With the advent of automation, new techniques are getting introduced day in and out. One such technique is the Payroll software but this is basically different type of formats to process payroll accounting. From preparing new paychecks to handling tax calculations the Payroll software acts as a one-stop place for this stuff. This blog will help you know more about payroll software and their uses. Pays like a human by performing simple tasks that are labor intensive, check out this article and share it with others as well.
People are getting paid, whether in your own business or another. So it’s important to have payroll software at your business to keep track of all the money that is coming and going. Fortunately, there are some great options you can choose from. Here are the top 3 I would personally select from in the categories of budget, all-in-one vs software, mobile available, and bank supported.
Payroll Software for Employee – The Simple Solution to Payroll for Small Businesses.
Our payroll software is one of the most powerful tools we offer to help your business succeed. We believe that the best decisions we make for payroll are based on your business requirements. Our goal is not just to deliver the best payroll software but also to give you full guidance and support needed to help you manage your data, make payment and compensate your employees as smoothly and effectively as possible.
Get more from your HR and payroll system
Is people admin plaguing your passionate HR team? Are you frustrated with the lack of accurate data on your employees? Do you need a means of tracking budget, hours worked, productivity, efficiency and operations? Is your ability to focus on engaging, managing and paying your employees taking a back seat as a result? These are just some of the problems that we help HR and payroll professionals overcome every day.
With Natural HR, everything becomes easier. Admin is quickly automated, employees can self-serve, and because the software is cloud based, you’ll have access to all of your centralised data as beautiful reports anytime, anywhere. Natural HR also includes a fully compliant, fully integrated payroll solution that ensures costly mistakes in pay are a thing of the past.
A single system to run your entire HR operation
Transform the way you manage administration with a complete suite of HRIS/HRMS tools – everything you need to build a high performing HR function.
Easy-to-use HR and payroll software from the cloud
Simplify and automate your HR processes and give your employees and managers the power and capability to self-serve.
‘Return-on-HR’ customer success programme
Get all the support you need to make the most of your investment through our knowledge base and customer success team.
Join thousands of customers using our powerful HR software today
Automate your HR processes
Streamline repetitive people admin
Save time and adhere to your company’s processes with Natural HR’s workflows. You’ll get step-by-step tasks and notifications that are started automatically based on your set criteria and requirements. Whether authorising time-off, approving timesheets or concluding interviews, tasks are automatically assigned – and permission controls keep everything secure, ensuring the right people get access to the workflows relevant to them.Learn more
HR analytics and reporting
Gain key insight into employee information
You’ll be able to create stunning charts and tables to quickly make strategic business decisions. Discover the absence rate or an employee’s Bradford Factor, the cost of a department to headcount per site and historical reporting such as headcount at a previous date or the salary bill for the department at one location last year.Learn more
Payroll software
Faster, more efficient payroll
With data available from HR and payroll, any payroll changes such as new starters or salary changes can be included in one main pay run. You’ll be able to oversee and manage HR and payroll from one online, cloud based system, all as part of a single process. This includes building up to gross pay and automatically producing payslips, while ensuring complete compliance with HMRC standards.Learn more
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Webinars and events
HR Expert Webinar – Employer branding strategy for the FoW: Going beyond design and buzzwords
Organisational Identity and Future of Work strategist, Emily Mei Carter, outlined the process for defining your organisation’s identity through brand, culture and voice during significant periods of change.Watch now
Best Payroll Software of 2021
#1 Gusto
#2 OnPay
#3 Patriot
#4 Block (formerly Square)
#5 ADP
#5 SurePayroll
#7 Intuit QuickBooks
#8 Paychex
#9 Namely
(PeopleImages)
Compare the Best Payroll Software of 2021
Best Payroll Software of 2021
| Company | Rank | Monthly Fee | Trial Period | Learn More | |
|---|---|---|---|---|---|
| Gusto »4.3 out of 5 | 1 | $39 + $6/Payee and Up | N/A | View Plans » | |
| OnPay »4.2 out of 5 | 2 | $36 + $4/Payee and Up | 30 Days | View Plans » | |
| Patriot »4.0 out of 5 | 3 | $10 + $4/Payee and Up | 30 Days | See Review » | |
| Block (formerly Square) »3.8 out of 5 | 4 | $29 + $5/Payee and Up | N/A | See Review » | |
| ADP »3.7 out of 5 | 5 | $29 + $5/Payee and Up | 3 Months | View Plans » |
Compare Quotes for Payroll Software
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Best Payroll Software in Detail
Below is information on the companies in our rating of the Best Payroll Software of 2021. Follow the links in the companies’ names to read our full reviews and find the right payroll software for your business. Gusto »
View Plans
Best Payroll Software of 2021360 Overall Rating
4.3 out of 5 Monthly Fee$39 + $6/Payee and UpDirect DepositTrial PeriodN/APriority Supportmore detailsSee Review
Gusto comes in at No. 1 on our Best Payroll Software of 2021 rating. It offers three main payroll plans that all provide your company unlimited payroll runs, automatic tax filings, accounting and time tracking integrations, and the ability to automate your payroll calendar. At its base level, the Core plan, you will pay a monthly fee of $39, plus $6 per employee. Higher tiers offer additional features, including time management tools, employee surveys, human resources (HR) assistance, and dedicated customer support.
Read more in our full Gusto review. OnPay »
View Plans
Best Small Business Payroll Software of 2021360 Overall Rating
4.2 out of 5 Monthly Fee$36 + $4/Payee and UpDirect DepositTrial Period30 DaysPriority Supportmore detailsSee Review
OnPay is No. 2 in our Best Payroll Software rating but takes the No. 1 spot in our Best Small Business Payroll Software rating. It offers payroll software with simple straightforward pricing. OnPay’s single tier of service gives your company access to all of its features for a fee of $36 and $4 per employee per month. Automated tax filing and OnPay’s HR software are included in your monthly fee.
Read more in our full OnPay review. Patriot »
Best Payroll Software for Startups360 Overall Rating
4.0 out of 5 Monthly Fee$10 + $4/Payee and UpDirect DepositTrial Period30 DaysPriority Supportmore detailsSee Review
No. 3 in our Best Payroll Software rating and No. 2 in our Best Small Business Payroll Software rating, Patriot is a great choice for startups and small businesses on a budget. The least expensive payroll software on our ratings, Patriot only costs $10 a month and $4 per employee for its Basic Payroll plan. This is a great value for payroll software, and it allows you to run unlimited payrolls at any frequency without breaking the bank. However, you will need to upgrade your service to Patriot’s Full Service Payroll plan if you want it to take care of your tax filings.
Read more in our full Patriot review. Block (formerly Square) »
Best Payroll Software for Contractors360 Overall Rating
3.8 out of 5 Monthly Fee$29 + $5/Payee and UpDirect DepositTrial PeriodN/APriority Supportmore detailsSee Review
Fourth in our Best Payroll rating, Block (formerly 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, Block provides the most affordable option for paying contractors. Block offers one main payroll software plan for $29 a month and $5 per employee. However, if you only need to pay contractors, Block 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 Block doesn’t charge a fee for inactive months.
Read more in our full Block review. ADP »
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Best Variety of Payroll Options360 Overall Rating
3.7 out of 5 Monthly Fee$29 + $5/Payee and UpDirect DepositTrial Period3 MonthsPriority Supportmore detailsSee Review
ADP ties for the No. 5 spot in our rating. It offers a wide variety of payroll options with plans designed to meet the needs of small, medium, and large businesses. A total of nine payroll options are available, and the least expensive plan, Roll starts at $29 plus $5 per employee per month. Whether it’s a Roll or Run plan for your small business or a Workforce Now plan for your medium or large business, you’ll likely be able to find an option that meets your business’s needs.
Read more in our full ADP review. SurePayroll »
360 Overall Rating
3.7 out of 5 Monthly 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. Intuit QuickBooks »
Best Payroll for Quick Direct Deposit360 Overall Rating
3.6 out of 5 Monthly 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. Paychex »
View Plans360 Overall Rating
3.5 out of 5 Monthly Fee$59 + $4/Payee and UpDirect DepositTrial PeriodN/APriority Supportmore detailsSee Review
No. 8 in our rating is Paychex, which offers three tiers of payroll service. Its base tier is Paychex Go for $59 a month and $4 per payee. This is the most expensive base plan in our ratings, but it includes automated tax filing for your company’s federal, state, and local taxes. Paychex also offers two Flex plans; Paychex Flex Select and Paychex Flex Enterprise. You will need to contact Paychex for a custom quote for Flex plans, which add helpful features and services like a dedicated payroll specialist, numerous integrations, and a mobile app.
Read more in our full Paychex review. Namely »
Best Payroll/HR Software Combo360 Overall Rating
3.4 out of 5 Monthly FeeVariesDirect DepositTrial PeriodN/APriority Supportmore detailsSee Review
Rounding out our rating of the Best Payroll Software of 2021 is Namely in ninth place. Namely is unique in our payroll ratings because it’s an HR platform first. While many of the payroll software providers in our ratings include HR features or add-on HR support, Namely designed its software to meet medium-sized businesses’ HR needs, including payroll. With Namely, you tack on payroll to its HR Fundamentals plan that includes an employee directory, org charts, and onboarding tools. This makes it a great choice for businesses that are looking for a well-rounded software solution to help them with all of their HR and payroll needs.
Read more in our full Namely review.
Best Payroll Software for Small Businesses of 2021
Best Small Business Payroll Softwares of 2021 Features
| Company | Monthly Fee | Direct Deposit | W2 | 1099 | Federal, State, & Local Taxes | HR Add Ons | Learn More | |
|---|---|---|---|---|---|---|---|---|
| OnPay »4.2 out of 5 | $36 + $4/Payee and Up | View Plans » | ||||||
| Patriot »4.0 out of 5 | $10 + $4/Payee and Up | See Review » | ||||||
| Block (formerly Square) »3.8 out of 5 | $29 + $5/Payee and Up | See Review » | ||||||
| Intuit QuickBooks »3.6 out of 5 | $45 + $4/Payee and Up | See Review » |
When it comes to any business software, there is no one-size-fits-all solution. Every business runs differently and has its own set of unique needs. While Gusto is No. 1 on our Best Payroll Software of 2021 rating, it may not be the right payroll platform for your business.
With that in mind, we created a separate rating to help small businesses make informed decisions when choosing payroll software. Our Best Small Business Payroll Software of 2021 rating is derived from the providers that made our Best Payroll Software rating. We chose the top four providers that offer a great value at an affordable price, with the features small businesses need but without the price-tag-boosting add-ons that are better suited for large companies.
Read our Best Small Business Payroll Software rating or any of these payroll providers reviews to see if they might be a good choice for your small business.
What Is Payroll Software?
Payroll software is an internet-based technology that helps you manage your company’s payroll and has drastically changed the way in which companies approach paying their employees. Traditionally, payroll was left to the capable hands of a company’s human resources (HR) or accounting departments. These departments would keep detailed records of all employees, monitor their staff’s hours, write their workforce checks, and calculate and file the business’s taxes. However, this process takes a lot of time and leaves room for quite a bit of error, especially when the team members running payroll have other tasks on their plate. So it’s no surprise that we’ve seen modern companies switching over to payroll software to help ease the process for all involved. Even the U.S. Internal Revenue Service (IRS) says that outsourcing payroll duties can be a sound business decision, stating that “many employers outsource some or all of their payroll and related tax duties (i.e., withholding, reporting, and paying social security, Medicare, and income taxes) to third-party payroll service providers. Third-party payroll service providers can help assure filing deadlines and deposit requirements are met and greatly streamline business operations.” And Deloitte’s recent Payroll Operations Survey reports that 89% of respondents use online payroll self-service functionality to run their company’s payroll.
Using payroll software allows you to work within a system designed to ease the payroll process. When you first get payroll software for your company, you will input information on your company, its finances, and your employees. Setting up your payroll calendar, and oftentimes automating the process, allows you to quickly run your business’s payroll with a few clicks on your payroll provider’s website or within its mobile app. Saving you loads of time and helping you get back to focusing on the other tasks involved in running your business. Many payroll systems can also integrate with accounting and time tracking software, this helps to create a unified approach to your company’s payroll and eliminate some of the room for error in manually plugging in your employee’s hours each pay period.
Best Payroll Software of 2021 Features
| Company | Rank | Monthly Fee | Direct Deposit | W2 | 1099 | Federal, State, & Local Taxes | HR Add Ons | Learn More | |
|---|---|---|---|---|---|---|---|---|---|
| Gusto »4.3 out of 5 | 1 | $39 + $6/Payee and Up | View Plans » | ||||||
| OnPay »4.2 out of 5 | 2 | $36 + $4/Payee and Up | View Plans » | ||||||
| Patriot »4.0 out of 5 | 3 | $10 + $4/Payee and Up | See Review » | ||||||
| Block (formerly Square) »3.8 out of 5 | 4 | $29 + $5/Payee and Up | See Review » | ||||||
| ADP »3.7 out of 5 | 5 | $29 + $5/Payee and Up | View Plans » |
How Does Payroll Software Work?
Payroll software works by giving you a user-friendly interface to run your business’s payroll. When you first set up your account, you will link your company’s banking information and employees’ bank accounts to your payroll software. Oftentimes you will also have the opportunity to link any accounting or time tracking software that your company uses. Once you have finished providing the payroll software with all of the necessary information on your business you can easily run your payroll calendar and many providers allow you to automate the process. From the payroll provider’s website or mobile app, you can process payroll with a few simple clicks and ensure that your staff’s wages are directly deposited into their bank account on payday. Quick direct deposit is a must for any good payroll software. According to the Getting Paid In America survey, 93.87% of respondents receive their pay through direct deposit.
Payroll software can also help you with your taxes. With your payroll software you can calculate your business’s taxes, and many providers have options to automatically file and pay your federal, state, and local taxes. This can save you countless hours of work, because Intuit QuickBooks reports that business owners spend nearly five hours managing payroll taxes each pay period. Your payroll provider will also generally send out W2s and 1099s to your employees come the end of the year when it is time for them to file their taxes.
Other payroll software features include onboarding tools, benefits administration, and HR service that can help you save time and manage your business.
What Should I Look For In Payroll Software?
Best Payroll Software of 2021 Features
| Company | Rank | Monthly Fee | Direct Deposit | W2 | 1099 | Federal, State, & Local Taxes | HR Add Ons | Learn More | |
|---|---|---|---|---|---|---|---|---|---|
| Gusto »4.3 out of 5 | 1 | $39 + $6/Payee and Up | View Plans » | ||||||
| OnPay »4.2 out of 5 | 2 | $36 + $4/Payee and Up | View Plans » | ||||||
| Patriot »4.0 out of 5 | 3 | $10 + $4/Payee and Up | See Review » | ||||||
| Block (formerly Square) »3.8 out of 5 | 4 | $29 + $5/Payee and Up | See Review » | ||||||
| ADP »3.7 out of 5 | 5 | $29 + $5/Payee and Up | View Plans » |
Most businesses will benefit from investing in reliable payroll software. Deloitte’s Payroll Operations Survey found that 39% of organizations currently use a cloud-based payroll solution, and the top three areas of improvement associated with their payroll software are compliance, accuracy, and integrations.
Payroll software is a useful tool to ensure your taxes are filed correctly. In addition to calculating your taxes, payroll software will file and pay your federal, state, and local business taxes, though it typically costs extra to file and pay using your software. Purchasing payroll software that automatically files your taxes is a smart decision for companies that do not have an internal accounting team to manage business taxes. Most software providers guarantee accuracy and compliance, which can give business owners peace of mind that they won’t be required to pay additional taxes or penalties come tax season.
Payroll software also integrates with other business applications, such as time tracking software, to ease the process and leave less room for error. The American Payroll Association found that organizations using software with both timekeeping and payroll capabilities were 44% more likely to have a low rate of payroll error. Additionally, it reports that “49% of U.S. workers will leave a job after experiencing just two problems with their paychecks.”
An important payroll software feature is direct deposit. While all payroll companies provide direct deposit, the number of days for deposit varies. Intuit QuickBooks is our Best Payroll for Quick Direct Deposit, providing same-day deposits. In comparison, other companies like Block and OnPay take four days to deposit your staff’s wages after processing your payroll. Be sure to pick a company with a direct deposit timeline that meets your payroll calendar needs.
You may also be interested in expanding your payroll software’s capabilities with HR add-ons. Not all providers offer HR add-ons and the price of optional HR features can add up quickly. If your business could benefit from HR features, consider Namely, our Best Payroll/HR Software Combo.
How Much Does Payroll Software Cost?
The payroll software companies in our ratings all work on a pricing structure with a base monthly fee plus a smaller additional fee per employee. For instance, our least expensive base plan is Patriot’s Basic Payroll plan. It costs $10 plus $4 per payee per month. Our most expensive base plan is Paychex Go for $59 plus $4 per payee per month.
“31% of business owners are concerned about handling all the financial and operational tasks themselves”
For businesses trying to cut costs, the initial buy-in may be the biggest hurdle in using payroll software. However, the monthly cost of payroll software is most likely worth it. A recent QuickBooks study reports that “31% of business owners are concerned about handling all the financial and operational tasks themselves” and 25% feel unprepared for tax season.
Payroll software helps you calculate your taxes, and with many plans, automatically files and pays your federal, state, and local business taxes for you. This can save you time and money while avoiding costly tax errors.
CONCLUSION
At Employee, we’re passionate about helping employers get the most from their staff. We’re also passionate about getting great value from our software so we try to use the best products available.
They say picture paints a thousand words. This especially holds true in the field of accounting. While an accountant’s job is to keep all of your expenses, in a sense, it can also be said that they are effectively the paintbrush that ‘paints’ your company’s expense reports. It doesn’t take a genius to figure out how much money is left to distribute over how many employees at the end of each month when you have accurate and timely accounting records. Likewise, not having good records could mean that there are holes in your company’s financial structure, which could open up the door for fraudsters and other negligent business practices that could cost you hundreds if not thousands of dollars.