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Head-to-head · Small Business Payroll Software

Xero Payroll vs Paylocity

  • Updated Oct 2026
  • Both researched from official sources
  • 4 checks side by side
Higher score Xero Payroll #3 in Small Business Payroll Software 9.0/10 30-day trial Free trial✓ 3 of 3 features Visit Xero
Paylocity #7 in Small Business Payroll Software 8.6/10 Pricing on request ✓ 0 of 3 features Visit Paylocity

Xero Payroll leads on 0 checks, Paylocity on 0, and 4 are even. Who comes out ahead on the 4 yes/no, price and count checks where we have data for both products. The editor score weighs everything else too.

Our verdict

  • Highest scoreXero Payroll · 9.0/10
  • Free trialonly Xero Payroll
  • Most featuresXero Payroll · 3 of 3

Xero Payroll scores higher on our rubric for small business payroll software: 9.0 against 8.6 out of 10; our editors rank them #3 and #7.

Xero Payroll is the better fit for UK businesses needing detailed HMRC payroll support. Paylocity is the better fit for small firms prioritizing mobile workforce management.

  • Xero Payroll fits best

    UK businesses needing detailed HMRC payroll support

  • Paylocity fits best

    Small firms prioritizing mobile workforce management

Advertiser disclosure: iTechGuides is reader-supported. Vendors can pay for top positions in our rankings and for a place on other products' pages, and we may earn a commission when you click some links. How we rank.

Side by side

Feature Xero Payroll 9.0/10 Visit ↗ Paylocity 8.6/10 Visit ↗
At a glance
Editor score 9.0 8.6
Ranking #3 in Small Business Payroll Software #7 in Small Business Payroll Software
Best for UK businesses needing detailed HMRC payroll support Small firms prioritizing mobile workforce management
Pricing model Paid Paid
Starting price £39/mo Pricing on request
Free plan — —
Free trial 30 days —
Deployment Cloud, Mobile Cloud, Mobile
Platforms Web, iOS, Android Web, iOS, Android
Support Docs, Community · 24/7 Phone, Docs
Compliance GDPR SOC 2, ISO 27001, GDPR, HIPAA
Integrations 1,000+ integrations 350+ integrations
Built for Small business, Mid-market Small business, Mid-market, Enterprise
Features Xero Payroll 3/3 · Paylocity 0/3
Tax filing included ✓ (best) Not checked yet
Direct deposit ✓ (best) Not checked yet
Employee self-service ✓ (best) Not checked yet
Specs
Pay frequencies weekly, fortnightly, four-weekly, monthly, quarterly, annually Not checked yet
Worker pay types employees, directors, off-payroll workers (IR35) Not checked yet
Payroll runs Unclear Not checked yet
Our review
Pros
  • Files Full Payment Submissions and Employer Payment Summaries to HMRC
  • Calculates PAYE, NIC, pensions and leave automatically
  • Supports employees, directors and off-payroll workers
  • Mobile access for employees, supervisors, administrators, and executives
  • Combines time tracking, time off, onboarding, and performance workflows
  • Marketplace integrations and developer APIs support connected systems
Cons
  • Ignite payroll costs £1.50 per person per month on top of accounting
  • Grow, Comprehensive and Ultimate plans cost £39, £55 and £70 monthly
  • Support channels listed are documentation and community
  • Pricing is customized and requires contacting sales
  • No public plan tiers to compare before a sales conversation
  • Payroll processing and tax filing are not specified in the feature list
Our verdict

Xero Payroll is cloud payroll software for UK small businesses that need to calculate pay and meet payroll reporting requirements. It suits businesses with employee, director or off-payroll worker payroll, particularly those that also want…

Read the review →

Paylocity brings payroll-related employee self-service together with HR, workforce management, and talent tools in a cloud platform. It is aimed at organizations ranging from small businesses to enterprises, with a particular fit for small…

Read the review →
  1. Xero PayrollSmall Business Payroll Software 9.030-day trial
  2. PaylocitySmall Business Payroll Software 8.6Pricing on request

Strengths and trade-offs

  • Xero Payroll — where it wins

    • Files Full Payment Submissions and Employer Payment Summaries to HMRC
    • Calculates PAYE, NIC, pensions and leave automatically
    • Supports employees, directors and off-payroll workers

    Where it doesn't

    • Ignite payroll costs £1.50 per person per month on top of accounting
    • Grow, Comprehensive and Ultimate plans cost £39, £55 and £70 monthly
    • Support channels listed are documentation and community

  • Paylocity — where it wins

    • Mobile access for employees, supervisors, administrators, and executives
    • Combines time tracking, time off, onboarding, and performance workflows
    • Marketplace integrations and developer APIs support connected systems

    Where it doesn't

    • Pricing is customized and requires contacting sales
    • No public plan tiers to compare before a sales conversation
    • Payroll processing and tax filing are not specified in the feature list
  • Xero Payroll9.0/10 · 30-day trial

    A UK-focused payroll option with pension reporting, multiple pay schedules and Xero accounting plans.

    Visit XeroFull verdict →
  • Paylocity8.6/10 · Pricing on request

    A broad workforce platform for small firms that value mobile access and employee self-service.

    Visit PaylocityFull verdict →

More comparisons

All small business payroll software comparisons → · Full ranking →

Reviewed by iTechGuides Editors · Editorial team · Updated Oct 2026

Last updated · How we research and update