Payroll Software for Small Business: Reviewed by Experts (2024)
We’ve carefully demoed and tested dozens of payroll services to arrive at this selection of the best payroll software for small businesses. See below for expert insight, pricing info, pros & cons, integrations, and more.
Best Small Company Payroll Software
Small business payroll software automates, organizes, and optimizes payroll processing tasks for SMEs who don’t enjoy the luxury of limitless budgets and copious capacity. Selecting the correct tool for the task can quite literally make or break a small business, so it’s crucial you know what to look for when making a decision.
We have collated evidence and insight from multiple sources including demos, interviews, and user questionnaires to provide you with the best possible buyer’s guide for small business software below. We have been writing about these tools for years, so we know what makes one platform stand out from the rest.
We considered numerous factors when whittling down our list of small business payroll software tools to the select few featured in this guide, chief among which are automation capabilities, compliance features, and price.
- Payroll Automation: One of the primary considerations for any small business looking for payroll software is reliably automating tasks. We prioritized the tools with the most advanced features here, which translates to saving more hours each payroll cycle.
- Compliance: Then there’s the question of peace of mind. You want to know that the system helps you remain compliant and avoid fines. The companies we chose all do an excellent job when it comes to helping small business owners adhere to all regulations regarding payroll.
- Pricing: Lastly, we know that price is a significant consideration for most small businesses. We picked tools that would adapt to all kinds of budgets and situations. This ranges from tools that are good for solopreneurs paying contractors to premium plans designed for larger headcounts but that still won’t break the bank.
To learn more about our process for evaluating software companies, read this blog on how we select the best HR tech.
Patriot
Gusto
QuickBooks
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Netchex
Paychex
Remote
Square
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Patriot
Patriot offers unlimited payroll runs, free account setup, U.S.-based inhouse support, and takes full responsibility for any issues pertaining to user tax filings.
PROS
- Intuitive and simple service.
- Guaranteed tax filing accuracy with free end-of-year payroll tax filings.
- Free U.S.-based software support via phone, email, and chat.
- Transparent fee structure, 30-day free trial available.
- Regularly rolls out new features and enhancements.
- Intuitive and simple service.
- Guaranteed tax filing accuracy with free end-of-year payroll tax filings.
- Free U.S.-based software support via phone, email, and chat.
- Transparent fee structure, 30-day free trial available.
- Regularly rolls out new features and enhancements.
CONS
- No support for teams with members outside the U.S.
- No employee benefits management services.
- Limited integration capabilities.
- No support for teams with members outside the U.S.
- No employee benefits management services.
- Limited integration capabilities.
We didn’t expect this level of flexibility from an economical payroll tool. With Patriot, there’s no limit to the number of payroll runs, and you can pay your team members at the frequency of their choice, be it weekly, biweekly, semi-monthly, or monthly.
Moreover, this platform does not charge any fees for its account setup assistance. Should you opt to DIY, it probably won’t be much trouble, thanks to the platform’s payroll startup wizard and the in-house support team. In our tests, it took just 7 minutes to hear back from them.
As long as all your team members are based in the U.S., you’ll find Patriot to be an invaluable ally, as this vendor can handle payroll processing and direct deposit payments for both full-time salaried workers and contractors. If you opt for the higher-tiered plan, this platform can also take care of your payroll tax filing and payment at both the federal and state levels.
That said, we should caution you that Patriot will charge $12 per month for each state tax filing. And unlike some competing tools like Gusto, this vendor does not support employee benefits management.
Another point to note is that Patriot’s payroll services are tailored to US-based companies. In other words, it’s not a good fit for those with international hires.
10,000+ companies, including Ninja Window Washing, B Squared Fine Homes, and Coblentz Cabinets.
Patriot offers two payroll plans:
- Basic costs $17/month plus $4 per employee or contractor. The business owner is responsible for payroll and tax filing.
- Full Service costs $37/month plus $4 per employee or contractor. The business owner runs payroll, but Patriot handles payroll tax filings.
Best For
Small businesses whose employees and contractors are based in the U.S.
Gusto
Gusto is a top-notch option for SMBs when it comes to full-service payroll and customer service. Plus, its UI is among the best we’ve seen in this space.
PROS
- Features online signatures, automated tax filing, unlimited pay runs, and automatic deductions for benefits administration.
- Supports payroll for U.S. W2 workers and domestic or international contractors.
- Reliable customer support. Licensed benefits advisors assist with all plans.
- Transparent pricing with no long-term contracts or setup fees.
- The dashboard feature keeps tabs on compliance tasks
- The hiring and onboarding sequence is nicely streamlined between HR and the new hire
- Post-offer, pre-start tasks are made easy with integrations like CorpNet (state tax set up) Checkr (background checks)
- Easy payroll for U.S.-based W-2 folks, domestic, and international contractors
- Person-to-person phone support, email, and other customer service resources
- The business model is responsive to customer needs
CONS
- No support for international full-time salaried workers.
- No accounting tool for tracking earnings and spending.
- Simple plan lacks time tracking and online signature features.
- Compliance alerts and broker integration cost extra.
- No free trial available.
- Gusto can support payments for international contractors, but not employees
- No native accounting feature to keep earning and spending under the same roof
- Analytics dashboard is simplistic
We’ve kept track of Gusto for years, and in our view, they have done a great job avoiding a common software pitfall. The vendor has kept a steady pace through the years and their primary focus on payroll and benefits has not been clouded by impulsively building more features into their stack. Instead, they work with numerous integrated partners who take the wheel on new initiatives, letting Gusto focus on what they do best.
One of our favorite features is the full-service payroll. Gusto supports payroll for U.S.-based W-2 employees and domestic and international contractors. This vendor also offers e-signature collection, automated tax filing, automatic deductions, varied payroll schedules, and unlimited pay runs so businesses can ensure employees receive pay and benefits promptly.
For a long time, we have also appreciated how transparent Gusto is about pricing. The payroll software does not require long-term contracts or setup fees, allowing SMBs to manage their payroll efficiently without any unexpected costs.
A fair warning, though, international payroll through Gusto is only possible for contractors, not for full-time employees. In other words, they don’t offer an EOR model. Another feature Gusto lacks is accounting, meaning you must use third-party integrations for complete financial management.
Furthermore, while the Simple plan is cost-friendly, it lacks essential features like native time tracking and the e-sign. Lastly, compliance alerts and broker integration are terrific features, but the platform requires you to either opt for its Premium plan or pay extra to use them.
200,000+ companies, including Little Fish Accounting, Rise Marketing, Cortex, and AVLancer.
Gusto has four plans:
- Simple Plan: $40/month base fee plus $6/month per person.
- Plus Plan (Limited Time Sale): $60/month base fee plus $9/month per person.
- Premium Plan (For a Limited Time): $135/month plus $16.50 per person
- Contractor Only Plan: $6/month per person (suitable for businesses without W-2 employees).
Best For
Startups with limited budgets (Basic plan) and SMBs with smaller HR departments and greater financial capacity (Premium plan).
Day-to-day I used Gusto to manage payroll, benefits, and tax forms.
Gusto's automated payroll is solid and I never had an issue with the main payroll functions, although we had a few issues due to confusing UI with the custom earnings and dismissal payroll workflows.
Gusto's quarterly tax filings and reminders about compliance checks/updates were incredibly useful to us. The Docs section and reporting features turned out to be a helpful resource for all kinds of administrative tasks. Around 2021 I started receiving notices that some of our state tax forms weren't being filed on time. Although Gusto did resolve them eventually without penalty, it was concerning that they didn't keep us in the loop.
Gusto's benefits department is its weakest link. I never participated in the initial setup, but I managed 4 or 5 open enrollments through Gusto, and each was an unmitigated disaster. During two separate years, I sent 4+ requests to discuss new providers and never received a response. Not a peep. I have also had to clean up multiple enrollments and COBRA errors.
I speak to Gusto's support team a few times a month. Their support used to be outstanding, but recently they seem to have shifted to a script model, and the agents' competence is hit or miss. There is often an unrealistically long response time when issues are escalated to a specialist, and it is frustrating to wait days or weeks for an answer only to receive an unhelpful form response. Since Gusto handles so many regulated processes, agents are quick to default to a "we cannot advise" answer, and they often provided bad information that caused more problems than they solved. To be fair, I have also worked with agents that helped me pull off miracles, but I wish the quality were as consistent as it used to be a few years ago.
The UI is clean, intuitive, and (mostly) easy to use. I very seldom had issues with automated processes. They make onboarding new employees incredibly simple. I also really like the friendly tone of the brand's "voice." The marching pig on the loading screen that changes with the seasons never gets old; it still sparks joy each time, even after all these years!
I have used Gusto since 2018 in 3 different early-stage tech startups. Gusto has a reputation as the go-to in Silicon Valley incubators and accelerators, although I've seen Rippling gradually gaining market share in the past few years. In all 3 cases, we selected Gusto because of their breadth of services. Gusto makes it easy to set up everything our organization needed to begin hiring and paying employees. What's nice about Gusto is that it makes processes that are intimidating to many founders into a "set it and forget it" task. Automating payroll, benefits, filing government forms, and quarterly taxes helped free up time for our founding team to focus on a growing set of other responsibilities.
Gusto's benefits department is unresponsive and it's nearly impossible to get answers from support about even simple benefits questions.
I have seen quite a few concerning errors across the platform (mostly with benefits), including employees not being enrolled in benefits programs, dismissed employees not being removed from benefits programs, incomplete COBRA enrollment, and late tax filings.
The information from Support is unreliable and often inaccurate.
The dismissal payroll workflow is misleading and we've had a few serious problems as a result.
When a Gusto admin is dismissed, their admin privileges are not removed automatically, which is a serious privacy concern.
I wish Gusto made it easier to set up a business entity in new states. They partner with a company called CorpNet, but I found the level of service wasn't worth the price and went back to handling state registration myself.
I love Gusto's friendly casual-but-professional tone compared to other providers in the space.
Gusto is best for small teams, the smaller the better. It is a great option for founders and single-person People teams who have less time to dedicate to payroll, benefits, and compliance. It makes many benefits available and affordable for small groups that would not have the numbers to access plans through traditional providers.
Gusto becomes less useful as a team grows and compensation & benefits become more complex. I would definitely recommend Gusto to founders, but I recommend moving off of their benefits platform as soon as you have a full-time person to manage benefits administration. Its payroll functionality is solid, but payroll administrators should be aware that they will get limited guidance from the Gusto support team.
Gusto's functionality has grown over the time I've used the platform as they've added additional features and integrations. However, the accuracy and quality of support have suffered over time. I used to be a Gusto evangelist, but these days I recommend that growing companies move off of Gusto as soon as is practical. New features have become less useful over time, and I wish they would focus on maintaining the quality of their core product rather than trying to expand into new services.
Company founders or admins inexperienced in payroll and benefits. Very small teams with a single person managing payroll and benefits administration among many other HR responsibilities.
Larger organizations with 50+ employees. HR teams with specialists in each area. Companies with complex and highly-regulated compensation structures.
QuickBooks
QuickBooks' direct deposits are super fast, and if you're already using other products from this vendor, it's a major bonus. The payroll tool integrates beautifully with the rest of QuickBooks’, which makes it a breeze to manage timesheets, invoicing, and expenses.
PROS
- Unlimited pay runs, auto full-service payroll, and same-day deposits included.
- Supports unscheduled payrolls and automatic year-end tax filings.
- Reminders for tax readiness provided.
- Pricing transparency. 30-day free trial available.
- Unlimited pay runs, auto full-service payroll, and same-day deposits included.
- Supports unscheduled payrolls and automatic year-end tax filings.
- Reminders for tax readiness provided.
- Pricing transparency. 30-day free trial available.
CONS
- No employer app.
- More expensive than some competitors like Patriot.
- Limited third-party integrations.
- No global payroll features.
- No employer app.
- More expensive than some competitors like Patriot.
- Limited third-party integrations.
- No global payroll features.
Millions of small businesses have used Intuit QuickBooks accounting software for their lightweight bookkeeping, so we bet this brand is no stranger to most of you. It is effective, simple, and affordable. And as we tested its online payroll product, the same is true for this tool.
QuickBooks payroll processes employee pay stubs and automatically files taxes in a simple, intuitive interface. Remarkably, the direct deposits are among the fastest we’ve seen, with next-day payments offered in the cheapest plan and same-day ones in the rest.
The platform also helps with calculating and submitting your payroll taxes, and it gives you reminders to make sure you're tax-ready.
Many HRs we talked to praised this payroll for its seamless integration with other QuickBooks products, which was also part of the reasons they chose this software in the first place.
However, we would not recommend this tool for businesses with international staff, as global payroll is currently beyond the vendor's capabilities. The same goes for those on a tight payroll budget. For context, QuickBooks charges $25 per month plus $6 per employee, while Patriot does $17 plus $4 per employee.
Regarding the mobile experience, although the browser version is optimized for both desktop and mobile use, there is no dedicated mobile app for employers, and the employee app lacks some features found on the web version. For example, on the web, we could match our receipts to incoming bank transactions, whereas in the mobile app, we were only able to take photos of the receipts.
29,000,000+ companies, including Industrial Manila, Tamar's Hope, and Hiplus.
QuickBooks has three plans as below and a 30-day free trial:
- Core: $25 per month plus $6 per employee
- Premium: $55 per month plus $8 per employee
- Elite: $80 per month plus $15 per employee
Best For
Small businesses that are already using QuickBooks accounting.
First and foremost, we utilize the invoicing functionality to create and send professional invoices to our clients. This feature allows us to track payments, send reminders, and easily manage our accounts receivable.
In addition, QuickBooks helps us with tax tracking by enabling us to categorize income and expenses appropriately, making tax preparation more efficient. This feature ensures that we have accurate records and can easily generate reports for tax purposes.
Another important aspect of our QuickBooks usage is the mileage and expense tracking. We utilize the built-in tools to record and categorize our business-related mileage and expenses, ensuring that we have a comprehensive record for reimbursement or tax deductions.
The reporting capabilities are vital to our organization as well. We leverage the various reporting options available to gain insights into our financial performance, monitor cash flow, track profitability, and make informed business decisions based on real-time data.
Finally, QuickBooks serves as our central hub for transaction tracking. We record and categorize all our financial transactions, including sales, purchases, and payments, in order to maintain accurate and up-to-date financial records.
- QuickBooks integrates seamlessly with other business tools and software
- It allows us to customize our needs and only pay for what we use
- It integrates with other vendors to help us streamline processes
I have used it for almost 3 years and tried different versions. I chose QuickBooks because it provides a user-friendly interface, comprehensive features, industry recognition, seamless integration capabilities, and scalability options—all of which contribute to efficient financial management and supports the organization's needs.
It is easy to switch between versions as business needs change (add or remove payroll option, etc). One of the primary reasons we selected QuickBooks is its widespread adoption and industry recognition. QuickBooks is widely regarded as a leading accounting software solution, trusted by millions of businesses worldwide. This reputation reassured us of its reliability and stability.
It offers scalable options that can accommodate our organization's growth and evolving needs. As we expand, QuickBooks provides the flexibility to add additional features or upgrade to more advanced versions to support our changing requirements, ensuring long-term viability for our financial management system.
- There are so many versions and it's hard to find directions for the one that we use at that time
- It is nearly impossible to talk to a human being
- During the sales process they will give you as much attention as you need but as soon as you are in, you are pretty much on your own
- Quickbooks offers many different options and they will cater to your business needs (just make sure you do your due diligence at the beginning before they close the deal)
- EVERYONE knows about Quickbooks so it's easy to use and clients have no problem paying you via QB
- However, many other similar tools will offer live support or even a dedicated account manager. Even though it may cost a little more but this might be a dealbreaker to some businesses.
- Know exactly what you need it to do for you and clearly specify it during the sales process. Make sure you do not overpay for something you will not use
- Make sure you stay within budget and pay attention to special pricing as most plans will offer discounted costs but only for the first few months.
- Check that your bank and other third-party vendors will integrate with QB. While a lot of them do, not all.
They evolve all the time by adding new versions to accommodate everyone's needs (last time I checked there were 45).
Small to Medium, independent contractors, startups.
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Netchex
We really like Netchex because it's super easy to use. Your team won’t need a bunch of training to get started, and if anyone’s got questions, there’s always a dedicated customer support rep ready to help out.
PROS
- Seamless plan upgrades without data loss.
- Pre-payroll reports for critical error checks before payroll processing.
- Highly praised customer service, entirely U.S.-based.
- Payroll grid for easy input, changes, and error fixes during payroll cycle.
- Diverse payment options: paper checks, direct deposit, and pay cards.
- Grows with your team: With Netchex, it’s very easy to opt for a new plan and keep all your data in the same place even if you outgrow your current pricing plan. Other vendors require a switch to a new service in that kind of event.
- Dedicated support team: Netchex are note-worthy for their award-winning and often lauded customer service. It’s all US-based and provided in real-time through email, live chat, and phone calls.
- Pre-payroll reports: Allows for critical error checks before submission.
- Flexible payroll grid: Easy to make changes or correct errors on the fly.
- Versatile payment options: Includes paper checks, direct deposit, and pay cards.
CONS
- Users must use the payroll module to access other functionalities.
- Overkill for teams with under 50 employees.
- Undisclosed pricing. No free trial available.
- Requirement of payroll: Users must use the payroll module to access other functionalities, so it wouldn’t work as stand-alone HR software.
- No free trial: Potential users can't test the software without committing to a purchase. The demo with a sales rep is the closest thing.
We know that most small businesses are pressed for time, so their payroll tool must be extremely easy to use. And the fact that Netchex remains easy and pleasant to work with in all our test cases is truly impressive.
You can add employees, set payroll cycles, and fix issues with minimal training. Plus, no matter which plan you pick, you’ll get a customer support rep from Netchex who not only helps with the initial setup and then vanishes, but stays approachable for any snags that may arise post-implementation.
Given how pricey payroll mistakes can be, being able to spot issues before everything is finalized is a lifesaver - and that’s exactly what Netchex’s pre-payroll does, which we love. It gives you a heads-up if there's a paycheck going out to someone who shouldn't be getting one or if the numbers aren’t adding up right.
Another big thumbs up for Netchex is its eye for innovation. They’ve recently added some neat features like AskHR, where employees can get quick answers to their questions, and Netchex AI, which is stellar at crunching data in complex ways.
As much as Netchex is geared towards SMBs, if you've got fewer than 50 employees, it might feel a bit much and lean towards the expensive side. And just like Paychex, they don’t let you take their service for a test drive before committing.
6,500+ organizations, including Xpressdocs, BK Corrosion, Regal Hospitality, and The Colony ER Hospital.
Netchex uses a per employee per month pricing model, which varies based on company size and products.
Best For
Businesses with 50-500 employees.
Paychex
Paychex is worth mentioning as a top SMB payroll tool because of Paychex Flex, a simplified but powerful version of its product. It’s an all-in-one payroll system designed to grow with your business, built as a simple-to-use solution that gets it done without any fluff.
PROS
- Timecard processing can be fully automated.
- Integrates well with benefits providers like Benetrac for benefits management.
- User-friendly interface for reviewing W2s and paystubs.
- Timecard processing can be fully automated.
- Integrates well with benefits providers like Benetrac for benefits management.
- User-friendly interface for reviewing W2s and paystubs.
CONS
- Limited third-party integrations.
- Some users reported slow app login.
- Less modern looking compared to competitors.
- Limited third-party integrations.
- Some users reported slow app login.
- Less modern looking compared to competitors.
When it comes to SMB payroll tech, Paychex Flex has been our perennial favorite, thanks to its scalability. We first tested this software a couple of years ago, and until now, we’re still impressed with the simplicity and the range of plans it offers for various business sizes.
From HR to retirement packages, online payroll services, and benefits, you get the flexibility to choose what really fits your team’s needs. And as we’ve kept a close eye on every HR tech we review, we’ve barely heard negative comments about this platform’s usability.
We are not big fanz of Paychex’s appearance (the design looks quite dated compared to modern-looking competitors like Gusto or Remote, actually), but what’s underneath didn’t disappoint—the platform’s features are constantly improving. The timecards are a good example. Each time an employee punches in and out, the system generates a timecard and is ready to process once it’s time to run a payroll cycle. This alone can save dozens of hours of company time.
Paychex products have evolved a lot, but unfortunately, the integration capabilities have not. As of this writing, the platform still lacks native integration with Quicken. While we can’t say this is a deal breaker for most, those seeking to remove manual entry for certain tasks like 401k transactions may find this bothersome and might be better served by another tool.
745,000+ companies, including Warner Bros, Denny's, Grubhub, and Frito-Lay.
Paychex Flex offers three curated plans: Essentials, Select, and Pro. Essentials has a monthly base rate of $39 plus $5 per employee. Select and Pro are custom plans that require a call for a quote.
Best For
Small to medium-sized businesses that require a scalable payroll and HR solution.
Paychex was a great payroll service to use since the company is a medium sized business. It helped us compliantly garnish child support and work around loans with the pay stub being very detailed for the employee. The continuous articles in regards to new HR standards were great to keep up to date with new laws. The employee portal was a great tool so employees could manage their personal plans, alleviating extra work for the payroll department. The onboarding feature was also convenient to cut down on errors that are all too common with new hire paperwork. Being able to perform background checks on potential management was also a wonderful feature.
The multiple blogs on the ever changing employment laws was a huge benefit to the company. Being able to have employees manage their deductions and plans is also a great way to alleviate pressure off the payroll department. Customer service was also very kind and helpful when questions or issues would arise. Being able to have a company calculate and file taxes was also a great way to reduce accounting labor.
We used Paychex for approximately 7 years to streamline the payroll process between multiple restaurants. After many years of self service payroll, Paychex helped us make payroll more error proof. It was used in organizing employee compliance and benefits. It was also great for tracking taxes and being able to send needed info to the accounting department. It was easy to use when garnishing child support from employees' paychecks.
Paychex sales team is not as knowledgeable or fluid as their customer service staff members were. We did encounter login issues frequently. It usually was rectified with opening and closing the program but it was still time consuming. As pleasant as customer service is, I would like to be able to make minor changes without having to call a specialist.
Paychex is a good service for smaller companies. I feel that integration and reports were not as easy to use as other programs such as Toast or 7shifts.
The cost is fair although the tool can be time consuming. It is a great tool to keep up to date with employee relations and laws. I feel Paychex is continuing to grow and be better but I would compare other companies before signing a contract.
Paychex has evolved with the changing labor laws and requirements and keeps their clients up to date. I also feel that they are streamlining scheduling and AR/AP into the application
Small offices or businesses.
Large companies or companies who do not have much time to devote to completing weekly payrolls.
Remote
We highly recommend Remote to SMBs looking to hire employees and contractors worldwide. With this platform, you can easily handle salaries, benefits, expenses, and incentives compliantly in over 170 countries—all in one place.
PROS
- Fast and compliant payroll in 170+ countries.
- Live chat support with local payroll experts.
- Flexible, localized benefit packages.
- Flat-rate pricing structure, no deposits or hidden fees.
- Mobile app streamlines expense reimbursement with autofill from receipt photos.
- Fast and compliant payroll in 170+ countries.
- Live chat support with local payroll experts.
- Flexible, localized benefit packages.
- Flat-rate pricing structure, no deposits or hidden fees.
- Mobile app streamlines expense reimbursement with autofill from receipt photos.
CONS
- Doesn’t have a free trial.
- Redundant for organizations solely recruiting within the U.S.
- Help center documentation isn’t easiest to understand.
- Doesn’t have a free trial.
- Redundant for organizations solely recruiting within the U.S.
- Help center documentation isn’t easiest to understand.
Scaling internationally is exciting news for any business, but it also comes with a huge HR headache. Each country and state has different laws (which change over time), and local talent has varying interests in compensation packages. Having been there ourselves, so we can't help but appreciate how much easier Remote has made it for SMBs looking to expand their teams globally.
Remote offers two plans: one for global payroll and another for Employer of Record (EOR)—which includes everything from payroll to benefits, HR, and tax needed to hire and pay people from over 170 countries compliantly. Both come with transparent rates and no hidden fees. However, what really stands out to us is that regardless of the plan chosen, you gain access to in-house, local payroll support. We bugged these people a couple of times in our testing, and they have never let us down once—always quick turnaround and thorough guidelines.
That said, we do wish there was a free trial so the platform is more accessible to small businesses. Also, those preferring self-help documentation instead of always having to reach out to human support might not be satisfied with what's available in Remote's help center. In our experience, the instructions are not the easiest to follow, as they are mostly in written form with very few product screenshots for illustration.
Remote customers include brands like GitLab, Paystack, and Loom, but the exact number is undisclosed.
Remote offers two packages for payroll management:
- Global Payroll: $50 per employee per month
- Employer of Record: Starting at $599/month billed annually
Best For
Remote-first companies to hire and pay employees and contractors worldwide.
- I used Remote on a monthly basis for contract management when onboarding new contractors by inserting job-specific information, which Remote then used to draft contracts in compliance with relevant employment laws and taxes, mainly in the Philippines and the US.
- For payroll management, I set up profiles for new contractors, prompting them to submit banking details. Invoices were uploaded monthly for payment, with notifications received for review and authorization.
- The finance department loaded funds into the system, and Remote handled currency conversion and payment release to the contractors.
- Remote drafts contracts to ensure compliance with employment laws in countries such as the Philippines and Portugal.
- The system's navigation is easy and seamless, saving time.
- Notifications update HR and line managers for approval once invoices are submitted, ensuring timely contractor payments.
- The reporting tool allows for the review of previous invoices and payments made to contractors.
My previous employer, Competitive Capabilities International, already had this tool in place when I joined, and I used the system for six months while employed there. The previous payroll processing system, SAGE VIP, was not as effective as the Remote platform for contractor payments. Remote also streamlined the drafting of contracts, ensuring compliance with employment laws without the need for legal counsel, which was time-consuming. This tool addressed the pain points of inefficiency and compliance, providing a more robust and automated solution for managing contractor payments and contracts.
- The limited usage of the tool makes it difficult to comment on any significant cons.
- I was satisfied with the required functions of the Remote system.
- There were no notable issues during my use of the tool.
I haven’t worked with a similar system for contractors before using Remote, but I was quite impressed with its functionality and ease of use.
- Usability and training: The system should be easy to use and navigate. I grasped the Remote system in a day.
- Compliance: Ensuring the tool adheres to employment laws and best practices is crucial to avoid fines.
- Security: The system should have multi-factor authentication to protect user data.
- Cost-effectiveness: Remote is more cost-effective than employing an individual for these services, allowing focus on more critical tasks instead of manual admin work.
The functionality and usage remained the same for me during my six-month period of use.
Remote is ideal for organizations with a remote workforce employed globally. It provides peace of mind by ensuring payroll and contracting compliance with each country's specific legislation. It benefits HR from contracting, onboarding, and payroll perspectives, and may also benefit finance departments depending on who handles payments.
Organizations with full-time, in-office staff or companies that do not have remote staff in different locations or countries would not benefit from this tool.
Square
Square’s level of flexibility is amazing. It supports unlimited pay runs and next-day direct deposit, comes with some add-ons that you can choose to pay for if you need them, and can beautifully integrate with its ecosystem as well as several third-party business tools.
PROS
- Integrates with Square POS and other Square tools. Strong third-party integrations.
- Free seasonal inactivity provided.
- Reasonable, flat pricing. Free trial available.
- Free federal and state tax filing and payments.
- U.S.-based phone support for all plans.
- Integrates with Square POS and other Square tools. Strong third-party integrations.
- Free seasonal inactivity provided.
- Reasonable, flat pricing. Free trial available.
- Free federal and state tax filing and payments.
- U.S.-based phone support for all plans.
CONS
- Does not support employers in household and agricultural sectors.
- Automated payroll, PTO, sick leave tracking, time tracking, shift scheduling, and overtime calculations can only be accessed on higher-priced plans.
- Does not support employers in household and agricultural sectors.
- Automated payroll, PTO, sick leave tracking, time tracking, shift scheduling, and overtime calculations can only be accessed on higher-priced plans.
We first tested Square in 2020 and have kept a close eye on the tool ever since, and we have to admit that this is one of the best payroll options available when it comes to flexibility.
Square has two simple plans: one for contractor payroll and another for both contractors and full-time employees. The pricing is transparent and reasonable, with no annual commitment required. The best part, though, is that users can pause their subscription and won't be charged until it resumes after 9 months or when they process payroll again, whichever comes first. For businesses dealing with off-season, this is a huge money saving.
If you're a retailer, especially a store owner or in the restaurant business, you’ll find the combination of Square POS and Square payroll useful in many ways. Plus, if you're looking for third-party integrations, there are still plenty of options offered.
Just keep in mind that Square Payroll only works for businesses that file Form 941 or Form 944 and doesn't support employers in the household and agriculture sectors.
We should also warn you that even though the contractor plan is incredibly affordable — at $6 per contractor per month — it doesn’t cover features like automated payroll, PTO, and overtime calculations. You’d have to choose the higher-priced plan to access these features.
Square's clients include The Art of Donut, Glamourax Salon, and Live by the Sword, but the exact number of customers remains undisclosed.
- Employees and Contractors: $35/month + $6 per person paid per month. Free trial is available.
- Contractors Only: $6/contractor paid per month
Best For
Seasonal employers, including store owners and restaurants.
Initially, we used Square to process credit cards and provide receipts to customers. Square offers much more now. We can offer our customers financing, which is especially helpful in today's economy. We can schedule appointments through Square, helping us stay on track. We can also send and receive text messages. Square allows us to do marketing, driving customers to our online shop where they can shop and pay with one click.
I like the ease of use in the field for me and the customer. I can offer financing to my clients if they need extra time to pay. I can text my customers from this app, which makes it easier for me, as all their information is at my fingertips when I am in Square.
We needed a way to accept credit card payments at the point of sale, which moved regularly. We had no stationary retail location and needed to process credit cards on the spot. The alternative was writing the information down and processing it later, which created a lot of problems - incorrectly written card numbers, expiration dates, or cards that didn't process. Square took care of all of those issues, allowing us to provide a receipt to the customer and giving us peace of mind. This really streamlined our business.
Some of the transaction fees make it expensive to do business. I'd like to see more options for POS hardware. The integrations need to be more robust; there are some good platforms, but there need to be more to select from.
Square offers a robust array of services that complement basic credit card processing. They have taken it to the next level and expanded to include anything a small to large business may need. Square integrates with payroll, bookkeeping, staff management, payments, operations, and reporting. It can handle client management, scheduling, texting, and marketing.
Look at all the tasks this app can do and compare that to what you currently do within your organization. Do a cost comparison and see which one is more customer-focused. Consider which one uses fewer vendors and requires less manpower to manage.
Square has constantly evolved to become indispensable. It does everything from processing credit cards, invoicing, payroll, and banking to managing vendors, creating purchase orders, managing inventory, bookkeeping, reporting, client management, and marketing. If you can imagine something you want done, Square can probably customize a package with that in it for you.
Square is suitable for small to large businesses looking for a comprehensive solution for their payment processing and business management needs.
Square might not be suitable for an enterprise-sized organization due to its scalability limits.
OnPay
OnPay is fast, and you won't have to spend hours figuring out how to use this tool. In addition to payroll, this vendor provides some nice HR basics in its one-and-only plan, at no extra costs.
PROS
- Free tax form handling for W-2 employees and 1099 contractors.
- Some HR services included within the plan at no additional cost.
- 30-day free trial available (starts after OnPay verification).
- Well-developed online help resources.
- Free tax form handling for W-2 employees and 1099 contractors.
- Some HR services included within the plan at no additional cost.
- 30-day free trial available (starts after OnPay verification).
- Well-developed online help resources.
CONS
- Poor functioned employee mobile app.
- Requires payment four days before payday for direct deposit.
- Doesn’t support automatic payroll.
- Customer support sometimes hard to reach.
- Poor functioned employee mobile app.
- Requires payment four days before payday for direct deposit.
- Doesn’t support automatic payroll.
- Customer support sometimes hard to reach.
If you’ve already read our reviews of other payroll tools we’ve included in this guide, you may have noticed that OnPay is not the only vendor that can perform full-service payroll plus HR and benefits. However, it is the only one that has bundled all these functions into a single, affordable plan.
Starting at $46 per employee per month, you'll receive everything from multi-state payroll processing to automated onboarding, e-signing, broker-of-record integration, employee self-service, and account migration—all without additional fees or the need for plan upgrades.
Moreover, this platform is one of the few in the industry that offers a 30-day free trial, which you can easily sign up for online through its website. The only thing to note here is that the trial starts only after OnPay verifies your provided information, including your bank account. So make sure you double check the form before submitting.
Compared to its peers, OnPay has done an outstanding job providing online free guides. Despite being free resources, the guides are rich in information and offer many good insights into payroll, benefits, and HR.
Unfortunately, the vendor’s support didn’t meet our expectations. It took some time to receive a response from their live chat, and our email also had to wait until the next day for a reply.
Lastly, a few things to be clear: Unlike Gusto, OnPay has no native time tracking tool. It also doesn’t support automatic payroll.
OnPay charges a $40 monthly base fee plus $6 per employee. It also offers a free trial.
Best For
Small business owners that need full-service payroll and HR basics.
We use Onpay for all our payroll needs. We process payroll every two weeks and appreciate that they offer unlimited payroll runs. We manage both contracted and full-time workers, and Onpay makes handling both types simple. Tracking and completing payroll is easy, which has saved us significant time in managing payroll tasks. It has freed up a lot of time on our backend for more efficient time management.
The process of adding a new employee to the payroll system is straightforward and efficient. The system alerts are manageable and provide proactive notifications of any potential issues before payroll is finalized. Additionally, tax documents and year-end statements are mailed automatically without any extra fees, making it a hassle-free service.
We decided to switch to Onpay because it had a strong reputation. During our research, many recommendations pointed toward this system. Once we began learning it, we found it very easy to use. We appreciated that it offered a comprehensive package for all our payroll needs. A bonus was that it’s a cloud-based program with lifetime access, which is crucial for HR as we often need to access past records. Onpay is affordable and overall very user-friendly.
The manual check process can be time-consuming for companies that issue a lot of manual checks. Setting up 401(k) deductions can be confusing if there are unusual requests. Payroll education and support for new employees could be improved with better FAQs or online tutorials.
Onpay is very easy to navigate, and the cloud-based functionality adds extra convenience and security. I prefer cloud-based services as they offer better protection, especially in case of risks to your HRIS systems or databases.
Consider how many paychecks are processed each month and the total number of employees. Are your current processes streamlined, and how complex are your payroll deductions? It's also important to review how many errors typically occur during payroll runs and whether the tool can minimize those.
Onpay listens to user suggestions and continuously adapts to improve over time.
Onpay is ideal for medium-sized organizations with fewer than 1,000 employees.
Onpay may not be suitable for large organizations with many different paycheck types and pay periods.
Payroll Software Benefits and ROI for Small Businesses
Payroll Software Helps SMBs Save Time and Money
For small businesses, time is money. You don’t want to spend time on repetitive tasks that can be easily automated. It is estimated that an hour wasted per employee amounts to $3,750 per year, and that figure can be as high as $11,250! For a small business, this is too high of a cost to bear. It affects your profitability and growth.
On the other end of the spectrum, automated payroll management saves you a lot of time (up to 40 hours a month) and money.
Automated Payroll Help Reduce Human Errors
Money lost due to human error during payroll preparation proves to be a huge problem. The American Payroll Association estimates that human error can reach 8% while processing payroll manually. To give an example of what this means in hard numbers, an 8% human error rate on a $15,000 payroll equals $1,200 lost in erroneous wage calculation.
Payroll Software Helps Protect SMBs from Compliance Issues and Tax Penalties
With payroll software solutions, you are protected from compliance issues. Small businesses do not have the time nor resources to be at the front of the ever-changing tax policy landscape.
It is especially complicated when you have employees in different states or beyond US borders. Each state and country has differing tax policies (deduction rates, compulsory contributions, etc.). If you default in filing correct tax returns, you will be penalized. As a small business looking to grow and expand, losing money to tax penalties will grossly affect your bottom line. All these can be avoided with a simple automated payroll solution.
Pricing Models for Small Business Payroll Service
For small businesses, payroll software mostly offers two kinds of pricing models:
- Flat rate per month/year
- Base rate plus per employee per month/year
The majority of the payroll software companies mentioned in this article use a base rate model. That is a good choice for small businesses, especially those with few employees. If you are a rapidly-growing business or you already have a sizable number of employees (say > 50) then a flat-rate pricing model might be best.
FAQs
Which payroll company is best for small businesses?
It depends on your business needs and the price you are willing to pay. If you want an affordable, stand-alone, full-service payroll, you can go for the more affordable options like Patriot, Quickbooks, and Zenefits. If you want HR solutions too, Gusto and Paychex Flex are a good fit.
What is the most used payroll software?
Due to its accounting suite, Quickbooks is the most used payroll software. Paychex and Gusto are close runner-ups.
What is the best international small business payroll service?
Amongst the payroll software providers on our list, Remote offers the best international options.
Final Advice on Buying a Small Business Payroll Solution
For small businesses, the process of choosing a payroll service provider can be cumbersome. The extreme dynamicity of small businesses requires you to choose one that fits your exact needs. We advise you to highlight your needs using these questions:
- How big is my business? Are you a solopreneur, a microbusiness with fewer than 10 employees, or maybe a small enterprise with over 100 staff?
- Who are my employees? Are your employees salaried workers or contractors? If they are salaried, do you pay an hourly wage or monthly salary?
- What is my budget? How much can you spend per employee/per month?
Answering these questions satisfactorily will streamline your payroll options. If, for example, you have employees who get paid per hour, you will likely opt for a payroll software that has time tracking to calculate and sync employee hours with payroll.
In the end, make sure to take your time and ask a lot of questions before you choose the best payroll software for your small company.
Please note that the services mentioned in this article are for small companies in the United States. If you are a global business looking to compensate your remote employees while staying compliant with international labor laws, check out our roundup of the best international payroll companies.
About Us
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