Every business requires payroll services to ensure that employees get appropriate pay on time. They need to submit reports and documents through a proper process. Payroll Company Software is a solution that can be of a great help. It provides a system for companies to manage the whole setup of the payroll process. It saves a lot of time and effort in processing daily activities, which is handled by the software with ease. With online Cloud-based platform, businesses can get access anytime, anywhere.
Payroll company software helps to improve the entire payroll processing. But why is payroll software so helpful for your business? And which type of it you need? Payroll companies offer a lot of software, but the payroll management solution is not a good option for most businesses. If you’re looking for the right software to help you with your payroll management needs, there are a couple of requirements you should look at when making your decision.
As a small business owner, you know how crazy it can be to work with multiple people, each with their own skills and knowledge, as well as consultants who have differing needs. There are lots of tasks to take care of from marketing to payroll. This is why you need a good payroll software as part of your small business management software as it helps ease the process of payroll by automating tax calculations and record-keeping.
Features of the best payroll software
There are a few features that the best payroll software has in common. We’ve selected the following list based on customer support, user friendliness, and flexibility. This last point is key because small businesses often undergo rapid transformation or periods of growth. Ideally, you will choose software for payroll that can keep up. This means catering for full and part-time employees as well as freelance workers and contractors. Cloud-based platforms are also important since many of today’s businesses don’t always work from a central office. You want to be able to access your information on the go.
With no further ado, here are our six payroll software picks.
1. Gusto
Easy to use and compatible with requirements in all 50 states, Gusto makes payroll management easy. This software for payroll comes fully loaded with a number of important features. It can handle benefits, healthcare plans, taxes, 401(k) plans, and time tracking. It’s also fully compatible with most accounting software platforms, including the big names like FreshBooks, QuickBooks, and Xero. Small businesses can opt for the most basic Core plan when just starting off, levelling up to the more full-service options as your business grows. At the higher Concierge level, Gusto’s plan includes HR features including onboarding and surveys.
2. Square
You might associate Square with the portable square-shaped credit card reader, but this company has grown to include full-service payroll software as well. Like Gusto, Square’s services are customizable so you can adapt the plan to suit your company’s needs. The software can accommodate full-time employees as well as part-time workers and freelance contractors, paying both hourly rates and monthly salaries. It can also manage health benefits, which employees can see when they log in to their own Square accounts.
3. BambooHR
Payroll goes hand in hand with HR, so it’s worth looking at HR software when seeking your payment solutions. BambooHR covers all your bases, providing a separate payroll platform to sync with its main talent management software. This makes it super easy to onboard new employees, tracking hours right from the start. Additional features include staff databases, applicant tracking, time-off tracking, and digital signatures.
4. Zenefits
Another HR platform that includes comprehensive small business payroll software is Zenefits. It builds time-off tracking, hour tracking, salary upgrades, and benefits into a single one-size-fits-all platform. If your HR and payroll departments are intertwined, it makes it much easier to avoid making double entries. For example, your HR administrator only needs to input a salary change once for it to sync with payroll. As with other software on this list, there are multiple subscription packages to choose from, each with its own features.
5. QuickBooks
You’re probably familiar with QuickBooks already, but this accounting software also includes an easy auto-pay feature. Perhaps the biggest benefit of using this platform is that it is designed to run automatically, so theoretically, you only need to set up your payroll once. The program will handle taxation, payments, and other issues without manual input.
6. Paychex
Finally, Paychex is a major payroll software provider dating back to 1971. This comprehensive program is a great choice if you’re interested in boosting employee retention, because it includes a built-in learning management system allowing employees to upgrade their skills. When it comes to payroll, Paychex automatically calculates both state and federal taxes and integrates fully with 401(k). It also includes a free mobile app for management on the go.
As you can see, there are plenty of easy payroll software solutions to choose from. You’ll need to think about your business’s size and whether or not you’re interested in extra HR features to find the best fit.
We can help
GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.
GoCardless is used by over 60,000 businesses around the world. Learn more about how you can improve payment processing at your business today.
What should you look for in payroll software?
The best payroll software for you depends in large part on your company’s HR and payroll needs—but what does that really mean in practice? We recommend taking these four steps to start:
- First, look at price—not just the base price, but also the additional price per employee. Decide upfront how much you can and are willing to spend on payroll system software.
- Second, examine features—do you need payroll features only, or do you prefer a combined HR and payroll software solution?
- Third, determine how much time and effort you want to (and can) spend on payroll. For instance, are you okay paying less for software and filing taxes yourself?
- Finally, check out each payroll program’s customer service reputation, tax guarantees (your payroll provider should pay IRS fines if it makes any payroll tax errors), and user reviews.
If you want more guidance, check out our in-depth article on how to find the right payroll management solution. And if you want to learn more about payroll processes generally before signing up for a provider, our Ultimate Payroll Guide can get you started.
Gusto is the best overall payroll software
Best overall payroll providerGusto
4.0
- Starting at $39.00/mo. + $6.00/payee/mo.
Automatic payroll tax administration
Affordable insurance options (in-house brokers)
Two-day direct deposit
Data as of 11/5/21. Offers and availability may vary by location and are subject to change.
The heartily named Gusto is our favorite payroll software for small businesses. Its beautifully designed, full-service payroll system includes plenty of payroll and HR features, including these:
- Automatic local, state, and federal payroll tax filing
- Automatic end-of-year tax-form filing, including W-2s and 1099s
- Automatic state new-hire form filing
- Health benefits administration and workers compensation administration
- Multiple employee benefit options, including HSAs, FSAs, commuter benefits, and college savings plans
- Employee self-service portal for pay stub, direct deposit, and W-2 access
Even better, Gusto includes these features for free when many payroll providers charge extra. For instance, Gusto’s in-house insurance brokers ensure that if you sign up for employee medical insurance and workers compensation insurance through Gusto, you’ll pay the premium only.
In contrast, ADP, which outsources its insurance integrations, charges an extra fee on top of the premium. Ditto Paychex, which does have an in-house insurance team but still charges extra for insurance add-ons. ADP also charges extra for end-of-year tax-form filings. Gusto doesn’t.
Heads-up: Gusto’s Contractor plan
Do you hire contractors on an individual basis instead of working with a full-time team of employees? Gusto’s new Contractor plan has no monthly base cost. You pay only $6 per month per payee.
However, in the last few months, Gusto’s customer service has taken a few hits: for instance, on the review site Trustpilot, Gusto’s rating dropped from nearly four to just 2.2 (yikes!) out of 5 from more than 1.2K reviews.1 In particular, users call out slow response times and payroll errors. Thanks to its expansive employee benefits and built-in free tax filing, Gusto’s still our top payroll solution, but we did lower its star rating to account for its lowering user reviews.
Additionally, while Gusto has more employee add-ons than many other online payroll systems, it’s not a total HR management solution. Our Gusto HR review can tell you more, but if you need more than the most basic HR, you’ll want to look elsewhere—like at Paychex.ProsMore employee benefit options than most competitors
No extra fee for payroll tax filing
No extra fee for insurance add-onsCons
Poor customer service ratings
High monthly per-payee fee
Limited HR management and administrationGet Started with GustoRead Our Gusto Review
Conclusion
Payroll is a subject that, to most small business owners, is of little interest outside of the beginning and end of each quarter. However, a good payroll system for a small business is a necessity that a company cannot afford to neglect. It’s vitally important that you have a secure payroll system in place when it comes time to do payroll.