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Vicariously increasing the subscription by forcing users to a higher plan, especially given the ATO's STP reporting requirements. Please also explain how you will migrate customers currently using payroll in the starter or standard plans?

I'm on the Standard plan and have 6 people on the payroll. I only use the basic functionality such as VAT, bank reconciliation and payroll and am told I will be moved to Ultimate, nearly doubling my costs. So I am one of many that will definitely leave Xero. I have been happy with Xero to date but they have now forced me to look about and Quickbooks looks really competitive for what I need.
The best SaaS offerings allow people to choose and pay for only what they need. They don't thrust features at you that you don't want and make you pay for them. Someone at Xero really doesn't know their customers and has no grasp of SaaS models and strategy.

I personally think Xero has misread their market with the new plans - there are many small businesses on the "Starter" plan and require payroll for 1 person. Their plan will migrate to the new "Ignite" and they will no longer have payroll, similarly businesses using "Standard" with payroll for 2 will migrate to "Grow" and only have payroll for 1 person. Yet there has been no change to the payroll functionality in the Comprehensive plan.

Xero, please reconsider and reinstate the payroll functionalities in the Ignite and Grow plans to match the Starter and Standard plans, especially as the migration will occur part way through the financial year.

Totally agree and have also posted same issue - every time I see a Xero ad right now I'm snarling

Please revisit this.

We are currently on the Standard plan and payroll 2 people, but the new Grow plan will only allow 1 payroll. It will cost an extra $20 per month just so I can payroll 1 extra employee.

Same for us - we have three employees on payroll, so will be forced onto the 'Comprehensive' plan from the current 'Standard'. Together with the series of regular price increases we will be paying 62% more than when we started with Xero in 2019, for precisely no additional new functionality that is of value to our business. We don't need Projects, Analytics, Hubdoc, Expenses, Multi-currency, CIS... just basic day to day transaction accounting and payroll at a reasonable price. Now investigating alternatives - sadly, as Xero is pretty good at most of what we use it for.

I am an accountant looking after non-profits and just looking at the hard limits introduced with the new plans, I see that some of my clients will have to move to the Comprehensive Plan or even the Ultimate Plan (just because they have 6 employees!).

I totally agree that (again) these pricing plans are pricing Xero and Xero Payroll out of the market. Xero - do you want people to actually use Xero Payroll? At these pricing plan increases with the hard limits, it is actually becoming an unaffordable option. Oh, and there are other Payroll options run through other Payroll Intermediaries (that will handle all the payments side as well).

I agree - a removal of the Hard Limits AND still enable Xero Payroll on the Ignite (Starter) Plan. There are a lot of small businesses who use Xero, but to spend $900, $1,188 or $1,356 a year is a lot and Xero's pricing increases are tone deaf to their customer base.

Murray Thompson
CATAS Limited

I'm a bookkeeper in NZ, I have multiple clients on starter plan + plus payroll as they only have 2 to 4 employees and don't need any of the other accounting fluff.

They are completely shocked and angry. After being with xero for years they are basically now been priced out , comprehensive is what they will have to move to but can not afford it just to be able to use payroll ,they are already struggling with all the other costs going up and now they are having to find different accounting solutions and will be moving off xero, I feel xero is basically cutting out the guys that made xero in the beginning, as a xero advisor I can no longer recommend xero as a complete accounting package for small businesses.

I would suggest the option of payroll to the growth plan. Don't forget about the little guys who made this company what it is today !

Payroll per employee pricing should be available because some clients only use Xero payroll so no point getting a premium 5 subscription if they aren't going to use the features beside payroll.