The fast-paced rhythm of today’s business world emphasized the need for efficient payroll management in the success of a small business. Payroll services for small business is a must-have for your operations, getting you up to code, and giving you the ability to grow your company. With that in mind, here are the top 10 best payroll software for small businesses that will help guide you toward an informed decision that suits your company’s needs.
What is Payroll Software?
The electronic version of the payroll system, which carries out the easier and faster process of compensating the employees, is called payroll software. In this program, net wages will be calculated by deducting withholdings, and paychecks or direct deposits will also be generated. Most modern payroll software provides add-on features such as time tracking, benefits administration, and sometimes tax filing capabilities.
Key Features to Look for in Payroll Software
When you are deciding the Payroll management software for small businesses then look for these:
- Automated Computations: Calculating wages, taxes, and other deductions should be accurately done by the software.
- Compliance with Tax: Should have the latest versions incorporating local, state, as well as federal tax regulations.
- Direct Deposit: It facilitates fast payment of wages along with secured transfer to the account of the employees.
- Employee Self-Service Portal: Employees will view their pay stubs, tax forms, and update personal details on self-service.
- Integration: All the accounting and HR systems already in place should be integrated with the software.
- Reporting: Full reporting capability will also allow you to drill down further into your payroll data for further informed decision-making.
How to Choose the Right Payroll Software
The choice of Payroll solutions for small businesses depends on the criteria below:
- Identify What You Need: Analyze your specific payroll needs when it comes to employees, pay periods and special industry requirements.
- Cost: Whether this cost is a single or recurring; also, if specific payroll software for your business charges tiered pricing according to feature availability or depending upon the numbers of employees.
- Ease of use: The payroll tools are friendly and self-explanatory for user navigation.
- Integration: Do your company’s systems, accounting systems, time-tracking tools etc can be installed with this software?
- Security: You must prefer the one that has very secure measures to handle confidential employee information.
- Users’ reviews and Testimonials feedback: Check whether it will work in real life or not as seen from customers’ feedback and reviews.
10 Best Payroll Software for Small Businesses
The Payroll management software for small businesses can help make all operations work, have smooth assessment of compliance, and free up precious time to grow the business. In this article, we scan through top free Payroll services for small business options designed for small businesses, allowing you to make an informed decision.
1. QuickBooks Payroll – Best for Startups
Payroll solution QuickBooks Payroll is designed by Intuit and can easily be integrated with QuickBooks accounting software. It is a free payroll software for small business. QuickBooks payroll is not very complex; however, it is rather easy to use, allowing small business startups to operate on different features related to payroll processing in simplified ways.
Through QuickBooks Payroll, managing employee payments, taxation computation, and even filling will become easy. It has automatic payroll runs and direct deposits, along with real-time payroll tax calculations. It also comes with mobile and payroll-managed out of office access. Its scalability and the feature of integration with other QuickBooks products make it particularly suitable for startups.
Key Features:
- Automatic payroll runs
- Real-time payroll tax calculations
- Direct deposit
- Mobile access Integration with QuickBooks accounting software
- Employee self-service portal
Benefits
- Easy for users who already know how to use
- QuickBooks Gets rid of the headache of calculating and filing taxes
- Direct deposit within one day
- All QuickBooks accounting features
Website:
www.quickbooks.intuit.com/payroll/
Best for:
- Startups and small businesses that already use QuickBooks as their accounting tool.
2. SurePayroll
SurePayroll is another free Payroll services for small business. It is solution easy to use with only small businesses in mind. The user interface is so efficient, even with the least experienced of users, it makes running payroll a breeze quickly. The software calculates the taxes and filing automatically, thereby ensuring that local, state, and federal laws are implemented.
It is flexible enough to ensure payroll can be conducted for either W-2 employees or 1099 contractors. It allows mobile management from anywhere and lets the users control payroll on their mobile applications. The time tracking and accounting integrations have made it worthwhile for small business owners.
Key Features:
- Automatic tax calculations and filings
- W-2 and 1099 contract employee service
- Mobile app for on-the-go payroll management
- Time and accounting software integration
- Employee self-service portal
- Customized report options
Benefits:
- Easy-to-use payroll service. It is good for the new payroll user.
- Lower cost for small-sized organizations
- Friendly support
- Flexibility of payroll service options
Website:
https://www.surepayroll.com
Best for:
- Small businesses looking for a basic, no-hassle payroll service
3. Gusto
Gusto is an all-in-one, best Payroll software for startups designed for small businesses but also with an intuitive clean interface about complex procedures on payroll. The website also has the capabilities of automatic running of payroll, tax calculations, and filings altogether-all performed to try to avoid discrepancies in return to maintaining compliance.
The platform has many powerful HR features such as time tracking, employee onboarding and benefits administration. Gusto is quite different in most aspects because of its user-friendly design and, at the same time, also adopts a holistic approach towards payroll and HR management. It actually provides transparent pricing and its number depends on the needs of your business.
Key Features
- Automatic payroll processing
- Tax calculation and filing
- Employee self-service portal
- Time and PTO tracking
- Benefits administration
- HR tools, including onboarding, org charts
Pros
- User-friendly interface
- Comprehensive payroll and HR solution
- Great customer support
- Transparent pricing
Website: https://gusto.com/
Best for:
- Small to medium-sized organizations looking for an integrated payroll and HR.
4. OnPay
Small and mid-sized businesses of all sorts. This free payroll software is flexible and affordable. OnPay is a payroll system for all kinds of small and medium-sized businesses. It provides an easy-to-follow and simple interface that will help much in payroll processing. OnPay offers unlimited payroll runs-meaning that companies can pay their employees as well as contractors as frequently as they would like without additional charges.
The system computes all taxes with ease, such as local and state together with federal compliance. OnPay offers tools for HR including onboarding, document storage, and PTO tracking. Being precisely industry-specific on payroll solutions, OnPay helps businesses in niche industries.
Key Features:
- Unlimited payroll runs
- Automatic tax calculations and filing
- Employee self-service portal
- HR tools, including onboarding and document storage
- Multi-state payroll capabilities
- Industry-specific payroll solutions
Benefits
- Pricing transparency and affordability
- Customer care is outstanding
- Easiest to implement for a wide variety of industries
- Easy to implement and use
Website:
Home
Best for:
- Small to medium-sized businesses in niche industry
5. Paycor
Paycor is an all-in-one Payroll software for startups and HR suite of products specifically designed for thriving small and medium-sized businesses that want to combine payroll and HR into one solution to serve their business needs.
Payroll processing that is healthy would encompass features like automated tax calculation and filing, customized pay schedules, and garnishment management.
Applicant tracking, onboarding, and performance management are some of the more advanced HR feature offers. The payroll platform analytic and reporting tools have brought useful information for one to view their workforce trends and payroll cost trends.
Key Features:
- Tailored payroll processing
- Tax compliance and filing
- Integrated HR suite with applicant tracking and onboarding
- Time and attendance
- Analytics and custom reporting
- Learning management
Benefits
- All-in-one payroll and HR solution
- Built to scale with your business growth
- The reporting and analytics capabilities are robust
- Mobile application to manage on your own
Website:
https://www.paycor.com
Best For:
- Growing small to medium-sized businesses seeking a scalable solution
6. Patriot
Patriot Software is probably one of the most inexpensive and best payroll software for small businesses that can be used by small businesses and start-ups. It is offered in two options, Basic Payroll and Full-Service Payroll, so that the users can opt for either of them as per the level of services they desire.
This process contains free expert setup with its user-friendly payroll software. A friendly interface of the payroll software makes it even easier to understand and complete the payroll process for payroll newbies. Patriot also comes with an accounting software integration that gives a comprehensive small business finance management system.
Key Features
- Free professional onboarding
- Infinite pay runs
- Taxes calculated automatically
- Employee portal for pay stubs and W-2s
- Integrated with Patriot Accounting
- Mobile responsive interface
Benefits:
- Low pricing
- User-friendly for the lowly payroll enthusiast
- Exceptional customer service
- Free professional onboarding
- Payroll seems quite interesting.
Website:
www.patriotsoftware.com/
Best for:
- Small businesses and start-ups seeking affordable and easy to use payroll software
7. Paychex
Paychex offers flexible payroll and HR solution to businesses, ranging from small start-ups to large corporations. Paychex Flex offers scalable service for small business accounts. Overall, this software will provide full payroll processing with auto-tax calculations and filings, multiple payment options, and garnishment payments. Paychex also includes major features like applicant tracking, onboarding, and benefits administration in HR. 24/7 U.S.-based customer support and dedicated payroll specialists ensure help is available whenever you want.
Key Features:
- Flexible payroll processing
- Automatic tax calculations and filings
- Multiple payment gateways, including direct deposit and pay cards
- HR capabilities, such as applicant tracking and onboarding
- Benefits administration
- 24/7 Customer Support
Pros :
- Perfect for fast-growing companies
- Total payroll and HR functionalities
- Effective customer support
- Cooperation with compliance and security offer
Website:
www.paychex.com/
Best for
- Recommended for mid-sized businesses requiring an expandable solution with a wide range of functionalities.
8. ADP
ADP is one of the largest payroll service providers which provides services to all kinds of businesses, from very small to large ones. Small-sized businesses can use RUN Powered by ADP cloud-based payroll processing as well as other human resource-based benefits designed to make the payroll process easier.
The software is automatically able to calculate payrolls, tax filing, and new hire reports. Other services of use to small-sized businesses include time management, talent management, and benefits administration. Access to this service is available on a mobile app that can be accessed for on-the-go management of the payroll.
Key Features
- Automatic payroll processing and tax filing
- Reporting of new hires
- Employee self-service
- Time and attendance tracking
- HR management and solutions
- Mobile Payroll app
Benefits
- Trusted company with a proven history
- Full payroll and HR solution
- Robust on compliance and security
- Scale up for the growing business
Website:
www.adp.com
Best for:
- Small and medium-sized businesses that require an integrated trusted payroll solution.
9. Roll by ADP
Roll by ADP is one of those payroll apps specifically designed for small business owners who would want something conversational, at least in look and feel of texting, as they work through their payrolls. In this approach, payroll processing can be done via a conversational interface that’s somewhat like texting.
It processes all payroll – from tax calculations to tax filing. And it answers roll payroll questions instantly.
The system acquires knowledge over time based on the patterns of behavior of its users to make it a much more personal and efficient system. It also lacks much of the advanced features that other payroll software has but offers a new and approachable tool for managing payroll.
Key Features:
- This is AI-based, an intelligent, and chat-based interface. Automated payroll processing and tax filing.
- Real-time solutions to payroll concerns
- It comes with a personalized experience that’s centered around user behavior.
- Employee self-service, and a mobile-first approach.
Pros:
- So innovative and intuitive experience
- Processes payroll pretty fast
- Doesn’t demand so much knowledge about payroll
- Has the experience of ADP to lean back
Website:
www.rollbyadp.com/
Best for:
- Small businesses that prefer taking an easy, conversational approach to its payroll management
10. Rippling
Rippling provides a modern, end-to-end all-in-one Payroll tool, HR, and IT management. The powerful payroll system offered by Rippling to small businesses is friendly and easy to operate when handling complicated scenarios. Some of the features on the platform include automatic payroll runs, tax calculations and filings, multi-state payroll, device management, and app provisioning.
Key Features:
- Payroll automation
- Global payroll
- Third-party connections
- Integrated HR, IT, and payroll management
- Employee self-service portal
- Advanced reporting and analytics
Benefits:
- All-in-one employee management solution
- Powerful automation abilities
- RICOH scalability
- Modern and user-friendly interface
Website:
www.rippling.com
Best for:
- Tech-savvy small to medium-sized businesses with an all-in-one employee management solution.
How to Implement Payroll Software in Your Business
Payroll software is intimidating when the wrong approach is employed. It becomes one of the sleak processes for your payroll management if done by the approach-gradual stages. Here’s a step-by-step guide on how to go about implementing best payroll software for small businesses in your business and ensuring it becomes successfully integrated into your business operations:
1. Know Your Needs
To achieve the most appropriate payroll software, you have to start by assessing your business needs. Consider the number of employees, pay schedules, tax obligations, and any requirements set by a specific industry.
2. Research and choose payroll software
Research on several payroll software that you like to use. Must-haves include tax calculation, direct deposit, reporting functionalities, and connection with other systems running your business. Read reviews, how much alternative costs, jump on free trials to find the best one.
3. Prep Your Data
Gather all details about your employees, such as personal data, tax forms, salary information, and bank details that may be needed when direct deposits begin. Ensure data is accurate and updated.
4. Installation of the software
Once you have decided on your software, you’ll proceed to a set-up process. In this installation process you will enter company details and pay runs as well as tax details. However most of the current software providers provide step-by-step instructions for installation and will guide you through this installation process.
5. Importing Employee Data
Transfer the employee data to the new payroll system. A majority of payroll software allows importing large data, saving you more time and money as well, besides a potential mistake while entering it manually.
6. Configure Payroll Settings
You configure your payroll rules, consisting of pay rates, deductions, and any special calculations you might require for your business, ensuring they comply with your company policies as well as legal regulations.
Why Small Businesses Payroll Software is so Important
However, the list of payroll software implementation benefits for small businesses is very long and wide enough.
1. Time Saving
Payroll calculations, tax deductions, and report generation take a very minimum amount of time to be done with automation. Thus, business owners and employees can spend more time in core business activities.
2. Minimize the risk of human error
Another benefit of the payroll software is that it minimizes the risk of human error in calculations and ensures tax laws and regulations compliance. The pay-roll software automatically updates tax tables and calculates deductions with no mistakes; thus, the error factor concerning costly mistakes is entirely eradicated.
3. Cost-Effective
Indeed, there are initial costs associated with them, but payroll software for small businesses turns out to be cost-effective in the long run because it avoids one large-scale time-consuming manual work and other errors that come in the form of fines or overpayment.
4. Employee Self-Service
Most payroll packages contain an employee self-service. This tool allows the employee to log in to a portal, access his or her account, print pay stubs, retrieve tax forms, and update information about themselves. This reduces workloads for HR staff.
5. Data Security
A well-known provider of Payroll software for small business owners has ensured security aspects to safeguard sensitive data of employees as well as finances. This is much safer than traditional paper-based systems or simple spreadsheets.
6. Reporting and Analytics
Payroll software is mainly offered with reporting tools, which may provide some insight into labor costs, where decisions are made for financial matters.
Comparison Table
| Name of the Company | Best For | Ratings | Website |
| QuickBooks Payroll | Startups and small businesses that use QuickBooks accounting | 4.5 | www.quickbooks.intuit.com/payroll/ |
| SurePayroll | Small businesses looking for a basic, no-hassle payroll service | 4.3 | www.surepayroll.com |
| Gusto | Small to medium-sized organizations needing payroll + HR | 4.6 | www.gusto.com |
| OnPay | Small to medium-sized businesses in niche industries | 4.4 | www.onpay.com |
| Paycor | Growing small to medium-sized businesses needing a scalable solution | 4.5 | www.paycor.com |
| Patriot | Small businesses/startups needing affordable payroll software | 4.2 | www.patriotsoftware.com/ |
| Paychex | Mid-sized businesses requiring an expandable payroll/HR solution | 4.7 | www.paychex.com |
| ADP | Small to medium-sized businesses that need a trusted payroll solution | 4.8 | www.adp.com |
| Roll by ADP | Small businesses preferring an intuitive, conversational payroll interface | 4 | www.rollbyadp.com |
| Rippling | Tech-savvy small to medium-sized businesses needing integrated employee management | 4.6 | www.rippling.com |
Conclusion
The installation of payroll software for small businesses is one strategic step taken by a business to modernize the operation and increase efficiency. And planning or executing processually will not stop benefits from becoming greater than efforts. Saves time and money and, most importantly, provides higher accuracy along with compliance in payroll accounting through payroll software as it transforms the ways in which payroll procedures can be handled at small businesses.
FAQs
Q: How much does payroll software cost?
Depending on the number of features and the size of your business, you could pay anywhere from $20 to $200+ per month.
Q: Does payroll software process contractor payments?
Nearly all latest payroll software programs have included contractor payment as a part of standard payroll.
Q: Is payroll software in the cloud secure?
Professional vendors are using bank-level encryption and security measures to safeguard your information.
Q: Can I change payroll software mid-year?
You can, but easier still at the end of a quarter or year for smoother data transfer.
