If you are getting ready to hire help or handle payroll or you are planning for your first payroll or wondering what the best payroll software is, today I have linked for you our list of the best payroll software.
Choosing a payroll software is a tough decision. Its a big one, and a confusing one. You have different types of software to select from: QuickBooks payroll, Concur solutions, Paychex, …and many more. And if you go to a third party website, you’ll find hundreds of options as well. Well… I’m going to break it down for you so that you can make an informed decision from this point forward from this is the ultimate guide to the best payroll software for small businesses!
Gusto
Gusto offers three thoughtful tiers for small to midsize companies that need payroll with a few helpings of human resources (HR) features, making it the best overall choice. Each plan includes full-service automated payroll that’s suitable for almost any business, depending on needs.Pros
- Affordable, but good value
- Unlimited payroll runs
- Paid time off (PTO) tracking available
- Full-service payroll available in all states
- Basic reports included at all tiers
Cons
- Next day direct deposit available only in the Complete and Concierge plans
- Dedicated support only for Concierge subscribers
Gusto is similar to other payroll software solutions in that it offers direct deposit or checks to pay your employees. It also tracks and files federal, state, and local taxes automatically. What sets Gusto apart from the other options is that it offers a better plan for each tier that you go up. Rather than removing direct deposit for the low-priced plan, Gusto increases the convenience of direct deposit the more expensive your plan. For example, direct deposit takes up to four days to clear for the lowest plan, but the high-tier plans get next-day direct deposit.
The Core plan from Gusto costs $39 per month, and $6 per employee per month, making it one of the most affordable choices for a full-service payroll plan. The Complete plan is also $39 per month, but the cost per employee is $12, and you’ll be able to offer next-day direct deposit. The Concierge plan is $149 per month and $12 per person and offers dedicated support and compliance alerts.
QuickBooks Payroll
If you’re already using QuickBooks for accounting, then QuickBooks Payroll is our easiest to set up option, as everything will be automated, and it’s going to be an intuitive program for any QuickBooks user. You’re unlikely to need to contact support for help because the tutorial and knowledgebase are so thorough. Even if that’s not working for you, a quick search online will send you to a multitude of walkthroughs.Pros
- Easy setup and intuitive interface
- Seamless integration with QuickBooks accounting software
- Fast direct deposit options
Cons
- Not a good value for the cost
- Time track on the go feature not available in lowest-tier plan
QuickBooks earns our nod for the easiest setup because its user interface is so intuitive for anyone familiar with QuickBooks. In addition to customer service, there are ample resources online to get anyone on board with their payroll services. QuickBooks does a good job making establishing and running payroll simple for anyone regardless of experience.
Although QuickBooks offers excellent features, if a bit limited in its HR options, you’ll pay for them. The lowest-priced plan starts at $45 per month, plus $4 per person per month. The Premium plan costs $75 per month, plus $8 per person per month, but it also expands its features to include HR support and a payroll setup review from an expert. The Elite plan from QuickBooks costs $125 per month, plus $10 per employee per month, and you’ll get 24/7 support, plus tax penalty protection.
Paychex is the best payroll company 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 11/5/21. 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 4.3 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 transparency
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
Choosing the right payroll software can be tough. You could spend months learning about the different payroll software platforms in an attempt to find the perfect one for your business. But why waste time doing that when you can learn in this post about what is the best paycheques software in 2018, lifetime licences, upgrades, employee delightment courses and many other wonderful things.