What is Sage Payroll? Complete Review for the UK

Payroll is a primary part of running any business, but it can be time-consuming and complex. This is especially true for small and medium businesses (SMEs), which may not have the resources to hire a dedicated payroll team.

That’s where Sage Payroll comes into play. Sage is a cloud-based payroll software solution that can help UK businesses to process employee payments quickly and easily. It is HMRC-compliant and fully automated, so you can be confident that your payroll is accurate and up-to-date.

In this article we'll cover what Sage Payroll is, how it can help UK businesses and how it can be aligned with Wise Business to semenless pay employees.

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What is Sage payroll?

Sage Payroll offers cloud-based payroll services designed to help businesses of all sizes. Beyond its core payroll functions, it brings additional advantages such as tax filing, integration with accounting systems, and managing HR data.

With three distinct plan options, Sage Payroll ensures pricing flexibility to match the unique requirements of each business.

Trustpilot ratings highlight Sage's credibility, earning a 4-star rating¹ from a substantial 16,741 reviews. Customers prize the software for its responsive customer service and effective issue resolution.

In addition, Sage Payroll has several other features and benefits, including the standout ones:

Affordable
You can streamline your payroll process with budget-friendly subscription options.

Convenient
Setting up and using Sage Cloud Payroll is remarkably easy, enabling you to manage your payroll from any location whenever it suits you.

Customer support
Sage has an award-winning team for tech support, available over the phone 24/7. They assist you every step of the way. The cloud software stays current with the latest payroll and pension legislation, ensuring you remain compliant without any hassle.

Accessible
Sage Payroll allows you to empower your employees by giving them secure online access to their payslips. It has a convenient platform for submitting timesheet information.

Automated
Sage brings automation to the table. You can now experience the simplicity of automated and accurate tax calculations without the need for in-house tax expertise.

Sage Payroll's benefits extend to UK businesses by streamlining pay runs, minimising paperwork, and delivering accurate reports for informed decision-making. Moreover, it aids businesses in adhering to the latest tax year legislation, ensuring compliance and peace of mind.

Sage cloud payroll

Sage Cloud Payroll offers cloud-based payroll services suitable for businesses of varying sizes.

Best for: It's particularly well-suited for small and micro-sized British businesses and managers who prefer to keep payroll management in-house.

The Sage Payroll software is user-friendly, handling all the necessary calculations, making it accessible to those without payroll expertise. It's a straightforward solution for anyone to pick up and operate.

Let's dive into the pros and cons of using Sage Cloud Payroll.

Pros ✅

Cons ❌

Ease of Use: Users consistently mention that Sage Cloud Payroll is easy to use and navigate, making payroll tasks straightforward. The software's layout and interface are well-designed, allowing users to perform tasks efficiently. Access Anywhere: Being cloud-based, the Sage Payroll software provides the advantage of accessing payroll information and tasks from any location. Summary Page: The summary page feature is appreciated for highlighting tasks that need attention and helping users stay organised. Generating Reports: Users mention the software's ability to generate various reports, a valuable feature for managing payroll and accounting. Auto Adjustment: The auto adjustment feature is particularly useful for correcting errors on payslips, increasing accuracy. Remote Access: The software offers remote access, ensuring users can manage payroll tasks and access documents even when not in the office.

Limited Smartphone Functionality: Some users find that the software's functionality on smartphones is limited, potentially hindering ease of use on mobile devices. Missing Features: Users with experience with the desktop version of Sage mention that the cloud version lacks certain functions they were used to, although Sage is trying to improve this. Pensions Module Delay: There are occasional reports of delays in generating pensions modules, which can impact efficiency for users.

Sage 50 payroll

Is designed to take the hassle out of managing your employees' paychecks. It simplifies payroll by automating calculations, tax deductions, and payments.

Best for: Sage 50 Payroll is ideal for SMEs that need an efficient and straightforward way to manage their payroll processes. Whether you're a local store, a small manufacturing company, or a growing service provider, it can help you easily handle your employee payments.

Here's how it works:

• Employee Information:
  You input your employees' details into the system, including hours worked and salary information.
• Calculations:
  The software calculates the accurate amount to be paid to each employee, factoring in taxes, deductions, and overtime.
• Tax Compliance:
  Sage 50 Payroll helps you comply with tax regulations by automatically calculating and deducting the correct taxes from each paycheck.
• Payments:
  Once everything is calculated, you can use the software to process payments to your employees through direct deposit or by generating printed checks.
• Reports:
  The software provides various reports, helping you keep track of your payroll expenses and ensuring transparency.

Let's dive into the pros and cons of using Sage 50 Payroll.

Pros ✅

Cons ❌

Ease of Use: Sage 50 Payroll is known for its user-friendly interface, making it accessible even for those with limited accounting knowledge. Time-Saving: Automation reduces manual calculations and paperwork, saving you time and reducing the likelihood of errors. Tax Accuracy: The software helps you accurately calculate taxes, reducing the risk of tax-related issues. Regulatory Compliance: It helps you stay aligned with payroll laws and regulations, minimising compliance risks. Report Generation: The variety of reports available helps you analyse payroll data and manage your finances better.

Scalability: While great for SMEs, Sage 50 Payroll might not offer all the features larger enterprises require. Limited Features: Some advanced payroll features that bigger companies might need could be lacking in this software. Customer Support: Some users report mixed experiences with customer support, with occasional delays in issue resolution. Updates: Regular updates might be necessary to stay current with tax and regulatory changes.

Sage payroll cost UK

Now let's have a look into pricing options available and how they compare in terms of features and costs.

Sage offers two primary options: Sage 50 Payroll and Sage Business Cloud Payroll. Let’s dissect both:

Sage 50 Payroll pricing²

Sage 50 Payroll is a popular choice for many businesses, especially SMEs.

The subscription price for Sage 50 Payroll is based on the amount of employees you will register in the software:

Number of employees	Monthly cost
Up to 15 employees	£33 + VAT
Up to 25 employees	£45 + VAT
Up to 50 employees	£86.50 + VAT
Up to 100 employees	£92 + VAT
Unlimited employees	£127.50 + VAT

Sage Business Cloud Payroll pricing³

Sage Business Cloud Payroll operates on a subscription-based model. This means you'll pay a recurring fee, often every month, to continue using the software and accessing updates and support.

This pricing structure can provide flexibility for businesses that prefer to spread out their expenses.

Number of employees	Monthly cost
1 to 5 employees	£8 + VAT
6 to 10 employees	£13 + VAT
11 to 15 employees	£19 + VAT
16 to 25 employees	£29 + VAT
26 to 35 employees	£39 + VAT
36 to 50 employees	£55 + VAT
51 to 75 employees	£80 + VAT
76 to 100 employees	£106 + VAT

Alternatives to Sage payroll in the UK

You have many options when choosing your payroll software. Here are some alternatives to Sage Payroll in the UK, along with their main features and pricing information:

Xero Payroll

Is an online payroll software that integrates with Xero’s accounting software. It offers features such as automated payroll calculations, employee self-service, and flexible payroll filing.

Features: Offers easy employee setup, automatic tax calculations, direct integration with accounting software, real-time reporting, and compliance with HMRC requirements.

Price: Starting from £14 per month⁴.

QuickBooks Payroll

QuickBooks payroll is a software hosted on the cloud. It enables enterprises to remunerate their staff, submit payroll taxes, and oversee employee benefits as well as human resources collectively.

The tool efficiently conserves time by autonomously computing, submitting, and disbursing both federal and state payroll taxes.

Features: Automated calculations, tax updates, direct integration with QuickBooks accounting software, automated pensions calculations, and compliance with HMRC regulations.

Price: Starts from £14 per month⁵

FreeAgent

Is a cloud-oriented accounting tool that suits small enterprises and freelancers. It includes invoicing, expense monitoring, project control, time tracking, and tax administration.

Features: Integrated payroll, automatic calculations, real-time submissions to HMRC, payslips, and compliance with pension regulations.

Price: Included in FreeAgent accounting software plans, starting from £14.50 + VAT per month⁶.

BrightPay

BrightPay, a payroll software, simplifies payroll management. This desktop software operates on Windows and Mac OS X, installable on 10 computers.

BrightPay is fully HMRC recognized, supports all RTI submission types, and includes full auto-enrolment functionality.

Features: User-friendly interface, automatic calculations, RTI submissions, CIS support, cloud, and desktop versions available, and employee self-service portal.

Price: Starts from £139 for the desktop version (up to 10 employees)⁷

International payroll with Wise Business

Wise Business offers a quick, easy and affordable way to make global payments with the real exchange rate. A powerful solution for international payroll – it’s an organised and fast way to pay people all over the world.

Sign up for a Wise Business account and you’ll get access to a cheaper way to make bulk global payments. If you’re making payments in multiple currencies, you’ll always get the real mid-market exchange rate and there's just a low, transparent fee to convert between currencies, so there's no surprises.

Wise is simple to use, and can save you time and money. Make up to 1,000 payments to multiple currencies with the click of a button. There’s no need to manually pay out to vendors or employees. Just fill in one spreadsheet and Wise’s smart tech will do the rest.

International payroll can be automated with the open API, with large volumes of payments distributed in seconds.

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You can automatically sync your activity with accounting software such as Xero and Quickbooks to manage your accounting needs seamlessly - and to meet HMRC and Making Tax Digital compliance requirements.

Wise Business is an authorised and regulated financial services provider, which uses advanced security tools to protect its customers.

Get started with Wise Business 🚀

When choosing a payroll software provider, consider factors such as the size of your business, the complexity of your payroll needs, and the integration with your accounting software. It's also wise to review the most current pricing and features on the respective providers' websites before deciding.

Sources used in this article:

1. Sage Reviews | Read Customer Service Reviews of sage.com
2. Sage 50 Payroll Software | Sage UK
3. Sage Business Cloud Payroll
4. Pricing Plans | Xero UK
5. QuickBooks Pricing & Costs
6. Simple pricing plans made for small businesses - FreeAgent
7. Pricing - BrightPay UK

Sources last checked September 12, 2023