Best Payroll Services For Small Business of June 2024

managing payroll for small business

QuickBooks Payroll provides small businesses with scalable payroll services that easily integrate with QuickBooks accounting software and over a dozen other Intuit product offerings. Gusto has established itself as a cutting-edge payroll service provider for small businesses, especially those that want additional human resources tools. We love that Gusto seamlessly integrates with over 20 time-tracking applications and numerous hiring, performance management and learning platforms. These integrations empower small businesses to better leverage Gusto’s native onboarding, benefits administration and payroll features. With these advantages and more, Gusto stood out as our top choice for the best online payroll service with added HR services.

Paychex is the best payroll company for growing businesses

Does your business need a platform that includes additional HR services? Make a list of everything you want your payroll software to help you accomplish so you can look for providers that meet your company’s needs. Most online payroll services charge a monthly base fee of $30 to $150 per month, plus a per-employee fee of $5 to $15 per month.

Wave Payroll is the cheapest payroll + accounting software solution

SurePayroll offers some administration for basic benefits like health insurance, 401(k) plans and workers’ compensation. In terms of payroll, the platform offers free 2-day direct deposit, unlimited payroll runs, the ability to process multiple pay rates and bonuses, access to online paystubs and more. The platform offers an easy-to-use basic payroll processing platform to pay employees and contractors, but no HR and benefits administration in its basic Essentials plan. It strips away the complex features of the broader Paychex platform to stand out as a provider of easy employee payroll. A few online payroll services offer a free trial, giving you the chance to try out the software for at least one payroll run to see if it meets your needs.

Are you a software provider looking to add more value to your tech?

If you can afford it, we recommend using cheap self-service plans from payroll providers like Wave, SurePayroll, or Patriot Software. All three options give you a solid organizational system, accurate tax calculations, and accounting software integration to make bank reconciliation super easy. Small business owners can pay and manage their teams with integrated payroll, and access HR, health benefits, and more. Our payroll software also includes same-day direct deposit and automatic tax filing, which is backed by tax penalty protection. Some payroll services offer automated payroll, so you can set worker pay and employees can track their time (if necessary) and the service runs payroll on schedule. The services let workers enter direct deposit information, and you connect a business bank account on the employer end, so payroll runs without you having to print and deliver checks.

managing payroll for small business

Rick VanderKnyff leads the team responsible for expanding NerdWallet content to additional topics within personal finance. Previously, he has worked as a channel manager at, as a web manager at University of California San Diego, and as a copy editor and staff writer at the Los Angeles Times. He holds a Bachelor of Arts in communications and a Master of Arts in anthropology. Amrita Jayakumar is a former staff writer at NerdWallet and, later, a freelance contributor to the site. She has covered personal loans and consumer credit and debt, among other topics, and wrote a syndicated column about millennials and money.

Note that the current percentages for Social Security is 6.2% for the employer and 6.2% for the employee. The Medicare rate is 1.45% for the employer and 1.45% for the employee. Make sure you set aside the right amount from the employee’s gross wages and from your own business account to pay these required taxes.

  1. Overall, in my experience, Paycor’s user experience required no learning curve.
  2. If you run payroll late, your company may be penalized and you could be charged interest on the missing payments.
  3. Then, when your business season kicks back in, simply reactivate your subscription and account.
  4. Review employee pay rates and look into anything that is higher or lower than expected.
  5. Using this payroll guide, we’ll walk you through the entire payroll process step by step.

Like its name suggests, open-source software is open to the public, meaning anyone can access and tweak its code. This makes it more customizable than typical closed-source, or proprietary, software that you purchase, download and work with as-is. Open-source products, like Odoo, are ideal for business owners who know how to code and want to play a hands-on role in customizing the product to fit their business needs. Other features include inventory tracking, reporting, invoicing, project management tools and the ability to categorize transactions using classes. Offers industry-specific features for consulting businesses, nonprofits, manufacturing companies, professional services and more.

managing payroll for small business

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. But even though we love Gusto, it’s not the only payroll software on the market. The cheapest, most budget-friendly software is SurePayroll, which has affordable self-service and full-service plans. We also recommend Paychex and ADP for more thorough HR management.OnPay is good for comprehensive-but-affordable payroll. Your employees depends on timely paychecks to cover essential expenses like rent or mortgages, utilities, loans, food, medications, and more.

managing payroll for small business

Payroll processing is the method you follow to pay employees at the end of a pay period. It’s a process that calculates total pay, determines how much is deducted and issues payments to employees, tax offices and benefits providers. Companies not using a payroll provider may have a dedicated payroll professional or human resources (HR) expert processing payroll. ADP has been in the payroll space for over 75 years and is used by many large corporations.

For instance, multi-state payroll tax filing costs an extra $9.99 a month. And SurePayroll lacks the expansive employee benefits, scalable plans, and HR perks you’ll get with Gusto or Paychex—another reason it works best for the smallest of small businesses. TriNet offers three plans ranging from $8 per employee per month to $33 per user per month when billed monthly. However, unlike many accrued revenue affecting net income competitors on this list, only the most expensive plan offers payroll features. To access payroll features in the first two tiers, you have to first purchase the core plan and then pay $6 per employee per month more to access the payroll add-on. When I contacted customer support, I was told that this payroll add-on is typically only sold as an add-on and not as a standalone product.

We reviewed dozens of payroll services to find the best options for small businesses. While Rippling, OnPay and Gusto topped our list, there are many more that offer standout features to meet small business payroll needs. Online payroll software, also known as online payroll services, is cloud-based software you can use to process payroll and onboard new employees. Most online payroll software is easy to use and allows you to run payroll in minutes. Zenefits Payroll is a smartly presented software platform that can run payroll in just three mouse clicks.

ADP is the biggest name in the world of PEOs, or professional employer organizations. But if your business isn’t big enough to warrant a PEO, RUN Powered by ADP distills ADP’s decades of HR expertise into an easy online payroll service with thorough HR add-ons. 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 Paychex, ADP, or even an HR-focused service like Zenefits.

Top payroll services for small businesses include OnPay, Gusto and ADP RUN. Traditional companies offer customizable plans to fit your needs while platforms tailored for startups offer straightforward pricing and all-inclusive packages you can get up and running in minutes. Most payroll service providers offer mobile apps for iOS and Android devices. These apps typically allow administrators to run payroll, review past payroll runs and pay payroll taxes. Additionally, employees may be able to use the mobile apps to review their pay stubs, pay history and PTO accruals. Pay attention to whether the mobile apps offered by specific providers are specifically aimed at employees or designed to help managers and administrators.

Leave a Reply

Your email address will not be published. Required fields are marked *