Best Payroll Software for Small Businesses

As a small business owner, you will need to pay employees; Therefore, you need payroll software for small businesses. Before paying the employees, you have to consider filling out payroll forms (I-9 and W-4 for employees and W-9 for contractors). As an employer, you need to decide whether employees should be paid hourly or salaried and their pay frequency: weekly, biweekly, semi-monthly, or monthly. You have to track employee hours, withhold taxes, and pay taxes on time. The reason why business owners turn to payroll service providers is to ensure that payroll taxes are paid properly, taxes are filed properly and accurately, and taxes are remitted to the appropriate agency on time. Apart from these, payroll even allows employees to be paid by direct deposit, track personal information like start dates, termination dates, and hourly and salaried wages, and integrates with accounting software applications for easy tracking of payroll expenses.

Things To Be Considered In Payroll Software

Features offered

While most payroll software provides similar services, in some cases these services are included in the base price, but in other cases, they are available at an additional cost. HR services are beneficial to a smaller business with no dedicated HR staff, but you have to pay extra for HR services.

Ease of Use

Small business owners require easy-to-use payroll software.

Affordability

The software must be affordable for small businesses because of the reason it is purchased. While others provide a basic plan, some of the applications provide extra features with additional costs.

Access to Benefit Management

If you are providing benefits to employees, then your software can access benefit management features like standard benefit management access to affordable health, life, and disability insurance plans.

The Best Payroll Software For Small Businesses

OnPay

OnPay is designed for small and midsize businesses. Its features include system navigation and industry-specific features for restaurants and other businesses that need to account for employee tips. It is an easy employee setup. OnPay plans include unlimited payroll runs, complete mobile accessibility from any device, direct deposit, and multistate payroll capability, along with employee onboarding and self-service capabilities. No separate mobile app is required, as the application works on any application and easily pays both employees and contractors. OnPay also provides online HR resources like offer letters, PTO approvals, compliance tools, and a variety of HR templates that can be used in various situations. On Pay charges $36 per month and $4 per employee each month.

QuickBooks Online Payroll

This software integrates with QuickBooks Online Accounting and can be used as a stand-alone payroll software application. It can be used for 50 employees. It is most affordable for businesses with 15 employees. This software offers an onboarding solution for all new employees. The application offers unlimited payroll runs, direct deposit of salaries, and tax reporting at the end of the month. This payroll offers HR features, but those are only available for Premium and Elite Plans with time tracking capabilities. QuickBooks Online Payroll begins at $22.50 per month, while its Premium Plan starts at $37.50 per month and the Elite Plan at $62.50 per month, with $4 per employee added to the base price.

Gusto Payroll

This is designed for small businesses like the hospitality industry, offering tools and resources that make tracking different wage levels and tip amounts a simple task. Gusto assists new users with initial payroll setup processes to get up and running quickly. It offers easy system navigation, which includes new hire reporting, flexible payroll schedules, unlimited payroll runs, contractor payments, and multistate payroll capabilities. Gusto can be accessed from any device; therefore, no mobile app is necessary. This application includes employee onboarding, complete tax reporting, and remittance. Gusto also offers HR resources but with a more expensive plan. Gusto offers integration options with a variety of third-party applications.

Gusto offers four plans: basic, which is designed for one or two employees; core,  best suited for small businesses; complete, for growing businesses; and concierge, which is best for larger businesses with HR needs. Gusto's basic plan has a base price of $19 per month with a $6 per employee fee; the Core base plan starts at $39 per month with a $6 per employee fee; Complete is $39 per month with a $12 per employee fee; and Concierge has a hefty price tag of $149 per month plus a $12 per employee fee.

SurePayroll

It is designed for small business owners and includes a special version for those paying domestic staff. It is best for small businesses with 10 employees or less. SurePayroll automates the entire payroll process, a major bonus for already overworked business owners. This software offers direct deposit, new employee reporting, and time attendance tracking. The application includes complete tax reporting and remittance, with a mobile app available for both iOS and Android devices. This software integrates with third-party integrations. It offers an easily navigable payroll dashboard that provides access to payroll features. The application has simplified the payroll entry process, minimizing the amount of data entry needed. It has two plans: self-service, which does not include tax reporting and filing, and full service, which includes a two-day payroll processing timeframe with access to HR resources and compliance posters. The self-service plan runs at $19.99 per month plus $4 per employee fee, while the full-service plan is $29.99 per month plus $5 per employee fee.

Paycor

Paycor is designed for small to midsize businesses, offering a payroll solution that is specifically designed for businesses paying 10 employees or less. Paycor offers a long list of payroll features like direct deposit, employee self-service options, and the ability to pay contractors. Paycor has a user-friendly dashboard that displays current payroll-related information. It has its own mobile app that is best suited for both iOS and Android devices, and it includes complete tax reporting and remittances. Paycor also has an HR resources plan in its two plans, and an onboarding feature is offered in the most expensive plan. Paycor offers easy navigation, with complete initial system configuration handled by Paycor. A pay grid is used to enter payroll data, and you can pay your employees by direct deposit, pay card, or check.

Paychex Flex

This software has three plans to choose from: Paychex Go for up to 10 employees, Select for 10 to 49 employees, and Enterprise for larger businesses. PayChex Flex provides easy system navigation from the end-user dashboard that displays current payroll information and offers easy access to system functions. The software includes a deposit and employee portal where tax forms, vacations, and balances are accessed.

Conclusion

There are many payroll software that are being used by organizations to pay their employees. These software solutions offer payroll services to small businesses by direct deposit, new employee reporting, and time attendance tracking. These software solutions have basic and advanced versions which come at different price tags. Some software even comes with an HR feature that has access to HR resources.