There are a wide range of systems out there but we have put together a list of the best payroll systems, including free payroll software for small business and payroll programs.
Do you have a small business? Are you interested, at some point, to implement a payroll system or software program for your company? You are in the right place. Our list of top payroll systems for small business is just what you need to help decide which payroll software programs are best for your company. Our list provides information and reviews on various payroll systems so that you can decide which is best for your business.
Wave.
Wave is a capable payroll tool that offers a majority of its key functionalities free of cost. You can leverage the software for advanced accounting solutions and expense management needs.
Best For:
Due to its value, this software option is perfect for freelancers and small businesses that can’t afford to pay subscription costs.
Key Features:
- Free: The accounting and payroll software is available free to use with no hidden charges and undeclared fees to pay
- Pay From Anywhere: It enables the employer to make payments from any geography through direct deposits and online pay stubs to avoid unnecessary delays
- Dashboard: Users can leverage the intuitive dashboard to transfer money via payroll services, tax forms, and pay stubs
Pros:
- It is capable of handling complex payment schemes
- The software handles the payment efficiently of both hourly and salaried employees
- Offer unlimited income and expense tracking
- Free receipt scanning, accounting and invoicing
- All the payroll data sync in real-time on the platform
- It comes with multi-currency capabilities and offers support to around 180 countries at present
- It generates automated reports including balance sheets and sales tax reports among others
Cons:
- Its smartphone application can only be used to generate receipts and invoice
- Several key features are missing, required for end-to-end automation of payroll system
- Credit note feature is absent
Cost:
Wave offers the majority of its features free of charge. However, if you want to buy its full-service plan, then it would cost you $20 per month.
Zenefits.
Zenefits is one of the market leaders in the payroll industry. The software is designed with the perspective of human resource professionals to ensure efficient payroll management and administrations. Moreover, it offers advanced tools that simplify the work and brings more accuracy and accountability within the system
Best For:
It is best for businesses that are looking for a free but capable tool.
Key Features:
- Affordable Care Act Compliance and Taxation: The software is robustly compliant with complicated terms and conditions of the Affordable Care Act. It also helps in identifying the employee eligibility and coverage benefits along with e-filing of taxes with the IRS
- Zenefits Pay Connect: It connects easily with the existing HR software to simplify and minimize the efforts of employee data migration from one system to another
- Human Capital Management: The software is capable to streamline hiring, onboarding, and efficient employee data management efficiently
Pros:
- It syncs all the employee data in real-time to make sure that the data remains updated and accurate through the HR platform
- The payroll management system is available free of cost
- It efficiently handles all insurance benefits including dental, health, and visual coverage
- The system has tie-ups with other insurance providers through which employees can take hassle-free coverage
- It offers a Time Off application for managers that you can leverage to manage employee attendance on smartphones
- Zenefits easily simplify complex calculations including tax benefits, deductions, earning and taxes against minimal intervention
Cons:
- There are bugs in the clock-in-out feature
- Customer support is not efficient
Cost:
Initially, you get a 14-day free demo. The paid plans start at $8 per month per employee.
ADP Workforce Now.
ADP Workforce Now is an efficient payroll system designed exclusively to handle the duties of mid-sized organizations. ADP workforce accurately and efficiently processes all the payroll data while including all the schedules accounted for, unique functions, and work hours, among others.
Best For:
Offers robust tax compliance for both businesses and employees
Key Features:
- Smartphone Applications: It provides highly functional and intuitive smartphone applications for Android and iOS through users can gain access to stats, analytics and manage HR time from any location
- Web-Based Dashboard: Its fully-functional and web-based dashboard helps facilitate efficient workforce management and payroll data. The data of data dashboard syncs immediately with its smartphone apps
- COBRA Management: The application supports COBRA events that automatically triggers the information to employees and other stakeholders
Pros:
- The software offers absolute tax compliance that apart from filing and submitting tax forms also manages the paycheck deduction for state, federal and local taxes
- It offers greater customization where clients can request for omission or incorporation of specific features depending on organizational requirements
- The software comes with a data-driven approach and hence, provides real-time analytics through customized reports, charts, graphs and spreadsheets
- It offers real-time payroll calculation to minimize the administrative duties of the human resources department
- The software also provides the service of compliance experts to deal with complex filings and avoid tax penalties
Cons:
- The application some issues with time-off policies like correct accrual of leaves for employees
- Not the best tool for a beginner
Cost:
The software offers a free trial. After that, you need to request a quote to gain access to its paid subscription.
Paychex Flex: Best for Solopreneurs & Employers Needing Dedicated Payroll Support
Overall Score: 4.39 OUT OF 5
What We Like
- Flexible plans
- Payroll and HR features are integrated
- Offers dedicated payroll support
What’s Missing
- Pricing isn’t all transparent
- Payroll tax administration and year-end reporting cost extra
- Access to a dedicated payroll specialist is available only in higher tiers
Paychex Flex Pricing
- Paychex Flex Essentials: $39 per month + $5 per employee
- Paychex Flex Select: Custom-priced
- Paychex Flex Pro: Custom-priced
Paychex Plan for solopreneurs and the self-employed
- Paychex Solo: Custom-priced
Read Full ReviewVisit Paychex Flex
Paychex has a Paychex Solo package that includes payroll, startup/incorporation services, and access to retirement plan options, making it a suitable solution for one-person businesses. Paychex also has numerous tiers that are flexible and cater to companies of different sizes. And unlike Homebase Payroll, which offers payroll only in 43 states, and Gusto, which provides health insurance only in 39 states, it lets you process payroll and provide health insurance in all US states.
Paychex Flex earned a 4.39 out of 5 in our evaluation. It scored the highest in HR features and reporting capabilities, as well as in our expert review criteria in which we assess whether its ease of use, pricing, and HR/payroll tools are ideal for small to midsize businesses (SMBs). However, Paychex doesn’t have transparent pricing for all of its plans. It also charges extra for payroll tax administration and W-2/1099 filings—services that most of the providers in this guide include without extra charges.
Paychex Flex Features
- Flexible plan options: Its Paychex Solo plan is perfect for solopreneurs and the self-employed. Aside from running payroll, Paychex can help them set up their business as an employer and select a retirement plan. None of the other providers in this guide have this type of plan. Paychex offers flexible HR and payroll packages that target businesses of all sizes. And if you ever go through a growth period in which you need an HR expert but aren’t ready to hire, Paychex has a professional employer organization (PEO) service to help you manage essential day-to-day HR processes.
- Workers’ compensation and benefits management: Paychex handles workers’ compensation, and, unlike Gusto, offers health insurance in all 50 states. It also has retirement plans and garnishment payment services that include remitting the garnished wages to the appropriate agencies.
- Multiple payment options: Aside from direct deposits, Paychex supports employee payments made through pay cards and paper checks. It even offers check logo and signing services. However, if you require options that allow you to pay employees fast, Square Payroll has an Instant Payments feature while QuickBooks Payroll offers next- and same-day direct deposits.
- HR tools: Paychex Flex’s higher tiers not only come with payroll tools but several HR solutions as well. In addition to a library of HR documents and an online employee handbook builder, you are granted access to a learning management module to help you run e-training courses for your staff. Screening applicants and welcoming new hires will also be easy with its background checks and online onboarding solutions.
- Experienced customer service: During implementation, Paychex will assign you a representative to help you set up. Once its system is up and running, you get access to US-based support with experienced professionals you can contact 24/7 in case you need assistance. Live chat features, in-app help options, and how-to guides are also available.
Paychex Flex’s Drawbacks
- Pricing isn’t all transparent: The pricing details of its starter Paychex Flex Essentials plan is readily available on Paychex’s website, but the cost of its other tiers, products, and services are not transparent. While you can contact Paychex to request more information, the process of requesting a quote can be inconvenient for those who want to quickly compare the features and fees between different payroll software.
- Add-on fees for year-end reporting and payroll tax administration: Paychex can calculate, pay, and file payroll taxes for you, including year-end tax reports, but you may be charged additional fees for some of the services. If you don’t want to pay extra, consider the other providers in this list—except ADP Run, QuickBooks Payroll (local tax filings are available only in its highest tier), and Patriot Payroll (1099 tax filings cost extra if you’re under its Basic Payroll option).
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.
Conclusion
With so many payroll systems to choose from, it can be difficult to determine which is right for your needs. There are many free payroll software programs, and also ones that are not free. The list above will help you decide which of the available payroll systems would work best for your small business.