INTRODUCTION
There are many payroll systems for small business, but the one that is getting popularity these days is Payroll System for Small Business Free. The software has been created by our own developers and you can enjoy many features such as- Complete Accounting, Instant Payroll, Year-End Report and more.
Meet the best Free Payroll Software for small business: Payroll System Free . Yes, it is one of the best online payroll services I have used. Being a small business owner, I am always looking into some good financial management software that’s not only easy to manage but also is free. In this article, I will be reviewing this software in detail and telling you just how I like it.
Are you tired of manually entering pay information into spreadsheets? Payroll is not easy. There are many payroll procedures that are novel and must be followed correctly if your business is to remain compliant with state and federal laws as well as the Internal Revenue Service (IRS). One way to keep on top of this constantly changing environment is to consider a payroll system.
An intuitive payroll process is particularly important for small business owners who have no room for error when they need to pay their employees. Small businesses, therefore, require a payroll option that has a great balance of features and a price point that doesn’t break the bank.
Feature-rich and cheap payroll software makes processing payroll easy, but it’s not as simple to quickly find the right option if you run your own small business. Thankfully, these days, business owners have a lot of options when it comes to inexpensive payroll software that still makes it easy to navigate taxes and benefits and pay employees on time.
Make your next payroll software purchase more informed with our list of the cheapest payroll services that deliver benefits small business owners are after.
Learn More About Our Top Picks
| Company | Best For | Next Steps |
|---|---|---|
| Gusto | Best for small businesses overall. | Start TrialRead More |
| Square Payroll | Best for foodservice and retail businesses. | Visit SiteRead More |
| OnPay | Best for business owners on multiple devices. | Visit SiteRead More |
| SurePayroll Not Yet Rated | Best for small businesses dedicated to security. | Visit SiteRead More |
| Patriot Payroll | Best for quickly growing small businesses. | Visit SiteRead More |
Read more below to learn why we chose these options.
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5 Best & Cheapest Online Payroll Services
These five cheap payroll services also happen to be some of the best. From payment options and tax filing to direct deposits and more, these payroll services are great choices for small businesses. Each of these payroll software providers offers the necessary features, plus some extras, to satisfy nearly all payroll needs.
1. Gusto
Best for small businesses overall.
When it comes to cheap and user-friendly online payroll services that still offer lots of features, Gusto reigns supreme. Gusto payroll software’s many features include a simple dashboard that displays upcoming payroll dates and deadlines, support for off-cycle payroll schedules and bonuses, and employee and contractor management to account for various deductions, earnings, and garnishments. Gusto’s four affordable plans are paid every month: ‘Basic’ starts at $19/mo and $6 per person; ‘Core’ at $39/mo and $6 per person; ‘Complete’ raises the per-person rate to $12/mo; and the top-tier ‘Concierge’ plan comes in at $149/month plus a rate of $12 per person for larger businesses that still want payroll software with competitive rates.
Gusto’s integrations with other popular software like TSheets, Xero, and QuickBooks allow for more advanced features such as time-tracking for contractors with multiple pay rates or job-costing calculations. With 60 integrations and an API for software developers, Gusto can cover everything from accounting and expense tracking to POS and project management. These integrations, as well as the core features that ship with Gusto’s software, are easy to set up and use for a high level of user-friendliness, which we discuss in more detail in our Gusto review. To keep calculations and the information it stores secure, Gusto uses 256-bit SSL Encryption, firewalls, and multifactor authentification as well as physical security measures to protect its data center such as anti-fraud measures.
Gusto receives high praise from users and maintains a rating of 4.7/5 stars on Capterra (based on 2,700+ ratings) and 8.8/10 stars on TrustRadius (based on 100+ ratings). Among the user reviews that do bring down Gusto’s average rating, complaints often center around a relative lack of reporting and time tracking capabilities compared to other online payroll services. The pros and cons of Gusto include:
Pros
- Transparent pricing across all main plans
- Integration options that enable many payroll features
- Modern data security standards like MFA and 256-bit SSL encryption
Cons
- Limited reporting
- Limited time tracking
2. Square Payroll
| Square Payroll | Visit SiteRead our Review |
|---|
Best for foodservice retail businesses.
Foodservice and retail business owners who invest in their brick-and-mortar locations, as well as their online stores, should be eyeing Square’s payroll solution with interest. Square Payroll integrates with the Square POS software and its credit card processing services to create an all-in-one online payroll service that costs only $29/mo with a $5 per-employee fee and no flat subscription price. Restaurants and retailers who already use Square can look forward to an easy setup as well as multiple benefits from Square’s integrations and equipment such as tip calculations, timecard syncing, and even employee management from mobile devices.
When it comes to crunching numbers, Square Payroll makes things much quicker with automation. Automated tax management means that business owners with their hands full can sit back while Square automatically calculates withholdings and payment amounts. Square also automates its tax submissions to federal and state contacts so that businesses don’t forget about deadlines and incur fees. Square Payroll takes care of quarterly and year-end filings as well, as long as you remember to keep your business and employee information up-to-date in your software. The payroll software protects the information it processes with industry-leading data security and privacy standards that include HIPAA and PCI compliance.
User reviews tend to praise Square Payroll and its ease of use, especially for restaurants and retailers who already use Square, as well as its transparent and straightforward pricing. Square’s positive reception is reflected in its 4.6/5 star review on Capterra (based on 500+ reviews), which we cover in more detail in our Square Payroll review. Square Payroll isn’t without fault, though, and limits owners who are looking for a more expansive set of payroll functions like benefits administration, reporting, and schedule management for larger businesses.
The pros and cons of Square Payroll include:
Pros
- Easy integration with the Square POS
- Automated tax support and filing
- HIPAA and PCI-compliant security standards
- Huge amount of integrations with Square equipment
Cons
- Limited features for larger businesses
- A relatively small range of payroll functions
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3. OnPay
| OnPay | Visit Site |
|---|
Best for business owners on multiple devices.
OnPay offers arguably the best mobile experience for businesses that need features for eCommerce as well as in-person customer experiences. OnPay’s features such as unlimited payroll runs, employee self-service portals, and time management options are all available through a sole service plan that costs $36/mo with a $4 monthly per-person fee. OnPay organizes payroll processing for small businesses with its core set of multi-state payroll services that come at no extra cost to business owners and offers QuickBooks/OnPay integrations to further consolidate accounting and payroll tasks on multiple devices.
OnPay’s online platform complements its availability on different devices with a high level of usability and easily navigable custom fields and forms that are backed up by industry-standard SSL high-grade encryption connected to a 24/7 data facility. The high praise that Onpay receives for its mobile experience, intuitive online platform, and strong customer support contribute to its average score of 4.8/5 on Capterra (based on 300+ reviews) and is why OnPay made it into our article, The Best Payroll Software For Small Businesses. OnPay’s rating is slightly brought down by complaints from businesses about the single service plan option and lack of scalability for larger businesses. The pros and cons of OnPay include:
Pros
- Strong online and mobile platform
- A single service plan offers a relatively high amount of features
- Good customer support
Cons
- Poor scalability for larger businesses
- Mobile version is limited compared to desktop version
4. SurePayroll
| SurePayroll Not Yet Rated | Visit SiteRead our Review |
|---|
Best for small businesses dedicated to security.
Among the simpler and more straightforward online payroll systems, SurePayroll is the go-to choice for small businesses that don’t need lots of bells and whistles. What SurePayroll lacks in advanced features, though, it more than makes up for with a user-friendly dashboard from which business owners can access core modules for payroll runs and reporting, pay stub management, and time tracking. SurePayroll also integrates easily with popular software like Xero and QuickBooks, which augments its relatively sparse set of core features and consolidates payroll and accounting calculations for businesses. SurePayroll makes itself a competitive option in its price range, currently $29/mo and $4 per person, although this pricing can be difficult to find as SurePayroll doesn’t publish its prices online.
SurePayroll gets the job done when it comes to straightforward processing with full tax support, and at its current price, this online payroll software ranks among the least expensive options available. Where SurePayroll truly shines, and which contributes to its average Capterra review of 4.2 (based on 200+ reviews) and Trustradius review of 8.2/10, is its dedication to security, which we discuss in more detail in our SurePayroll review. User reviews cite SurePayroll’s dedication to data security which is evident in penetration testing and annual audits, in addition to more standard security measures like double-encryption of data and virus and malware detection. Additional praise points to SurePayroll’s helpful customer service which makes it doubly simple to run payroll and pay payroll taxes on time. The pros and cons of SurePayroll include:
Pros
- Impressive data security protection methods and standards
- Easily navigable user dashboard with essential payroll processing features
- Strong tax support for small businesses
Cons
- Non-transparent pricing
- A relatively limited set of features without software integrations
5. Patriot Payroll
| Patriot Payroll | Visit SiteRead our Review |
|---|
Best for quickly growing small businesses.
Patriot Payroll’s solid range of features aims to streamline payroll for small and growing businesses. Business owners can calculate multiple employee pay rates, track employee hours worked (as well as sick and leave days), and offer their employees direct deposit payments that don’t come at an extra cost. QuickBooks/Patriot Payroll and Workforce.com/Patriot Payroll integrations further enhance payroll processing with expense sorting by tax categories and advanced scheduling, time, and attendance. For quickly growing small businesses, Patriot Payroll’s fast onboarding and handling of payroll setup and employee data entry are perfect for busy business owners.
Patriot Payroll is an affordable option for small businesses looking for online payroll services. It starts at $10/mo with a per-person fee of $4 through its ‘Basic’ plan. Patriot Payroll’s ‘Full Service’ plan starts at $30/mo to include options for tax filing and depositing while maintaining the same per-employee rate. However, even at its highest plan, the software lacks some typically standard features such as benefits administration, time-keeping, and extra filing options for 1099 employees (this is only the case at the ‘Basic’ level, though). Overall, Patriot Payroll is highly praised on Capterra with an average rating of 4.8 (based on 2,600 reviews) by small businesses hungry to scale their operations with a price-conscious and cheap payroll service. The pros and cons of Patriot Payroll include:
Pros
- Two payroll plans offer flexibility for rapidly growing businesses
- Integrations with popular software augment feature set
- Fast onboarding and new employee data entry process
Cons
- Limited features with ‘Basic’ service plan
- Poor scalability for large businesses
Online Payroll Services FAQs
How much do payroll companies cost?
The payroll software covered in this post costs anywhere from $10/mo (Patriot Payroll’s ‘Basic’ Plan) to $149/mo (Gusto’s ‘Concierge’ plan). Per-person monthly fees among these online payroll services range from $4/mo to $12/mo. What is the cheapest payroll company for under ten employees?
Gusto’s four flexible plans for salaried, W-2 employees make it our pick for the cheapest payroll company with software designed for under 10 employees. What services can payroll companies provide?
Payroll companies provide services to calculate the amount that business owners owe their employees and help submit taxes on time. Payroll services can also help businesses manage employee time off, hours worked, and benefits administration. What payroll software is the easiest to use?
We think Gusto is the easiest payroll software to use based on the flexibility and range of features its multiple plans offer.
In Summary: 5 Best & Cheapest Online Payroll Services
- Gusto: Best for small businesses overall.
- Square Payroll: Best for foodservice and retail businesses.
- OnPay: Best for business owners on multiple devices.
- SurePayroll: Best for small businesses dedicated to security.
- Patriot Payroll: Best for quickly growing small businesses.
How to do payroll taxes manually
Payroll taxes are federal, state and local taxes withheld from an employee’s paycheck by the employer. They include Income Tax, Social Security, and Medicare. In order to properly calculate what your payroll tax should be, you need to know the current tax rates. For example, the Social Security tax for 2020 is 6.2% and the Medicare tax rate is 1.45%. The percentages are determined on a yearly basis.
If you want to know how to process payroll yourself, read below.
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How to process payroll yourself
Summary: Doing your company’s payroll on your own costs less, but is time consuming and prone to errors.
If you’re tax savvy, you may be able to take on a DIY approach to paying your employees. But given all the payroll mistakes you can make (and nasty fines you can incur as a result), make sure you’re completely comfortable with everything you need to do before you dive in.
To get started:
Step 1: Have all employees complete a W-4 form. To get paid, employees need to complete Form W-4 to document their filing status and keep track of personal allowances. The more allowances or dependents workers have, the less payroll taxes are taken out of their paychecks each pay period. For each new employee you hire, you need to file a new hire report. Note that there is a new version of the Form W-4 for 2020, so this is the form you should have new hires fill out starting January 1, 2020.
Step 2: Find or sign up for Employer Identification Numbers. Before you do payroll yourself, make sure you have your Employer Identification Number (EIN) ready. An EIN is kind of like an SSN for your business and is used by the IRS to identify a business entity and anyone else who pays employees. If you don’t have an EIN, you can apply for one here on the IRS site. You may also need to get a state EIN number; check your state’s employer resources for more details.
Step 3: Choose your payroll schedule. After you register for your Employer Identification Numbers, get insured (don’t forget workers’ compensation), and display workplace posters, you need to add three important dates to your calendar: employee pay dates, tax payment due dates, and tax filing deadlines (read more about basic labor laws here).
Step 4: Calculate and withhold income taxes. When it comes time to pay your employees, you need to determine which federal and state taxes to withhold from your employees’ pay by using the IRS Withholding Calculator and your state’s resource or a reliable paycheck calculator. You must also keep track of both the employee and employer portion of taxes as you go.
Step 5: Pay payroll taxes. When it’s time to pay taxes, you need to submit your federal, state, and local tax deposits, as applicable (usually on a monthly basis).
Step 6: File tax forms & employee W-2s. Finally, be sure to send in your employer federal tax return (usually each quarter) and any state or local returns, as applicable. And last but not least, don’t forget about preparing your annual filings and W-2s at the end of the year.
Note: This is not an exhaustive list of your responsibilities as an employer. For advice specific to your business, be sure to go over federal and state requirements or consult with a professional.
Alternative 1: Use a payroll service
Summary: Going with a small business payroll provider is low-to-medium cost and reliable.
Don’t worry if the DIY method is not for you, payroll services make it easier for small business owners to pay their employees and get back to their core business functions.
Most payroll services calculate employee pay and taxes automatically and send your payroll taxes and filings to the IRS and your state’s tax department(s) for you. With a full-service provider like Square Payroll, you can even keep track of hours worked, import them directly to your payroll, and pay employees by direct deposit.
Here’s how it works:
How to process payroll with a payroll service:
Just like with the DIY option above, you need to have all your employees complete a Form W-4 and find or register for Employer Identification Numbers.
From there:
Step 1: Choose a full-service payroll provider. If you’re not sure how to do payroll yourself, use payroll software that reduces the risk of errors or fines. Many payroll processing services, like Square Payroll, handle your payroll taxes, filings, new hire reporting for you, and allow you to complete payroll online. Sign up takes minutes — so you can quickly start doing your own payroll the same day you sign up.
Step 2: Add your employees. You need to set up your employees before you process their payroll. Adding employees you’re paying for the first time is generally quicker; if you’re switching to a new payroll provider, then you also need to add your current employees’ year-to-date payroll information. Either way, you generally need to enter employee names, addresses, Social Security numbers, and tax withholding information. If you’re using Square Payroll and would like to pay employees using direct deposit, you can just enter your employees’ names and email addresses so they can enter their personal information themselves.
Step 3: Track hours worked and import them. The U.S. Department of Labor requires employers to keep track of wage records such as timecards for up to two years. Certain states may have longer retention requirements; be sure to check the specific requirements in your state. You can track time using your Square Point of Sale and import the timecards to payroll.
Step 4: Process your first payroll run. Click Send and you’re done!
Step 5: Keep track of your tax payments and filings. The IRS requires tax forms to be kept for three years. Certain states may have longer retention requirements; be sure to check the specific requirements in your state. With Square Payroll, you can find copies of your tax filings in your dashboard.
Alternative 2: Hire an accountant
Summary: Hiring an accountant is the most expensive option, but it’s reliable.
If you don’t want to learn how to do payroll yourself for your company or use a payroll service, consider hiring an accountant. A good accountant can process your payroll and make sure your tax payments and filings are taken care of. Check out these five tips that can help you find your ideal accountant.