Top 5 Hospitality Payroll Software Solutions in 2025

The hospitality industry has a unique set of challenges when it comes to paying employees. Seasonal hiring, tip pooling and the changing schedules of shift-based employees can all make it difficult to keep track of exactly who should be paid, how much and when. And that’s without factoring in compliance requirements for tax, national insurance and pensions.  

Luckily, hospitality payroll software exists to specifically help hospitality businesses manage their payroll and integrate scheduling, time tracking, HR and payments into one centralised system. Not only does this reduce the number of errors, which can lead to costly mistakes, but the systems can also improve staff morale and retention by providing a better employee experience. 

In this article, we will guide you through the benefits of hospitality software and review the top five hospitality payroll software solutions for UK SMEs so you have a clear idea of which platform will best support your business.

What is Hospitality Payroll Software?

Hospitality payroll software is a digital platform designed to support managing payroll for organisations that are involved in the hospitality industry, such as hotels, restaurants, bars, catering and events companies. 

Software for the hospitality industry can help with:

• Automated payroll runs, including tax, National Insurance and pensions.
• Over time pay.
• Tips management.
• Compliance such as minimum wage checks, auto-enrolment pensions and HMRC. requirements.
• Digital or physical pay slips.
• Shift scheduling.
• Time tracking.
• Forecasting costs and cash flow management.
• Employee self-service.
• Onboarding new starters, including right-to-work checks.

By automating many of these processes, hospitality payroll software reduces human error, which helps avoid costly mistakes and saves time, ultimately reducing overall costs.

Benefits of Hospitality Software

There are several benefits to using a dedicated hospitality payroll software, including:

1. Reduces error – as we mentioned above, automating the processes involved in payroll minimises the number of mistakes made in payslips, tax reports and pensions because there is less room for human error.
2. Time savings – similarly, automating processes such as tracking timesheets, calculating overtime payments, and allocating money earned from tips can save employees considerable time, allowing them to focus on more strategic work. 
3. Supports direct payments to employees – payroll software makes it easier to pay employees promptly and directly, which in turn makes them feel valued and able to rely on their wages being accurate and hitting their bank account at a specific time.
4. Tax compliance and reporting – having one system that integrates data about when and how much employees have worked with the different hourly rates and tip sharing arrangements makes it easier to ensure that businesses are meeting UK employment and tax regulations.
5. Improved employee experience – having a mobile app that employees can use to check their shift details, their personal records and their payslips helps with communication and gives employees more control over their lives, which can lead to a more motivated and productive staff.
6. Ensures a consistent approach across locations – with hospitality businesses often dealing with employees in multiple locations, having one centralised system helps to minimise any differences or confusion about pay, hours and requirements.

The Best Hospitality Payroll Software for UK Employers

With many options to choose from, finding the best hospitality payroll software can be hard work. Different platforms will meet different requirements, depending on the exact needs of your business. 

Here we’ve got a list of the five best hospitality payroll software options in the UK. We’ve ranked them for ease of use, functionality and how well they support UK compliance requirements. At the end of this page, we’ve provided a quick glance table to help you make an informed decision if you are short on time.

1. Factorial – The Best All-in-One Solution

Factorial is a comprehensive business management software that meets all the requirements for creating an efficient system for hospitality payroll software, while also supporting your business with other HR functions such as performance management, learning and development, onboarding and reports. 

Factorial’s platform supports businesses in the hospitality industry with the following key features:

• Automated UK-compliant payroll: ensures accurate payments and tax records.
• A time sheet app for creating shifts and tracking time spent at work: manages complex schedules, including seasonal workers and those working overtime. 
• An employee self-service portal enables staff to view their schedules, request time off, and access their payslips: helps employees feel in control and empowered.  
• Applicant Tracking System for recruitment: helps manage and track candidates applying for hospitality roles.
• Hospitality onboarding support for new employees: makes the process for integrating new employees more efficient.

Pros:

• Scalable for growing businesses.
• Customisation options and automated workflows. 
• A centralised system makes it easy to access individual employee records and data.

Cons:

• The advanced features can make set-up and training intensive.
• Payroll process is not as robust as other solutions.

Price: 

• Free trial available. 
• Starts at £5.40 per month per user.
• Plans are available for various businesses and budgets, tailored to the HR needs of the organisation.

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• Save time & effort
• Centralise HR & finance with one platform

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2. Sage Payroll

Part of the well-known UK accounting and business software provider, Sage’s payroll platform is a reliable, trustworthy solution for hospitality businesses already using Sage accounting systems. Sage Payroll focuses, as you might expect, on supporting organisations to pay their staff accurately and on time, and to make the proper deductions for tax, national insurance and any auto-enrolled pensions. 

Key features of Sage Payroll for hospitality businesses:

• Automated payroll and payslips.
• Compliance with tax and insurance requirements.
• Reporting tools and dashboards for instant analytics.
• Time tracking and leave management.
• Employee self-service tools for payslips and documents.

 Pros:

• Trusted UK brand with strong customer support.
• Robust compliance tools to meet HMRC requirements
• Simple integration with existing Sage accounting systems.
  

Cons:

• Steep learning curve, especially for non-accountants.
• Limited advanced HR features, such as performance management, are available within Sage Payroll.

Price: 

• Three different plans: Payroll Essentials (£10), Payroll Standard (£20) and Payroll Premium (£30).

3. BrightPay

Started in the UK and Ireland, BrightPay is a cloud-based payroll solution aimed at supporting small businesses with their payroll. While missing some of the functionality of the more comprehensive HR and payroll solutions like Factorial, BrightPay is a good option for smaller hospitality businesses that need help with automating their processes and simplifying complex payroll tasks.

The key features of BrightPay that support hospitality payroll include: 

• Real-time information (RTI) reports directly to HMRC for tax information.
• Generation of payslips and delivery to employees.
• Employee access to payslips, leave requests and any personal documentation.
• Customisable reports.

Pros:

• Value for money.
• Quick and easy onboarding.
• Strong compliance tools.

Cons:

• Limited HR support beyond payroll, including onboarding and recruitment.
• Lacks integrated scheduling or time-tracking tools.
  

Price: 

• Free trial available. 
• ‘Standard’ plan up to three employees £84 per year, up to 10 employees £239 and unlimited number of employees £339 per year.

4. Xero Payroll

Similar to Sage Payroll, Xero Payroll is part of a well-known broader accounting suite and is a suitable system for small- or medium-sized businesses in the UK who already use Xero for their accounting support. However, while Xero does have timesheets and leave management tools built into its system, more complex set-ups and different shift types may require extra manual set-ups.

Some of the key features of Xero Payroll that support hospitality businesses to run their payroll include:

• Automated payroll and payslips.
• Fully HMRC recognised with tax code updates and RTI submissions monthly.
• Integration with Xero accounting and reporting.
• Calculators for specific shifts and overtime.
• Employee self-service via XeroMe.

Pros:

• Strong compliance features, such as automatic updates for tax codes and legal changes.
• Flexible pay cycles.
• Accessible everywhere due to being cloud-based.

Cons:

• Payroll is not available in the cheapest plan.

Price:

• 30-day trial for all Xero features, including Payroll
• Two plans include payroll: Comprehensive, £50 per month, and Ultimate, £65 per month.

💡 Need help managing your hospitality business? Discover the benefits of time management software!

5. BrightHR

BrightHR is a comprehensive HRIS that includes payroll as part of its core functionality while supporting health and safety compliance alongside the standard HR functions. The platform also offers BrightLearn for learning and development, a counselling service for employees and time tracking capability through the app Blip.  

Some of the key features of BrightHR for hospitality businesses looking for payroll support include:

• Access to advice from CIPP-qualified payroll professionals.
• Strong compliance tools for tax and legal requirements.
• Portal for employees to access their payslips, leave requests and personal documents.
• Time tracking, shift scheduling and rota creation.
• Automatic payroll reports.

Pros:

• Supports food safety compliance with the Food Safety Navigator tool.
• Advanced shift management tools
• Unlimited document storage

Cons:

• Limited customisation options.
• Some users considered BrightHR to be more expensive than others.  

Price:

• Prices available with demo.

Top 5 Hospitality Payroll Systems Comparison Chart

Deciding which hospitality payroll solution to invest in can be overwhelming. Here’s a comprehensive overview of the best five hospitality payroll systems so you can make a well-informed decision for you and your team.

Choosing the Best Software for the Hospitality Industry

When it comes to choosing the best software to support the complex payroll arrangements and additional HR needs that arise in the hospitality industry, there are five factors to bear in mind:

1. UK Compliance: is the system fully compliant with UK regulations on tax, national insurance and pensions, and does it automatically update if anything changes?
2. Shift scheduling, time tracking and leave management: does the system help with the requirements of the business in terms of planning staff time, and does the system ensure that this data feeds directly into payroll?
3. Customisation and automation: how much does the system allow for customisation of workflows and policies to match the requirements of the business?
4. Scalability: is the system set up so that it can grow and continue to meet your business needs as your organisation expands?
5. Integration: does the system integrate with other HR, scheduling and accounting tools?

For many UK SMEs in the hospitality sector, Factorial’s hospitality payroll and HR software is a strong choice for companies. Particularly, those looking for a comprehensive platform that centralises payroll, HR, time & attendance, and employee performance management in one place. Using Factorial’s robust platform, your business can reduce errors, prioritise compliance and provide employees with a transparent, efficient payroll experience.

👉 Book a free demo with one of our experts today! Learn how Factorial can transform payroll management in your hospitality business.