In this guide, you will learn about best payroll software for midsize business and about payroll systems for small businesses.
Our payroll software was built with the small business owner in mind. We set out to create a high-quality but easy to use solution that could be deployed immediately, yet still have all of the features and capabilities needed for a midsize business. With just the right amount of automation, integrated HR data and financials, it’s an ideal payroll system for most — and certainly a great choice for the marketing managers among you who need their own job descriptions.
QuickBooks Payroll
QuickBooks is one of the most trusted payroll systems that can handle the hassles of your payday and taxes. You can schedule and run payroll automatically, so you don’t have to do it at the last minute and commit mistakes.
Let them handle the heavy tax calculations and then file and pay the payroll taxes on your behalf. If you want, you can always proceed with direct deposit on the same day. You can also manage employee benefits and HR using the same account. Manage everything in a single place and approve payroll only when everything is ready, and gain integrated employee solutions.
With QuickBooks, you are covered with tax penalty protection, where they will pay you up to $25,000 in case there’s an error in the tax submission process, and you get a payroll tax penalty. Leverage time tracking to approve timesheets, create invoices, and pay the team members on the go.
More features include HR support to set up the account, tax-time coverage, quick answers to your problems, workers’ compensation on account of on-the-job injuries, health benefits with affordable insurance packages, and 401(k) retirement plans.
They offer you all these amazing features even if you have a small budget. The plans start at $12.50/month.
ADP
Join ADP for payroll services backed by excellent solutions. It is one of the best payroll platforms that is built for your comfort and allows you to integrate with your business tools, including time tracking tools, ERPs, HR systems, and more, to simplify your work.
ADP provides automated online payroll to avoid costly errors, local, state, and Federal compliance, self-service app, employee data syncing support, and a lot more. It also offers mobile payroll and direct deposit solutions to integrate with attendance tracking and time. In addition, it can calculate the deductions in taxes, retirement contributions, and more. The ADP mobile solution even allows employees to access their payroll benefits and information at any place.
Request a quote according to your business size and needs and start managing your employee payment with a clear view.
One of the most well-known names in payroll and HR is ADP. The brand recognition and years of experience make it ideal for large companies or businesses that plan on growing pretty fast. The lowest-priced plan includes full-service payroll, direct deposit, reporting, and a self-service employee portal. More complete features and HR services come with higher-priced plans.Pros
- Scalable with several plan options
- Robust reporting, including customization
- Lots of HR add-ons
Cons
- Pricing isn’t transparent.
- Possibly too many features for small businesses
- Several fees, including for setup
Consider ADP’s main competitors and you’ll see why it’s typically used by larger businesses. ADP always has been more of a professional employer organization (PEO), but it has evolved to offer a payroll service that’s more suitable for small businesses. It’s a good idea to choose a payroll service that can grow with your business, though, if only so you can avoid migrating data to a different service in the future. ADP makes that possible with its ADP RUN service, which is best for businesses with fewer than 50 employees.
Unfortunately, it isn’t easy to compare the cost of ADP’s plans to other services because ADP doesn’t publish its plans’ pricing. You’ll have to fill out forms to get a custom quote for your business, which will be based on your needs and the number of employees your business has. We received a variety of quotes and setup fees for a 10-person business, which fell between $150 to $200 per month, making it an expensive choice compared to all the software on this list. Setup fees ranged from $25 to $200, but reps often offered to waive the fee if we signed up immediately.
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 pricing
Gusto
The smart and easy-to-use payroll system of Gusto can be your next payroll software no matter what your business size is. Process payments manually or schedule them through Autopilot mode in a few clicks.
They calculate all the federal, state, and local payroll taxes accurately through e-sign, e-tax, and e-file technologies and pay them automatically. Gusto also helps in reporting new employees to the government, so you stay compliant with the laws. They also offer child-support garnishments and can adjust wages automatically to stay compliant with FLSA Tip credits.
Gusto offers flexible features such as Gusto debit card to access money easily and net-to-gross calculations (which makes it easy for bonuses). Go paperless with direct deposits, customize pay schedules according to your team members’ needs, and run unlimited payrolls. You can also add pre-tax deductions for benefits or go for post-tax for garnishments.
Use the software to support both salaried and hourly employees, pay your contractors through Gusto, and let it file and automatically send the taxes. Perform easy cancellations, reimbursements, and process flexible payment frequencies monthly, bi-monthly, or bi-weekly.
Gusto offers advanced payroll features such as payroll reports, including payroll history, contractor payments, bank transactions, tax payments, and more, and allows you to download them. Integrate Gusto with time-tracking software like Xero and FreshBooks, accounting software, and sync expenses automatically.
Perform effortless employee management with direct deposits, conduct charitable donations where deductions will be made directly, and organize your employees and contractors well. Let employees access their paystubs easily in their Gusto account, payday emails, or Gusto’s Wallet app.
You can also add digital signatures, including your bookkeeper, accountant, and other team members. Run payroll anywhere using their user-friendly app, and you can also sync birthdays, payroll deadlines, and anniversaries in Outlook, Google Calendar, or iCal.
Workful
Workful is one of the newer online payroll services available, and it’s already making a name for itself with its top-notch customer support, which is why it’s our best customer service option. The geolocation time-clock tracking is easy enough to set up and ensures employees clock in and out from wherever you’ve set as appropriate. Also, employees can submit expenses through the app, so they can get reimbursed with the next payroll run.Pros
- Affordable
- Easy to use
- Includes employee expense tracking
- Offers geolocation time-clock tracking
- Includes document storage
Cons
- Limited reporting features
- Setup seems clunky
Workful is an affordable and easy-to-use application but is not without its restrictions. For example, it doesn’t do automatic tax filing for you. But, it gets our nod for best customer service because it provides fast guidance with easy-to-understand directions for a small business owner.
Workful is one of the easiest-to-use online payroll services available. The left-side main menu is intuitive, and the dashboard is clean. Setup is easy enough, with a tutorial that walks you through establishing your services. Once you have the time-clock set up, it’s kind of hands-off work for you. Employees simply use the app to clock in and out.
When it comes to integrations, Workful doesn’t seem to play well with others. You can integrate QuickBooks Online, but that’s it. Workful is trying to be a single software solution, which is why it offers built-in time tracking, document storage, and HR options. However, if you’re happy with your time-tracking solution, use a different accounting program, or need Indeed or Zapier integrations, Workful isn’t the right payroll software for you.
OnPay
OnPay offers an easy-to-use, affordable online payroll solution that’s ideal for small businesses. There are no hidden fees, which is important for a small business on a budget. The full-service payroll automates calculations and files your federal, state, and local payroll taxes. You’ll still have to run and approve payroll each time.Pros
- No hidden fees
- Easy to use
- Good value for the cost
Cons
- No same-day or next-day direct deposit
- No automatic payroll submission
Setting up payroll the first time in a new program can be time-consuming, but OnPay makes it easier with its setup wizard. Follow the steps and make sure your information is accurate, and you should be just fine. If you have data from another payroll service that you want to import into OnPay, you can get help with that, and OnPay guarantees accuracy.
At $36 per month and $4 per person per month, OnPay is a little more expensive than others, such as Workful and Payroll4Free. However, you get a lot more for the price, which makes it our top choice for small business owners trying to simplify payroll and human resources.
In addition to the full-service automated payroll you get from OnPay, you’ll also get filing for W-2 and 1099 workers at no extra cost. There’s also plenty of HR features to help you hire new employees, including offer letters, e-signing, automated onboarding, and document storage—features typically offered as add-ons or in top tiers from other services.
Conclusion
Finding the best payroll management system for your small business is a daunting task. There are so many different options out there, that it’s hard to know where to begin. In this post, I’ll go over things you need to consider when shopping around for the best payroll software for small business and midsize businesses, as well as show you my top picks in the market today.