Payroll software with auto enrolment: 5 UK options compared

What to take away

Five named UK payroll products support auto enrolmentBrightPay, Moneysoft Payroll Manager, Xero Payroll, Sage Business Cloud Payroll and QuickBooks Online Payroll.
Compare pension provider links, re-enrolment prompts, evidence for The Pensions Regulator and published costs.
A file that transmits is not proof of compliance. Check assessment, postponement, opt-outs, refunds and declaration evidence.
The employer remains responsible for the declaration of compliance under the Pensions Act 2008, even when a provider runs the payroll.
Price the full cycle. A quote per employee per month can look small until you add re-enrolment runs and corrections. The payroll software costs and budget guide sets out those stages.

Why auto enrolment changes the comparison

Auto enrolment duties cover assessment, enrolment, contributions, re-enrolment and records. A payroll product that only deducts pension contributions leaves the employer to manage the rest by hand.

The Pensions Act 2008 sets the automatic enrolment duty in Great Britain, with parallel rules in Northern Ireland. Your software should map each worker's category, postponement date and contribution rate to that framework.

Pension payroll integration is the practical test. It decides whether contribution files leave on time, whether errors return with enough detail, and whether you can reconcile a failed file without rebuilding the period.

The five options compared

Auto enrolment features

BrightPay: Assessment, postponement, opt-outs and contribution files.
Moneysoft Payroll Manager: Assessment, contribution files and pension reports.
Xero Payroll: Auto enrolment in UK payroll, pension files and reporting.
Sage Business Cloud Payroll: Auto enrolment, pension assessment and submission files.
QuickBooks Online Payroll: Auto enrolment, pension schemes and HMRC submissions.

Pension provider links

BrightPay: NEST, The People's Pension and Smart Pension are among published links.
Moneysoft Payroll Manager: NEST, The People's Pension and Smart Pension via file upload.
Xero Payroll: NEST, The People's Pension and Smart Pension connections.
Sage Business Cloud Payroll: Sage lists pension provider options and file exports.
QuickBooks Online Payroll: Pension sync with selected providers, including NEST.

Re-enrolment and evidence

BrightPay: Re-enrolment reports and audit trail.
Moneysoft Payroll Manager: Re-enrolment date tracking and reports.
Xero Payroll: Re-enrolment prompts and payroll reports.
Sage Business Cloud Payroll: Re-enrolment tools and compliance reports.
QuickBooks Online Payroll: Re-enrolment reporting and pension reports.

Cost model

BrightPay: Free for up to 3 employees, then annual licence from around £75 plus VAT.
Moneysoft Payroll Manager: Annual licence from around £84 plus VAT.
Xero Payroll: Included in Standard and Premium plans, with plan prices from around £30 per month.
Sage Business Cloud Payroll: Entry pricing from around £12 per month, with per-employee charges on larger teams.
QuickBooks Online Payroll: From around £8 per month plus £2 per employee.

Fits when

BrightPay: Small firms wanting desktop or cloud payroll.
Moneysoft Payroll Manager: Cost-focused payroll bureaux and small employers.
Xero Payroll: Businesses already using Xero accounts.
Sage Business Cloud Payroll: Small teams wanting phone support.
QuickBooks Online Payroll: Businesses already using QuickBooks.

The table is a question list, not a league table. Ask each supplier to show those items in a live demonstration, using your pension provider and your worker types.

Five UK payroll options compared

BrightPay

Auto enrolment: Assessment, postponement, files
Pension links: NEST, TPP, Smart
Re-enrolment: Reports, audit trail
Cost model: Free up to 3, then £75+
Fits when: Small firms, desktop or cloud

Moneysoft

Auto enrolment: Assessment, files, reports
Pension links: NEST, TPP, Smart
Re-enrolment: Date tracking, reports
Cost model: From £84+ per year
Fits when: Cost-focused bureaux

Xero

Auto enrolment: Auto enrolment, files
Pension links: NEST, TPP, Smart
Re-enrolment: Prompts, reports
Cost model: From £30 per month
Fits when: Already using Xero

Sage

Auto enrolment: Assessment, submission files
Pension links: Provider options, exports
Re-enrolment: Tools, compliance reports
Cost model: From £12 per month
Fits when: Small teams wanting phone support

What to test before you buy

Ask for a live run with your pension provider, not a recorded demo.
Send a test file containing a new joiner, a leaver, an opt-out and a postponed worker.
Check the error report. It should name the worker, the field and the correction needed.
Confirm how the software calculates re-enrolment dates and who reviews the output.
Read the data processing terms, especially retention, access and subject access requests, against the ICO's UK GDPR guidance.
Agree who corrects underpaid or overpaid contributions, within what timescale, and at whose cost.

Run the same test data through BrightPay, Moneysoft, Xero, Sage and QuickBooks before you decide.

What to test before buying

Live run with your pension provider
Test filejoiner, leaver, opt-out, postponed
Error report names worker, field, correction
Re-enrolment date calculation and review
Data processing terms against ICO guidance
Agree who corrects contributions and cost

Re-enrolment duties and the evidence trail

Re-enrolment is cyclical, not a one-off setup task. Employers must assess eligible workers again, usually every three years, and re-enrol those who meet the rules.

Software can schedule the date, but it cannot decide whether your records are complete. Keep assessment history, contribution files, opt-out notices and communications in one exportable place.

Tax relief on pension contributions depends on the scheme being registered, and the Finance Act 2004 sets the framework. Check how the software handles relief at source, net pay and any change to contribution rates.

Costs, contracts and switching

Pricing usually follows employee bands, scheme count or a per-payslip rate. BrightPay and Moneysoft use annual licences. Xero, Sage and QuickBooks use monthly plans.

Add re-enrolment runs, pension scheme changes, parallel runs, error correction and exit exports. A cheap module can become costly if your team spends a day each period fixing files.

Ask for a written breakdown that separates licence, pension module, bureau fees and training. That makes renewal negotiations easier and exposes charges that appear after go-live.

The contract should name the pension providers covered, the file formats, service credits, correction windows and the data you get back on exit. For a structured move, read how to switch payroll software before you give notice.

Common questions

Does payroll software handle re-enrolment automatically?

BrightPay, Moneysoft and Xero can schedule the date and produce a review list. The employer still checks eligibility, postponement and contribution rates before re-enrolling anyone.

Which option gives the best pension payroll integration?

It depends on your pension provider. BrightPay and Moneysoft publish links to NEST, The People's Pension and Smart Pension. Xero, Sage and QuickBooks have their own provider lists to check.

Can I use free HMRC software with a workplace pension?

HMRC Basic PAYE Tools can calculate PAYE, but it does not manage pension assessment, contribution files or re-enrolment. Many employers use named payroll software or a bureau for those duties.

Who signs the declaration of compliance?

The employer does, even when BrightPay, Moneysoft, Xero, Sage or QuickBooks runs the pension files. The provider should give you the evidence, but the legal duty stays with the employer.