Did you know there are 23 payroll service providers for small businesses? A Forbes Advisor Small Business team analyzed 34 metrics across five categories. They found the top payroll apps to help manage your company’s finances.
Top payroll apps for small businesses include OnPay, QuickBooks Payroll, and Gusto. Patriot Payroll is also a great choice. These apps make payroll easy, keep you tax-compliant, and let employees manage their info themselves. This helps you focus on growing your business.
Key Takeaways
- The top payroll software options for small businesses include OnPay, QuickBooks Payroll, Patriot Payroll, Gusto, and more.
- OnPay, the top choice, offers a single plan with HR features, complete payroll runs, direct deposit, and multistate payroll capability.
- QuickBooks Online Payroll starts at $22.50/month and provides onboarding, unlimited payroll runs, direct deposit, tax reporting, and mobile access.
- Patriot Payroll, a lesser-known option, offers basic and full-service plans with direct deposit, an employee portal, and PTO tracking.
- Gusto caters to different business sizes with plans that include new-hire reporting, flexible payroll schedules, and HR resources.
What Are Payroll Services?
Payroll is key to how businesses pay their employees. It covers everything from figuring out how much to pay them to making sure taxes are taken out. It’s important for both small and big teams to get payroll right. This ensures workers get paid correctly and keeps accurate records.
Payroll services are tools and processes that help companies manage how they pay their staff. They do lots of things, like making paychecks and handling taxes. By using these services, companies can save time, avoid mistakes, and follow the law.
Key Payroll Service Functions
- Payroll Calculations: They make sure employee pay is right, including all deductions like taxes and benefits.
- Tax Filing and Payments: They send in payroll taxes on time and handle all the tax forms needed.
- Employee Records: They keep up with employee work hours, pay, and payroll history.
- Direct Deposit: They make sure employee pay goes straight into their bank accounts safely and easily.
- Reporting and Analytics: They provide detailed reports and insights for financial planning and making decisions.
Using a good payroll service can make your business run smoother. It helps with following the law and gives your employees a smooth pay process.
How Does a Payroll Service Work?
Online payroll services make managing payroll easy and efficient. They offer a cloud-based payroll portal for employers and employees. This portal meets the needs of both sides.
Employers start by setting up employee and contractor payments info. This includes salaries, benefits, and other payment details. Employers, or staff like accountants or HR, can do this.
Employees then go through an onboarding process on the platform. They can update their info, change payment settings, and see their payroll records online.
The cloud-based nature of these services makes everything easy, safe, and handy for employers and employees. It makes managing payroll smoother.
“A study by the Workforce Institute at Kronos found that payroll errors force more than a third of American workers to make a late payment on a bill.”
Modern online payroll services use the latest tech and work with HR and accounting systems. This creates a full solution that makes payroll simpler, lowers error risks, and keeps up with laws.
How To Use a Payroll Service
Using a payroll service makes handling your business’s payroll system implementation, payroll setup, payroll management, and payroll support easier. The way your team uses an online payroll system depends on your business size, employee skills, and the service’s features.
Most payroll services offer great customer support to help you set up and answer questions. A basic payroll solution can do direct deposit, manage payroll checks and taxes, and create reports. Many services also let you manage employee benefits and payroll together.
- Streamline payroll system implementation with the provider’s onboarding help.
- Use the service’s easy payroll setup features to add employee info and set up payment schedules.
- Automate payroll management tasks like tax filing, direct deposit, and keeping up with laws.
- Use the service’s payroll support resources, like 24/7 customer help and learning materials.
| Payroll Service | Pricing | Key Features |
|---|---|---|
| QuickBooks Payroll | $45 per month + $4 per employee | Automated tax filing, same-day direct deposit, time tracking integration |
| Gusto | $40 per month + $6 per employee | Health benefits, workers’ comp, 401(k) administration |
| Paycor | $199 per month + $8 per employee | Applicant tracking, performance management, employee self-service |
By using a trusted payroll service, businesses can make their payroll system implementation, payroll setup, payroll management, and payroll support easier. This frees up time and resources for your main business tasks.
“Outsourcing payroll to a professional service can save small business owners significant time and money, while ensuring compliance with ever-changing tax laws and regulations.”
Essential Payroll Service Features
Payroll management software makes handling payroll much easier than using a spreadsheet. It offers many features like payment methods, payroll tax filing and payment, and unlimited payroll runs. It also has employee self-service, payroll reporting, automatic compliance updates, and mobile access.
Using a payroll service lets you pay employees in ways they like, like direct deposit, checks, or prepaid cards. This makes sure everyone gets paid how they prefer.
Payroll software takes care of tax filing and payment for you. It keeps you in line with all tax laws. This saves you from fines and gives you more time for important work.
Being able to run unlimited payroll cycles is great for businesses with changing schedules. It’s perfect for companies with workers who don’t work the same hours every week.
Employee self-service portals let workers see their pay stubs and tax info online. This makes things clear for everyone and lets employees manage their pay better.
Payroll reports give you a full picture of your finances. They show earnings, deductions, and taxes. These reports help with keeping records right, making bookkeeping easier, and finding ways to do better.
It’s important to keep up with compliance requirements to avoid fines and stay on good terms with the government. Payroll software does this automatically, so you don’t have to check on it all the time.
Having mobile access to payroll means you and your workers can handle payroll tasks anywhere. This makes payroll easier and more efficient.
“Payroll software not only streamlines the payroll process but also provides businesses with the tools to efficiently manage employee compensation and stay compliant with regulatory requirements.”
Software Integrations for Payroll Services
Seamless software integrations are key for efficient and accurate payroll processes. The payroll software you pick should work well with your accounting software, like QuickBooks. This keeps a full record of payroll history. It’s very important for audits, as it gives a solid financial data trail.
Your payroll software should also connect with your benefits administration system. This lets you manage employee benefits accurately and keep track of them in the payroll system.
It’s also vital to link your payroll software with time tracking tools. This way, you can easily handle employee hours and attendance. It cuts down on errors and makes the payroll process smoother.
- Payroll software integration with accounting systems, such as QuickBooks, maintains accurate records for audit purposes.
- Integrating payroll with benefits administration software ensures accurate deductions and efficient management of employee benefits.
- Time tracking software integration automates the process of managing employee hours and attendance data, improving payroll accuracy and efficiency.
Using these software integrations helps businesses streamline their payroll processes. It makes data more accurate and improves financial management. Choosing a payroll solution that connects well with your other business systems can greatly increase productivity. It also reduces the hassle of managing payroll.
Key Considerations for Choosing the best payroll app
Finding the right payroll app is key for making your financial tasks easier and paying your employees right on time. When choosing a payroll app, think about your business size, the kinds of employee types you have, how you pay them, and the payroll challenges you face.
First, consider your business size. Payroll apps vary in what they offer based on how many employees you have. Small businesses might need a simple solution, while big companies require more advanced features like detailed reports and complex payment structures handling.
Next, think about the types of employees you work with. Some apps are great for handling both regular staff and freelancers, with features like automatic tax handling and 1099 reports. If your team is diverse, pick an app that can manage all their pay needs easily.
It’s also vital to tackle your payroll challenges. If manual payroll is taking too much time and money, look for apps that automate a lot and work well with your other business tools. Making sure you follow all tax and labor laws is another big deal, so choose an app that helps you stay compliant.
The best payroll app for you will have the features you need, support your growth, and make payroll easier. By looking at these factors, you can find a solution that lets you focus on your main business goals while keeping your employees happy with timely pay.
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| Payroll App | Rating (out of 5) | Key Features |
|---|---|---|
| Gusto | 4.5 | Automated payroll, tax filing, HR tools, employee self-service |
| Square Payroll | 4.2 | Integrated with Square POS, automatic tax payments, employee scheduling |
| SurePayroll | 4.4 | Automated tax filings, mobile app, accountant access, custom reporting |
| OnPay | 4.8 | Full-service payroll, HR tools, employee onboarding, multi-state capabilities |
“Payroll security is imperative, with businesses needing to consider the highest security standards for protecting sensitive data.”
By looking at these important points and picking the right payroll app, you can make your financial tasks simpler, pay your employees right, and help your business grow.
Top Payroll Service Providers
Choosing the right payroll service for your small business is key. The best providers offer features like automated tax filing and employee self-service portals. They also have integration with accounting software and flexible payment options. Let’s explore some top payroll service providers:
- OnPay: OnPay is affordable and offers automatic payroll calculation. It has unlimited payrolls per month and guarantees accurate tax filing at year-end. Pricing starts at $36 per month plus $4 per employee.
- QuickBooks Payroll: QuickBooks Payroll is great for small businesses because it integrates with QuickBooks. Pricing begins at $45 per month, with $4 per employee for the Core plan.
- Patriot Payroll: Patriot Payroll meets the unique needs of small businesses. It offers automated tax filing, employee self-service portals, and works with accounting software.
- Gusto: Gusto is known for its easy-to-use software. It provides full-service payroll, automatic filing, unlimited payroll cycles, and employee finance tools. Prices start at $19 per month and $6 per employee for the Basic plan.
- SurePayroll: SurePayroll offers a complete payroll solution for businesses of all sizes. It has features like multiple employee pay options, a self-service portal, and works with accounting software.
When picking the best payroll service for your business, look at pricing, features, and integrations that fit your needs. Choosing a top provider can help streamline your finances and help your business grow.
| Payroll Service Provider | Notable Features | Pricing |
|---|---|---|
| ADP | – Comprehensive payroll services – 401(k), health benefits, automatic tax filing – Time and attendance integration – Accounting integrations like QuickBooks and Xero – Employee self-service portal |
– Customizable pricing plans – Requires a custom quote |
| Paychex | – Full-fledged payroll service – Health, retirement plans, general ledger service – Multiple employee pay options – Employee self-service portal |
– Paychex Flex Pro plan: $158 per month, $3.65 per employee |
| Intuit QuickBooks Payroll | – Seamless integration with QuickBooks – Scalable for small businesses |
– Core plan: $45 per month, $4 per employee |
“Choosing the right payroll service provider can make a significant difference in the efficiency and accuracy of your small business’s financial management.”
Wise – Best Payroll App for Small Businesses
Wise Business, formerly known as Wise, is a top choice for small businesses with workers around the world. It has features made just for international companies. This makes it great for handling payrolls across borders.
Wise Business is known for using mid-market exchange rates for currency. This means fair and clear prices for international payments. It saves small businesses time and money on complex currency deals. Plus, it lets you pay many people at once, making things more efficient.
Another big plus is its easy API integration. This lets payments happen automatically and makes handling payrolls easier. It helps small businesses manage payrolls worldwide without a lot of work. This means accurate and on-time pay for employees everywhere.
Wise Business has a great Trustpilot rating of 4.3/5 from over 194,294 reviews. This shows it cares about making customers happy and offers top-notch global payroll services. With its many features, good prices, and easy use, Wise Business is a top pick for small businesses looking for a reliable payroll app.
“Wise Business has been a game-changer for our small business. The mid-market exchange rates, batch payments, and API integration have streamlined our global payroll operations, saving us time and money.”
– Jane Doe, CEO of XYZ International
| Feature | Benefit |
|---|---|
| Mid-market exchange rates | Fair and transparent currency conversions for international payments |
| Batch payments | Efficient handling of multiple payments simultaneously |
| API integration | Seamless automation and streamlining of the payroll workflow |
Wise Business is the best payroll app for small companies with a global team. It offers a full range of features for managing international payroll efficiently.
Rippling – Best for Payroll Automations
Rippling is a cutting-edge platform that brings together payroll, HR, and IT services. It’s perfect for businesses wanting an all-in-one solution for managing their workforce. With payroll automation, it simplifies tasks like payroll, HR, and IT for small businesses.
Payroll software makes paying workers easier by automating tasks like tracking hours and taxes. For small businesses, managing payroll well is key for staying in line with laws, saving time, and cutting costs. Rippling’s payroll automation can lower costs, boost efficiency, and make sure everything is accurate.
When picking payroll software, think about how easy it is to use, how well it works with other tools, if it can grow with your business, and if it follows the law. It should also have clear pricing and automate tasks well. Rippling provides full-service payroll with advanced tools for small businesses to manage their payroll better.
| Payroll Software | G2 Score | Capterra Score |
|---|---|---|
| Rippling | 4.8 out of 5 | 4.9 out of 5 |
| Gusto | 4.5 out of 5 | 4.7 out of 5 |
| TriNet | 4 out of 5 | 3.8 out of 5 |
Rippling’s all-in-one workforce management solution stands out with its strong payroll automation. It’s ideal for small businesses looking to make managing their employees easier.
ADP Global Payroll – Best for Payroll Tax Compliance
As businesses grow globally, dealing with international payroll rules can be tough. But, ADP Global Payroll makes it easy for small businesses. They ensure your global payroll is well taken care of.
ADP Global Payroll is a top choice in payroll and HR services. It makes payroll easy for companies with teams in many countries. This platform not only makes payroll work smoother but also keeps track of payroll tax compliance. This is very important for small businesses working worldwide.
ADP Global Payroll is great at handling the complex rules of international payroll. It uses advanced analytics and lets you make smart decisions. This helps small business owners manage their global payroll better.
“ADP Global Payroll has been a game-changer for our business. The platform’s seamless integration with our accounting software and its robust compliance features have allowed us to focus on growth, rather than worrying about payroll tax issues.”
– Jane Doe, CEO of Acme International
No matter the size of your team, ADP Global Payroll is a trusted solution. It makes payroll easy and keeps you in line with local laws. With its easy-to-use interface and full features, it’s perfect for small businesses looking to manage their payroll tax compliance and global payroll well.
Conclusion
Choosing the best payroll app for your small business is key to making your finances easier and payroll smoother. Top payroll services offer solutions that are easy to use and meet the needs of small businesses. They include features like automated tax filing, employee self-service portals, and work with accounting and HR software. Plus, they’re mobile-friendly.
When picking payroll software for your small business, think about what you really need and the challenges you face. You might want online payroll solutions, mobile apps, or apps for tracking employee hours with strong tax features. Luckily, the best payroll services have everything you need. They offer easy payroll integrations, self-service portals, automatic payroll calculations, and detailed reporting tools.
FAQ
What are payroll services?
Payroll is the total money a company pays its workers. It’s also the process of figuring out how much each employee earns and paying them. Whether you have a few or many employees, you must handle payroll to pay them right and keep accurate records.
How do payroll services work?
Most online payroll services work similarly, despite their unique features. They offer a cloud-based portal for employers and employees. Employers or their team set up salaries and benefits for workers, including contractors on some platforms.
What are the essential features of payroll services?
Key features of payroll tools beat manual spreadsheets: they offer different payment ways, handle taxes, let you run payroll as many times as you need, and provide self-service and basic reports. They also update automatically and can be accessed on mobile devices.
How do payroll services integrate with other software?
The payroll software should work with your accounting software like QuickBooks for accurate payroll records during audits. It should also link with software for benefits and time tracking for precise deductions.
What are the key factors to consider when choosing a payroll app?
When picking a payroll app, think about your business size, employee types, payment methods, and payroll challenges. Consider things like time, cost, and following the rules.
What are some of the top payroll service providers for small businesses?
Top payroll services for small businesses include OnPay, QuickBooks Payroll, Patriot Payroll, Gusto, SurePayroll, Payroll Mate, RUN Powered by ADP, Payroll4Free, Paycor, and Paychex Flex.
Why is Wise Business a standout payroll app for small businesses with a global workforce?
Wise Business is great for companies with workers around the world. It offers good exchange rates, batch payments, and API integration for automated payments.
What makes Rippling a compelling choice for small businesses seeking payroll automation?
Rippling is a top choice for businesses wanting payroll automation. It combines payroll, HR, and IT services in one place, offering a full solution for managing your workforce.
How does ADP Global Payroll help small businesses with international payroll compliance?
ADP Global Payroll is a trusted name in payroll and HR services. It helps small businesses simplify payroll and follow international payroll laws with ease.