There are various payroll systems that can be used in large companies. Large companies hold many benefits when it comes to the use of payroll systems; they are not shy when giving their employees their well earned money, especially when it is time for them to be paid. Employers should take the time to do some research when choosing the right type of payroll system for their company because if they choose incorrectly, it could be detrimental in terms of accuracy and productivity in the long run. This article explains in detail all about payroll systems for large companies and how it can help in reducing administrative costs.
One of the most important parts of managing a large company are its payroll systems. A payroll system is the set of procedures used by a business to calculate and record regular payments of wages or benefits to its employees. It primarily includes two steps. Automatic processing of employee hours, wages, deductions, and so forth, using computer software. Posting the resultant data to an electronic file for manual entry into accounting records.
Paychex: Best for growth
4.0
- Starting at $39.00/mo. + $5.00/payee/mo.
Automatic payroll tax administration (additional fee may apply)
Workers compensation and health insurance add-ons (additional fee applies)
Direct deposit, check, and debit card payment options
Data as of 9/9/21. Offers and availability may vary by location and are subject to change.
Does your business need thorough HR assistance without full-on HR outsourcing? Paychex Flex combines cloud-based payroll management and human resources software for small and midsize businesses that want thorough, affordable HR management.
All Paychex payroll programs include new-hire state reporting, payroll tax filing, and an employee financial wellness program. And with three customizable packages, Paychex is one of the most scalable payroll options on our list. Growing businesses won’t have to look elsewhere for plans that support additional employees—growth is built into Paychex’s model.
Paychex’s payroll app for employers
If you frequently run payroll on the go, Paychex might be the best small-business payroll software for you. Only a few payroll providers offer employer-facing mobile payroll apps. Of the five or so that do, Paychex’s is easily the best: the Paychex Flex app has 4.8 stars (out of five) on Apple’s App Store and 4.4 on Google Play.2,3
Even though Paychex’s cheapest plan has a lower per-employee fee than Gusto, Paychex’s add-on fees can dramatically increase your monthly payroll costs. Unlike Gusto, OnPay, and QuickBooks Payroll, Paychex may charge additional fees for payroll tax administration, time and attendance software integration, accounting software integration, and workers comp and employee benefits administration. With all the extra fees, Paychex is better suited to midsize businesses that care more about built-in scalability than cost.ProsCombined HR and payroll plans
Affordable starting per-payee price
Customizable plans for growing businessesCons
Additional fees for payroll tax administration
Additional fees for third-party software integration
Pricier plans with limited pricing transparencyGet Started with PaychexRea
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.
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.
BEST FOR SMALL BUSINESSESOnPay
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.
BEST FOR LARGE COMPANIESADP
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.
Conclusion
Payroll software for small businesses is one of the most underrated options in the market. The entire hiring, pay checking process is burdensome at times, it ends up taking much longer than expected if you handle these by yourself. There are so many things that you have to keep in mind while managing payroll for your employees.