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From paying your team on time to managing payroll taxes, our picks for best payroll services reduce your administrative burden.
Payroll is often one of the largest expenses incurred by a company, and managing it can be frustrating for everyone involved. Payroll errors are time-consuming to fix and can cause employee satisfaction to plummet. That’s why many small businesses turn to payroll services for processing payroll. However, not all small business payroll services are created equal. The most basic will simply help you crunch numbers, while the best will allow you to automate your payroll and simplify tax filings. When it comes to choosing a payroll service for your business, you’ll want to select one that can handle everything you need. To help you make an informed decision, we researched the top small business payroll service providers to identify the best providers, highlighting the brands that excel in specific areas.
At Business News Daily, we’ve spent years researching and testing the HR software and services that entrepreneurs need to manage their teams effectively. Our team of small business HR specialists conducts independent evaluations of the best HR service providers to determine which best support internal operations. We also regularly consult with HR experts, including recruiters, hiring managers, compliance officers and HR consultants, to stay on top of the latest HR trends impacting small businesses. And every review we publish is evaluated by our editorial staff to ensure objectivity, accuracy and fairness are at the core of our decision-making. Learn more about our editorial guidelines.
When choosing our picks for the best payroll software and services, our team of small business experts considered a wide range of factors, including features like same-day deposit, payroll tax automation and reporting tools. We attended live demonstrations and asked representatives tough questions about their pricing and plans, setup and installation, and how they stack up in a competitive field. We…
When choosing our picks for the best payroll software and services, our team of small business experts considered a wide range of factors, including features like same-day deposit, payroll tax automation and reporting tools. We attended live demonstrations and asked representatives tough questions about their pricing and plans, setup and installation, and how they stack up in a competitive field. We also tested payroll software ourselves using free trial accounts, taking note of the overall user experience and how effective the features were. Finally, we examined user reviews from real customers to get a sense of how well each payroll platform worked in a growing business’s day-to-day operations.
considered
reviewed
selected
When choosing our picks for the best payroll software and services, our team of small business experts considered a wide range of factors, including features like same-day deposit, payroll tax automation and reporting tools. We attended live demonstrations and asked representatives tough questions about their pricing and plans, setup and installation, and how they stack up in a competitive field. We also tested payroll software ourselves using free trial accounts, taking note of the overall user experience and how effective the features were. Finally, we examined user reviews from real customers to get a sense of how well each payroll platform worked in a growing business’s day-to-day operations.
considered
reviewed
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Best for Same-Day Direct Deposit
Best for Small Businesses
Best for Employee Self-Service
Best for Added HR services
Best for All-In-One
Best for Tax Filing
Best Budget Option
Best for Growing Businesses
$50 per month
$40 per month
Varies
$40 per month
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$35 per month
$17 per month
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$6 per month
$6 per month
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Varies
$5 per month
$4 per month
Varies
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No
No
Yes
Yes
Yes
No
No
Yes (for Elite plans)
No
No
No
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
Yes
No
Yes
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Yes
QuickBooks Payroll provides small businesses with scalable payroll services that easily integrate with QuickBooks accounting software and over a dozen other Intuit product offerings. QuickBooks’ payroll features are available in multiple packages with features that range from basic to robust, but each includes unlimited payroll runs, automatic tax forms, a workforce portal, payroll reports, benefits administration, employee management tools, expert product support and free next- or same-day direct deposit.
The QuickBooks dashboard shows all of your essential payroll data. Source: QuickBooks
You can run payroll in all 50 states for employees at varying pay grades, and the software can handle garnishments and tax withholding. However, users should note that lower tier subscriptions only include payroll in one state; those who want to run payroll in more than one state will need to pay an additional $12 per month on the lower plans or sign up for the highest tier plan. QuickBooks Payroll can be accessed on various devices, including through iOS and Android mobile apps.
New features allow for IRS Form 943 filing and the ability to retroactively edit state unemployment insurance rates. We also like that QuickBooks offers health benefits for employees through Allstate insurance. With this partnership, you can seamlessly manage payroll deductions.
In addition, 401(k) administration and workers’ compensation administration are now included with all three plan tiers, so you can manage your payroll along with employee benefits in one system. The platform also includes team management tools that scale depending on the tier, ranging from basic document storage to a personal HR advisor.
Trust Pilot: 4.5/5
I have been very pleased with QuickBooks Payroll service since I started using the product and the cost is well worth it,” one user wrote.
OnPay is a user-friendly payroll solution that caters to small businesses and startups. You can pay employees via direct deposit or paper check. Best of all, OnPay allows you to run payroll an unlimited number of times, which is helpful for businesses that run payroll weekly or routinely pay contractors for projects.
You can use the OnPay software to add employees to your payroll, set statuses, run payroll and manage paid time off (PTO). The platform comes with a payroll tax and benefit deduction withholding system and offers payroll tax preparation. We liked the compliance checklists and audits, automated workflows, and customizable document templates. OnPay also allows users to create custom expense reports. We found this valuable for tracking business finances and making informed decisions.
Running payroll is easy with OnPay. Source: OnPay
OnPay costs $40 per month, plus $6 per employee per month.
Capterra: 4.8/5
“What I like most about OnPay is how easy it is to use the tool. I do not have a payroll background and I was able to figure out how to process payroll without getting frustrated,” one user wrote.
Paycor offers easy-to-use online payroll software that comes with a comprehensive employee self-service portal. We like that the portal can be used to review compensation data and update personal or financial information. Employees can also use the portal to request paid time off, monitor their payments, review their benefits and access their pay stubs, while the Paycor Time solution offers physical or app-based time clocks.
All of your payroll information is visible on the Paycor dashboard. Source: Paycor
Paycor’s pricing is customized, but our prior research indicated that the entry level plan costs $99 per month, with high-tier plans topping out at $199 per month.
TrustRadius: 7.4/10
“Payroll is very user friendly and intuitive. I think they have a lot of great reporting features and when you get someone who knows their stuff in customer care, they really know their stuff and can be very helpful,” one user wrote.
Gusto has established itself as a cutting-edge payroll service provider for small businesses, especially those that want additional human resources tools. We love that Gusto seamlessly integrates with over 20 time-tracking applications and numerous hiring, performance management and learning platforms. These integrations empower small businesses to better leverage Gusto’s native onboarding, benefits administration and payroll features.
In addition, Gusto can support hiring, managing and payroll for full-time, salaried employees in 12 countries through its partnership with Remote. There are also options available to pay contractors in more than 120 countries. With these advantages and more, Gusto stood out as our top choice for the best online payroll service with added HR services.
HR functions are easily accessible from the Gusto dashboard. Source: Gusto
G2: 4.5/5
“Gusto is so simple to use! I used to spend hours on payroll and even more time on tax payments and filings,” one user wrote.
You may know Square as a payment processing platform, but the company also offers an online payroll service. Square Payroll is easy to use and has all the features we looked for in a payroll software company, including a dedicated payroll smartphone app. We like that you can use Square Payroll to process payroll for W-2 employees and 1099 contractors accurately and on time. The software automatically prepares necessary tax forms based on the information that’s already in your system, filing local and state taxes on your behalf.
Square Payroll is more affordable than some alternatives. Source: Square
Square Payroll costs $35 per month, plus $5 per employee.
Trustpilot: 4.0/5
“Square is the absolute best system for starting a business. It is designed to truly help you succeed; everything is customizable, it is easy to start up, and it’s very affordable,” one user wrote.
You may know Square as a payment processing platform, but the company also offers an online payroll service. Square Payroll is easy to use and has all the features we looked for in a payroll software company, including a dedicated payroll smartphone app.
You can use Square Payroll to process payroll for W-2 employees and 1099 contractors accurately and on time. The software automatically prepares necessary tax forms based on the information that’s already in your system, filing local and state taxes on your behalf.
Customer service is available via phone, email and live chat. The live chat tool is built directly into the software and allows you to contact payroll specialists, who understand how to optimize payroll processes. Speaking of specialists, Square has copied Intuit in outsourcing the HR and compliance services it offers to external partner Mineral.
Square can integrate with the best time and attendance systems as well as POS software. The system tracks employee hours automatically, and when it comes time to process payroll, you can pay employees using their Square balance rather than their bank account. We are impressed with Square’s new AI tools as well. These include AI-generated content for your emails and business communications.
There is no contract requirement for Square Payroll, which we found ideal for companies looking to avoid long-term contracts or commitments. Pricing plans start at $35 per month, plus $6 per employee per month. Alternatively, there is a contractors-only option, which allows you to pay 1099 contractors for $6 per payment with no monthly base fee.
At only $17 a month for the base version, Patriot Software is one of the best values on the market when it comes to payroll software. We like that Patriot Software offers a manual tax filing solution, which is great for small businesses that want to save money (over $200 a year compared to competitors). At the same time, Patriot supports unlimited payroll runs for any pay frequency, and for both 1099 contractors and W-2 employees. Even if your needs grow, upgrading to their full-service payroll remains more affordable than most other options.
Patriot Software is less expensive than most alternatives. (Source: Patriot)
Trustpilot: 4.9/5
“I signed up for Patriot Software on the advice of my accountant. It is intuitive, professional, and efficient. It has also saved me on payroll costs. The one time I reached out to customer services, they were helpful in resolving my question. All in all, a strong product,” one user wrote.
ADP offers a scalable payroll platform that provides all the tools and features businesses need to process payroll and pay associated taxes. We found that ADP works well for companies across all industries and is a particularly good option for businesses with complex needs.
The company facilitates payroll for small, midsize and large businesses, with dedicated plans for companies employing over 1,000 people. If you have fewer than 50 employees, there are four different plans available, but ADP customizes pricing and does not reveal costs upfront. We liked ADP’s additional features, such as the employee self-service portal, direct deposit payments and onboarding tools. The advanced plans can include HR support, background checks, employee training and the ability to post job openings on ZipRecruiter.
ADP offers its software on several different devices. Source: ADP
ADP’s pricing is customized, but our prior research indicated that costs are similar to those of other providers on our list.
TrustRadius: 6.1/10
“It was used across our organization to streamline benefits and compensation. Previously, we were using multiple vendors to address our HR needs, and this solution is all in one,” one user wrote.
Rippling’s online payroll software has a user-friendly interface and requires little training for new users. The software works with over 500 third-party applications to improve your payroll process, tax preparation and other business operations. The payroll process is so simple that you can run it in as little as 90 seconds.
The software tracks important metrics like total hours worked per employee, paid time off and labor expenses. You can set up direct deposits directly in Rippling or give employees paper checks. The software automatically deducts an employee’s tax withholdings based on their filing status, and it automatically files international taxes.
Rippling advertises a price of $8 per person per month but requires custom quotes for the base fee.
Read our Rippling review for more information.
Outsourcing payroll and HR services to a professional employer organization (PEO) can help your company save on benefits and payroll expenses. Justworks offers an affordable and comprehensive solution with robust online payroll services, employment practices liability insurance, and seamless accounting software integrations. Its high-quality health insurance options and built-in time-tracking tools make it our top choice for PEO services.
Justworks’ pricing starts at $59 per employee per month, which is higher than standard payroll software solutions. However, by acting as your PEO and co-employer, Justworks provides access to a 24/7 customer service team available via Slack, phone, email, chat, and text, ensuring continuous support for your business needs.
Zenefits Payroll is a smartly presented software platform that can run payroll in just three mouse clicks. It offers all the core functionality we look for in our review of payroll services at a highly competitive cost. There’s extensive report functionality, including pre-prepared reports, while niche features include reported tips and assistance with child support remittance. Part-month payments are automatically prorated, dynamic pay stubs can be personalized with messages, and workers are able to view documents even after they’ve left the company to work elsewhere.
In terms of pricing, Zenefits offers modular packages that can be built on one of three base plans, which range from $8 to $21 per month, plus $6 per employee per month.
Read our Zenefits review for more information.
The full Zenefits HR platform integrates seamlessly with TriNet Zenefits. Source: TriNet Zenefits
If you plan to expand your business globally, Papaya Global is a great option for payroll processing. The vendor can run payroll in more than 160 countries for all types of employment. That’s why it’s used by large brands like Microsoft, Toyota and Shopify.
The company’s employer of record service ensures that you stay compliant with the various employment laws in all the countries where you have workers. Papaya Global will even help you secure short-term or long-term work permits for employees outside their home countries.
Papaya Global doesn’t charge a base fee for running payroll; the payroll package simply costs $20 per employee per month. But if you need to use the company as your global employer of record, it costs $650 per month.
Read our Papaya Global review for more information.
Not all online payroll services offer prompt responses when issues arise, but Heartland Payroll stands out by providing on-demand access to professionals who can address your questions about payroll tax preparation and labor laws. Its HR Support Center features Ease and Employee Navigator, which streamline new-hire reporting and benefits-related payroll deductions. With a comprehensive payroll solution and extensive HR resources, small businesses can avoid manual data entry errors and stay current with the latest regulations. That’s why we consider Heartland Payroll the best payroll software for HR support.
A small team doesn’t always require a full-service payroll system, and we appreciate that Patriot Software offers a manual tax filing solution. This option allows small businesses to save over $200 annually on monthly fees while still providing unlimited payroll runs for all pay frequencies and support for both 1099 and W-2 workers. For those who need more, upgrading to the full-service payroll solution remains more affordable than most competitors. Based on our evaluation, Patriot Software is the best online payroll system for small teams.
Patriot Software’s pricing starts at $17 per month, plus $4 per employee for self-service tax filing.
Paychex is a payroll service that’s a great option for businesses of all sizes. The company offers weekly, biweekly, semimonthly and monthly payroll schedules. Paychex can accommodate all types of workers, including full-time and part-time employees, 1099 contractors, and freelancers. Team members can choose to receive their paycheck as a direct deposit, paper check or prepaid debit card.
Paychex offers three packages, which start at $39 per month, plus $5 per employee per month.
Read our Paychex payroll review for more information.
With Paychex, you can access both HR and payroll solutions. Source: Paychex
Online payroll providers typically have a monthly or per-payroll cost structure. With monthly plans, you pay a base fee and a per-employee fee. Base fees typically range between $30 and $150 per month, and per-employee fees often range from $5 to $15 per month. Some firms are open and honest about their costs, while others prefer to generate a customized quote in response to a new business inquiry. This means handing your contact details over to a sales rep, who is free to give you the hard sell on that company’s products and services.
With a monthly fee structure, you can usually run payroll as often as you like for one flat fee. This is often a more economical choice for a business that runs payroll several times per month. With a per-payroll fee structure, companies may charge you anywhere from $10 to $100 per payroll run, plus per-employee fees of $2 to $15 per month. A per-payroll model might work better for a business that runs payroll more infrequently. In addition, some providers charge extra for year-end tax services and initial setup.
A few online payroll services offer a free trial, giving you the chance to try out the software for at least one payroll run to see if it meets your needs. Even if you can’t get a free trial, several vendors will let you cancel your contract at any time. Other vendors, such as QuickBooks, offer bundle deals for their accounting and payroll software. Be sure to take advantage of any available discounts and introductory offers.
Payroll services offer a variety of features and tools that streamline payroll processing for small businesses. Here are some of the most valuable features to look for when considering payroll companies.
Payroll software helps you generate employee forms come tax time. Source: Intuit
There are three key stages involved in choosing the right payroll service for your small business. We outline these below.
When choosing an online payroll service for your small business, there are several factors to consider. For most companies, budget will play a big role in figuring out which provider to go with. What can your organization afford to spend on payroll processing and assorted services? What features can you live without, and which are absolute necessities? Many payroll platforms are bundled into larger suites of HR and human capital management (HCM) software, indivisible from these wider offerings and therefore unsuitable for businesses that want a payroll package only.
You will also need to determine how often you process payroll. Is it every week, biweekly or just once a month? Some payroll providers offer unlimited payroll runs, while others charge per run, so this is an important factor to consider.
Evaluate your firm’s competing priorities. Is same-day or next-day deposit important to you? Is it more vital than other functions? Does your business need a platform that includes additional HR services? Make a list of everything you want your payroll software to help you accomplish so you can look for providers that meet your company’s needs.
Once you know the specific features you’re looking for in a payroll software provider, you can compile a list of potential vendors. From there, you can review the features each vendor offers and get a sense of where each one stands out or falls short. Compare each system against your list of desired functions, and remove from consideration the platforms that don’t align.
Once you’ve narrowed your list down to just a couple of options, it can help to schedule demos with these providers. During a demo, you can see how the software works and ask the sales team pertinent questions. For instance, can you run payroll as often as you want each month? Does the package come with a mobile app and an employee self-service portal? You should also evaluate how intuitive and easy it is to use the program. The platform’s interface should be simple to understand and allow you to run payroll in a matter of minutes. Remember that sales reps will talk up positives and gloss over negatives, so be probing in your questions and don’t let them distract you from getting the answers you need.
Make sure you fully comprehend how the provider’s pricing works and what you can expect to spend each month. For instance, many payroll providers charge a base fee along with an additional per-employee fee. What structure do they use, and are any setup charges or fees levied for additional payroll runs? Do you pay for the software when it’s installed, a month after subscribing or when you perform your first payroll run?
Finally, you should look into what kind of customer service the company provides. How is the payroll provider rated by the Better Business Bureau, and how many customer complaints are there? Is there phone, email and chat support, or are you limited to just one of those options? The answers to these questions should further narrow down your prospects, as will the hours in which support is available. We found many companies offering fixed hours based on either Pacific or Eastern time, which obviously isn’t ideal if those hours of business don’t align with yours.
After you’ve weighed the pros and cons of each provider, you can identify your top options and begin the sign-up process with your preferred vendor. If possible, take advantage of demos or free trials so you can get some hands-on experience. Many providers also provide introductory offers and discounts. See if you can negotiate the advertised price, and always ask if any discounts are available; recently withdrawn offers or incentives may still be available on request. Once you’ve chosen the software that’s best for your business, you can move forward with the setup phase.
If you prefer to run your business from a smartphone, consider a payroll provider that offers a mobile app. Source: ADP
Here are some of the biggest advantages of using a payroll service:
To choose the best payroll software on the market, our team of analysts and business operations experts evaluated an initial list of 77 platforms. Through a rigorous selection process, we whittled this list down to 22 options, ultimately crowning eight payroll software programs as our top picks. Our expert reviewers meticulously dissected each solution’s functionality, putting them through the wringer on a comprehensive 22-point assessment.
To reach our final recommendations, we meticulously evaluated various factors weighted by their significance to business owners. These categories echo the real-world priorities that savvy business owners consider when selecting software for their companies.
By evaluating these factors, we not only identified the most trustworthy payroll software options, but also analyzed how each platform caters to specific business needs. We recognized that some software shines brighter for certain tasks or is a perfect fit for particular company types. This analysis underpins the “Best For” categories displayed on this page, empowering you to identify the software that aligns perfectly with your unique business goals.
To learn more about our methodology, see our full editorial process.
Payroll services take over management of the payroll process for businesses, handling everything from paying employees to managing payroll tax obligations. Small business payroll service providers can either take over part or all of the payroll process, allowing employers to retain whatever level of control they want when it comes to ensuring employees are paid. A small business payroll service also typically includes access to payroll software tools to monitor when payroll is processed and how much it costs each cycle. While a few companies offer the flexibility of processing international workforce payments, most are focused on American employees and merely provide basic support for paying overseas contractors.
In addition to managing your business’s payroll, comprehensive payroll companies also handle your firm’s payroll taxes, manage employees’ paid time off, provide new-hire reporting and facilitate workers’ compensation insurance. They may also offer HR management, benefits administration, time and attendance services, and 401(k) programs. [Learn about taxable fringe benefits and how they relate to wages.]
How long it takes to process payroll varies by provider, but many payroll services complete the process within two days. This means payroll administrators need to submit their final payroll numbers two days before payday. If you need same-day direct deposits, Intuit QuickBooks Payroll is able to provide this service.
There are several free payroll software solutions, which may be useful for businesses that are just getting started. Free payroll software can help you manage payroll taxes, wage garnishments and benefits deductions. However, when using a free service, you may have to sacrifice other valuable features, like dedicated customer support.
Tip: You can hire a certified public accountant (CPA) if you need help managing the collection and reporting aspects of payroll processing. Accountants can analyze your payroll and provide valuable guidance for your business.
Unpaid payroll tax penalties apply when an employer fails to pay the Internal Revenue Service the proper amount of payroll tax funds it owes. Failure to complete Form 941 or to provide proper documentation, like W-2s or 1099s, is another possible issue that could lead to penalties. These penalties include fines, interest on back taxes and liens on property. IRS fines range from 2% of the missing deposit to 15%, depending on the number of days the business is behind. To avoid fines and even criminal charges, ensure your payroll taxes are paid on time in the correct amount and that your company has filed all the required paperwork.
A pay period is the recurring length of time during which an employee’s wages are calculated for payment. Pay periods can be weekly, biweekly, semimonthly or monthly. To choose the best pay schedule for your business, weigh the pros and cons of each option.
An employer-of-record (EOR) service helps you hire workers in foreign countries by acting as the legal employer for overseas employees. This solution ensures that you aren’t responsible for many payroll and compliance issues. However, it tends to be far more expensive than standard payroll services. For instance, Remote charges $599 for its EOR service.
Mike Berner contributed to this article.
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