Which Payroll Software is right for you?

September 18, 2026

Choosing the Right Payroll Software: Our Top 3 Recommendations

As a Xero firm, a lot of our clients use Xero Payroll, which does the trick and is kind on the bank account with hard to beat monthly subscription fees.  However, Xero Payroll does lack in some areas – specifically around having payroll experts at your fingertips and automatic payday filing which takes the hassle out of filing separate PAYE returns and juggling the cashflow to ensure you meet your monthly PAYE commitments.

Payroll is one of those business functions that simply has to be right – and if you are not doing it every day – which most of you in SME’s are not, it can be complicated and challenging. From PAYE and KiwiSaver deductions to leave calculations and payday filing, payroll compliance can quickly become time-consuming and complex. While there are many payroll solutions available, this is one of those things where decision making shouldn’t be driven by price but more about choosing a provider that offers not only great software that is easy to navigate but also access to knowledgeable support when you need it – even after hours!

1. Smartly

Smartly is one of New Zealand’s most popular payroll solutions and is designed specifically for Kiwi businesses. It offers automated payroll processing, payday filing, employee self-service, leave management, timesheets, and seamless integration with Xero. Smartly also provides the option of a managed payroll service for businesses that would prefer additional support.

Why we like Smartly:

• Excellent user-friendly interface.
• Strong compliance features, including automated payday filing.
• Employee app for leave requests and payslip access.
• Integration with Xero.
• New Zealand-based payroll specialists available for support and training.

2. iPayroll

iPayroll has been serving New Zealand businesses for over 20 years and has built a strong reputation for reliability and compliance. Its cloud-based platform is suitable for businesses of all sizes and includes payroll processing, leave management, employee self-service, and direct Inland Revenue integration.

Why we like iPayroll:

• Proven and trusted payroll solution.
• Easy-to-use employee kiosk for payslips and leave requests.
• Strong compliance focus with automated payday filing.
• Free ongoing local support via phone and email.
• Comprehensive onboarding and training assistance.

3. PaySauce

PaySauce is an increasingly popular payroll platform designed to make payroll as simple as possible for small and medium-sized businesses. It automates payroll calculations, employee payments, IRD payments, and payday filing while offering powerful timesheet and mobile app functionality.

Why we like PaySauce:

• Very intuitive and easy to use.
• Automated payments to employees and Inland Revenue.
• Strong mobile app for employees and managers.
• Direct integration with banks and accounting software.
• Responsive support team and extensive online help resources.

Having a fully supported payroll package can save significant time and frustration, particularly when dealing with Holidays Act requirements, employee terminations, parental leave, or changes to employment legislation. Good support means you’re not left searching for answers when a payroll issue arises. Instead, you can pick up the phone, send an email, or access training resources to ensure your payroll remains accurate and compliant.