Pricing Plans - Keep Payroll accessible from the Standard pricing plan
I currently pay for the Standard Plan (15/month) plus Payroll (5/month) and use it for 2 payroll users.
Under the newly unveiled pricing plans my business has been completely shafted.
In order to use Payroll at all, I need to upgrade to the new Grow plan (33/month), already an increase of 13/month. But on top of that, that isn't even enough because you're restricted this plan to only 1 payroll user. So actually I have to jump all the way to the second from top plan which is the Comprehensive at 47/month.
This is a complete joke.
This shift in plans is not helpful for me at all. I don't use bill payments, I don't use expenses. I don't want any of that.
I really hope someone from Xero is listening and re-considers shifting the Payroll access slightly on these new plans, because as it stands I cannot justify staying with Xero (which I've used since 2013 by the way) if I have to pay 47/month to retain the features I currently use now paying only 20/month.
My suggestion:
Please allow adding Payroll users at additional monthly cost to the Ignite and Grow plans.
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Michael Warwick commented
I've moved to Smartly as it will work out slightly cheaper than moving to a higher plan, and they let you automate regular payroll, which will save a heap of time and stress.
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Helen Siahu-Juandy commented
The new pricing plan looks like quick plan to increase sales for Xero.
We should be allowed to pick feature (module) that we need, not forcing us to pay for something that we don't use.We are small business and there is no need for extra feature (module) expense claim and project, yet because i want to do the right thing to process casual employment in Xero, now I have to pay extra $30/month just to process extra 3 employee.
I am really unhappy with the way Xero manage their pricing plan.
Although Xero is a great product, I don't agree with the way the company just move us to new plan and force us to accept additional features that we don't need. It makes me think if you can do it now, what stopping the company to do it again in future. I am considering to move all our subscription to another software.Xero need to do more plans, look into different level for payroll
there are too big jump from 25 to 50 employees -
Robert Lee commented
As a charity, some of our “employees” (part time cafe workers looking after vulnerable adults) are paid less than the new Xero fee!
We use an ethical bank (CoOp) which Xero doesn’t integrate with, so none of the bill integrations work. Essentially this is just a massive price rise.
As a volunteer admin myself it’s just another example of big businesses having no social conscience.
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Cath Oram commented
Absolutely agree. In order to run payroll for 8 people, I'm having to move from standard +3 payroll at £38/month +vat to "Ultimate" at £59/mth plus vat. Ridiculous. I don't want bill pay, expenses, or anything else they are plugging, just the ability to run payroll for 8-10 people, plus the usual accounts package. I'll be looking at Quickbooks unless this is sorted.
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Elre Woods commented
I am in the process of switching to a different accounting package as our business cannot afford the new pricing structure. For a small business in hospitality with around 16 employees (mostly school leavers and students) which changes a lot over the year, our costs are going up from £47 per month to £65 +VAT. Our business cannot sustain this increase.
I sat all weekend watching different videos on YouTube to see the functions other programs can offer and with all the changes Xero is making our lives more difficult to navigate things that was really easy.
Sorry Xero, but I am moving my three companies somewhere else.
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Antony Parsons commented
Always prices rises and removing features! I will also be looking at other options now.
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Sheryl Wong commented
my client uses standard + payroll currently for 7 employees
Under the new pricing plan he has to upgrade to ultimate at an increased cost of $22/mth for additional stuff he will not use like multicurrency, projects, expenses and analytics . PLEASE ADD PAYROLL TO THE LOWER PLANS.
I think this looks like a revenue gathering exercise for xero. -
Campbell Grant commented
Agree 100% - I am currently on the Standard Plan (AUD $70 per month) and to maintain payroll for 2 persons you expect me to go to the Comprehensive Plan (AUD $90 per month).
Please re-consider this decision.
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Michelle Davies commented
Leave add-ons as an option in new subscription plans
Feeling like being forced into an almost 80% increase in price for the equivalent subscription as what i have now, just to add one employee is a bit excessive. Please bring back add-ons!
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Janet Sgambellone commented
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?
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Trevor Jones commented
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. -
Janet Sgambellone commented
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.
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Stuart Isbister commented
Totally agree and have also posted same issue - every time I see a Xero ad right now I'm snarling
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Joana Mendes commented
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.
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Tim McIntyre commented
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.
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Murray Thompson commented
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 -
RACHAEL JACKSON commented
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 !
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Sambridhi Bhandari commented
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.