Greatest Payroll Software program For Small Companies 2022

There’s a cause why small enterprise employers and operators outsource their payroll processes to payroll software program.

For those who’re the proprietor of a rising enterprise who looks like payroll takes an excessive amount of time and power out of your already busy schedule, you’re not alone. Round 70% of small enterprise homeowners really feel that payroll provides a considerable burden to their workload (1).

It’s not nearly tallying up hours and writing paychecks — it’s a must to ensure that your payroll is error-free since you might:

  • Find yourself shedding workers attributable to a single paycheck error
  • Incur steep fines from the Inside Income Service (IRS) for late or inadequate tax funds (2)
  • Face lawsuits or fines for misclassifying workers as impartial contractors (3)

However we’re right here that can assist you analysis — and evaluate — the highest payroll instruments for small companies. We’ve created this information to interrupt down the number of features that payroll software program can carry out for you and discover among the distinctive options that set every of those instruments aside. That method, you can begin operating payroll with peace of thoughts and and not using a lump in your abdomen.

  1. National Federation of Independent Business, 2021
  2. IRS Data Book, 2021
  3. National Employment Law Project, 2020

What’s payroll software program?

Payroll software program enables you to automate and streamline the method of monitoring worker pay, deducting the suitable state and native taxes, and issuing paychecks and direct deposits often. Relying on the supplier you select, payroll software program can take you from the start to the top of the method — from the second workers fill out and e-sign their tax paperwork to when it’s a must to file tax funds and studies. In the end, efficient payroll software program will prevent time, sources, and room for error.

High payroll companies for small companies in contrast

Chances are you’ll be aware of one or two of the payroll companies listed beneath, however you won’t concentrate on what makes these companies so useful to small companies. Scroll down to take a look at a desk that breaks down six of the highest payroll companies based mostly on their key options.

Observe: The acronym PEPM refers back to the “per worker, per 30 days” pricing mannequin that many payroll software program suppliers use.

Firm Worth vary per 30 days Built-in timesheets Limitless payroll runs Automated payroll tax funds and filings Cell app Additional options (together with HR instruments like time monitoring, scheduling, and so on.)
Homebase $39 + $6 PEPM to $119 + $6 PEPM X X X X X
QuickBooks $37.50 + $5 PEPM to $80 + $8 PEPM X X X X X
Gusto $40 + $6 PEPM to $80 + $12 PEPM With integration X X X
Paychex $39 + $5 PEPM for his or her Paychex Flex Necessities plan. Gross sales group will offer you a customized quote for his or her Choose and Professional plans. X X X X
OnPay $40 + $6 PEPM X X X X
RUN powered by ADP Gross sales group will offer you a customized quote X X X X X

How to decide on the most effective payroll supplier to your small enterprise

On-line payroll suppliers provide the freedom to do payroll by your self and make the method customizable and fewer daunting. Nonetheless, selecting a payroll software program answer alone may be overwhelming, so let’s check out what parts it’s best to prioritize whereas deciding.

Payroll pricing

Small enterprise homeowners want to save lots of their pennies at any time when attainable. Even so, it may be tempting for many who really feel intimidated by payroll to entrust their processes to an exterior bookkeeper who guarantees to take all the things off their palms. Nevertheless, that selection might price anyplace between $500 to $2500 a month, relying in your wants. There’s all kinds of payroll software program choices out there now — we’re right here to let you know which you can deal with the method by yourself with the assistance of the suitable software program.

With that stated, you should determine how typically you’re going to run payroll and contemplate the scale of your group to determine pricing. Most payroll software program suppliers cost a flat month-to-month charge plus a “per worker, per 30 days” charge that may vary anyplace from $5 to $12 per group member. Nevertheless, some suppliers will cost you each time you run payroll. So, should you plan on doing payroll weekly or bi-monthly, it could be greatest to decide on a supplier that solely asks for a month-to-month charge

You’ll additionally wish to choose a payroll supplier that’s upfront about pricing and options, as you don’t wish to get hit with any further charges or pointless instruments that’ll power you to spend greater than you deliberate.

Ease of use

Whereas the time period “ease of use” is considerably relative, nice payroll software program shouldn’t take you a month to arrange, be taught, and get snug with. And sure, each on-line instrument comes with a studying curve. However the suitable software program for you may be intuitive and deliberately designed to foretell the way you’ll work together with it. In case your platform of selection takes greater than a day to determine, or you may’t make sense of it and not using a customer support knowledgeable, it’s possible you’ll wish to give it a go.

Nonetheless, the software program you select ought to supply wonderful customer support should you want it. In terms of help, it’s best to search for:

  • A devoted — and authorized — buyer help supervisor or group
  • Varied methods to get in contact, together with by textual content, e-mail, and telephone name
  • Brief response occasions
  • Loads of availability all through the day


You don’t have to stay with one payroll supplier perpetually, nevertheless it’s less complicated to make use of payroll software program that’s constructed to develop with you. Which means you can begin with a primary plan that gives all the straightforward, entry-level options you want. Then, as you acquire extra expertise with the instrument and develop your small business, you may improve to plans that provide extra options.

So, for instance, should you select Homebase and begin by including the payroll possibility onto the free plan, you’ll have entry to our payroll instruments and our free scheduling, time clocks, hiring, and group messaging options. When the time is correct, you may improve to plans that embrace options for efficiency monitoring, labor price controls and budgets, and HR and compliance.

Built-in time clocks and timesheets

For those who’ve ever carried out guide knowledge entry, you understand how a lot focus it takes to keep away from errors. And for small enterprise homeowners who typically make use of hourly staff, knowledge entry is additional difficult. It’s important to switch worker hours to a timesheet and then convert these hours into wages.

Fortunately, there are payroll suppliers that embrace built-in time clocks and timesheets. Which means whether or not workers are clocking out with a cellular app or out of your level of sale (POS) system, an efficient payroll supplier can monitor their hours and robotically convert them into wages to your timesheets. Some instruments even monitor private day off (PTO) for you.


For those who’re the proprietor of a restaurant or retail retailer, it’s possible you’ll want to make use of industry-specific platforms like Restaurant365, Bevspot, or Shopventory for stock and group administration. These instruments, nonetheless, sometimes don’t have strong payroll options.

As a substitute of getting to switch that knowledge manually, choose a payroll answer that gives devoted software program integrations for the {industry} instruments you want. The small enterprise payroll software program you select must also combine along with your POS so you may monitor labor and gross sales prices alongside one another.

Automated tax funds and filings

In case your small enterprise tax funds and filings are supplying you with nightmares, we really feel your ache. You don’t wish to must pay tax penalties for underpaying or making late funds, which may add as much as 5% to 25% of what you owe.

No want to fret — automated tax funds and filings are among the main causes small companies put money into payroll software program, particularly if it affords worker self-service.

Which means you may ask your workers to self-onboard with a payroll app and fill out their very own tax varieties while you rent them. And as soon as your payroll platform processes and shops their tax particulars, it’ll robotically replace your timesheets with every worker’s tax data. You received’t must reference worker W-4s to see how a lot tax you should withhold from each paycheck — your payroll software program ought to calculate that for you and even ship right funds to the state and the IRS.

Cell app

Plenty of small enterprise homeowners attempt to bootstrap issues on their very own and are reluctant to depend on administrative and managerial workers. That always interprets into sporting numerous completely different hats and managing duties away from their workplaces and storefronts on their days off. That’s why a payroll supplier with a cellular app is a good possibility for employers who want extra flexibility in the place they work from each day.

There are many payroll options with cellular apps that’ll allow you to run payroll out of your telephone. However some (like Homebase) give workers the choice to entry their schedules, earnings, pay stubs, and W-2s with the app as properly. The Homebase platform will even let workers request early entry to their wages and notify them with texts once they get their paycheck.

Taking a better take a look at high payroll suppliers for small companies

We’ve given you a visible comparability of the highest payroll suppliers facet by facet, however let’s take an in-depth take a look at every of them to see what makes them stand out.



Caption: Homebase robotically converts worker hours into timesheets for payroll.

Homebase is an all-in-one answer that lets small enterprise homeowners handle scheduling, time monitoring, payroll, and HR for his or her workers. It’s additionally particularly designed to make managing hourly staff extra handy. We’ve helped small enterprise homeowners throughout a spread of industries — from meals and beverage to retail to magnificence and wellness — and we pleasure ourselves on simplifying processes like payroll, HR, and group administration so entrepreneurs can deal with the big-picture duties that assist them develop.

What makes Homebase distinctive

Homebase customers can join the Primary plan free of charge. Additionally they get entry to our easy-to-use instruments for scheduling, time clocks and timesheets, messaging, and hiring.

When you and your workers get snug with how our platform works, you may add payroll for $39/month plus $6 per worker per 30 days. Then, you may have your workers self-onboard and e-sign crucial tax paperwork, just like the W-4 and 1099. You’ll additionally be capable to sync your worker time clocks with payroll. That method, when workers clock out and in on the cellular app, our payroll instrument will robotically replace their timesheets with their wages and tax withholdings.


Caption: You possibly can retailer and entry worker paperwork with Homebase’s cellular app.



Caption: You possibly can bundle QuickBooks Payroll collectively along with your different Intuit merchandise.

You could be aware of QuickBooks’ accounting software program, however do you know additionally they have a devoted payroll platform? In actual fact, QuickBooks enables you to bundle its bookkeeping and payroll options collectively so you may monitor your small business and labor prices facet by facet.

What makes it distinctive

QuickBooks payroll is a good answer for people who find themselves in search of a platform that’s appropriate and simple to combine with Intuit’s suite of merchandise.

If you have already got a Quickbooks account for bookkeeping, you may activate payroll by means of QuickBooks On-line. And with their Payroll Core plan, you’ll be capable to run payroll robotically, however you may as well supply your workers next-day direct deposits, 401(ok) plans, and well being advantages administration and handle it multi function place.



Caption: Gusto offers you entry to group insights and studies along with payroll instruments.

Gusto is a extensively identified small enterprise payroll answer that was initially designed for workers to entry and replace their payroll data and obtain their pay stubs. But it surely has since expanded to incorporate options for tax submitting, hiring and onboarding, HR companies, insurance coverage, and worker advantages. Gusto additionally affords integrations for accounting instruments like Xero, QuickBooks, and Clover.

What makes it distinctive

Gusto is nice for small enterprise homeowners within the accounting or private finance industries. Why? As a result of with Gusto for Accountants, you may associate with Gusto to entry perks like income sharing, consumer reductions, and even earn persevering with skilled schooling (CPE) credit.

For those who select Gusto that can assist you run payroll to your small enterprise, you may as well give your workers entry to a Gusto Pockets spending account. With that, they’ll entry, monitor, price range, and spend their paycheck with their Gusto Pockets card.



Caption: Paychex enables you to select your payroll plan based mostly in your firm dimension.

Paychex affords options for payroll, HR, enterprise insurance coverage, worker advantages, and time and attendance monitoring. Their Paychex Flex plans, which consult with their payroll bundles, supply three tiers of payroll choices for companies from 1 to 1000 workers. You may as well customise every plan to suit your particular wants.

What makes it distinctive

Whereas it relies on the plan you select, Paychex Flex is a helpful possibility for brand new enterprise homeowners who want some coaching to get a deal with on payroll-related points outdoors of their experience.

With a Paychex Flex Choose and Professional Plan, you have got entry to a devoted payroll specialist and HR companies like coaching modules which can be nice for brand new enterprise homeowners. And with Paychex’s Flex Professional plan, you may even run background checks.



Caption: Staff can create private profiles with OnPay’s platform.

OnPay is a cloud-based enterprise answer that allows you to automate your payroll, nevertheless it additionally consists of options for HR and advantages. You possibly can combine OnPay with standard software program, together with accounting options like QuickBooks and Xero, time monitoring options like Once I Work, retirement and 401(ok) options like Guideline, and HR and compliance options like Mineral.

What makes it distinctive

OnPay lets workers create their very own private profiles throughout the software program, which they’ll use to entry their tax paperwork and paystubs, which is a useful HR characteristic that retains everybody updated.

And, should you’re in search of probably the most reasonably priced insurance policy to your workers, OnPay can function your insurance coverage dealer and consolidate plans based mostly in your state. They’ll additionally do the executive work of updating and managing your medical health insurance plan when you’ve chosen one for your small business.

RUN powered by ADP


Caption: With a RUN Necessities plan, you may entry payroll, taxes, and compliance instruments.

ADP has been within the HR and payroll companies {industry} for many years, however the RUN product is particularly designed for small companies of as much as 49 workers. ADP additionally affords 4 tiers of plans — Important, Enhanced, Full, and HR Professional — that work for companies at each stage of progress. You may get a customized quote for every plan by contacting the gross sales group.

What makes it distinctive

ADP’s most elementary plan — the Necessities plan — affords prospects help with payroll, taxes, and compliance. And with the most well-liked plan, the Enhanced plan, you’ll get entry to options for garnishment fee companies, state unemployment insurance coverage (SUI) administration, background checks, and job posting with ZipRecruiter.

For companies with extra in-depth HR and authorized wants, the HR Professional plan affords entry to an HR help group, employer/worker coaching, enterprise recommendation, and even authorized recommendation from Upnetic Authorized Companies.

How Homebase makes small enterprise payroll a breeze

As you analysis payroll instruments to your small enterprise, converse with gross sales groups, and check out instruments for your self, bear in mind: You possibly can all the time change your thoughts sooner or later.

As a result of regardless that there’s all kinds of payroll instruments that declare to be small enterprise options, not all of them perceive the precise challenges that small enterprise homeowners — significantly those that make use of hourly staff — face.

Homebase understands that retail operators, restaurateurs, and accountants all require various kinds of options. That’s why we’ve made our instruments for scheduling, time monitoring, group communication, and hiring free, in an effort to simply combine the instruments you want with our payroll possibility. And, with our upfront pricing and intuitive options, we’ve made it tremendous easy and reasonably priced so as to add payroll instruments onto any Homebase plan you select.