The Forbes Advisor Small Business team looked at 23 payroll software options for small businesses in 2023. They picked Gusto Payroll, QuickBooks Payroll, OnPay Payroll, Patriot Payroll, and RUN Powered by ADP as the best. These best software for payroll small business solutions were chosen by checking 34 criteria. These included pricing, service and support, and more.
Key Takeaways
- The Forbes Advisor team looked at 23 small business payroll solutions and used 34 criteria to pick the top ones.
- They looked at pricing, service, and more to find the best payroll processing tools.
- The top employee payroll software are Gusto Payroll, QuickBooks Payroll, OnPay Payroll, Patriot Payroll, and RUN Powered by ADP.
- They checked 782 data points across five categories, including expert score and pricing.
- The team has over 95 years of experience in small-business and personal finance. They looked at more than 250 payroll calculation software products.
What is Payroll Software?
Payroll software is key for small businesses. It automates the complex process of paying employees and handling taxes. These payroll processing software solutions make tasks like calculating wages and taxes easier. They also handle direct deposits and create pay stubs.
At its core, payroll management tools give employers a place to keep track of employee info, salaries, and benefits. Employees can see their pay history and tax forms through a user-friendly portal. This makes things easier for everyone.
Many payroll software solutions work well with accounting, time-tracking, and HR systems. This lets businesses keep all their data in one place. It helps reduce mistakes, improve data accuracy, and make managing finances and people easier.
“Payroll software can help reduce the time spent on payroll tasks, allowing small business owners to focus on growing their businesses.”
These cloud-based platforms automate the payroll software definition process. They keep businesses up to date with tax laws and give valuable insights for making decisions.
The right payroll software can change the game for small businesses. It makes operations smoother, cuts down on paperwork, and frees up time and resources. This lets businesses focus on what really matters.
The Best Payroll Software for Small Businesses in 2023
Finding the right payroll software is key for small businesses. Gusto Payroll and QuickBooks Payroll are top choices. They each have unique features and benefits.
Gusto Payroll: Best Overall Payroll Software
Gusto Payroll is the top pick for small businesses in 2023. It starts at $40 per month plus $6 per employee. You get payroll, HR, and benefits tools. Features include unlimited payroll runs, automated tax filing, employee self-onboarding, and mobile access.
It also works well with popular accounting and time-tracking tools. This makes it easy and helpful for small businesses.
QuickBooks Payroll: Best for Integration with Accounting Software
If you use QuickBooks Online for accounting, choose QuickBooks Payroll. It connects smoothly with QuickBooks, keeping payroll data in sync. Plans start at $45 per month plus $6 per employee.
Features include automated tax filing, next-day direct deposit, and HR support. This tight integration with accounting is great for small businesses wanting to simplify their finances.
Gusto Payroll and QuickBooks Payroll are top picks for small businesses in 2023. They offer various features and pricing plans for different needs.
OnPay Payroll: Best for Restaurant and Hospitality Industries
OnPay Payroll is a top choice for small businesses in the restaurant and hospitality fields. It costs $40 a month plus $6 for each employee. This makes it easy to manage payroll, HR, and benefits for these industries.
OnPay Payroll is great for handling complex payrolls. It can figure out hourly wages, overtime, and tips easily. This is super helpful for restaurants, hotels, and other hospitality businesses that struggle with payroll.
| Feature | Benefit |
|---|---|
| Automated Tip Calculation | Reduces errors and streamlines payroll for tipped employees |
| Overtime Tracking | Ensures accurate compensation for hourly workers |
| Payroll Tax Filing | Guarantees tax compliance and eliminates administrative hassle |
| Employee Self-Service Portal | Empowers staff to manage their own payroll and HR information |
OnPay Payroll is easy to use and packed with features. It’s a hit with restaurants and hospitality businesses. It simplifies payroll, cuts down on mistakes, and keeps everything in line with the law. This lets these businesses focus on what they do best and give great service to their customers.
Patriot Payroll: Best Cheap Payroll Software
Small businesses looking for an affordable payroll solution should check out Patriot Payroll. It costs just $17 a month plus $4 for each employee. This makes it a great choice for those on a budget.
Patriot Payroll is known for its unlimited payroll runs. This means businesses can run payroll as often as they need without extra fees. It also handles tax filing and payments automatically, making it easy for small businesses to stay compliant.
It may not have all the HR and benefits tools of pricier options, but it makes up for it with its robust integration capabilities. It works well with accounting tools like QuickBooks, making financial tasks easier for small business owners.
Patriot Payroll is all about saving money. It offers free direct deposit for those who qualify, so employees get their pay fast and safely. Plus, it has free workers’ compensation integration, making it easy to manage insurance based on payroll.
For small businesses, Patriot Payroll is a top choice for affordable payroll software. It has great features, works well with other tools, and offers excellent support. It’s a cost-effective and efficient way for small business owners to manage payroll.
https://www.youtube.com/watch?v=iMe_kg1IbPs
| Feature | Patriot Payroll |
|---|---|
| Base Price | $17 per month |
| Price per Employee | $4 per employee |
| Unlimited Payroll Runs | Yes |
| Automated Tax Filing and Payments | Yes |
| Integration with Accounting Software | QuickBooks |
| Free Direct Deposit | Yes, for qualifying customers |
| Free Workers’ Comp Integration | Yes |
Patriot Payroll is a great pick for small businesses. It offers affordable pricing, lots of features, and easy integrations. It helps streamline financial tasks and cuts down on paperwork.
best software for payroll small business
Managing payroll for small businesses can be tough. The right software can change everything. Look for software that’s affordable, easy to use, and has key features. These include automated tax filing, direct deposit, employee portals, and integration with other business tools.
Top names like Gusto, QuickBooks, OnPay, and Patriot stand out for small businesses. Each offers unique benefits and prices to fit different needs. Let’s dive into what these leading solutions bring to the table:
- Gusto Payroll: With a 4.40 out of 5 rating, Gusto has plans from $39 to $149 a month, plus $6 to $12 per employee. They cover payroll, taxes, benefits, and HR tools.
- QuickBooks Payroll: This has a 4.50 rating and works well with QuickBooks accounting software. It’s great for small businesses. They offer 401(k) plans, health benefits, and workers’ comp.
- OnPay Payroll: With a 4.60 rating, OnPay costs $40 a month plus $6 per person. They provide many employee benefits like health insurance and retirement plans.
- Patriot Payroll: This has a 4.50 rating. They have a Basic plan for $10 a month with a $4 per employee fee. The Full-Service plan is $30 a month plus $4 per employee.
Choosing the right payroll software depends on your business’s needs. Think about how many employees you have, your industry, and what you need from the software. Look at features, prices, and reviews to find the best fit for your business.
Choosing the Right Payroll Software for Your Business
When picking payroll software for your small business, it’s key to look at what you really need. Start by thinking about how big your team is and how complex your payroll is. This includes things like different pay rates, tips, or commissions. Knowing this helps you figure out what features you must have in your payroll software.
It’s also vital to check the cost and how the software can grow with your business. Make sure the pricing is clear, showing the base fee and what each employee costs. The cost should fit your current and future needs. Also, see if the software can handle more employees, more locations, or work with other tools as your business grows.
Assess Your Business Needs
- Evaluate the size of your workforce and the complexity of your payroll processes
- Identify any industry-specific needs or requirements for your payroll software
- Determine which features and functionalities are essential for your business, such as benefits administration, time-tracking integration, and HR support
Consider Pricing and Scalability
- Look for transparent pricing structures that clearly outline the base fee and per-employee costs
- Ensure the pricing aligns with your current and anticipated future payroll needs
- Assess the software’s ability to scale with your business as it grows, in terms of handling more employees, expanding to multiple locations, and integrating with other business tools
By looking at your business needs and the costs and growth potential of payroll software, you can choose wisely. This ensures your small business has a dependable and efficient way to manage payroll.
| Payroll Software | Base Monthly Fee | Fee per Employee | Additional Features |
|---|---|---|---|
| Gusto | $39 | $6 | HR support, benefits administration |
| Square | $29 | $5 | Integrates with Square’s POS system |
| ADP | Custom pricing | Around $11 | Comprehensive HR and payroll services |
| Zenefits | $6 per employee/month add-on | N/A | Integrated HR and benefits management |
Benefits of Using Payroll Software for Small Businesses
Using payroll software brings many benefits to small businesses. It automates the payroll process, saving time and reducing errors. This ensures employees get paid accurately and on time. It also takes care of tax calculations and filings, keeping your business in line with laws.
Many payroll solutions have employee self-service portals. Here, staff can check their pay stubs, tax forms, and other payroll info by themselves. The integration capabilities of payroll software also help by linking with other business systems like accounting and HR.
The benefits of using automated payroll are huge. It saves the payroll team a lot of time by cutting out manual data entry. This means saving hours each pay period. Automated systems also reduce the chance of mistakes, avoiding fines from tax agencies.
Investing in payroll automation leads to big cost savings from payroll automation. These savings can go back into things like employee training, product growth, or better employee benefits. Automating payroll saves time and ensures correct, timely payments. This boosts morale and trust among employees.
“Payroll automation software has been a game-changer for our small business. It has streamlined our payroll process, reduced the risk of errors, and allowed us to focus on other critical aspects of our operations.”
– Jane Doe, Owner of ABC Consulting
Essential Features to Look for in Payroll Software
When picking the best payroll software for your small business, consider key features. These include automated payroll calculations, tax filing, direct deposit, and employee portals. Also, look for integration with accounting and HR systems, time-tracking, benefits admin, and mobile access.
Choose a payroll solution with clear pricing, growth potential, and strong support. This ensures a smooth setup and ongoing use. By focusing on these important payroll software features, you’ll get the must-have capabilities for small business payroll. It will make managing payroll easier.
| Essential Payroll Software Features | Advanced Payroll Software Features |
|---|---|
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“Payroll errors are twice as likely in organizations that don’t use a third-party payroll solution.”
https://www.youtube.com/watch?v=D0qhgdimMqU
By thoughtfully evaluating payroll software functionality, you can pick the right important payroll software features. This ensures your small business has the must-have capabilities for small business payroll. It helps streamline operations, boosts accuracy, and supports growth.
Payroll Software Pricing and Plans
Choosing the right payroll software for your small business is important. The cost can range from $17 to $125 per month, with extra fees for each employee. Each provider has its own pricing and plans.
OnPay offers one plan for about $36 a month, plus $4 for each employee. QuickBooks Payroll has different levels, starting at $22.50 a month for basic and going up to $62.50 for Elite.
Patriot Payroll has a Basic plan for $10 a month and a Full-Service plan for $30 a month, with a $4 per-employee fee. Gusto has options from $19 to $149 a month, depending on what you need.
When looking at payroll software pricing, think about what your business needs. Consider how many employees you have, if you need HR and benefits tools, and what kind of support you want. By comparing payroll software plans, you can find the best deal for your business.
Integrating Payroll Software with Other Business Tools
Linking your payroll software with tools like accounting, HR, and time-tracking can really help small businesses. It makes managing data easier, improves reports, and boosts efficiency.
For example, payroll and accounting software can work together. This means payroll info goes straight to your financial records, cutting down on mistakes and making reports more accurate. Also, payroll and HR systems can make hiring, managing benefits, and tracking leave easier.
When picking payroll software, find one that integrates well with other business tools. This way, you can make your workflows smoother and operations more efficient.
| Payroll Software | Pricing | Key Integrations |
|---|---|---|
| Gusto | Starts at $40 per month | Accounting, HR, Time Tracking |
| QuickBooks Payroll | Starts at $15 per month | Accounting, Time Tracking |
| Patriot Software Payroll | Starts at $17 per month | Accounting, HR |
By linking your payroll with other tools, you can make your business run smoother. You’ll cut down on manual work and get insights to help you make smart choices for your business.
“Integrating payroll software with other tools enhances efficiency and reduces manual data entry.”
Conclusion
In conclusion, small businesses in the United States have many top-notch payroll software options in 2023. Each one has special features and benefits. For example, Gusto offers everything in one place, while OnPay is great for restaurants and hospitality.
When picking payroll software, think about your business’s size and needs. Look at the features, cost, and how it works with other business tools. The right software can make your business run smoother, keep you in line with the law, and help you focus on what you do best.
The best payroll software for small businesses in 2023 has been summarized. It shows what each option does well and what it might not do as well. Look at automation, support for the law, and how well it works with other tools. This will help you find the best payroll solution for your business.
FAQ
What are the top payroll software options for small businesses in 2023?
Forbes Advisor Small Business team recommends Gusto Payroll, QuickBooks Payroll, OnPay Payroll, Patriot Payroll, and RUN Powered by ADP for small businesses in 2023. These solutions are chosen for their pricing, service, features, and support.
What is payroll software and how does it benefit small businesses?
Payroll software helps automate employee wages, tax withholding, and payments. It’s cloud-based and has portals for employers and employees. This software saves time, reduces errors, ensures tax compliance, and simplifies business operations.
What are the key features of Gusto Payroll, the best overall payroll software for small businesses?
Gusto Payroll offers payroll, HR, and benefits tools starting at per month plus per employee. It includes unlimited payroll runs, tax filing, employee onboarding, and mobile access. It also works with popular accounting and time-tracking tools.
Why is QuickBooks Payroll the top choice for small businesses using QuickBooks Online for accounting?
QuickBooks Payroll works well with QuickBooks Online, making payroll data easy to sync with accounting. It has plans starting at per month plus per employee. Features include automated tax filing, next-day direct deposit, and HR support.
What makes OnPay Payroll the best option for small businesses in the restaurant and hospitality industries?
OnPay Payroll is great for restaurants and hospitality businesses. It costs per month plus per employee. It offers payroll, HR, and benefits tools designed for these industries, like handling hourly wages, overtime, and tips.
Why is Patriot Payroll considered the best cheap payroll software for small businesses?
Patriot Payroll is great for small businesses on a budget. It costs per month plus per employee. It has key payroll features like unlimited runs, tax filing, and QuickBooks integration. It’s a reliable, affordable option for small businesses.
What factors should small businesses consider when choosing the right payroll software?
Small businesses should think about their payroll needs, workforce size, and unique requirements. They should look at the software’s features, pricing, and how it integrates with other tools like accounting and HR systems.
What are the key benefits of using payroll software for small businesses?
Payroll software automates payroll, saving time and reducing errors. It ensures accurate payments, handles taxes, offers employee portals, and integrates with business tools. This streamlines operations.
What are the essential features to look for in payroll software for small businesses?
Key features include automated payroll, tax filing, direct deposit, employee portals, and integration with accounting and HR systems. Additional features like time-tracking, benefits administration, and mobile access are also valuable.
How much does payroll software typically cost for small businesses?
Payroll software costs range from to 5 per month, with extra fees per employee. Pricing varies by provider, based on employee count, HR and benefits needs, and support level.
How can payroll software integrate with other business tools for small businesses?
Top payroll software integrates with tools like accounting, HR, and time-tracking. This integration improves data management, reporting, and operational efficiency. Small businesses should choose software with strong integration capabilities.