Imagine a world where processing payroll doesn’t send shivers down your spine. A world where tax calculations become a breeze and timely, accurate payments reach your employees with minimal effort. This utopia for small businesses can be achieved with the magic touch of payroll software.
Studies reveal the harsh reality: a whopping 73% of small business owners report spending at least five hours per month on payroll tasks.
Payroll software swoops in as your hero, automating tedious calculations, ensuring compliance with tax regulations, and freeing up those precious hours for strategic endeavours. Let’s embark on a quest to discover the perfect payroll software for your small business, transforming payroll from a beast into a loyal companion.
Understanding Your Payroll Needs
- Know Your Crew: Size up your workforce. Number of employees, pay structures (hourly, salary, commission), and contractor management needs all play a role.
- Budgeting for Payroll Power: Payroll software costs vary. Consider upfront costs, monthly subscriptions, and any per-employee fees to find the right fit.
- Feature Focus: Basic payroll processing might suffice, or you may crave an HR powerhouse with benefits and time tracking functionalities.
- Integration Station: Ensure smooth data flow. Does your accounting software have a preferred payroll integration?
- Tech Savvy or Newbie: Be honest about your software skills. User-friendly options are ideal if you’re not a tech guru.
Must-Have Features for Small Business Payroll Software
Once you have a clearer picture of your needs, explore the features that are essential for most small businesses:
- Automated Payroll Processing: This eliminates manual calculations, saving you time and reducing errors.
- Tax Withholding and Filing: The software should handle federal, state, and local tax calculations and filings, ensuring compliance.
- Direct Deposit: Offer employees the convenience and security of electronic paychecks.
- Employee Self-Service Portal: Empower employees to access paystubs, W-2s, and update personal information.
- Reporting Tools: Generate reports for tax purposes, budgeting, and workforce analysis.
9 Best Payroll Software for Small Business
1. OnPay
OnPay is a cloud-based payroll and HR software designed for small and medium-sized businesses. It automates payroll processing, including tax calculations and filings, and offers employee self-service for accessing pay stubs and tax forms.
OnPay also integrates with various accounting software and provides tools for time tracking, benefits administration, and comprehensive HR management.
With its user-friendly interface and robust feature set, OnPay simplifies workforce management and ensures compliance with tax regulations, making it an efficient solution for business operations.
Key Features
- Simple Payroll Processing: OnPay automates payroll calculations, tax withholding, and filings, ensuring accuracy and saving you time.
- Employee Self-Service: Employees can access paystubs, W-2s, and update personal information through a secure online portal.
- Direct Deposit: Employees receive their paychecks electronically, eliminating the hassle of paper checks.
- Competitive Pricing: OnPay offers a flat monthly fee plus a per-employee fee, making it a budget-friendly option for small businesses.
- Seamless Integrations: Integrates with popular accounting software like QuickBooks for effortless data transfer.
Best For
OnPay shines brightest for small businesses seeking a user-friendly and affordable payroll solution. Entrepreneurs on a budget, those who value simplicity, and businesses with straightforward payroll structures will find all the essential features they need at a competitive price.
OnPay’s employee self-service portal empowers your team to manage their payroll information independently, freeing you up to focus on other business priorities.
Pricing
- Base Fee: $40 per month
- Per Employee: $6 per employee per month
2. Gusto
Gusto is a cloud-based payroll, benefits, and HR management software designed for small and medium-sized businesses. It streamlines payroll processing, handles tax filings, and offers employee benefits management, including health insurance and retirement plans.
Gusto also provides tools for time tracking, employee onboarding, and performance reviews. With its intuitive interface and comprehensive feature set,
Gusto simplifies administrative tasks, ensuring compliance with regulations and enhancing overall workforce management. It integrates seamlessly with various accounting and business software, making it a versatile solution for growing businesses.
Key Features
- Automated Payroll Processing: Effortlessly run payroll with automatic calculations, tax filing, and direct deposit.
- Benefits Administration: Simplify benefits management with features for health insurance, retirement plans, and more (additional fees may apply).
- Time Tracking: Integrate time tracking tools for accurate payroll processing for hourly employees (may require additional plan).
- Employee Self-Service: Empower employees to access paystubs, W-2s, and update personal information through a secure online portal.
- Reporting Tools: Generate comprehensive reports for tax purposes, workforce analysis, and budgeting.
- Seamless Integrations: Integrates with popular accounting software for effortless data flow.
Best For
Gusto shines for growing small and mid-sized businesses seeking a comprehensive HR and payroll solution. If your business has outgrown basic payroll needs and craves streamlined workflows, Gusto is a strong contender.
Gusto offers an all-in-one solution for HR and payroll, improving efficiency and data management. While Gusto might not be the most budget-friendly option for very small businesses, its feature-rich platform empowers HR and payroll processes for businesses on the rise.
Pricing
- Simple Plan- $40 per month
- Plus Plan- $80 per month
- Premium Plan- Custom pricing
3. ADP RUN
ADP RUN is a cloud-based payroll and HR solution tailored for small businesses. It offers a comprehensive suite of features including payroll processing, tax filing, employee self-service, and compliance management.
ADP RUN simplifies payroll tasks by automating calculations and ensuring accurate tax filings. Additionally, it provides HR tools for benefits administration, time and attendance tracking, and employee onboarding.
With its robust capabilities and user-friendly interface, ADP RUN helps small businesses efficiently manage their workforce and stay compliant with regulations.
Key Features
- Comprehensive Payroll Processing: Handles various pay types (hourly, salary, commission), multiple locations, and even union complexities.
- Advanced Tax Compliance: Ensures accurate tax calculations, filings, and multi-state payroll requirements.
- Benefits Administration: Manage health insurance, retirement plans, and other benefits for your employees (additional fees may apply).
- Time Tracking Integration: Connects with time clocks or employee scheduling software for seamless payroll processing.
- Customizable Reporting: Generate in-depth reports tailored to your specific needs for tax purposes, workforce analysis, and budgeting.
- Security and Scalability: Backed by ADP’s industry expertise, ADP RUN offers robust security features and the ability to scale to accommodate business growth.
Best For
Businesses seeking industry expertise and a reliable platform to manage their unique payroll landscape will find a strong ally in ADP RUN. While it might be pricier than simpler solutions, ADP RUN’s feature richness justifies the investment for businesses that require a powerful and scalable payroll solution.
Pricing
- Essential Plan- $59/month + $4/employee
- Enhanced Plan- $99/month + $4/employee
- Complete Plan- Custom pricing
4. Paychex
Paychex Flex is a cloud-based HR and payroll solution designed for businesses of all sizes. It offers a wide range of features, including payroll processing, tax administration, employee benefits management, time and attendance tracking, and HR services.
The platform is highly customizable, allowing businesses to scale and adapt its functionalities to meet their specific needs. With a user-friendly interface and robust integration capabilities,
Paychex Flex streamlines HR operations, enhances efficiency, and ensures compliance with regulatory requirements.
Key Features
- Simplified Payroll Processing: Automate payroll calculations, tax filings, and direct deposit for efficient pay cycles.
- HR Management Tools: Manage employee onboarding, track time and attendance, and access employee data within the platform (may require additional modules).
- Benefits Administration: Simplify enrolment and management of health insurance, retirement plans, and other benefits (additional fees may apply).
- Reporting and Analytics: Generate comprehensive reports for tax purposes, workforce analysis, and informed decision-making.
- Mobile App: Empower employees with a mobile app to access paystubs, W-2s, and request time off (availability may depend on plan).
- Seamless Integrations: Integrates with popular accounting software for effortless data flow.
Best For
Paychex Flex shines for businesses seeking a one-stop shop for HR, payroll, and benefits administration. Whether you’re a growing startup or an established company, Paychex Flex offers scalability to match your needs.
Businesses seeking a comprehensive solution with established industry expertise will find Paychex Flex a powerful ally.
Pricing
- Essentials: $39/month + $5 per employee
- Select: Custom pricing
- Pro: Custom pricing
5. Justworks
Justworks offers a robust payroll software solution as part of its professional employer organization (PEO) services. The platform automates payroll processing, ensuring timely and accurate payment to employees. It also manages tax filings and compliance, reducing the administrative burden on businesses.
Justworks’ payroll software integrates seamlessly with its HR and benefits management tools, providing a comprehensive solution for managing employee compensation.
With features like automated direct deposits, employee self-service portals, and detailed reporting, Justworks simplifies payroll management and enhances operational efficiency for small and medium-sized businesses.
Key Features
- Automated Payroll Processing: Justworks automates payroll calculations, tax filings, and direct deposit, ensuring accuracy and saving you time.
- Benefits Administration: Offer health insurance, retirement plans, and other benefits to your employees with simplified administration through Justworks (additional fees may apply).
- HR Management Tools: Manage employee onboarding, PTO tracking, and access basic HR functionalities within the platform.
- Compliance Support: Justworks stays on top of ever-changing regulations, ensuring your business is compliant with federal, state, and local employment laws.
- Dedicated Customer Support: Get 24/7 assistance from Justworks’ team of experts via phone, email, chat, or Slack.
- Vendor and Contractor Payments: Simplify payments to vendors and contractors alongside your regular payroll processing.
Best For
Justworks is a perfect fit for small businesses seeking an all-in-one solution for payroll, HR, and compliance, all wrapped up in an affordable and user-friendly package.
If you’re a small business owner who values simplicity, compliance assistance, and streamlined workflows, Justworks is a strong contender.
Their PEO model can potentially offer cost-effective access to benefits, and the platform itself is designed to be easy to navigate, even for those without extensive HR expertise.
Pricing
- Basic Plan- $59/month
- Plus Plan- $99/month
6. TriNet
TriNet is a professional employer organization (PEO) that provides HR solutions, including a comprehensive payroll software.
Their payroll software streamlines the payroll process by automating salary calculations, tax withholdings, and filings. It ensures compliance with federal, state, and local regulations, reducing the risk of errors and penalties.
TriNet’s platform integrates payroll with other HR services such as benefits administration and time tracking. This unified approach helps businesses efficiently manage employee compensation, offering detailed reporting and employee self-service portals for greater transparency and ease of use.
Key Features
- Comprehensive Payroll Processing: Handles diverse pay structures (hourly, salary, commission) and automates calculations, tax filings, and direct deposit.
- Benefits Administration: Simplify enrollment and management of health insurance, retirement plans, and other benefits for your employees (additional fees may apply).
- HR Management Tools: Manage employee onboarding, track time and attendance, and access employee data within the platform (availability may depend on plan).
- Risk Management and Compliance: TriNet helps minimize risks associated with workers’ compensation and employee benefits. They also stay updated on changing regulations to ensure compliance.
- Dedicated HR Support: Gain access to a team of HR professionals for guidance and support on employee relations, benefits, and compliance.
- Customizable Reporting and Analytics: Generate in-depth reports tailored to your specific needs for tax purposes, workforce analysis, and informed decision-making.
Best For
TriNet is a perfect fit for businesses on the rise, particularly those that have outgrown basic payroll solutions. As your company scales, payroll complexities multiply.
Pricing
TriNet uses a custom pricing model based on a per-employee, per-month flat fee. While specific prices are not publicly listed, estimates suggest costs typically range from $150 to $165 per employee per month for a company with around 30 employees.
7. Wave Payroll
Wave Payroll is an online payroll software designed for small businesses. It automates payroll processing, including calculating wages, deducting taxes, and managing direct deposits.
Wave Payroll also handles tax filings and offers employee self-service portals for accessing pay stubs and tax forms. Integrated with Wave’s suite of financial tools, it provides a seamless experience for managing all aspects of payroll alongside accounting and invoicing.
With its user-friendly interface and affordable pricing, Wave Payroll simplifies payroll management, ensuring accuracy and compliance for small business owners.
Key Features
- Effortless Payroll Processing: Automate payroll calculations, tax withholding and filings, and direct deposit for efficient pay cycles.
- Employee Self-Service Portal: Empower employees to access paystubs, W-2s, and update personal information through a secure online portal.
- Seamless Integration: Integrates with Wave Accounting software for effortless data flow between payroll and accounting functions (additional fees may apply).
- Tax Filing and Compliance: Wave Payroll handles federal and state tax calculations and filings for businesses in a limited number of US states (check their website for details). For other states, you might need to handle some tax paperwork yourself.
- Flat-Rate Pricing: Wave Payroll offers a transparent pricing structure with a flat fee per employee, making it a budget-friendly option for small businesses.
Best For
Wave Payroll shines brightest for small businesses seeking a user-friendly and budget-friendly payroll solution. It’s ideal for entrepreneurs on a tight budget who value simplicity.
If your business has a basic pay structure with few employees, Wave Payroll offers all the essential features you need at a competitive flat-rate price.
Pricing
- Starter Plan- Free
- Pro Plan- $16/month
8. Paycor
Paycor is a comprehensive HR and payroll software solution designed for small to medium-sized businesses. Its payroll software automates the entire payroll process, from calculating wages and deducting taxes to direct deposits and year-end tax forms.
Paycor ensures compliance with federal, state, and local regulations, reducing the risk of errors. Additionally, it offers employee self-service portals, detailed payroll reporting, and integration with time and attendance systems.
Paycor’s intuitive platform simplifies payroll management, enhancing efficiency and accuracy for business owners and HR professionals.
Key Features
- Automated Payroll Processing: Paycor automates payroll calculations, tax withholding and filings, and direct deposit, ensuring accuracy and saving you time.
- Benefits Administration: Simplify enrollment and management of health insurance, retirement plans, and other benefits for your employees (additional fees may apply).
- Applicant Tracking System (ATS): Streamline the hiring process with features like job posting, resume management, and candidate screening tools (availability may depend on plan).
- Performance Management: Set goals, track employee performance, and provide feedback within the platform (availability may depend on plan).
- Reporting and Analytics: Generate comprehensive reports for tax purposes, workforce analysis, and informed decision-making.
Best For
Paycor is a perfect fit for growing small and mid-sized businesses (SMBs) looking to streamline their HR and payroll operations.
If your business has outgrown basic payroll software and you crave a user-friendly platform with all the bells and whistles, Paycor is a strong contender.
Pricing
Paycor’s pricing typically depends on several factors, including the size of your organization, the specific features you need, and any additional services you may require.
They offer various packages tailored to different business needs, such as payroll, HR, timekeeping, and benefits administration.
There they provide custom based pricing based on demands of the business or organisations.
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9. Patriot Payroll
Patriot Payroll is a user-friendly online payroll software designed for small businesses. It simplifies payroll processing by automating calculations, tax deductions, and direct deposits.
Patriot Payroll ensures compliance with federal and state tax regulations, handling tax filings and year-end reporting. With its intuitive interface, employers can easily manage employee payrolls, generate pay stubs, and access payroll reports.
Affordable pricing plans and responsive customer support make Patriot Payroll an ideal choice for small businesses seeking an efficient and reliable payroll solution to streamline their payroll processes.
Key Features
- Automated Payroll Processing: Automate payroll calculations, tax withholding and filings, and direct deposit for efficient pay cycles.
- Flexible Pay Options: Handle various pay structures, including hourly, salary, commission, and bonuses.
- Time and Attendance Management: Integrate time clocks or employee scheduling software for seamless payroll processing (may require additional plan).
- Tax Filing and Compliance: Patriot Payroll ensures accurate tax calculations, filings, and multi-state payroll requirements.
- Employee Self-Service Portal: Empower employees to access paystubs, W-2s, and request time off (availability may depend on plan).
- Seamless Integrations: Integrates with popular accounting software for effortless data flow.
- Security and Reliability: Backed by robust security features and industry expertise, Patriot Payroll prioritizes data security and reliable service.
Best For
Patriot Payroll shines for businesses of all sizes, from startups to established enterprises, seeking a user-friendly and adaptable solution for their payroll needs.
Whether you’re a new business owner or a growing company, Patriot Payroll offers scalability to match your journey.
Pricing
- Basic Payroll- $17/month
- Full Service Payroll- $37/month
Conclusion
Payroll software is an investment that pays off in the long run. By selecting the right solution, you can free up valuable time and resources, ensure compliance, and keep your employees happy with timely and accurate payments. Remember, the “best” payroll software is the one that perfectly complements your unique small business needs. So, take your time, research, and choose your champion wisely!
FAQ's
1. Is payroll software expensive?
Payroll software pricing varies depending on features, number of employees, and payment structures. Some offer flat monthly fees, while others charge per-employee fees. Consider your budget and prioritize features you truly need.
2. What about security?
Payroll software handles sensitive employee data. Choose a provider with robust security measures like data encryption and multi-factor authentication.
3. Do I need HR features in my payroll software?
If your business is small and has basic payroll needs, core payroll processing might suffice. However, as you grow, features like employee onboarding, time tracking, and benefits administration become valuable. Consider your current and future HR needs.
4. Is user-friendliness important?
Absolutely! Payroll software should be intuitive and easy to navigate, even for those without HR expertise. Look for platforms with clear interfaces, helpful tutorials, and readily available customer support.
