Payroll Software for a Small Business

If you run a business with just one computer, you need this FREE payroll software. The Payroll Manager System will enable you to manage salary calculations, deductions and everything else that is needed to keep your staff happy and productive. It even comes complete with a help desk ticketing system to make sure you are always on top of any issues whenever they arise.

A small business payroll can be an invaluable piece of software that can really help a company save time and money. Most small businesses cannot afford to hire an HR consultant or an accountant, so they are forced to handle all the payroll manually.

Intuit QuickBooks – Best Payroll for Quick Direct Deposit

Best Payroll for Quick Direct Deposit360 OVERALL RATING

3.6 out of 5MONTHLY FEE$45 + $4/Payee and UpDIRECT DEPOSITTRIAL PERIOD30 DaysPRIORITY SUPPORTMORE DETAILSSEE REVIEW

Intuit QuickBooks: The Best Payroll Software for Small Businesses rating is rounded out with Intuit QuickBooks in the No. 4 spot. Intuit QuickBooks offers three tiers of payroll software. The Core plan offers a great deal of value for small business owners. It will help you automate your payroll and federal and state taxes for $45, plus $4 per employee per month. You can also add 401(k) retirement plans and health benefits for your employees to the Core plan. If you want HR support and workers compensation administration, you will need to go with one of QuickBooks’s higher-tier plans, known as Premium or Elite. However, the higher-tier plans are more expensive and may be out of the standard small business’s budget.

A key difference between Intuit QuickBooks and the rest of the payroll providers in our ratings is that all of its plans provide quick direct deposit. While the average direct deposit in our ratings takes four days after payroll processing, with some companies offering faster deposits at higher-tier plans, QuickBooks Core has next-day direct deposit, and Premium and Elite provide same-day deposits. This can make all the difference to your employees because the American Payroll Association reports that “49% of U.S. workers will leave a job after experiencing just two problems with their paychecks,” including late payments.

Intuit QuickBooks is also the ideal choice for accountants. It provides its Elite payroll plan for free to accounting firms using QuickBooks Online Accountant. The construction industry can also benefit from QuickBooks. Its payroll services are used by 30,000 construction small businesses to help manage the tax laws surrounding their industry.

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.

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.

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.

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).

Square Payroll: Best for Small Retailers & Restaurant Owners Using Square POS

Overall Score: 4.28 OUT OF 5

What We Like

• Easy to use and navigate
• Flat pricing with an affordable contractor plan
• Integrates with Square POS
• Offers fast direct deposits, including an instant payment option

What’s Missing

• Next-day direct deposits and instant payments require a Square Payments account
• Limited advanced HR functions
• Phone support requires a customer code; difficult to reach at times
• Standard direct deposit has a four-day processing timeline

Square Payroll Pricing

• Pay employee and contractors: $35 per month + $5 per employee monthly
• Pay contractors only: $5 per person monthly

Read Full ReviewVisit Square Payroll

Square Payroll is the best choice for retailers and restaurants already using Square’s POS system. It enables you to pay both employees and contractors and import online timecards from the Square POS and other third-party partners into its system. It also has tip reporting features that allow you to record tip amounts, deduct taxes, and report them on your tax forms. You can run payroll as often as you need to at no extra cost, unlike some plans under big-name providers like ADP or Paychex, and file quarterly and annual taxes, plus sign up for pay-as-you-go workers’ compensation insurance.

In our evaluation, Square Payroll earned an overall rating of 4.28 out of 5 with a perfect score in reporting and high marks in nearly all of our criteria. It lost points in ease of use and popularity among users. While it is easy to use, it doesn’t have a customizable interface. It also didn’t meet our sub-criteria of having more than 1,000 average user reviews online. Plus, several users complained of having experienced difficulties contacting its support team.

Square Payroll Features

• Low-cost contractor-only plan: Square Payroll has the lowest contractor-only plan among all the providers in this list. Priced at only $5 per contractor monthly, it comes with all the features of its “pay employees and contractors” plan including unlimited pay runs. Similar to Gusto’s contractor-only option, Square Payroll will only charge you for contractors that you paid for the month.
• Square POS integration: Square Payroll seamlessly integrates with Square POS, making it easy for you to track and import employee time cards, including tips and commissions data for pay processing.
• Multiple employee payment options: Aside from direct deposit, employees and contractors can be paid through manual checks or via Square’s Cash App. Square Payroll also offers next-day and instant payment options through its Instant Payments feature. You can even use its On-Demand Pay tool to allow eligible employees to get a portion of their earned salary before the pay period is over.
• Online tax filing and reporting: Square Payroll will automatically file your quarterly and annual taxes as well as prepare and file your W-2s or 1099s, whether workers are paid an hourly, salary, or custom amount. This is unlike Patriot Payroll, Paychex, and ADP, which charge fees for some of its payroll tax services. QuickBooks Payroll may not have add-on fees to file taxes for you, but you have to get its highest tier if you want automated local tax filings.
• Employee benefits: Square Payroll will provide your employees access to health insurance, pay-as-you-go workers’ compensation plans, and even retirement packages that will automatically sync with your payroll.

Square Payroll’s Drawbacks

• Basic HR features: Square Payroll lacks the HR tools to help you track applicants, manage training, and maintain an employee information database online. If you require these for your business, we recommend either Paychex, Paycor, Rippling, or ADP Run since all offer a wide range of HR solutions.
• Four-day direct deposits: Unless you have a Square Payments account that lets you pay employees the next day and even instantly, Square Payroll’s standard direct deposit timeline is four days. QuickBooks Payroll would be a good choice for those who require fast payouts and don’t use Square Payments since its starter Core plan comes with next-day direct deposits.

Conclusion

From simple start-ups to the largest organizations, we have the payroll tools for you. With vast computing experience for over 50 years and having implemented hundreds of payroll systems for very small businesses, we understand your needs.