Combined HR and payroll software lets you manage employee records, absence tracking, onboarding, and payroll processing from a single platform. Instead of running separate HR and payroll systems that do not talk to each other, an integrated solution means employee data flows automatically between both functions.
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This guide compares the best UK platforms that genuinely combine HR and payroll – not just HR software with a payroll bolt-on, or payroll software with basic HR features. We cover pricing, what each platform does well, and how to choose between them.
- Combined platforms can cut admin and licensing costs - one subscription and one vendor instead of two, though separate budget tools are sometimes cheaper
- Best for companies with 10–100 employees - Employment Hero offers strongest feature set for mid-sized businesses
- Combined platforms take longer to set up - migrating both HR and payroll data adds onboarding time versus a standalone payroll system
- Employment Hero undercuts Sage HR per employee - £4 vs £5 per employee monthly (roughly 20% lower) plus stronger mobile functionality
- Sage combination costs £15 per employee monthly - HR plus payroll pricing for established businesses
Best HR and Payroll Software Compared
The best combined HR and payroll platforms for UK SMEs are Employment Hero, Sage HR + Payroll, Rippling, and Staffology – each offering genuine integration between HR and payroll functions.
| Platform | HR Strength | Payroll Strength | Price | Best For |
|---|---|---|---|---|
| Employment Hero | Strong (full HR suite) | Strong (UK payroll) | From £4/emp/month | SMEs wanting all-in-one HR + payroll |
| Sage HR + Payroll | Strong (Sage HR) | Strong (Sage Payroll) | HR from £5/emp/month + Payroll from £20/month | Sage ecosystem users |
| Rippling | Strong (global HR) | Strong (UK payroll) | Quote-based | Fast-growing, tech-savvy businesses |
| Staffology | Basic (employee records) | Strong (API-first) | From £43/month | Businesses prioritising payroll with basic HR |
| Xero Payroll | Limited (no HR module) | Good (UK payroll add-on) | £1.50/emp/month + plan | Xero users needing payroll (not HR) |
| Dayforce | Enterprise-grade | Enterprise-grade | Bespoke | Large companies (100+ employees) |
Why Combine HR and Payroll?
Combined HR and payroll eliminates duplicate data entry, ensures pay changes sync automatically, and gives you one system for employee records, absence, and pay.
Running HR and payroll separately creates practical problems:
- Duplicate data entry – new starters, leavers, and address changes must be entered in both systems
- Sync errors – a pay rise approved in HR but not updated in payroll means incorrect pay
- Absence gaps – holiday and sick days tracked in HR may not flow into payroll deductions
- No single view – managers cannot see total employment cost per employee without checking two systems
- Higher cost – two subscriptions, two vendor relationships, two sets of support
An integrated platform solves this by sharing a single employee database. When HR approves a salary change, it automatically updates in payroll. When an employee is marked as a leaver in HR, their final pay is calculated in payroll. This reduces errors, saves admin time, and gives you a complete picture of your workforce.
Employment Hero
Employment Hero offers combined HR and payroll from £4/employee/month – including onboarding, absence management, document storage, and UK payroll processing.
Employment Hero is an all-in-one HR and payroll platform built specifically for SMEs. It covers the full employee lifecycle from recruitment to offboarding, with UK payroll integrated directly into the HR module.
HR features: Employee records, onboarding workflows, absence management, document storage, performance reviews, org charts, employee self-service app.
Payroll features: UK payroll processing, RTI, auto-enrolment, payslips, P45/P60, employee expense management.
Pricing: From £4/employee/month (minimum billing applies – contact for details). HR and payroll are bundled together in higher-tier plans.
Best for: UK SMEs with 10–200 employees that want one platform for both HR and payroll without enterprise complexity.
Sage HR + Sage Payroll
Sage offers separate HR and Payroll products that integrate together – HR from £5/employee/month plus Payroll from £20/month for up to 5 employees.
Sage offers HR and payroll as separate products within the same ecosystem, designed to integrate with each other and with Sage accounting software.
Sage HR: Employee records, absence management, shift scheduling, recruitment, performance management, expense management. From £5/employee/month.
Sage Payroll: UK payroll processing, RTI, auto-enrolment, payslips, CIS. From £20/month for up to 5 employees.
Combined pricing example (20 employees): ~£100/month for HR (£5 x 20) + ~£80/month for Payroll (£20 base for 5 + £4 x 15 extra) = ~£180/month total.
Best for: Businesses already using Sage for accounting that want HR and payroll from the same vendor. The integration between Sage products is strong, and having one vendor for accounting, HR, and payroll simplifies administration.
HR-Only vs Payroll-Only Platforms
Many platforms marketed as “HR and payroll” are actually strong at only one – Breathe HR excels at HR but has no payroll, while Moneysoft and Xero are payroll-only.
Not every platform marketed as “HR and payroll” is genuinely strong at both. Here is how the common UK options break down:
| Platform | HR | Payroll | Verdict |
|---|---|---|---|
| Employment Hero | Full HR suite | Full UK payroll | Genuinely combined |
| Sage HR + Payroll | Full HR suite | Full UK payroll | Integrated but separate products |
| Rippling | Full HR suite | Full UK payroll | Genuinely combined |
| Breathe HR | Full HR suite | No payroll | HR only – pair with Moneysoft or Staffology |
| Moneysoft | No HR | Full UK payroll | Payroll only – pair with HR software |
| Xero Payroll | No HR | UK payroll add-on | Payroll only – pair with HR software |
If you want a genuinely combined platform, Employment Hero, Sage (both products), or Rippling are the strongest options. If you are happy running two systems, you can pair any HR platform with any payroll platform – though you lose the automation benefits of integration.
How to Choose
Choose a combined platform if you have 10+ employees and want automation. Use separate HR + payroll systems if you have specific requirements or prefer best-of-breed tools.
Choose combined HR + payroll if:
- You have 10+ employees and growing
- You want employee changes to sync automatically between HR and payroll
- You prefer dealing with one vendor for support
- Admin efficiency is a priority
Choose separate HR and payroll if:
- You already have an HR system you are happy with
- You want best-of-breed software for each function
- You have specific HR requirements (e.g., complex shift patterns, training management) that a combined platform does not cover well
- Cost is the primary concern – separate budget tools (Breathe HR + Moneysoft) can be cheaper than a combined platform
For standalone payroll software, see our best payroll software UK guide. For standalone HR platforms, see our best HR software UK guide.
Our Verdict
Employment Hero is the best combined HR and payroll platform for UK SMEs. Sage is the strongest choice for businesses already in the Sage ecosystem.
For UK SMEs that want HR and payroll in one platform, Employment Hero offers the best balance of features, pricing, and ease of use. It handles both functions natively, without requiring you to buy and integrate two separate products.
If you are already using Sage for accounting, adding Sage HR and Sage Payroll keeps everything in one ecosystem. For larger businesses with 100+ employees, Dayforce or SAP SuccessFactors provide enterprise-grade combined HCM.
If you do not need combined HR and payroll, standalone payroll software like Moneysoft (from £95/year) or Staffology (from £43/month) paired with a separate HR tool is often cheaper and more flexible.
