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Payfit vs Xero Payroll: Which Payroll Software Is Better?


Disclosure: We may earn commissions if you shop through the links below.

Last Updated: May 22, 2025

Both Payfit and Xero Payroll are leading payroll software solutions, but which one is better for you and your business?

Below we compare Payfit and Xero Payroll across nearly 50 different data points to help you make find the right one.

 

Payfit vs Xero Payroll Reviews

PayfitXero Payroll
Trustpilot Rating04.3
Number of Trustpilot Reviews05747
iPhone App Ratingnot available4.7
Number of iPhone App Reviewsnot available26300
Android App Ratingnot available4.3
Number of Android App Reviewsnot available7410

Payfit vs Xero Payroll Pricing

PayfitXero Payroll
Free TrialYesYes
Free Trial Lengthn/a1 month
Cheapest Plan NameLightEarly
Cheapest Plan Cost Per Month$93$9.25
Mid Priced Plan NameStandardGrowing
Mid Priced Plan Cost Per Month$93$9.25
Top Plan NamePremiumEstablished
Top Plan Cost Per Month$167.39$17.5

Payfit vs Xero Payroll Features

FeaturesPayfitXero Payroll
Target Business SizeMid size businessSmall business
Unlimited Payrolls✘✘
Automated Tax Filing & Payments✘✔
E-sign I-9 & W-4✘✘
Live Customer Support✔✔
Third-Party Integrations✔✔
Ability To Manage Employee Benefits✔✔
Employee Access To Platform✔✔
Direct Deposit✔✔
Expense Reimbursement✔✔
Time Off Accrual✔✔
Pre-Tax Deductions✔✔
Wage Garnishment✔✔
Background Checks✘✘
Check Printing✔✔
Check Delivery✘✘
API✘✔

Payfit Light Features

  • Automated payroll calculations
  • Real-time payslips
  • Automatic payslip generation and distribution
  • Editable variable pay
  • Automated RTI submissions
  • Standard pension submissions
  • Automated employment pension status assessment
  • Employee portal with access to payslips and documents
  • Faster payments (add-on)
  • Variance reports
  • Sync with accounting software
  • Help centre access
  • Supported onboarding & video training

Xero Payroll Early Features

  • Send quotes and 20 invoices†
  • Enter 5 bills
  • Reconcile bank transactions
  • Capture bills and receipts with Hubdoc
  • Short-term cash flow and business snapshot
  • Payroll with Gusto (Optional)

Payfit Premium Features

  • Automated payroll calculations
  • Real-time payslips
  • Automatic payslip generation and distribution
  • Editable variable pay
  • Automated RTI submissions
  • Standard pension submissions
  • Automated employment pension status assessment
  • Employee portal with access to payslips and documents
  • Faster payments (add-on)
  • Variance reports
  • Sync with accounting software
  • Automated P11Ds
  • Custom payroll journals
  • Non-standard pension submissions
  • Managed P11Ds
  • Corrects / payroll reruns
  • Expense management
  • Easy receipt scanning (OCR)
  • Expense reporting
  • Assigned validation rights
  • Employee system of record
  • Leave & absence management
  • Employee onboarding & off-boarding
  • Organisation chart
  • Assigned rights & approval
  • HR Integrations with leading HRIS
  • Performance review campaign creation, management, and tracking
  • One-to-one meeting templates and management
  • Help centre access
  • Supported onboarding & video training
  • Access to CIPP payroll experts
  • Live chat
  • Quarterly business review**
  • Personal account manager**
  • Call back**

Xero Payroll Established Features

  • Send invoices and quotes
  • Enter bills
  • Reconcile bank transactions
  • Capture bills and receipts with Hubdoc
  • Short-term cash flow and business snapshot
  • Bulk reconcile transactions
  • Use multiple currencies
  • Track projects
  • Claim expenses
  • Analytics Plus
  • Payroll with Gusto (Optional)

Payfit vs Xero Payroll Pro & Cons

PayfitXero Payroll
Pros
  • Easy to understand and easy to use
  • Customer support
  • Integration with BambooHR HRIS system
  • User Friendly
  • User Interface
  • Integrations
  • Saves Time
  • Management
Cons
  • Platform is slower and sometimes crushes at the end of the month
  • Wrongly calculated payslip
  • Requires third party integration in order to direct debit
  • Expensive
  • Not User Friendly
  • Expense Report Issues
  • Technical Issues
  • Room for Improvement

Other Payroll Software Comparisons

  • Square Payroll vs PayCaptain
  • QuickBooks Payroll vs EPAY Payroll
  • Microkeeper vs Wrapbook
  • Oytser HR vs Gloroots
  • Multiplier vs Oytser HR
  • ADP vs Darwinbox
  • Oytser HR vs ThePayStubs
  • SumoPayroll vs Arbonum
  • Paycom vs Revelo
  • Wrapbook vs Trolley

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