Payroll Processing Software for Payroll Service Providers

Are you a Payroll Processing Service Providers? If so, you can save time and money by using an easy-to-use payroll software. Payroll systems have really evolved to help Payroll Service Providers handle more jobs with a greater backoffice functionality to save time and money.

Have you ever used Payroll Processing Software to manage your payroll service provider firm’s payroll? If you are one of the many thousands of small to medium-sized business owners managing a payroll service provider, then chances are that you have. A lot of people simply use Microsoft Excel for their payroll needs and that can work fine for a small business. However, as businesses grow, there are important advantages to using a formal payroll system.

Who Should Use Payroll Software?

Any business that employs workers, whether full-time, part-time, or by contract, should consider using payroll software. After all, submitting payroll taxes is required, so make it easier on yourself with payroll software. Automating payroll can save you time, prevent human error, and ensure everyone gets paid the right amount and on time. Depending on the size of your business, you may want to have a dedicated person running your payroll software.

Although payroll software automates calculations, runs payroll for full-time employees, and files payroll taxes, there’s still administrative work to do. Depending on the size of your business, you may want someone to manage onboarding new employees, offboarding exiting employees, and running off-cycle payrolls as needed.

How We Chose the Best Payroll Software

We explored 15 different payroll services before choosing the top seven listed here. One of the most important things to consider for any business is cost, which is why that was heavily considered for each option. We made our decisions due to features like direct deposit and reporting. We also sought options with support to help business owners address questions they have with setting up and running payroll.

here are some Payroll Processing Software for Payroll Service Providers

Gusto: No. 1 In Payroll Software

Our score: 9.4 User satisfaction: 99% What is the best payroll software for payroll service providers and accountants? The best payroll software for payroll service providers and accountants is Xero. The vendor provides a full-service accounting system with top-notch payroll processing features. This cloud-based platform can also be integrated with various third-party business systems, providing users with a streamlined and efficient accounting process.

Payroll software is a system that automates and streamlines the process of paying a company’s employees. It may sound straightforward, but the payroll process includes a lot of tasks such as calculating deductions and withholdings, producing payslips and tax forms (and other reports), processing or depositing payment directly to an employee’s bank account, voiding payments if need be, and even printing checks.

With that said, digitizing payroll is of utmost importance since many employees today are working from home due to the COVID-19 outbreak. In doing so, physical distance won’t be an impediment to sending payslips, wiring payments, and working on a company’s tax obligations. Payroll software simplifies and automates the aforementioned tasks to shorten cycle times and reduce manual errors.

In this article, we compiled the 20 best payroll platforms on the market. The key features of each and the specific benefits they afford are covered so you can make an informed decision on which software to purchase.

What are the best payroll software for payroll service providers and accountants?

COVID-19 has left many industries reeling from the loss of physical traffic in stores and the migration of operations to the digital plane. As a result, a lot of companies had to close stores in different parts of the world as costs have outweighed the returns. Thankfully, the payroll protection program was introduced to help businesses keep their workforce employed. The government initiative’s coverage is extended businesses that have fewer than 20 employees so everyone gets a fair chance to receive loans.

With the work-from-home scheme applied by a lot of companies globally, operations can resume unimpeded by the pandemic. This brings a concern for organizations that have yet to sufficiently adjust to the new work setup. It’s one thing to send payments to the bank accounts of employees, and it’s certainly another to file all the necessary payroll information to avoid errors. The need for payroll software is highlighted by this scenario.

As expected, just like online businesses, the HR and payroll software market is on the rise. By the end of 2021, its value is projected to reach $9.9 billion, registering a growth of 5.3% from the previous year. Moreover, by 2025, the industry is set to reach $30 billion. This growth is actually faster than that of the US economy in the past five years. More and more organizations have been or will purchase a platform to streamline their cycles.

At this juncture, if you intend to avail of a payroll platform, you might as well choose one that will best serve your operations. After all, the payroll features of some applications come in the form of modules of bigger systems like human capital management software. And there are also some that act as dedicated payroll engines. Don’t fret; we covered this aspect in the list below.

1. Xero

Xero is one of the market leaders when it comes to financial collaboration apps. This system is designed to meet the requirements of small businesses regardless of the type of business or industry.

Xero has been often been recognized by accountants as the “handiest asset for managing financial activities.” But even for non-accountant users, they will find Xero easy to manage, as it transforms some of the most standardized and complex financial concepts into simplified functions, making its usability one of the software’s many strong points. So far, nearly half a million business and sole accountants have taken advantage of Xero’s enterprise-grade features that can manage invoicing, inventory, bills payment, bank reconciliation, cash flow, expense claims, POs, time tracking, and payroll, among others. It supports financial reporting, online payment, multi-currency, business performance dashboard, sales tax calculation, and more.

What is unique about Xero?

Payroll performer. Important functionalities are bundled in the Settings tab where you enter corporate information and adjust financial settings. One of those tabs is the Accounts menu, where you can find and alter checks, bank accounts, and expense claims and create records for your payroll needs. Currently, Xero processes and runs payrolls, and automatically adjusts taxes for more than 20 states.
Security-focused. Transactions in Xero utilize multiple-approval model and two-factor authentication to minimize financial fraud. For every transaction, there will be a detailed list of performed actions, including dates, users, and manual notes. In sales, the method makes it possible to control purchase orders, and categorize invoices as drafted, awaiting approval, awaiting payment, or delayed.
It provides an overview of your finances. The app provides feedback on your company’s financial operations through its reporting feature which can summarize the effects of all your activities, by simply filling the filters you’d like to see included. You can make basic reports or advanced ones based on your parameters.
Robust record keeper. Xero allows you to create and keep detailed possession records to use automatically in your transactions. All of these records are robust and contain details such as tax status, purchase costs, committed quotes, and relevant descriptions.

Detailed Xero ReviewREAD MORE

2. QuickBooks Payroll

QuickBooks Payroll is one of the leading payroll software for payroll service providers and accountants for it has an easy-to-use interface that allows for unlimited payment schedules and 24-hour direct deposits. Its advanced tools make it easy for payroll service providers and accountants to attend to numerous client needs and requests.

QuickBooks Payroll has top of the line automation-ready tools that can track inventory, manage more than a thousand contractors, customize user permission, track income and expenses, maximize tax deductions, create invoices, and accept payments. All its tools are one-click solutions that require no advanced technical skills from its users. Hence, payroll service providers and accountants can easily delegate tasks and still secure accurate and updated data.

Try out QuickBooks Payroll with their free trial

QuickBooks Payroll outshines all current software for payroll service providers and accountants with its monitoring tools. Its monitoring tools can handle multiple projects with easy-to-understand and clear periodical reports. All users can instantly see profitability data transposed with payroll costs.

Payroll software providers and accountants have the option to choose between a Self Service or Full Service payroll plan. QuickBooks Payroll is cost-efficient as pricing is scalable and based on the number of employees enrolled for payroll.

What is unique about QuickBooks Payroll?

Clean User Interface. QuickBooks Payroll is a popular payroll software among service providers for its user-friendly interface that does not intimidate non-technical users. Users can take full advantage of its cost-efficient Self Service Payroll Plan, since all tools can be managed and operated by users with no advanced accounting and bookkeeping skills.
Instant Payment. QuickBooks Payroll provides a feature that allows for funds to be transferred within 24 hours. This advanced tool effectively prevents delays in payroll.
Project Profitability Tracker. Users can utilize QuickBook Pro’s patented Project Profitability Tracker to maximize profit and minimize expenses through real-time monitoring and analytics.
Inventory Tracker. QuickBooks Payroll offers an inventory tracker for accountants that handle expanded bookkeeping tools for retail shops, restaurants, cafes, and merchandisers.
Tax compliance. A dedicated group of tax experts provides updated tax compliance tools for maximum utilization of deductions. Forms for W2s are also accessible and print-ready.

Detailed QuickBooks Payroll ReviewREAD MORE

3. Gusto

Gusto is a powerful platform that combines payroll, benefits administration, HR and compliance functionalities in a single, simplified package. It is designed for small businesses looking to stay on top of their workforce’s core HR needs. The app is used by more than 40,000 companies in the U.S. taking advantage of its solid set of payroll features, well-designed user interface, and automation functionalities capabilities.

Try out Gusto with their free trial

The software streamlines and automates the calculation, payment, and submission of a company’s local, state, and federal payroll taxes, ensuring that businesses can pay through direct deposit or check, and comply with year-end forms and taxation to avoid critical errors.

Gusto also offers a partner program for its clients who introduce Gusto payroll and benefits to their customers. As a Gusto partner, you enjoy exclusive deals such as free Gusto payroll subscription, access to HR experts and compliance support.

What is unique about Gusto?

No tie-in agreement. You don’t need to sign a long-term contract and are free to suspend your account at any time. A one-month free trial is offered which starts after you run your first payroll.
It makes payroll management error-proof. Gusto eliminates critical human errors since you won’t have to enter data in several different apps and websites, and just let the system calculate deductions.
It is fully compliant with standards. All Gusto operations are designed to meet HIPAA, ACA, and ERISA standards, meaning that the system can check data automatically, prepare compliance reviews of your benefits, send automated notices, and guarantee employee privacy.
It simplifies benefits administration. Gusto can streamline and handle employment tax reporting, payments, workers’ comp insurance, new hire reports and detailed budget plans. It also allows you to easily set up and manage 401(k) plans for employee’s retirement needs.
Easy access to information. The app can quickly pull out important information, including employee contact data, I-9s, W-2s, time off balances, and much more, and you need only to log into the system using your credentials.

Detailed Gusto ReviewREAD MORE

4. OnPay

Easy-to-use yet total payroll solution OnPay offers small and medium-size businesses highly-scalable applications. This cloud-based software is capable of streamlining payroll processes while automating tax filing and payment. It seamlessly enters payroll data like hours, reimbursements, tips, and bonuses. Responsibilities other than payroll can likewise be managed using the system, including benefits and compensation insurance for staff who work on a pay-as-you-go basis.

Try out OnPay with their free trial

The vendor offers a great free trial that lets you try out all the key features first. You can easily sign up for an OnPay free trial.

The platform is so robust that it can handle unlimited payroll runs for W-2 workers and 1099 for contract staff on a monthly basis. Employees can be paid either through check or direct deposit, whichever is preferable to the user. However, one has to apply for the feature and pass a risk assessment test before being able to use the functionality. With all these features, OnPay is indeed one of the most cost-effective software of its kind today.

What is Unique About OnPay?

Employee self-service. OnPay allows workers to enter their own personal information, edit them, and retrieve their paystubs and tax forms, all done through online access. This saves managers precious time and allows them to focus on more important matters. For companies that have new workers, the app is capable of reporting them to the government.
Improved payroll compliance. Being a veteran in the business, OnPay knows the ins and outs of payroll tax preparation. The platform handles IRS and state taxes while doing the payroll. This involves the computation of taxes, payment and tax form filling. The vendor is so confident of its product that it offers to pay fines incurred from errors committed by the software. What’s even better is that users with inquiries are gladly assisted by certified payroll professionals during weekdays.
HR process management. To stay on top of the payroll management process, one needs to be able to store documents and take notes. OnPay lets you do these and much more. Users are allowed to add comments, format and edit the notes. An online HR library is also accessible, allowing users to get employee handbook templates and state employment laws. Apart from these, users also get to be able to track accrued time easily for 3-tier PTO, sick and vacation accruals.
Simplified health insurance benefits. With OnPay, users can administer health insurance nationwide. The platform works with numerous licensed insurance brokers to help customers improve their understanding of benefits such as medical, dental, and vision offerings. The computation of such benefits is streamlined as they are integrated into the system. Furthermore, researching insurance and their corresponding quotes come at no additional fee. What’s even better is that the software automates the management of 401(k) plans as it comes with secure harbor plans and contribution matching capabilities.
Streamlined payroll. OnPay’s key feature is its ability to allow for unlimited pay runs. This allows businesses to run payrolls in accordance to their preference without having to pay additional fees. This may come in the form of corrections and pay run cancellations. Data entry is also eliminated using the system, with employee data saved in a secure vault. The interface is user-friendly and designed for mobility, allowing users to quickly and easily process payrolls.

Detailed OnPay ReviewREAD MORE

5. Rippling

Rippling is an end-to-end solution that goes beyond payroll operations and also provides solutions for the human resource processes of small and medium-sized businesses. With this platform, users can sync data from other employee management systems to automate data input and ensure that each employee is getting accurate pay as promptly as possible. It even comes with reporting options that allow HR teams to track compensation trends. Moreover, as it is not limited to payroll functionalities, Rippling can be used to onboard new hires as it can be used to quickly set up payroll, health insurance, as well as apps that they need for their tasks. It even comes with task management tools, custom alerts, as well as a built-in unified employee database. In case you feel these tools aren’t enough, the platform has open API capabilities and native integrations with over 500 third-party applications so you can extend its functions as needed.

For pricing, the vendor offers a quote-based plan that starts at $8 per user per month. To get a custom subscription, be sure to get in touch with Rippling’s representatives.

Try out Rippling with their free trial

In addition to the abovementioned, Rippling also comes with native mobile applications for Android and iOS devices. This way, users can easily access their payroll and IT operations even when they’re on the go.

What is unique about Rippling?

No-fuss payroll and benefits management. Rippling is designed to accelerate and simplify compensation management. With this platform, you can automatically reconcile HR data with the payroll system for accurate calculations and timely distribution. It can also keep tabs on benefits and manage health insurance so you can be sure that no employee gets unpaid or underpaid.
Custom employee data reporting. This HR and payroll solution has robust employee data reporting functionalities that let you get a granular view of key business performance metrics. Using this, payroll teams can check compensation trends, IT teams can monitor productivity issues, and HR teams can monitor employee turnover levels as well as overall employee performance. What is more, these custom reports and graphs can be generated depending on a company’s specific needs.
Electronic document management. Perhaps among the most unique functionalities of this platform is that Rippling comes with a built-in document management system. This allows HR teams to collect online signatures on important company documents or government forms instantaneously. With this, you can roll out a completely paperless process within your team. What is more, the platform comes with enterprise-grade security so you can rest assured that all your sensitive documents are protected at all times.
Seamless integrations. Rippling can integrate with over 500 third-party applications which include popular platforms like Slack, GSuite, Asana, TSheets, and PayPal, to name a few. This allows you to simplify data import/export and also streamline your workflows. What is more, the platform comes with open API so you can easily extend the functionalities of the solution.

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6. Payment Rails

Payment Rails is a complete payout platform that makes it easy for businesses to send payments to various parts of the world. With Payment Rails, businesses can arrange payments for staff, freelancers, and business partners in their local currency, without going through the hassle of setting up subsidiaries or a local bank account.

The solution is composed of payment management features on the sender’s side as well as a quick-install widget on the recipient’s side. It also has a watchlist screening feature to protect your business from malicious actors. Rounding out its feature set is its tax compliance component which takes the pain out of collecting and reporting tax forms every tax season.

Try out Payment Rails with their free trial

With this, Payment Rails is a good fit for organizations that deal with paying partners and vendors in multiple currencies. It is also ideal for companies looking to digitize and automate how they file and process tax forms.

Detailed Payment Rails ReviewREAD MORE

What is unique about Payment Rails?

Global payments. Payment Rails allows you to send payments via SWIFT bank transfers to over 220 countries in more than 135 currencies. Local bank transfers are also available in over 60 countries. In addition, senders can transfer funds electronically via VISA or Mastercard transfers or to mobile money accounts. With over 25 payment methods accepted, the solution gives you the flexibility you need to send payments.
Live payment tracking. With Payment Rails, it’s possible to track the status of your payments every step of the way. You get a real-time view detailing the stage that your payment is in, as well as the date and timestamps of the payment status.
Recipient widget. Payment Rails makes it easy not only to send payments but also to receive payments. Thanks to a recipient widget that can be integrated into a website or mobile app in 20 minutes or less, you can easily capture and validate bank account details.
Watchlist screening. Using artificial and fuzzy matching logic, Payment Rails has built-in compliance checks for money laundering, terrorism financing, and other relevant laws.

7. Eddy

As a cloud-based HR management software, Eddy makes hiring, onboarding, and managing human resources easy and straightforward. While simplicity is its game, Eddy packs powerful features in one intuitive package. From applicant tracking and recruitment to employee messaging and record maintenance, Eddy does it all. And one of its main bread-and-butter features is its integration of a payroll system, with support for direct deposit, check signing, flexible reports, tax compliance, and online access for employees.

Like EPAY Systems, Eddy is quote-based. You can get the features you need and ask the vendor for the total price.

Apart from a powerful real-time report generation feature that helps you draw actionable insights to improve your processes, Eddy is also regularly maintained. As of this writing, planned features in the pipeline include benefits tracking and performance management.

What Is Unique About Eddy?

All-in-one recruitment. Eddy allows you to recruit by posting on job boards. No longer will you need to switch from different sites; you just need to be on Eddy and it will handle the rest. It can search, filter, and track candidates and its onboarding suite can be customized.
Collaborate with your team. With Eddy, your team can be appraised of every situation as far as HR is concerned. The communication module that comes with Eddy supports chats, comments, and reactions, bringing the power of social media into your office.
Simplifies HR—and more. Apart from its clean, intuitive interface, Eddy consolidates all HR functions in one cloud-based hub. You can store personnel information in the software’s built-in directory, which contains data like contact information, FLSA classification, and social security. You can even add custom fields, such as clothing sizes, in case of activities like team building or giveaways.

CONCLUSION

Are you a payroll service provider? Are you tired of having to process employees’ payroll, taxes, or other benefits in-house? You don’t want to handle this important aspect of your business alone and are looking for a solution that can give you the best payroll processing experience possible. Let’s face it – taking care of employee payroll is not very fun. Since you are a smart business owner who wants to run your business rather than dealing with complicated payroll, crunching numbers, and paying out employees, we have selected the top 3 pieces of payroll processing software that we think will make their lives easier.