Are you a small business looking for payroll software but finding it difficult to find one?
Don’t worry. We have got you covered!
In this blog, we will examine the best payroll software for small businesses, which is affordable and easy to use.
We have also included a comparison table so that you can compare the prices of various payroll software for small business and find the one that best suits you.
So let’s get started!
What is payroll software?
Payroll software is an application used to handle and manage an organization’s payroll transactions. It computes the wages of the employees, subtracts tax from them, makes the necessary deposit, and verifies compliance with tax laws and policies in doing the justifications. Some of the tasks include creating paychecks and processing employee benefits, making it an important component in organizations.
Benefits of using payroll software for small business
Online Payroll management software provides great benefits for your small business. Some of them are given below:
- Efficiency: Screens payroll processes by helping to minimize the amount of time spent on data processing through automated calculations.
- Accuracy: Reduces the probability of miscalculations about wages and appropriate tax charges to be paid by the employees.
- Compliance: Supports companies to uphold tax laws and other legal requirements by providing tax services and notifications.
- Convenience: Includes services such as direct cash deposit, and Internet, which helps in easy processing of management of payrolls with less amount of effort.
- Scalability: It is easy to scale and meet the needs of a developing company since it can accommodate new hires and differing payroll needs with minimal exertion.
Key features to look for in payroll software
Before choosing the best payroll management software for your small business, you must keep in mind a few key features, it must provide for you to choose it. The comprehensive list of key features is given below:
- Automated Payroll Processing: Simplifies the process of computation and disbursement of wages, extra working hours and other incentives.
- Tax Compliance: Offers features for computation and remittance of payroll taxes, the federal, and state taxes.
- Direct Deposit: Opportunity to transfer wages to the employees’ bank account through electronic transfer.
- Time Tracking Integration: Integrates with other timekeeping software to avoid discrepancies in pay based on the time spent working.
- Employee Self-Service Portal: Self-service portal to access pay stubs, tax forms, and personal information updates do not require HR intervention.
- Reporting and Analytics: Produces clear and specific data on employee pay and expenses required for budgeting and record keeping.
- Integration Capabilities: Integrates with other business systems such as accounting software and thus enables the smooth flow of data.
- Cloud-Based Access: Allows the business payroll to be accessed from a remote location which is convenient since the business owners and the employees can access it from wherever they are.
Top 10 best payroll software for small business
1. Gusto
Gusto is an integrated Payroll & HR software that has great features when it comes to operation and functionality. It is an end-to-end solution for doing payroll, benefits and other related legal requirements. Gusto is easy to navigate and its layout has been designed to make specific payroll activities manageable particularly for small to medium-scale businesses.
Key features:
- Automated Tax Calculations and Filings: Has the capability of calculating and submitting federal, state and local tax returns.
- Direct Deposit and Pay Cards: It also offers direct deposit options and pay cards to employees.
- Employee Self-Service Portal: They can also have pay stubs, update their details, and apply for leave.
- Benefits Administration: Handle other remunerations provided to employees such as medical care, pension and other services offered as incentives to the employees.
- HR Tools: An example would be, activities such as onboarding, employee engagement, and appraisal.
Pros:
- User-friendly
- Comprehensive features
- Excellent support
Cons:
- Higher cost
- Limited reporting customization
Best Used For Small to medium-sized businesses needing a user-friendly and comprehensive payroll and HR solution.
Website: https://gusto.com/
2. ADP Run
ADP Run is a feature-filled payroll platform from one of the oldest providers of payroll services on the market. The disadvantage is that it provides a rather inflexible basic package that will only allow the user a limited number of employees and lacks certain functional features to manage payroll, taxes, and insurance for small businesses. consequently, ADP run is a reliable solution that is flexible on day to day running of payroll and HR needs as it can easily interface with other business systems.
Key features:
- Automated Payroll and Tax Calculations: It helps in correct and on-time processing of the payrolls with integrated tax computations.
- Time and Attendance Tracking: Links with time-keeping and attendance management to ease payroll processing information.
- Employee Benefits Management: Administers health insurance and other fringe benefits, pension and savings schemes, and other cultivation to the employees.
- Customizable Reporting: Makes comprehensive calculations of employees’ payroll and other related information.
- Mobile App: They allow people to have access to payroll information and management they need on their mobile devices.
Pros:
- Reliable
- Comprehensive features
- Strong support
Cons:
- Pricey
- Steeper learning curve
Best Used For Established businesses looking for a reliable, all-inclusive payroll and HR system with robust support.
Website: https://runpayroll.adp.com/
3. Paychex Flex
Paychex Flex represents a flexible online payroll solution that combines the company’s payroll services with selected functions of the human resources department, which is why it can be efficiently used in companies that require both services. It is versatile and widely regarded for its various tools, such as the compliance suite and the employee self-service features of the platform that aid in the overall payroll processes and record keeping.
Key features:
- Automated Payroll Processing: Is in a position to calculate the payroll, file, and pay taxes.
- HR and Compliance Tools: Offers tools for managing people, others for compliance and yet other tools for reporting.
- Benefits Administration: Oversees all compensation-related issues such from health, and other employee benefits to retirement options.
- Customizable Reporting: Offers detailed reports with more flexibility when it comes to the issue of payroll.
- Mobile Access: Enables users to perform operations linked to payroll and human resources from the comfort of mobile devices.
Pros:
- Comprehensive HR integration
- Strong compliance features
- Flexible options
Cons:
- Higher cost
- Complex navigation
Best Used For: Businesses requiring a flexible payroll solution with strong HR and compliance features.
Website: https://www.paychex.com/
4. Quick books payroll
QuickBooks Payroll works perfectly with QuickBooks accounting software making it easy and effective to process payroll. It is well suitable for companies that rely already on QuickBooks for their accounting services since it combines both payroll services and financial management.
Key features:
- Automated Payroll Processing: Manages calculations of pay rates and other related arithmetic, distribution of paychecks to employees and other related responsibilities.
- Integration with QuickBooks: These can be integrated with QuickBooks providing accounting solutions to small and medium businesses.
- Employee Self-Service Portal: Bank employees can retrieve their pay stubs and also update their details.
- Compliance Tools: Protects against taxing penalties as well as violation of labour laws.
- Customer Support: Can assist with payroll problems as well as most accounting problems.
Pros:
- Easy QuickBooks integration
- Intuitive interface
- Reliable support
Cons:
- Limited HR features
- Higher cost for advanced plans
Best Used For Small Businesses already using QuickBooks for accounting and needing seamless payroll integration.
Website: https://quickbooks.intuit.com/payroll/
5. Wave payroll
Wave Payroll is also a cheap software that is aimed at meeting the needs of those companies that are small. Wave payroll service is basic and can provide necessary payroll functions to employers; moreover, it is compatible with other Wave accounting software which is free of cost for small businesses. It is a perfect solution for businesses who want to find affordable solutions with the convenience of integration.
Key features:
- Automated Payroll Processing: Responsible for computing payrolls and handling matters related to taxes.
- Direct Deposit and Check Printing: Gifts the choices for direct deposit and check money orders, and limited paper checks.
- Integration with Wave Accounting: This is compatible with Wave, which offers a free accounting software package.
- Employee Self-Service: This lets the employees access their pay stubs alongside the information that pertains to them.
- Tax Calculations: capable of calculating and submitting payroll taxes on behalf of the employer.
Pros:
- Affordable
- Simple to use
- Integrates with Wave Accounting
Cons:
- Limited features
- Not suitable for larger businesses
Best Used For Small Businesses looking for a cost-effective payroll solution that integrates with Wave’s free accounting software.
Website: https://www.waveapps.com/payroll
6. OnPay
OnPay is an easy and cheap payroll service that is well-suited for small-scale businesses. It provides basic payroll services as well as Human Resource support and benefit administration capabilities making it a flexible provider for any business with payroll requirements.
Key features:
- Automated Payroll and Tax Filing: Manages benefits such as wages and remunerations; taxation and the filing of taxes.
- Employee Self-Service Portal: This enables employees to handle their information and check on their pay slips, among other facilities.
- Benefits Administration: People management, such as the administration of health care for staff and staff pension programs.
- Compliance Tools: It also guarantees compliance with the tax laws as well as the labour laws of the economy to which the organization belongs.
- Integrated Time Tracking: This is capable of integrating with the time tracking systems to ensure that the payroll information is accurate.
Pros:
- Simple pricing
- Easy-to-use
- Good support
Cons:
- Limited advanced features
- Basic customization
Best Used For Small to medium-sized businesses needing a straightforward and affordable payroll solution.
Website: https://onpay.com/
7. Zenefits
Zenefits provides an all-encompassing service that includes both payroll and human resources services all within the same system. Some of the features have been in areas such as payroll, benefits and employee records, thus making it very functional in managing many of the employee issues that a business may have to deal with.
Key features:
- Integrated Payroll and HR Management: Integrates the functionality of doing payrolls in parallel to handling human resource tasks.
- Benefits Administration: It involves issues such as health benefits, retirement plans and other perks for the employees.
- Compliance Tracking: This can help compliance with the provision of labour laws and regulations.
- Employee Self-Service Portal: Gives the employees a chance to view their pay stubs and the benefits they enjoy.
- Customizable Reporting: Can provide detailed and customized reports and data for the payroll and human resources section.
Pros:
- All-in-one solution
- Streamlines administration
- Strong compliance
Cons:
- Higher cost
- Steeper learning curve
Best Used For Businesses seeking an integrated HR and payroll solution with strong compliance features.
Website: https://secure.zenefits.com/
8. BamboolHR
Payroll services are also provided by BambooHR as the HR management software is popular and the company provides this module also. Called to have an easy-to-navigate interface and powerful HR features, BambooHR helps manage employee records and benefits.
Key features:
- Integrated Payroll and HR Functions: Offers integrating of payroll processing coupled with mostly all the features relating to human resources.
- Benefits and Compensation Management: Responsible for the employee’s benefits and compensation packages.
- Employee Self-Service: This gives the employees the ability to view their payroll and any other self-service data relating to their employment.
- Customizable Reporting: Below are the key responsibilities when it comes to reporting:
- Compliance Tools: It assists an organization in meeting the required labour laws and tax standards.
Pros:
- Strong HR integration
- User-friendly
- Excellent reporting
Cons:
- Higher cost
- Limited payroll features
Best Used For: Companies needing a robust HR management system with integrated payroll features.
Website: https://www.bamboohr.com/
9. Riplling
Rippling is a solution that combines payroll services, benefits, and HR functions, and its primary goal is to simplify those processes as much as possible. It is software that tries to automate most of the tasks that an enterprise has to manage concerning its employees and their compensations.
Key features:
- Unified Payroll, Benefits, and HR Management: Merges the payroll processing with benefits management as well as other human resource tasks.
- Automated Tax Calculations and Filings: It can manage and process the payroll tax well and also submit it on behalf of the employer.
- Employee Self-Service: Provides an interface where an employee can update information about him and analyze data concerning his or her wages.
- Integration with Business Tools: Interfaces with other business equipment and applications whenever it is required and necessary.
- Detailed Reporting: Generates clear, timely and detailed payroll and benefits as well as employee records information.
Pros:
- Comprehensive platform
- Strong automation
- Easy-to-use
Cons:
- Expensive
- Limited customization
Best Used For: Businesses looking for an all-in-one platform with payroll, benefits, and HR management.
Website: https://rippling.com/
10. Patriot Software
Patriot Software payroll helps small business clients by providing efficient and convenient ways to manage their payrolls. Because of the simplicity of its features, the software is well suited for organizational payroll needs such as the computation of taxes and maintaining employee records.
Key features:
- Automated Payroll Processing: This is involved in the calculation of payrolls, and taxes and making payments for the same.
- Tax Calculations and Filings: Handles federal, state and local tax computations as well as tax remittance.
- Employee Self-Service: Enables employees to view their paystubs and input their information.
- Customizable Reports: Offers some reports that can be generated by the particular requirements.
- Time Tracking Integration: It supports integration with time tracking applications to provide correct information regarding the paycheck.
Pros:
- Affordable
- User-friendly
- Good support
Cons:
- Limited features
- Basic integration options
Best Used For Small Businesses Need a budget-friendly, easy-to-use payroll solution with essential features.
Website: https://www.patriotsoftware.com/
How to choose the right payroll software
- Assess Your Needs: Assess the size of your business; the level of its payroll processing needs and any other peculiarities you may have.
- Evaluate Integration: See to it that the program will work nicely with your existing accounting and HR software.
- Consider Pricing: Compare the cost of the various options in terms of the software, the extra charges that one is likely to meet for the additional facilities or the technical assistance.
- Check Customer Reviews: Check the reviews and testimonies to know the users’ satisfaction level as well as possible problems.
- Test the Software: To be able to test how the software works and its ease of use, most of the software offers free trials or demos.
Is payroll software worth the investment?
Some of the benefits of undertaking payroll software are that it can improve the efficiency of your payroll function and it will reduce errors. Namely, the fact that through the implementation of the software, the basic tasks that need to be performed are automated and compliance is achieved, payroll tools are rather useful for saving time and minimizing the risks of mistakes as well as being rather helpful in terms of the peace of mind they provide. Payroll software may sound expensive for most small businesses, but the investment will pay off in the long run.
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Quick Comparison
| Payroll Software | Basic Plan | Pro Plan Pricing | Premium Plan |
| Gusto | $40/month + $6/employee | Pro plan at $60/month + $9/employee | Concierge plan with custom pricing |
| ADP Run | $59/month + $4/employee | Pro Plan available at a higher cost | Advanced plan with custom pricing |
| Paychex Flex | $59/month + $4/employee | Pro plan pricing available on request | Pro plan with additional features |
| QuickBooks Payroll | $45/month + $5/employee | Pro Plan at $75/month + $8/employee | Enhanced plan with custom pricing |
| Wave Payroll | $20/month + $6/employee | No Pro or Premium plans are available | Limited features overall |
| OnPay | $40/month + $4/employee | No Pro or Premium plans are available | All features included in the base price |
| Zenefits | $10-$21/employee (base plan) | Pro Plan at $27/employee | Zenefits People and Zenefits Payroll add-ons |
| BambooHR | $99/month + $6/employee | Pro Plan pricing available on request | Advanced reporting and features at higher tiers |
| Rippling | $8/employee + $35/month base | Pro Plan pricing available on request | Add-ons for more features |
| Patriot Software | $15/month + $4/employee | Pro Payroll at $35/month + $6/ employee | Premium features at a higher cost |
Benefits of using Cloud-based Payroll Software
- Accessibility: Payroll data is made available online, making it convenient for business people and employees to access it from any location they find themselves as long as there is an internet connection.
- Automatic Updates: Automatically receive Feature releases and new Compliance features without any additional effort on your part to update them.
- Scalability: One can easily expand the system over time which will include new hires and changes within payroll requirements cost-effectively.
- Security: Take advantage of provided security and protection of the data provided by cloud service providers to keep your payroll data safe.
Tips for migrating from manual payroll to software
- Plan Ahead: Prepare a comprehensive plan of migration and also development timeline and migration points.
- Backup Data: It is necessary to make a backup copy of all the existing data regarding payroll before the transition is made.
- Train Your Team: Also, ensure that your staff is trained to ensure that they gain proper acquaintance with the new software.
- Test the System: Maintain both old and new software payroll systems to ascertain that they are operating smoothly.
- Seek Support: Take help from the support provided by the software provider for any problems that may arise during the change.
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Conclusion
Selecting the appropriate Payroll Software has a lot of influence on the smooth running of Payroll Processing. Taking into account your business requirements, wallet capacity, and by evaluating the characteristics of various solutions you will be able to choose an efficient payroll system that will benefit your business.
We have added payroll processing software which is affordable to use for startups. Additionally, we have provided payroll software reviews too, so that it will be easy for you to choose from. To make it more easier we have added a comparison table so that you can compare prices suited to your needs.
Hope this blog was helpful for you.
Thank you!
FAQs
1. What is the normal going rate for excellent payroll software for small businesses?
The cost of the solution depends upon the functionalities and the number of workers in an organization. The small business plans can range from $20 to $50 per month while the larger firms’ plans can go from $100 to $300 per month.
2. Can payroll software handle benefits administration?
There are many payroll software products available and most of them have benefit administration modules or integration to the same.
3. Is payroll software secure?
Payroll software providers maintain high-level security measures that are proper for your details like encryption of data and secured access.
4. What is the time required to set up payroll software?
Setup time can vary. The basic deployments can be completed in days when a complex solution might take weeks when extra configurations are required.
5. Can payroll software support multiple states or countries?
Some of the payroll software can operate on a multi-state or multi-country payroll, but you need to make sure depending on your case.
