliant | Ensures compliance with tax laws | Adheres to current legislation |
| Data Security and Privacy | High-level security and GDPR compliant | Strong data protection measures | Advanced security protocols | Robust data security and privacy |
| Integration Capabilities | Integrates with accounting software | Seamless HR and financial system integration | Broad integration options | Efficient integration with HR and financial systems |
| Flexible Payment Schedules | Supports various payment schedules | Customisable payment schedules | Flexible payment options for staff | Adaptable payment schedules |
| Leave and Absence Management | Comprehensive leave management | Detailed tracking and management | Efficient leave processing | Advanced management features |
| Customisable Pay Slips | Yes, with digital access | Customisable and accessible online | Brandable and accessible pay slips | Customisable digital pay slips |
| Reporting and Analytics | Detailed reporting tools | Comprehensive analytics and reporting | Robust reporting capabilities | In-depth reporting and insights |
| User-Friendly Interface | Intuitive design | User-friendly | Easy to navigate | Simple and accessible interface |
| Scalability | Easily scalable to school’s growth | Scales with institution needs | Designed to accommodate growth | Scalable solutions for any size |
| Customer Support and Training | Extensive support and resources | Dedicated support and training | Comprehensive support services | Robust training and customer support |
| Pension Scheme Management | Supports teacher pensions and auto-enrolment | Comprehensive pension management | Pension scheme handling | Efficient pension scheme administration |
| RTI Submission | Automated RTI submissions to HMRC | Real-time submissions ensured | Supports RTI submissions | Automated compliance with RTI |
1. BrightPay
BrightPay stands out for its user-friendly interface and comprehensive features tailored for the education sector. It offers flexibility in managing different types of contracts and integrates smoothly with various accounting software. BrightPay also emphasises security and compliance, ensuring schools meet their legal obligations effortlessly.
Pricing
| Number of Employees | Cost Per Tax Year (£) |
|---|---|
| Up to 3 | 79 |
| Up to 10 | 139 |
| Up to 25 | 209 |
| Unlimited | 289 |
- Subscription-based pricing: Often based on the number of employees and pay periods.
- Annual License Fee: Possible annual license fees depending on the version or tier of the service.
- Additional fees: For updates, support, or advanced features.
Further information
Read our BrightPay review or visit the website.
2. IRIS Education Payroll Solutions
IRIS offers a specialised solution for educational institutions, focusing on compliance and integration capabilities. Its strength lies in handling complex payroll requirements common in schools, such as term-time payments and maternity leave. IRIS also provides excellent customer support and training, making it a reliable choice for schools of all sizes.
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Pricing
| Software Option | Employee Limit | Monthly Cost | Features | Best For |
|---|---|---|---|---|
| IRIS Payroll Basics | Up to 10 | Free | Basic Payroll | Small schools |
| KashFlow Payroll Core | Up to 5 | £8.12 | Core Payroll | Small schools |
| KashFlow Payroll Plus Accounting | Up to 5 | £29 | Core Payroll + Accounting | Small schools with accounting needs |
| IRIS Business Payroll | Up to 100 | £99 | Advanced Payroll | Medium to large schools |
| IRIS Cascade HRi | Custom | Custom | Comprehensive HR + Payroll | Large schools |
| IRIS PayRite | Custom | Custom | Advanced Payroll | Large schools |
| Staffology HR and Payroll | Custom | Custom | Cloud-based HR + Payroll | Various school sizes |
- Custom Quote: Pricing typically requires a custom quote, reflecting the school’s size, complexity, and specific needs.
- Module-based pricing: Additional costs for extra modules or features.
- Support and Maintenance: Yearly fees for customer support and software updates.
Further information
Read our IRIS Payroll review or visit the website.
3. Sage Payroll for Education
Sage is a well-known name in the payroll software industry, and its education-focused solution does not disappoint. It is particularly adept at managing the unique pay scales and employment terms found in the education sector. Sage Payroll for Education also offers robust reporting tools, helping schools make informed decisions about their payroll and finances.
Pricing
| 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 |
- Tiered Pricing: Based on features and the number of employees.
- Monthly or Annual Subscriptions: Options for monthly or annual payments, with discounts often available for longer commitments.
- Additional Costs: For premium support, training, or additional modules.
Further information
Read our Sage Payroll review or visit the website.
4. Moorepay
Moorepay is a leading payroll and HR solution provider that offers a tailored approach to meet the specific needs of the education sector. It provides a comprehensive payroll solution that is capable of handling the nuanced aspects of school payroll, including term-time pay and various types of leave. Moorepay’s system is designed to ensure compliance with UK tax laws and integrates well with other HR and financial systems, offering a seamless experience for school administrators. The company prides itself on offering robust support and training, ensuring that schools can manage their payroll efficiently and with confidence.
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 |
- Customised Pricing: Moorepay typically offers tailored pricing that reflects the specific needs and scale of an educational institution.
- Per Employee or Per Payslip Pricing: Charges may be structured around the number of employees or payslips processed each month.
- Subscription Options: There may be options for monthly or annual billing, with potential savings for commitments made on an annual basis.
- Setup and Implementation Fees: Initial fees for setting up the system and configuring it to meet the school’s specific payroll requirements.
- Additional Services: Prices for added features such as HR management modules, custom reporting, or integration with existing systems.
Further information
Read our Moorepay review or visit the website.
Conclusion – Choosing the best school payroll software
Choosing the right payroll software is critical for a school to manage their finances efficiently and keep their staff happy.
Each of the solutions discussed offers a range of features designed to meet the unique needs of the education sector.
However, the best choice depends on the specific requirements, size, and budget of your school. It’s recommended to take advantage of free trials and demos offered by these providers to find the software that best fits your institution’s needs.