The ideal payroll software for small businesses streamlines payroll processes by automating payroll tax calculations and facilitating filings with state, federal, and local taxing agencies.

Many payroll providers offer services like filing new hire paperwork with state authorities, and some even include onboarding features, such as e-signature capabilities for hiring documents.

Upon completing payroll, employees receive their funds through direct deposit within two to four days. Some payroll solutions may also offer next-day or same-day services for eligible employers.

Best Payroll Solutions For Small Businesses

While most vendors provide live customer support, the available hours may vary based on the provider and subscription plan. Here are our top picks for small business payroll solutions. 

1. Gusto

Like other payroll software solutions, Gusto provides the convenience of direct deposit or checks to pay your employees. It also offers automated tracking and filing of federal, state, and local taxes. What distinguishes Gusto from its competitors is its progressive approach to direct deposit convenience based on the plan tiers.

Instead of removing direct deposit from the lower-priced plan, Gusto enhances the direct deposit experience as you move up the tiers. For instance, the lowest plan may have direct deposit clearing in up to four days, while the higher-tier plans benefit from next-day direct deposit, making payroll processing even more efficient and practical.

Pricing

The core plan of Gusto starts from $40 per month, where $6 per month for employees is the most affordable option. In contrast, the Plus plan costs $80 per month, where the cost per employee is $12. Moreover, you can check for premium packages by contacting the company’s website directly. 

Pros 

• Offers affordable pricing with excellent value for money.
• Allows unlimited payroll runs, ensuring flexibility in processing payments.
• Provides Paid Time Off (PTO) tracking features for efficient leave management.
• Offers full-service payroll options in all states, ensuring comprehensive coverage.
• Includes basic reports across all pricing tiers, aiding in payroll management and analysis.

Cons

• Next day direct deposit feature is limited to the Complete and Concierge plans.
• Dedicated support is only available for Concierge subscribers, potentially limiting assistance for other plan users.

2. Paychex

Paychex is one of the best payroll solutions that offer a complete report required in payroll software. It offers more than 160 reports and checks almost everything, such as wages, taxes, turnover, and many more. The software is easy to set up, automating submitting federal, state, and other taxes. 

There are plenty of upgrade options that are required for the growth of your business. Paychex stands out in this category due to its comprehensive basic reporting, which justifies the monthly fee. Moreover, it offers the unique advantage of custom fields, allowing you to add any additional data fields you need – a rare feature among small business online payroll services.

Pricing

Paychex Flex charges $39 for their essential plans and $5 per employee. The other plans fluctuate over time, so it is difficult to say how much they will charge for more comprehensive plans.

Pros

• Provides 24/7 support for prompt assistance.
• User-friendly interface, making it easy to navigate and operate.
• Offers HR add-on options for extended functionality.
• Boasts a robust reporting feature for comprehensive data analysis.

Cons:

• Some users have reported hidden fees for setup and End of Year (EOY) tax documents.
• Mixed reviews from users regarding the quality of support received.

3. Quickbooks

QuickBooks Payroll is the top choice for easy setup, especially if you already use QuickBooks for accounting. Its seamless automation and intuitive interface cater to QuickBooks users, minimizing the need for support. The comprehensive tutorial and knowledge base offer thorough guidance, and online walkthroughs are readily available if needed.

QuickBooks earns our recommendation for its user-friendly approach, making payroll simple and accessible to users of all experience levels. With QuickBooks Payroll, you can streamline the setup process effortlessly and efficiently.

Pricing

The lowest plan offered by Quickbooks is $45 per month, plus $5 per month, whereas the premium plan goes to $75 per month and $8 per month. But for more additional features, users need to opt for the Elite plan, which costs $125 per month and $10 for employees per month. 

Pros:

• Quick and intuitive setup with an easy-to-use interface.
• Seamlessly integrates with QuickBooks accounting software.
• Offers fast direct deposit options for convenient payment processing.

Cons:

• Some users feel that it could provide better value for the cost.
• The lowest-tier plan lacks the “Time Track on the Go” feature, limiting mobile time-tracking capabilities.

4. Workful

Workful, a relatively newer online payroll service, has quickly gained recognition for its exceptional customer support, earning it the title of our best customer service option. The geolocation time-clock tracking feature is simple, allowing employees to clock in and out from designated locations conveniently. 

Additionally, the app enables employees to submit expenses for reimbursement in the next payroll run, streamlining the reimbursement process.

Pricing

Workful is an affordable payroll option for small business owners also because of easy to understand feature. They charge $25 per month plus $5 per employee. 

Pros

• Budget-friendly pricing, offering affordability for businesses.
• User-friendly interface, making it easy to navigate and operate.
• Includes employee expense tracking and streamlining reimbursement processes.
• Offers geolocation time-clock tracking, ensuring accurate attendance records.
• Provides document storage for convenient record-keeping.

Cons:

• Reporting features are limited, potentially restricting data analysis capabilities.
• The setup process may feel more convenient and more intuitive.

5. OnPay

OnPay offers an affordable and user-friendly online payroll solution, making it an excellent choice for small businesses. With no hidden fees, it caters to businesses on a budget. The full-service payroll feature automates tax calculations and filing for federal, state, and local payroll taxes while requiring your approval for each payroll run.

Although setting up payroll in a new program can be time-consuming, OnPay simplifies the process with its setup wizard. Following the steps and ensuring accurate information should lead to a smooth setup. Moreover, if you need to import data from another payroll service, OnPay assists and guarantees accuracy.

Pricing

OnPay is expensive compared to other options. They charge $40 per month plus $6 per person. However, you will get a lot more at this price, which makes it an excellent option for small business owners to simplify payroll and human resources. 

Pros:

• Transparent pricing with no hidden fees.
• User-friendly interface, ensuring ease of use.
• Offers good value for the cost, making it a worthwhile investment.

Cons:

• Lacks same-day or next-day direct deposit options.
• Does not include automatic payroll submission, requiring manual intervention.

Conclusion

These are the best Payroll solutions for your business that can manage the workload and human resources. This software allows us to focus on other business activities for more productivity. 

Remember that the best payroll solution for your small business depends on your specific requirements, budget, and workforce size. Be sure to thoroughly research each option before making a decision.