Nikoo Samadi
Every organization’s lifeline is payroll and human resources. For businesses running on Microsoft’s ERP, Payroll and HR extensions for Dynamics 365 Business Central have become critical tools to get these processes right. When payroll and HR are managed effectively, you build employee trust, avoid compliance headaches, and keep the business running smoothly. Get them wrong, and the consequences can range from disengaged employees to costly penalties.
For businesses using Dynamics 365 Business Central, payroll and HR can feel like the missing piece of the puzzle. While Business Central is outstanding for finance and operations, many companies quickly realize that additional tools are required to handle payroll runs, employee management, and complex compliance needs.
Over the past few years, the ecosystem of payroll and HR add-ons for Business Central has grown rapidly. As a result, businesses now have more options than ever before. These apps don’t just “add features.” Instead, they transform how payroll and HR integrate with finance. Consequently, organizations can streamline pay runs, simplify reporting, and maintain compliance across multiple regions more efficiently.
In this post, we’ll explore seven payroll and HR extensions that are shaping Business Central in 2025 and why selecting the right fit matters more than ever.
What to Look for in Payroll & HR Extensions (2025)
It takes more than just browsing AppSource and ticking boxes to choose the right payroll and HR extension for Dynamics 365 Business Central. In 2025, businesses are looking for add-ons that can adapt to change whether that’s scaling globally, adjusting to new compliance rules, or giving employees modern self-service experiences.
Here are the key factors to consider:
Compliance and Localization
Laws on payroll, tax, and benefits vary by country and change often. The best extensions update automatically to reflect local regulations. For example, Microsoft confirms that Business Central updates twice a year, and extensions must stay compatible. An extension that lags behind can leave you exposed.
Integration with Business Central
Some add-ons feel like bolt-ons. Others blend seamlessly into Business Central’s workflows, giving you one place to manage people and finances. Look for solutions that extend Business Central natively rather than creating duplicate data silos.
Employee Self-Service
Employees today expect digital-first experiences. Payroll extensions that offer portals or mobile access for payslips, leave requests, and tax forms reduce HR workload and improve satisfaction.
Scalability
Can the extension grow with you? Whether expanding into new countries, adding more employees, or integrating with additional Microsoft tools (like Teams or Viva), scalability is key to future-proofing.
Reporting and Insights
Beyond processing pay, the best extensions provide insights: overtime patterns, cost forecasting, turnover risk. In 2025, companies want data-driven decisions, not just payroll output.
When you weigh extensions against these criteria, you’ll quickly see which are worth investing in and which may cause more friction than value.
Simplify Your Decision with GEM365
Get in touch with GEM365 to guide you through the process and get consultation for free.
Top 7 Payroll & HR Extensions for Dynamics 365 Business Central (2025 Edition)
The Business Central ecosystem is rich with apps, but here are seven that stand out in 2025:
1. LITS HR & Payroll
A comprehensive HR and payroll solution built for Business Central with strong GCC and MENA compliance features (like GOSI and WPS). Ideal for businesses operating in the Middle East.
- Strengths: Regional compliance, end-to-end HR & payroll
- Considerations: Limited outside GCC/MENA
2. Integrity Data Payroll & HR
Widely recognized in the U.S. and Canadian markets, Integrity Data integrates directly into Business Central for payroll, tax, and HR. Moreover, it provides a reliable and compliant solution for organizations that need advanced payroll management within the Microsoft ecosystem.
- Strengths: Deep compliance support, employee management tools
- Considerations: Less suitable for global operations
3. Ceridian Payroll Extension
If you already use Ceridian Dayforce or PowerPay, this extension imports payroll transactions into Business Central’s general ledger.
- Strengths: Clean integration for existing Ceridian customers
- Considerations: Not a full payroll solution — acts as a connector
4. NaviPayroll (by Serenic Software)
A long-standing solution for NAV and Business Central, offering automated payroll and GL integration.
- Strengths: Proven reliability, payroll automation
- Considerations: Localization varies by region
5. HR & Payroll Manager (IT.integro)
Popular in Europe, especially Poland, this add-on includes salary calculations, absence management, and robust reporting.
- Strengths: Strong HR coverage, localized features
- Considerations: May need customization outside Europe
6. DS HR & Payroll (Dynamics Solution)
In addition, it offers a broad HR and payroll extension that includes employee self-service, HR workflows, and payroll features directly inside Business Central.
- Strengths: End-to-end HR suite, employee portal
- Considerations: Depth of compliance may vary by country
7. Greenshades Payroll & HR
Furthermore, it is a mature payroll and tax compliance platform for North America, integrating seamlessly with Business Central and offering convenient employee self-service tools.
- Strengths: Compliance-first, mature tax filing
- Considerations: Primarily focused on U.S. market
Comparing the Top Payroll & HR Extensions
While each of the leading Payroll and HR extensions for Dynamics 365 Business Central integrates with the ERP platform, they differ in focus, strengths, and ideal use cases. Here’s how the top Business Central HR extensions and payroll add-ons compare in 2025.Here’s how they stack up:
Implementation Advice & Avoidable Pitfalls
Implementing Microsoft Dynamics payroll solutions isn’t just about installing an AppSource app. Instead, a successful rollout requires careful planning around compliance, employee data, and the integration between Business Central, HR, and payroll. Therefore, understanding these factors early helps ensure a smoother and more compliant implementation.
Tips for a Successful Implementation
Let’s start with your needs: Prior to comparing vendors, identify features that are essential (such as self-service portals and multi-country compliance).
Before you commit, pilot: To find integration or compliance issues early, test the extension in a sandbox using actual data.
Engage Finance and HR jointly: At the nexus of people and numbers is payroll. When both teams are in charge of the process, success results.
Make plans for upgrades: Business Central is updated often; make sure the extension you’ve selected is up to date and tested against new versions.
Verify the vendor’s assistance: When policies or tax laws change, having strong post-implementation support and documentation will help you avoid headaches.
Typical Hazards to Be Aware of
Making a price-only decision: If the least expensive option isn’t automated or compliant, it may wind up costing the most.
Ignoring regional compliance: Extensions that are effective in one nation might not comply with labor or tax laws in another.
Undervaluing change management: If training and communication are not included in the rollout, managers and staff may oppose new self-service tools.
Ignoring data migration planning: Don’t put off transferring historical payroll data into the new system because it’s a complicated process. Assuming that there is a “one size fits all” solution: While some businesses require payroll integration, others require a complete HR suite. Make sure the tool fits your scale.
Final Thoughts
Payroll and HR are more than back-office operations; they’re central to compliance and employee engagement. For businesses on Dynamics 365, choosing the right HR & payroll module for Business Central can make the difference between seamless operations and unnecessary complexity. There may not be a single “best” choice, but the best payroll apps for Business Central in 2025 are the ones that fit your region, industry, and growth path.
As we have seen, there is no one “best” choice. Whether it’s regional specialization in Europe or the Middle East, deep compliance in North America, or smooth integration with current payroll systems, each solution has its own advantages. Finding the extension that best suits your needs, your industry, your region, and your expansion goals is what really counts.
The good news? You are not alone in navigating this. You can assess your options, steer clear of typical pitfalls, and set up Business Central to support your employees for years to come with the right partner.
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