Payroll services are such a critical component of business, whether you have one employee or thousands of employees. It’s the backbone behind a successful company, helping to ensure employees are paid correctly, paid on time, and other benefits.
Many businesses try to manage payroll on their own manually, which can have some dire consequences. Did you know that 82 million U.S. workers have experienced paycheck errors? According to this source, when these errors happen more than once, nearly half of employees start looking for a new job. Keep reading to discover the best payroll services.
What Is Payroll Services Software?
Payroll services software is online software that allows organizations to process the payroll for their company.
It can include features and services like:
- Full-service payroll
- Employee benefits
- HR software
- Benefits
- Employee onboarding
Employers can use payroll software to help them manage payroll effectively so employees can get paid correctly and on time. It can be used by small and large businesses for tasks like:
- Tracking employee attendance
- Keeping payroll records
- Adhering to federal and state laws
- Managing direct deposit
- Managing employee tax forms
Many payroll software tools include HR and other tools to make it an all-in-one solution for companies to handle their payroll and HR with one tool.
The purpose of using software for managing payroll is to help streamline and automate an organization’s payroll to eliminate redundancies and reduce/eliminate payroll errors that may result from using a manual, unmodern system, like punching time cards.
Best Payroll Services Software
- Gusto - Best Overall
- Paychex - Best for Upgrading Your Current Payroll
- OnPay - Best for Small Business
- ADP - Best for Businesses of All Sizes
- Quickbooks Payroll - Best for Quickbooks Users
Reviews Of The Best Payroll Services Software
1. Gusto - Best Overall
Gusto offers payroll, HR, and benefits support to companies. They have helped over 200,000 businesses with their payroll services:
- Full-service payroll
- Employee benefits
- Time and attendance
- Hiring and onboarding
- Talent management
- Insights and reporting
- Gusto wallet app
They promise an easy-to-use platform to handle your payroll and HR needs, keeping you in compliance, and delivering the support you need to run your business seamlessly. Their smart technology will let you pay your employees and contractors effortlessly, offering features like:
- Unlimited payroll runs
- Direct deposit
- Time tracking synced with payroll
- Automatic tax calculations
Where It Excels
- Easy to use
- Full suite of HR tools included
- Automations and integrations
- Mobile app
Where It Falls Short
- Expensive
- Poor customer service ratings
Pricing
Gusto’s pricing starts at $39/month and $6/month per person.
The Core plan is small business-friendly. You get a lot for the price including full-service payroll with W-2s and 1099s included. Employee health benefits and financial benefits are also built-in, among other benefits.
For the next level up, accommodating companies that have complex hiring practices and need a little more, the Complete plan is a good choice. You get everything in Core plus features like next-day direct deposit, hiring and onboarding tools, performance reviews, and more.
The Concierge plan is perfect for companies that have very complex HR procedures and need a plan to accommodate, including compliance alerts, an HR resource center, certified HR professionals, and dedicated support, plus everything in the Complete plan.
Lastly, for a truly custom plan with premium tools to fit the needs of your business, you can contact Gusto for a custom plan including pricing. You’ll get everything in the Concierge plan, customized to fit your business.
Try Gusto for free for one month! Get started today!
2. Paychex - Best for Upgrading Your Current Payroll
Paychex is one of the top payroll services software solutions online. They can help you run your payroll services across any device, providing support to you managing your:
- Payroll
- HR
- Benefits
Nearly one million companies trust Paychex to run their payroll services. Paychex is a great choice for businesses of all sizes, from solopreneur companies to large enterprises.
Working with Paychex will get you:
- Timely and accurate payroll processing
- An all-in-one solution for payroll and HR
- Payroll taxes calculation, filing, and submission
Where It Excels
- Affordable
- Excellent record keeping
- Accuracy
Where It Falls Short
- No free trial
- Busy dashboard
- No mobile app
Pricing
The pricing varies based on the size and needs of your business. They take you through a short questionnaire to help fit you with the right payroll services plan for your operation.
3. OnPay - Best for Small Businesses
OnPay can help you streamline your payroll and HR services. This top-rated payroll software solution is great for businesses in many industries:
- Startups
- Franchises
- Accounting
- Healthcare and dental
- Farming and agricultural
- Restaurants and bars
OnPay is a payroll system that drives itself. Full-service payroll includes features like unlimited monthly pay runs, W-2s and 1099s, multi-state payroll, and other features.
You get employee self-service tools like self-onboarding, lifetime accounts, pay stubs, tax documents, and more. Integrations are available with your favorite tools like Quickbooks, Xero, and more, plus compliance tools, basic and special payroll and HR services, and a lot more.
Where It Excels
- User-friendly
- Great customer support
- Simple pricing plan
Where It Falls Short
- Works best for smaller businesses
- Difficulty using some features
Pricing
OnPay offers a simple pricing structure based on the size of your team.
You can use their drag slider calculator to figure out the cost of your plan before you purchase and they offer a free 30-day trial, too!
4. ADP - Best for small, medium, and large organizations
For organizations of all sizes, ADP is your best bet for managing:
- Payroll
- HR
- Benefits
- Insurance
- Time
- Talent
- Compliance
Nearly one million customers trust ADP to handle their payroll needs. They help businesses in virtually every industry including manufacturing, hospitality, healthcare, retail, government/education, nonprofit, and more.
ADP offers a marketplace called ADP marketplace which is home to HR and payroll apps you can access to use for your company.
Examples of apps you can use include:
- ClearCompany Advanced Talent
- GoodHire Background Checks
- HiringThing for ADP Workforce Now
- Jobvite Talent Acquisition Suite
Where It Excels
- All-in-one solution for payroll and HR
- Integrated solution
- Desktop and app
Where It Falls Short
- Difficulty navigating the site
- The interface is not modern and feels dated
Pricing
There is a 3-month free offer when you sign up to ADP. To check the price, you’ll need to fill out their pricing form for a custom quote. Your price is based on the types of services you need, the size of your company, and other factors.
Get 3 months free when you sign up with ADP.
5. Quickbooks Payroll - Best for Quickbooks Users
Quickbooks Payroll offers payroll services that go beyond paying your employees. You’ll be able to manage your entire HR process from benefits, workers compensation, 401(k), and more.
If you’re already using Quickbooks to manage your company’s bookkeeping or other processes, adding their Payroll services will be a natural integration for you.
You will be able to use the same platform to handle it all, combining your payroll, bookkeeping, invoicing, and more.
For Quickbooks users, you will really have the upper hand here since you’ll already be familiar with how the Quickbooks platform works.
With this payroll services software, you get:
- Accurate payroll processing
- Time tracking
- Automated taxes
- Automated forms
- Support
This is the perfect solution for small to midsize organizations that want to get full payroll/HR benefits management for an affordable budget. Whether you have one or multiple employees, there’s a plan to fit your needs.
Where It Excels
- Ease of use
- Project management features
- Helpful reporting
Where It Falls Short
- Difficulty with some integrations
- Expensive
Pricing
There are three plans, all of which offer full-service payroll. Right now you can get 50% off for 3 months if you select a plan and buy right away. If you want to test the software for 30 days free, that’s also available for full price after the trial.
Here’s a look at some of the features included in each plan:
Core plan ($22.50/month for first 3 months, then $45/month):
- Full-service payroll
- Auto payroll
- 1099 E-file and pay
- Next day direct deposit
- 401(k) plan and team health benefits
- Expert support
Premium plan ($37.50/month, for first 3 months, then $75/month):
- Everything in Core plus,
- Same-day direct deposit
- Expert review
- Time tracking on the go
- HR support center
- Workers compensation admin
Elite ($62.50/month, for first 3 months, then $125/month):
- Everything in Premium plus,
- Expert setup
- 24/7 expert support
- Tax penalty protection
- Personal HR advisor
Benefits of Using Payroll Service
Some of the benefits you’ll get from using payroll services are:
- Streamlined payroll processing
- Reduced/eliminated payroll errors
- Compliance
- Risk management
- Saves time
- Controls costs
How We Chose The Best Payroll Services
We chose the best payroll services through thorough research online including user reviews, to determine the best payroll software service companies.
After reviewing many companies, we chose the five best payroll services companies that offer these services at a minimum:
- Payroll processing
- Time tracking
- Employee pay
- End of year taxes
We also looked at companies that offered multiple services along with features like user-friendliness and customer service.
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How Do Payroll Services Work?
Employees will use the payroll system to report their time worked. It can also be used to collect W4 and 1099 information from employees and freelancers for tax purposes, along with setting up direct deposit and payment processing, among other services.
What Does An Employer Need To Know About Payroll Software?
Payroll software services are an essential investment in your company. It can be expensive but a necessary cost for your payroll to be processed accurately and efficiently.
Each software tool will vary, offering different features, services, and pricing plans.
There are many factors to keep in mind when picking the right payroll software for your company:
- Cost
- Features
- Ease of use
Consider your company’s needs and remember what you’ll gain from investing in payroll software:
- Streamlined payroll processing
- Save time which can be used for other tasks
- Compliance
- Reduced errors monitoring time and attendance
- Eliminates lags and errors in payment processing
Frequently Asked Questions
What is the cost for payroll services?
Payroll services usually have a base cost of up to $30 to $100 per month plus an added cost of $5 to $20 per employee. Some payroll services companies may have additional costs like a cost per paycheck issued.
What is the cheapest way to do payroll?
The cheapest way to do payroll is by using a payroll software tool that incorporates other built-in features for your business so it can all be managed under one umbrella.
For example, companies like Paychex offer an all-in-one solution for payroll and HR. You can save more money using one software for multiple purposes rather than buying individual software tools for each business need.
What should good payroll services offer?
Good payroll services should be easy to use, have a strong customer service team, and offer services that help you process payroll, employee pay, time tracking, and taxes.
Is ADP the best payroll company?
ADP is one of the best payroll companies online. It offers a lot of built-in tools and features and it’s great for businesses of all sizes.
The Bottom Line
You don’t have to stress about managing your company’s payroll on your own. These five payroll services software tools are the best in the industry.
Manage payroll, stay in compliance with state and federal regulatory and tax laws, pay employees correctly and on time using payroll software. Regardless of the size of your business and what industry you work, there’s a payroll solution to fit your needs.
Looking for more business solutions? Check out our picks for the best performance management software.
