Introduction
Managing payroll can be a complex and time-consuming task for small business owners. While outsourcing payroll is an option, using dedicated payroll software streamlines the process and gives you more control. With so many options on the market, it’s hard to determine the best payroll solution for your needs. This guide evaluates and compares the top payroll software providers based on key criteria to help you make an informed decision.
Methods of Evaluation
To select the top payroll software providers, we considered various factors like features, pricing, support, ease of use and more. We also analyzed metrics like number of backlinks, traffic and keyword trends to determine the most popular and established vendors. Our evaluation focused on solutions best suited for small businesses with under 50 employees.
1. QuickBooks Payroll
QuickBooks Payroll is an all-in-one payroll and HR solution developed by Intuit, the maker of QuickBooks accounting software. As the name suggests, QuickBooks Payroll seamlessly integrates with QuickBooks to allow small businesses to easily manage payroll from within their QuickBooks accounts.
Pros: Key advantages of QuickBooks Payroll include:
– Seamless integration with QuickBooks accounting
– Simple setup and use for small businesses
– Affordable pricing
Cons: A potential disadvantage is that the payroll features are more basic compared to dedicated payroll software, so it may not be suitable for more complex payroll needs.
Pricing: QuickBooks Payroll pricing starts at $35/month for the Essentials plan which supports up to 30 employees. The Plus plan is $60/month for up to 100 employees. Both plans include direct deposit, filing of taxes and tax forms, support for sick/vacation tracking, and integration with QuickBooks.
Some key stats about QuickBooks Payroll include:
– Used by over 500,000 small businesses worldwide
– Processes over $60 billion in payroll transactions annually
– Integrates payroll data directly into QuickBooks for accounting
2. Xero Payroll
Xero Payroll is a payroll software solution developed by Xero, an online accounting software provider. It integrates seamlessly with the Xero accounting platform to provide a complete payroll and accounting solution for small businesses.
Pros: Some of the key advantages of Xero Payroll include:
– Robust payroll system that is fully integrated with the Xero accounting platform
– Strong reporting features that provide payroll, superannuation and tax insights
– Seamless bank reconciliation with payroll transactions syncing back to Xero automatically
Cons: One potential disadvantage is that the payroll feature is only available as part of a paid Xero subscription and not as a standalone product.
Pricing: Xero Payroll pricing starts from $15 AUD (including GST) per employee, per month. Additional transaction and payroll processing fees may apply. Discounts are available for annual and multiple user subscriptions.
Some key stats about Xero Payroll include:
– Used by over 2 million small businesses worldwide
– Covers over 120 countries and territories
– Integrates directly with over 250 bank connections for automated payments
3. BambooHR
BambooHR is a leading HR and payroll software provider based in Lindon, Utah. Founded in 2008, BambooHR offers a robust yet affordable cloud-based platform to help small and medium-sized businesses manage their human resources from hire to retire. With over 20,000 customers worldwide, BambooHR aims to provide HR solutions that are both powerful and simple to use.
Pros: Some key advantages of BambooHR include:
– Robust yet affordable HR platform that scales well for growing businesses
– Strong feature set that goes beyond just payroll to also manage HR processes like onboarding, timesheets, reviews and more
– Excellent onboarding and support experience to help customers get up and running quickly
Cons: One potential disadvantage is that BambooHR may not be as full-featured as some of the more expensive dedicated HRIS solutions, so it could lack some advanced functionalities for very large enterprises.
Pricing: BambooHR offers straightforward monthly pricing plans starting from $6 per employee per month for their Essential plan which includes core HR functions like payroll processing, time-off tracking, performance reviews and reporting. Their higher tier Premium and Elite plans provide additional advanced features and functionality.
Some key stats about BambooHR include:
– Over 20,000 customers globally spanning 150+ countries
– Processes payroll for over 1 million employees
– Active in all 50 U.S. states
– 24/7 phone and email support
– Integrates with over 200+ apps including Gusto, Zenefits and Paylocity
4. FreshBooks Payroll
FreshBooks Payroll is a payroll processing solution developed by FreshBooks to facilitate payroll within their cloud-based accounting software. Integrated directly into FreshBooks, it allows users to easily pay employees, file taxes, and manage payroll from within their existing FreshBooks account.
Pros: The main advantages of FreshBooks Payroll include its tight integration with the FreshBooks accounting platform, allowing payroll to be managed directly from the FreshBooks dashboard. Time tracking and invoicing data syncs seamlessly. Another key advantage is the affordable pricing which starts at $12 per month.
Cons: As an integrated payroll solution, FreshBooks Payroll may not be as fully-featured or flexible as standalone payroll platforms. Customization options are more limited compared to specialized payroll software. Support for international payroll and complex pay structures could also be improved.
Pricing: FreshBooks Payroll pricing starts at $12 per month for up to 10 employees. Plans scale up to $36 per month for up to 50 employees. Additional employee pricing is $3 per employee per month. No long term contracts required and pricing is all-inclusive of taxes, filings and unlimited support.
Key features include direct integration with FreshBooks timesheets, expenses and invoicing. Taxes are automatically calculated and filed. Payroll can be run on a weekly, bi-weekly or monthly schedule. Support is provided for contractors and different pay frequencies. Reports and payroll histories are stored online.
5. Workday
Workday is a leading HCM and financial management software for large enterprises. Founded in 2005, Workday provides a unified platform for payroll, benefits, core HR, talent management, planning, spend management and analytics applications. With over 3,500 customers worldwide, Workday aims to help large organizations adapt to changing business needs through its enterprise management cloud.
Pros: Some of the key advantages of Workday include:
– All-in-one platform for finance, HR, and planning rather than separate modules.
– Advanced analytics capabilities and tools for strategic decision making.
– Global payroll capabilities that cover over 190 countries.
– Continuous innovation with new features and functionality added regularly.
Cons: One potential disadvantage is the price – Workday is best suited for very large enterprises given its premium pricing. Smaller companies with under 5,000 employees may find it too expensive compared to other alternatives.
Pricing: Workday pricing starts from $65 per user per month for Professional/Team editions and goes up based on the modules, users, and customizations required. Enterprise editions specifically designed for companies with over 5000 employees start at $100 per user per month.
Some key stats about Workday include:
– Over 3,500 customers globally including massive enterprises like Netflix, Coca-Cola, and Volkswagen.
– Designed for organizations with 5,000+ employees.
– Over 45 million users on the Workday platform.
– Added support for 27 new countries in the past year for global payroll compliance.
– Named a leader in the 2021 Gartner Magic Quadrant for Cloud HCM Suites for 1,000+ Employee Enterprises.
6. Wave Payroll
Wave Payroll is a free online payroll software solution developed by Wave Financial for small businesses. It integrates seamlessly with their accounting software Wave.
Pros: Some key advantages of Wave Payroll include:
– It’s free to use with no setup or monthly fees
– Simple and intuitive online system that is easy for small businesses to manage
– Integrates payroll directly with Wave accounting software for streamlined financial reporting
– Supports paying employees in over 100 countries globally
Cons: The main disadvantage is that it only supports a limited number of payment methods including direct deposit, paycards and paychecks (no options for international wires). So it works best for small businesses operating within North America.
Pricing: Wave Payroll is completely free to use with no setup fees or monthly charges. There are also no transaction fees to process payroll. The only potential additional cost is for printing and mailing paper paychecks/envelopes if a business choses that payment method.
Some key stats about Wave Payroll include:
– Used by over 50,000 small businesses globally
– Completely free with no setup or monthly fees
– Supports paying employees in over 100 countries
7. Paychex Flex
Paychex Flex is a full-service payroll and HR solution developed by Paychex, a leading provider of HR, payroll, benefits, and insurance services for small- to medium-sized businesses. Founded in 1971 and headquartered in Rochester, New York, Paychex serves over 670,000 clients across 100 locations worldwide.
Pros: Key advantages of Paychex Flex include its robust payroll features suitable for small to mid-sized businesses, strong HR tools and reporting capabilities, and dedicated support from payroll and compliance professionals.
Cons: A potential disadvantage is that Paychex Flex has more features than some smaller businesses need, which can increase its cost compared to simpler payroll-only solutions.
Pricing: Paychex Flex pricing starts at $29 per month for a basic payroll package and increases based on the number of employees and level of functionality needed. Additional fees apply for services like checks, direct deposit, and other HR modules.
Some key stats about Paychex Flex include: it processes payroll for more than 670,000 American businesses each period, it has client support teams accessible 24/7/365, and it offers integrated functionality for payroll, HR, benefits administration, and retirement services planning in a single platform.
8. Zenefits
Zenefits is an all-in-one HR, benefits and payroll platform for small businesses. Founded in 2013 and headquartered in San Francisco, Zenefits provides tools to help small businesses streamline HR, onboarding, benefits administration, payroll processing, time tracking, and people management through its cloud-based software platform. With over 4,000 customers, Zenefits aims to take the headache out of managing people operations for small companies.
Pros: Some key advantages of Zenefits include:
– All-in-one platform for HR, benefits, and payroll processing in a single dashboard
– Intuitive and easy-to-use interface accessible via computer or mobile apps
– Affordable pricing tiers starting at $5 per employee per month for basic HR and payroll
– Strong compliance and expertise in handling payroll, taxes, and regulatory requirements
– Dedicated HR experts available to assist with setup and ongoing operations
Cons: A potential disadvantage is that the platform may not have all the advanced features needed by some very large enterprises. Zenefits is best suited for small to medium sized businesses rather than large multi-national corporations.
Pricing: Zenefits offers three basic pricing tiers – Basic plan starts at $5 per employee per month, Standard plan is $8 per employee per month, and Premium is $12 per employee per month. Add-ons like time tracking, applicant tracking, and services like 401k enrollment carry additional per user fees.
Some key stats about Zenefits include:
– Over 4,000 customers in the US and Canada
– Processes payroll for over 100,000 employees
– Covers over $500 million in annual payroll
– Handles benefits enrollment for over 250,000 employees
9. PAYCOR
PAYCOR is a leading provider of Human Capital Management (HCM) software. Founded in 1990 and based in Cincinnati, Ohio, PAYCOR’s solutions help over 24,000 organizations across industries to streamline HR processes and maximize employee productivity.
Pros: Some key advantages of PAYCOR payroll and HCM software include:
– Strong reporting and analytics capabilities to track workforce trends
– Comprehensive HR tools that cover recruiting, onboarding, payroll, benefits and more
– Dedicated implementation manager to help customize the system and support client needs
Cons: As with any large system, implementation and adaptation can take time. However PAYCOR provides dedicated support to help smooth this process for clients.
Pricing: PAYCOR offers flexible pricing based on the number of employee records and desired functionality. Contact their team for a custom quote.
Some key stats about PAYCOR include:
– Over 24,000 customers across industries
– Processing payroll for over 1.5 million employees each pay period
– 30 years of experience providing HCM solutions
– Dedicated client support and implementation teams
10. Insperity
Insperity provides a full-featured payroll and HR software solution ideal for small businesses. As one of the largest professional employer organizations (PEOs) in the U.S., Insperity helps small businesses focus on growing their core business by outsourcing a wide range of HR responsibilities like benefits administration, payroll processing, training programs and more.
Pros: Key advantages of Insperity payroll software:
– Full HR outsourcing allows businesses to focus on growth, not HR administration
– Comprehensive benefits administration through a single platform
– Robust payroll processing and reporting capabilities
– Excellent support from dedicated HR experts
Cons: The main disadvantage is the additional cost of outsourcing HR functions rather than handling them in-house.
Pricing: Insperity pricing is based on the number of employees. There is generally a one-time setup fee followed by a per employee fee that covers payroll processing, benefits administration, compliance support and more. Insperity provides a quote on request after assessing a business’ specific needs.
Some key stats about Insperity payroll software:
– 30+ years of experience as one of the largest PEOs in the country
– Handles payroll, HR administration and compliance for over 100,000 small business clients
– Processes over $35 billion in payroll each year for clients across all 50 states
– Administers health, dental and retirement benefits for over 225,000 employees
11. Patriot Payroll
Patriot Payroll is cloud-based payroll software created for small businesses. Founded in 1998, Patriot Payroll offers affordable online payroll processing and HR services. With over 2 decades of experience, Patriot Payroll prides itself on providing dedicated and expert payroll support to its customers.
Pros: Key advantages of Patriot Payroll include:
– Strong HR capabilities alongside payroll such as time and attendance tracking
– Dedicated payroll experts available by phone for any payroll questions
– Affordable pricing for small businesses processing up to 50 employees
– Easy-to-use online dashboard and mobile app for anytime payroll access
Cons: A potential disadvantage is that the HR capabilities are more basic compared to some dedicated HR software solutions. Patriot Payroll may not be the best fit for very large companies with over 50 employees.
Pricing: Patriot Payroll offers straightforward pricing starting at $29 per month for up to 25 employees. Plans range from $29-199 per month depending on the number of employees. Additional costs may apply for extras like time tracking or custom tax forms. There is no long term contract required.
Some key stats about Patriot Payroll include:
– Processes payroll for over 50,000 small businesses
– Supports all 50 US states and various payroll tax filing requirements
– Over 20 years of payroll experience
– Dedicated support team available via phone and email
12. Dayforce
Dayforce is a leading cloud-based payroll and HCM software developed by Ceridian. Some key facts about Dayforce include that it is a powerful all-in-one platform that brings together payroll, HR, benefits administration, time and attendance tracking, and talent management capabilities. Dayforce seamlessly manages the entire employee lifecycle from hiring to retirement with its integrated suite of solutions.
Pros: Some key advantages of Dayforce include its powerful cloud-based HCM platform that allows for anytime, anywhere access on any device. It also provides payroll, HR, benefits and other functions together in one place for seamless management. Dayforce also offers dedicated onboarding experts to help get clients up and running on the platform quickly.
Cons: One potential disadvantage is that as a cloud-based solution, Dayforce requires an internet connection to access and use. This could be an issue for some organizations that require payroll and HR access when offline.
Pricing: Dayforce pricing is based on the number of paid employees. It offers flexible pricing plans starting at $7 per paid employee per month for basic payroll and HR features. Additional modules like benefits administration, time and attendance, and talent management incur additional per employee per month fees.
Dayforce processes over $1 trillion in annual payroll and provides HR, benefits, and talent management for over 3.5 million employees worldwide. It has over 50 years of experience in payroll and is trusted by over 4,000 clients including large enterprises and small to mid-sized businesses.
13. Kronos Workforce Ready
Kronos Workforce Ready is a leading payroll and workforce management solution developed by Kronos, now a part of UKG. As one of the top payroll software options for small businesses, it offers powerful and comprehensive features to streamline payroll processing, HR tasks, and scheduling.
Pros: Some key advantages of Kronos Workforce Ready include:
– Powerful workforce management solution for scheduling, attendance and labour optimization
– Integrated time and attendance tracking interface for punching in/out
– Robust HR, payroll and reporting insights for people managers and executives
Cons: One potential disadvantage is that the solution may involve a significant implementation and onboarding process for more complex deployments in large organizations.
Pricing: Pricing for Kronos Workforce Ready starts at $7 per employee per month for basic payroll processing and time tracking. Additional modules like HR management, talent management etc. are priced separately. Quotes are available based on organization size, number of users and desired functionality.
Some key stats about Kronos Workforce Ready include:
– Used by over 7,000 organizations globally
– Supports payroll for over 4.5 million employees
– Integrates with over 350 HR/payroll systems and time clocks
– Provides reporting and analytics for workforce productivity and compliance
14. Deputy
Deputy is an all-in-one HR and payroll software for small businesses. Founded in 2012, Deputy helps over 30,000 customers in 170 countries simplify scheduling, time tracking, payroll and people management. Some key features include calendar-based scheduling, timesheet tracking, payroll integration, and a mobile app.
Pros: Some key advantages of Deputy include its simple and intuitive interface that makes scheduling and time tracking a breeze. The calendar view makes planning staff coverage easy. Deputy also offers robust time tracking features to ensure accurate payroll. Its integrations with major payroll providers streamlines the entire HR process for small businesses.
Cons: One potential downside is that the free plan only allows for 5 employees or contractors. For businesses with larger teams, an upgrade would be needed which starts at $15/employee/month. The mobile app could also be improved with more customization options for managers.
Pricing: Deputy offers three pricing tiers – Essentials ($15/employee/month), Premium ($25/employee/month) and Enterprise (custom pricing). The pricing includes support, backup, unlimited historical data access and full access to all features. There is also a free plan that supports up to 5 employees or contractors.
With Deputy, businesses can save over 20 hours per week on scheduling and rostering tasks. The software integrates with over 30 payroll providers worldwide like Gusto, QuickBooks, and Xero. It is rated #1 in the App Store for both employee scheduling and time clock apps. Deputy has offices in Denver, New York, and Melbourne.
15. UKG
UKG (Ultimate Kronos Group) is a leading global provider of HR, payroll, and workforce management solutions. Founded in 1971 and headquartered in Weston, Massachusetts, UKG now serves over 30,000 customers in more than 100 countries. Their flagship cloud-based solution, UKG Pro, is a comprehensive HCM platform that handles the full spectrum of HR and payroll needs for organizations of all sizes.
Pros: Some key advantages of UKG payroll and HR solutions:
– Powerful HCM suite with deep functionality to handle complex HR and payroll requirements
– Dedicated expertise and decades of experience in core HR and payroll domains
– Robust custom reporting and analytics capabilities to glean insights from workforce data
Cons: One potential disadvantage is that as a more full-featured HCM platform, UKG may have a higher total cost of ownership than simpler payroll-only solutions. The depth of functionality comes at the price of increased complexity to set up and manage for some very small businesses.
Pricing: UKG Pro pricing starts at $50 per employee per month for self-service payroll and HR functionality. Additional modules like time and attendance, recruiting, and leave management have additional per-user fees. Implementation, support, and consulting services are also available at an extra cost. UKG offers customized quotes based on company size and needs.
Some key stats about UKG:
– Over 30,000 customers worldwide
– Serves customers across more than 100 countries
– UKG Pro handles HR, payroll, and workforce management for organizations of all sizes
– Over 45 years of experience innovating workforce management technology
Conclusion
Hopefully this analysis has provided a helpful overview and comparison of the leading payroll software options for small businesses. Consider your budget, features priorities and team size when choosing the right solution. Don’t hesitate to contact support teams for demos and free trials. With the right payroll partner, you can simplify compliance and boost efficiency so you can focus on growing your business.