6 Best Payroll Software for Small Businesses (2024)

As a webmaster with over 15 years of experience helping small businesses choose software, I know how difficult managing payroll and HR can be. But having the right software by your side can make a world of difference.

In this post, I’ll walk you through the top payroll solutions so you can find the perfect fit for your growing company.

Why Online Payroll Software is Essential

Let’s start with why online payroll software should be a top priority:

• It saves massive amounts of time. According to the American Payroll Association, manual payroll takes 20+ hours per month for the average small business. Yikes! Automated software cuts that time down by up to 80%. Those hours add up to more time growing your business.

• It reduces costly payroll errors. An ADP survey found that 75% of businesses make payroll mistakes each year. These errors add up to an average of $827 per employee! Payroll software prevents mistakes by automating complex paycheck calculations.

• It keeps your data secure. Paper records or Excel sheets are risky for sensitive employee payroll data. Cloud-based payroll software keeps everything protected behind top-grade security.

• It helps you stay compliant. Payroll laws change often, and it’s tricky to stay up-to-date. Payroll solutions guarantee you remain compliant in all 50 states and avoid IRS penalties.

• It gives you valuable insights. Payroll reports help you make smarter decisions about your labor costs, turnover, compensation, and growth planning.

Today’s payroll software has evolved into all-in-one solutions for automated payroll, simplified HR tasks, and people analytics. For most SMBs, the benefits easily justify the costs.

Next, let’s explore the top payroll and HR solutions for you to consider…

1. Gusto

Gusto sits at the top of the market by providing an award-winning payroll and HR experience. Over 100,000 businesses trust Gusto to eliminate payroll headaches and create an exceptional workplace.

I recommend Gusto for its straightforward tools that make running payroll faster and easier:

• Payroll automation – Calculate employee paychecks down to the penny based on hours, reimbursements, garnishments, and more. Direct deposit paychecks or print them.

• Tax filings – Payroll taxes can give any business owner a headache. Gusto automatically calculates local, state, and federal taxes and handles all filings for you.

• Employee self-onboarding – Gusto lets employees securely access their own payroll information and update personal info from home.

• PTO tracking – Easily track vacation, sick days, and time-off requests. Gusto even shows remaining PTO balances.

• Reports – Gain insights into labor costs, retention, turnover, and more with real-time payroll reports.

Gusto shines when it comes to supporting HR tasks as well. You can manage employee surveys, onboarding, company directories, compliance documents, and more in one integrated platform.

For SMBs, Gusto’s Core plan provides the best value at $39/month base fee + $6 per employee. Compared to DIY payroll headaches, Gusto is worth every penny for its simplicity and support.

2. OnPay

OnPay positions itself as an all-in-one payroll and HR solution designed for startups and small businesses.

It simplifies payroll and ensures you remain IRS-compliant as your company scales:

• Unlimited pay runs – Process payroll as often as you need, with no limits on pay run frequency.

• Direct deposit – OnPay deposits employee payroll directly into their bank account so you avoid paper checks.

• Tax payments – OnPay uses your payroll data to automatically calculate, prepare, and file required payroll taxes.

• 401(k) plans – OnPay helps administer 401(k) contributions and employer matches. This extra benefit can help with hiring.

• Integrations – Connect OnPay to popular small business software like QuickBooks, Xero, FreshBooks, and more.

While OnPay covers core payroll well, it also includes helpful HR features like PTO tracking, offer letter templates, and employee documents.

For straightforward payroll needs, OnPay offers strong value at $36/month base fee + $4 per employee. It’s a cost-effective pick for lean startups.

3. BambooHR

BambooHR is one of the best HR solutions available, with a well-earned reputation for useful features and top-notch support.

While BambooHR doesn’t handle payroll itself, it makes the HR piece of the puzzle a breeze:

• Applicant tracking – Streamline your entire hiring process from posting jobs to onboarding.

• Custom onboarding – Make stellar first impressions by guiding new hires through training, paperwork, and company introductions.

• Company culture tracking – Measure employee satisfaction over time and get alerts about at-risk employees.

• PTO tracking – Let employees request time off and view schedules from their own BambooHR dashboard.

• Timesheets – Track employee hours for payroll, projects, and billing. BambooHR timesheets integrate with many major payroll services.

For SMBs focused on developing their HR infrastructure and processes, BambooHR is a great choice at $99/month for up to 50 employees.

Pair it with a provider like Gusto or OnPay for easy payroll integration.

Payroll Pricing Comparison

To compare costs across platforms, here’s a breakdown of popular pricing models:

• Gusto – $39/month + $6 per employee

• OnPay – $36/month + $4 per employee

• QuickBooks – $45/month + $4 per employee

• BambooHR – $99/month for up to 50 employees

• Patriot – $10/month + $4 per employee

• SurePayroll – $45/month + $4 per employee

Be sure to verify exact costs for your number of employees. Some vendors offer monthly discounts as your team grows.

Many also charge one-time setup and training fees around $100-$200.

4. QuickBooks Payroll

If you already use QuickBooks Online or QuickBooks Desktop for accounting, adding QuickBooks Payroll is a no-brainer. It integrates seamlessly to sync all payroll and accounting data.

Top features include:

• Direct deposit – Deliver employee pay instantly on payday.

• Tax payments – Payroll taxes are automatically calculated and paid to IRS and state agencies.

• Contractor payments – Easily pay independent contractors and generate 1099 forms.

• Integrations – Connect employee payroll data with QuickBooks accounts, invoices, bills, and banking.

• Reporting – Get insights into payroll costs, reimbursements, deductions, and more.

QuickBooks Payroll packages start at $45/month plus $4 per employee. It’s ideal for current QuickBooks customers.

5. Patriot Payroll

Patriot Payroll is a leading choice for straightforward payroll needs at affordable rates. It‘s a great option for businesses with hourly, part-time, or seasonal staff.

Some key features include:

• Multiple pay types – Easily handle hourly, salary, and contractor pay all in one place.

• Tax forms – Patriot Payroll files and handles all required federal and state payroll taxes and forms.

• Direct deposit – Deposit employee checks to unlimited bank accounts or debit cards.

• Unlimited pay runs – Most vendors charge per pay run. Patriot Payroll offers unlimited pay runs free of extra fees.

• Mobile app – View reports and employee info on the go with Patriot‘s mobile app.

Patriot Payroll starts at just $10/month + $4 per employee. It strikes an excellent balance of value, compliance, and simplicity.

6. SurePayroll

SurePayroll is an online payroll service used by over 40,000 SMBs. It makes payroll easy, accurate, and stress-free for business owners without HR expertise.

SurePayroll‘s key strengths include:

• Payroll automation – Payroll runs are fast, accurate, and automated based on time tracking and employee info.

• Tax payments – All federal, state, and local payroll taxes are automatically calculated and paid by SurePayroll.

• 100+ reports – Generate valuable insights from preset payroll reports or customize your own.

• Contractor payments – SurePayroll supports and 1099 filings for independent contractors.

• Integrations – Connect SurePayroll to popular HR systems like Zenefits, BambooHR, and Namely.

Standard pricing starts at $45/month + $4 per employee. In my experience, it provides excellent overall value and payroll compliance.

Choose the Best Payroll Software for Your Business

Here are some key takeaways as you evaluate payroll solutions:

• Gusto – Best overall option for payroll, HR, and benefits. Ideal for growing companies.

• OnPay – Leading choice for basic payroll paired with essential HR features.

• BambooHR – Excellent for dedicated HR functionality like hiring and onboarding.

• QuickBooks – Seamlessly integrates with QuickBooks Online and Desktop.

• Patriot – Affordable solution focused on core payroll essentials.

• SurePayroll – User-friendly payroll made for entrepreneurs without HR expertise.

No matter what solution you choose, automated payroll software makes your life easier by saving time, reducing errors, and keeping your business compliant. It’s one of the best investments you can make as a business owner.

Have any other questions about choosing payroll software? Reach out anytime! I‘m always happy to offer personalized advice based on 15+ years of experience.