Payroll software refers to the application designed to simplify the tasks of handling employee data that are vital for calculating payroll. These applications are equipped with features that simplify tasks that would normally require a significant amount of time. Through the use of payroll software, businesses are able to calculate accurate payroll quicker and with fewer errors.
Let’s look at some payroll software review to know which is performing better.
BEST OVERALL Gusto
Gusto offers three thoughtful tiers for small to midsize companies that need payroll with a few helpings of human resources (HR) features, making it the best overall choice. Each plan includes full-service automated payroll that’s suitable for almost any business, depending on needs.Pros
- Affordable, but good value
- Unlimited payroll runs
- Paid time off (PTO) tracking available
- Full-service payroll available in all states
- Basic reports included at all tiers
Cons
- Next day direct deposit available only in the Complete and Concierge plans
- Dedicated support only for Concierge subscribers
Gusto is similar to other payroll software solutions in that it offers direct deposit or checks to pay your employees. It also tracks and files federal, state, and local taxes automatically. What sets Gusto apart from the other options is that it offers a better plan for each tier that you go up. Rather than removing direct deposit for the low-priced plan, Gusto increases the convenience of direct deposit the more expensive your plan. For example, direct deposit takes up to four days to clear for the lowest plan, but the high-tier plans get next-day direct deposit.
The Core plan from Gusto costs $39 per month, and $6 per employee per month, making it one of the most affordable choices for a full-service payroll plan. The Complete plan is also $39 per month, but the cost per employee is $12, and you’ll be able to offer next-day direct deposit. The Concierge plan is $149 per month and $12 per person and offers dedicated support and compliance alerts.
BEST REPORTING Paychex Flex
Paychex Flex offers more than 160 reports for you to get a clear look at wages, taxes, turnover, and more. Paychex is our best reporting option because it checks almost all the boxes for what you’d want in payroll software when it comes to reports and data. It also automatically files your payroll taxes, ensures compliance, and includes integrations with important programs you also use, such as accounting and benefits apps.Pros
- 24/7 support
- Easy to use
- HR add-on options
- Robust reporting feature
Cons
- Hidden fees for setup & EOY tax docs
- Mixed reviews from users regarding support
There’s a lot to like about Paychex. The payroll software makes it easy to set up and run payroll, it automates the submission of federal, state, and local payroll taxes, and it offers plenty of upgrade options, which you may need as your business grows. Still, the basic reporting you get from Paychex could be worth the monthly fee alone, giving it the edge in this category. Plus, you’ll be able to add any other data field you’d like, thanks to custom fields, which is rare for small business online payroll services.
While the Paychex Flex Essentials plan is $39 per month and $5 per employee, it’s difficult to say how much Paychex will cost you for the more comprehensive plans—Paychex Flex Select and Paychex Flex Pro—unless you go through the process of getting a custom quote.
One of the most important aspects of a good online payroll solution is whether it integrates with software you already use. Paychex does integrate with QuickBooks and Xero accounting software, plus many health insurance and benefits apps, time tracking and attendance software, and HR software.
OnPay is the best payroll for new employers
Best for new employers with one employeeOnPay
4.0
- Starting at $36.00/mo. + $5.00/payee/mo.
Automatic payroll tax administration
Affordable insurance add-ons (in-house brokers)
Direct deposit, check, and debit card payment options
Data as of 11/5/21. Offers and availability may vary by location and are subject to change.
Like Gusto, OnPay is a straightforward payroll and HR program with a beautiful, easy-to-use platform. If you ask, OnPay can tailor its payroll services to your industry at no additional cost. And if you just hired your first employee and are still a little unclear on the payroll process, OnPay is a great fit. Its interface is extremely intuitive—but its experts also set up the software for free, then talk you through your first run.
OnPay further stands out from the crowd by offering key payroll services for free, namely automatic tax filing and end-of-year paperwork. Plus, thanks to its in-house team of insurance brokers, you pay just the premium with no integration fees.
While we love OnPay (as do its users), it’s not the best fit for businesses that want more perks and support as they grow. The base price ($36) and per-employee price ($4) never change—but neither do the features. If you’re hoping for scalable, comprehensive HR packages, you might consider Paychex or Gusto instead.ProsExtremely affordable full-service payroll
Comprehensive payroll tax administration at no additional cost
Solid employee benefits and insurance optionsCons
One plan only (limited scalability)Get Started with OnPayRead Our OnPay Review
ADP is the best payroll + HR provider
Best payroll with HR add-onsADP
3.5
- Starting price: Contact for quote
Automatic payroll tax administration (additional fee for some services)
Workers compensation and health insurance add-ons (additional fee)
Direct deposit, check, and debit card payment options
ADP is the biggest name in the world of PEOs, or professional employer organizations. But if your business isn’t big enough to warrant a PEO, RUN Powered by ADP distills ADP’s decades of HR expertise into an easy online payroll service with thorough HR add-ons.
All of ADP’s payroll system plans include direct deposit, automatic payroll tax filing, and W-2 submissions. It also goes heavy on the HR help. Even the cheapest plan, Core Payroll, includes HR perks like employee onboarding, health care compliance forms, and a regular HR checkup. And if you want more than the HR basics to support your growing team, ADP’s more expensive plans include employee background checks, ZipRecruiter assistance, and dedicated HR assistance.
In contrast to Gusto, OnPay, and QuickBooks Payroll, some of ADP’s basic payroll services cost extra, namely W-2 form filing. So how much does ADP payroll cost? Unfortunately, we don’t know, since ADP doesn’t list its payroll cost online. You have to contact the company directly to get a quote—useful if you want to build a custom package, but less useful if you’d rather not deal with a pushy sales rep.ProsDedicated HR and payroll assistance
Multiple customizable plans
Heavy focus on human resources supportCons
Additional fee for payroll tax administration
Additional fee for insurance add-ons
No transparent pricingGet Started with ADPRead Our ADP Review
Best Payroll Software for Contractors 360 OVERALL RATING
3.8 out of 5MONTHLY FEE$29 + $5/Payee and UpDIRECT DEPOSITTRIAL PERIODN/APRIORITY SUPPORTMORE DETAILSSEE REVIEW
Fourth in our Best Payroll rating, Square is the ideal choice for companies that only need to pay contractors. While this shouldn’t be a problem with any of the payroll software on our ratings, Square provides the most affordable option for paying contractors. Square offers one main payroll software plan for $29 a month and $5 per employee. However, if you only need to pay contractors, Square can handle your payroll needs for just $5 per person without the $29 monthly fee. It is also a great choice for seasonal businesses that don’t work every month of the year because Square doesn’t charge a fee for inactive months.
Read more in our full Square review.
360 OVERALL RATING
3.7 out of 5MONTHLY FEE$19.99 + $4/Payee and UpDIRECT DEPOSITTRIAL PERIOD2 MonthsPRIORITY SUPPORTMORE DETAILSSEE REVIEW
Also in fifth place, SurePayroll provides an affordable Self-Service payroll plan for $19.99, plus $4 per payee per month. If you want SurePayroll to file and pay your company’s federal and state taxes, you’ll need to go with its Full Service plan for $29.99 and $5 per employee per month. The Full Service plan also comes with an HR advisor and faster payroll processing (two days as opposed to four days for the Self-Service plan). You can also add on accounting and time tracking integrations and have SurePayroll file your local taxes for an additional fee.
Read more in our full SurePayroll review.
Best Payroll for Quick Direct Deposit360 OVERALL RATING
3.6 out of 5MONTHLY FEE$45 + $4/Payee and UpDIRECT DEPOSITTRIAL PERIOD30 DaysPRIORITY SUPPORTMORE DETAILSSEE REVIEW
Intuit QuickBooks is our No. 7 Best Payroll Software. If your employees are in need of quick direct deposit, Intuit QuickBooks’ three tiers of payroll software all offer some of the fastest options. While most companies in our ratings provide four-day direct deposit and shorter periods with their higher-tier plans, Intuit QuickBooks basic Core plan provides next-day direct deposit. The higher-tier plans, Premium and Elite, even give you same-day direct deposit, the fastest option in our ratings.
Read more in our full Intuit QuickBooks review.
Conclusion
Payroll processing is a role that is often taken for granted. This makes it a department that companies outsource, or try to simplify as much as possible. However, there are certain stages in the payroll process that require proper attention. And, when mishandled, the consequences can result in hard-hitting fines and penalties from the IRS.