Does QuickBooks Do Payroll

Yes, QuickBooks does offer payroll services in the UK. Whether you are a sole trader hiring your first employee or a growing limited company with a full team, QuickBooks Payroll provides tools to manage payslips, tax calculations, National Insurance, pension contributions and submissions to HMRC. It is designed to simplify the complex process of paying employees and staying compliant with Real Time Information (RTI) requirements.

QuickBooks Payroll is fully integrated into QuickBooks Online, meaning that payroll costs automatically flow into your accounts. This makes it easier to keep your financial records accurate, manage cash flow and reduce duplication of effort.

Types of payroll supported

QuickBooks Payroll offers both standard and advanced options. The standard version includes the basics needed to run payroll: calculating wages, producing payslips, handling statutory payments such as sick pay and maternity pay, and submitting your FPS (Full Payment Submission) to HMRC each time you run payroll.

The advanced version includes additional features such as automated pension submissions, holiday pay tracking, multiple pay schedules, and support for more complex payroll needs.

QuickBooks Payroll is compatible with UK employment legislation, including National Minimum Wage, auto-enrolment pension requirements and reporting deadlines.

How payroll works in QuickBooks

Once you set up your PAYE details and add your employees, you can run payroll directly within QuickBooks. Each pay period, you enter the hours worked or salaries, review deductions and approve the pay run. QuickBooks then generates payslips, updates your accounts and submits the relevant information to HMRC.

Payslips can be emailed to employees securely, and QuickBooks will also remind you of filing deadlines to help ensure compliance.

The integration with accounting functions means that payroll liabilities and expenses are automatically posted to your chart of accounts. This removes the need for manual journal entries and keeps your financial reports accurate.

Pension auto-enrolment and compliance

QuickBooks Payroll supports pension auto-enrolment, including assessing employees for eligibility and generating the necessary communications. It also integrates with pension providers such as NEST, The People’s Pension and Smart Pension, allowing you to upload or even automate submissions.

These features help you meet your legal duties as an employer and avoid penalties from The Pensions Regulator.

Costs of using QuickBooks Payroll

QuickBooks Payroll is not included in the basic QuickBooks Online plans and must be added as an extra service. Pricing starts from around £4 per month plus £1 per employee. The advanced version costs more but includes additional features that may be valuable for businesses with more complex needs.

Although this adds to your monthly subscription, many users find it saves time and reduces the cost of using a separate payroll system or external provider. It also minimises the risk of errors, which can lead to penalties.

Is it suitable for all businesses?

QuickBooks Payroll is suitable for most small and medium-sized businesses in the UK. It is particularly convenient for businesses that already use QuickBooks for bookkeeping, as it keeps everything in one place.

However, businesses with highly complex payroll requirements — such as those involving shift differentials, international staff or industry-specific regulations — may need additional features or support beyond what QuickBooks provides. In those cases, integrating with a more specialised payroll provider might be more appropriate.

Final thoughts

QuickBooks does payroll and does it well for the majority of small UK businesses. From payslip generation and RTI submissions to pension auto-enrolment and seamless accounting integration, it covers all the key areas needed to run payroll efficiently and compliantly.

If you are already using QuickBooks Online for accounting, adding payroll to your system keeps everything streamlined and avoids duplication. And for those new to payroll, QuickBooks offers a simple setup process, regular updates and access to support, making it a smart choice for growing employers.