Are you a small business owner overwhelmed with payroll management?
You’re not alone. Studies reveal that over 40% of small businesses spend at least three hours each month running payroll.
This blog post is your guide to choosing the best payroll software for small businesses to streamline this process and save valuable time.
Ready for less stress and more efficiency? Let’s dive in.
Table of Contents
9 Best Payroll Software for Small Businesses in July 2023
In July 2023, small businesses looking for the best payroll software options can rely on Gusto, QuickBooks Payroll, Square Payroll, Rippling, OnPay, Paychex, ADP Run, Homebase Payroll, and Patriot Payroll.
#1. Gusto: Best Overall Payroll Software
Gusto shines as the best overall payroll software for small businesses in July 2023. It leverages cutting-edge technology to simplify a wide array of complex tasks, from automated payroll calculations and tax filings to direct deposit management.
Gusto stands out with its unlimited payroll runs, flexible schedules, streamlined processes, and easy-to-use interface, earning it top spots in many reviews. New hires reporting becomes effortless thanks to its advanced features designed to accommodate the growing needs of small companies.
Moreover, Gusto offers competitive pricing that fits within most business budgets making it an affordable yet comprehensive choice for effective payroll management.
#2. QuickBooks Payroll: Best for QuickBooks Accounting Software Users
As a small business owner, if your operations revolve around QuickBooks Accounting Software, then QuickBooks Payroll is tailored just for you.
This efficient payroll software for small companies seamlessly integrates with its accounting counterpart, offering streamlined payroll processes and automated calculations.
Not only does it allow unlimited payroll runs but also facilitates easy system navigation for payroll tasks.
Built specifically keeping in mind the need for simplified payroll solutions for small enterprises, QuickBooks Payroll stands out among top payroll software options due to its advanced capabilities like new-hire reporting for payroll and flexible scheduling.
The feature-rich platform ensures tax compliance while providing direct deposit functionalities, making it one of the best comprehensive payroll software available on the market today.
#3. Square Payroll: Best for Restaurants, Retail Shops & Square POS Users
Square Payroll emerges as a top payroll software for small businesses, particularly those in the restaurant and retail sectors. With seamless integration with the Square Point of Sale (POS) system, this user-friendly software excels in automating payroll calculations and streamlining management processes.
It facilitates unlimited payroll runs and provides direct deposit services to ensure your employees receive their payments promptly. Besides its efficient system navigation capabilities, it also offers new-hire reporting features for effective human resource management.
The cost-effectiveness of Square Payroll combined with these advanced features makes it an ideal solution for small business owners seeking reliable yet affordable payroll systems.
#4. Rippling: Best All-in-one HR, Payroll & IT Solution
Rippling is the perfect solution for small businesses looking to streamline their HR, payroll, and IT processes. This all-in-one software offers comprehensive features that include automated payroll calculations, tax filing capabilities, and direct deposit options.
With its user-friendly interface and easy system navigation, Rippling makes managing payroll a breeze. It also provides new-hire reporting for seamless onboarding processes and flexible payroll schedules to meet your business needs.
With Rippling, you can efficiently handle all aspects of HR and IT alongside your payroll functions, making it a top choice for small businesses in need of streamlined solutions.
#5. OnPay: Best for Delegating Payroll Duties & Niche Payroll Needs
OnPay is an excellent payroll software solution for small businesses that need to delegate payroll duties and have specific niche payroll needs. This platform offers a range of features designed to simplify the payroll process, allowing you to save time and focus on other important aspects of your business.
With OnPay, you can easily handle tasks like automated payroll calculations, tax filing, and direct deposits. It also provides user-friendly navigation and streamlined processes, making it easy for even non-experts to manage their company’s payroll effectively.
Whether you’re just starting out or have unique requirements, OnPay is a reliable and efficient choice for delegating your payroll responsibilities while meeting your niche needs precisely.
#6. Paychex: Best for Solopreneurs & Companies That Need Dedicated Payroll Support
Paychex is the ideal payroll software for solopreneurs and companies that require dedicated support for their payroll needs. With Paychex, you can streamline your payroll processes and ensure accurate and timely payments to your employees.
The software offers a range of features, including automated calculations, tax filing assistance, direct deposit options, and new hire reporting. Paychex also provides excellent customer support, ensuring that any questions or concerns you have will be promptly addressed.
Whether you are a solo entrepreneur or a small company in need of comprehensive payroll solutions, Paychex is a reliable option that can meet your needs effectively and efficiently.
#7. ADP Run: Best for Scaling Startups That Need Flexible Plans
ADP Run is an excellent payroll software option for startups that are looking to scale their operations. With its flexible plans, ADP Run allows businesses to easily adapt their payroll needs as they grow and hire more employees.
This software offers a range of features such as automated payroll calculations, tax filing services, and direct deposit options. It also provides new-hire reporting capabilities and unlimited payroll runs, ensuring that all aspects of your payroll management are covered efficiently.
ADP Run’s user-friendly interface makes it easy to navigate and streamline your payroll processes, saving you time and effort.
Whether you’re a small startup or a rapidly expanding company, ADP Run is the ideal choice for managing your growing business’s payroll needs effectively.
#8. Homebase Payroll: Best for Businesses Employing Hourly Workers
Homebase Payroll is the perfect payroll software solution for businesses that employ hourly workers. With its user-friendly interface and intuitive features, Homebase makes it easy to manage and track employee hours, as well as calculate accurate paychecks.
The software seamlessly integrates with popular time-tracking tools, allowing you to streamline your payroll process and eliminate manual entry errors.
In addition, Homebase Payroll ensures tax compliance by automatically filing all necessary forms and providing detailed reports for easy record-keeping.
Whether you’re a small retail shop or a bustling restaurant, Homebase offers the flexibility and efficiency needed to handle your unique payroll needs. Say goodbye to complicated payroll calculations and let Homebase do the work for you.
#9. Patriot Payroll: Best for Mom-and-Pop Businesses That Want a Low-cost DIY Option
Patriot Payroll is the ideal choice for mom-and-pop businesses looking for an affordable do-it-yourself option. This user-friendly payroll software offers a comprehensive range of features at a budget-friendly price point.
With Patriot Payroll, small business owners can easily manage their payroll processes without breaking the bank. From automating payroll calculations to handling tax filings, this software simplifies the often complex task of processing payroll.
It also allows for direct deposit payments, making it convenient and efficient for businesses that want to streamline their payment processes.
With its low cost and user-friendly interface, Patriot Payroll is an excellent choice for small businesses in need of reliable and affordable payroll management solutions.
How We Chose the Top Payroll Software
To determine the best payroll software for small businesses in July 2023, we carefully evaluated key factors such as features, pricing, and customer support to bring you the most comprehensive and user-friendly options available on the market.
● Key factors considered in our evaluation
In order to determine the best payroll software for small businesses, we considered several key factors. These factors helped us assess the effectiveness and suitability of each software option. Here are the key factors we considered in our evaluation:
- Features: We analyzed the range of features offered by each payroll software, including automated payroll calculations, tax filing capabilities, direct deposit options, new-hire reporting, and flexible payroll schedules.
- Pricing: We compared the pricing plans and subscription options provided by each software. Our evaluation focused on affordability for small businesses while considering the value provided by each solution.
- User-Friendliness: We assessed how easy it is to navigate and use each payroll software. A user-friendly interface is crucial for small business owners who may not have extensive experience or time to dedicate to payroll management.
- Integration with Existing Systems: We examined how well each software integrates with existing systems such as accounting software or time-tracking tools commonly used by small businesses.
- Tax Compliance and Reporting: We evaluated the tax compliance and reporting capabilities of each software, ensuring that it meets the necessary requirements for accurate and timely tax filings.
- Customer Support and Service: We considered the level of customer support offered by each payroll software company, including the availability of phone support, email assistance, online resources, or dedicated account managers.
Payroll Trends To Know in 2023
Payroll trends in 2023 include the latest developments in payroll software and emerging trends in payroll management.
● Latest developments in payroll software
Payroll software has come a long way in recent years, with several exciting developments making it easier and more efficient than ever for small businesses to manage their payroll processes.
One notable development is the increasing use of artificial intelligence (AI) and machine learning algorithms in payroll software.
These advanced technologies can automate tasks such as calculating wages, deducting taxes, and processing overtime payments, saving business owners valuable time and reducing the risk of errors.
Another important trend in payroll software is the integration of mobile applications. Many payroll software providers now offer mobile apps that allow employers to manage their payroll on the go.
With these apps, business owners can easily review employee data, approve timesheets, and process payments from their smartphones or tablets. This flexibility not only improves convenience but also ensures that payroll processes can be completed even when away from the office.
Additionally, cloud-based solutions have become increasingly popular in the world of payroll software.
Cloud-based systems offer benefits such as secure data storage, easy accessibility from anywhere with an internet connection, automatic updates to ensure compliance with changing regulations and seamless integration with other HR or accounting systems.
As more businesses adopt cloud-based solutions for various aspects of their operations, including payroll management becomes a natural choice.
● Emerging trends in payroll management
Payroll management is constantly evolving, and staying up-to-date with the latest trends can help small businesses streamline their processes. One emerging trend in payroll management is the use of artificial intelligence (AI) and machine learning (ML) technologies.
These advanced technologies are being used to automate repetitive tasks, such as data entry and payroll calculations, saving time and reducing errors.
AI-powered payroll systems can also analyze large amounts of data to identify patterns, trends, and anomalies, helping businesses make more informed financial decisions.
Another emerging trend is the integration of payroll software with other HR systems. Many businesses are now using integrated HR platforms that combine payroll processing with features like benefits administration, time tracking, and employee self-service portals.
This integration not only improves efficiency by eliminating manual data transfer but also provides a comprehensive view of employee information in one central system.
Additionally, some payroll software now offers mobile apps or cloud-based solutions that allow employees to access their pay stubs, tax documents, and other important information anytime from anywhere securely.
Comparison and Benefits of the 9 Best Payroll Software
Compare and discover the key features, pricing options, and benefits of the top nine best payroll software for small businesses in July 2023.
● Features, pricing, and key benefits of each software
Gusto is our top pick for overall payroll software. It offers a wide range of features, including automated payroll calculations, tax filing assistance, and direct deposit capabilities. With its user-friendly interface, small businesses can easily navigate through their payroll processes.
Additionally, Gusto provides excellent customer support to address any concerns or questions that may arise.
For QuickBooks users, QuickBooks Payroll is the ideal choice as it seamlessly integrates with the popular accounting software. This integration allows for simplified bookkeeping and ensures accurate financial records.
The pricing plans are affordable and offer flexibility based on the needs of your business.
Square Payroll caters specifically to restaurants, retail shops, and Square POS users. It streamlines payroll management by automatically syncing employee hours from Square’s point-of-sale system.
Its intuitive platform makes it easy to calculate wages accurately while providing comprehensive reporting tools.
Rippling stands out as an all-in-one HR solution that includes robust payroll functionality along with IT management features. It simplifies the administrative tasks associated with onboarding new employees by automating processes like new-hire reporting and tax filings.
OnPay offers specialized solutions for delegating payroll duties in small businesses. Business owners can assign specific roles to different employees or outsourced professionals while still maintaining overall control over the process.
OnPay also supports niche payroll needs such as managing contractor payments efficiently.
Solopreneurs and companies that require dedicated support will find Paychex suitable for their needs. They offer personalized assistance from certified professionals who handle various aspects of payroll processing, ensuring accuracy and compliance.
ADP Run is best suited for scaling startups that need flexible plans tailored to their growth trajectory. Their advanced features include custom reporting options and seamless integrations with other business systems.
Homebase Payroll specializes in serving businesses employing hourly workers by offering simplified time-tracking tools alongside traditional payroll services at an affordable price point.
Lastly, Patriot Payroll is an excellent option for mom-and-pop businesses looking for a low-cost DIY solution. It offers comprehensive features like unlimited payroll runs, tax filing assistance, and new-hire reporting.
Factors to Consider When Choosing Payroll Software for Small Business
Consider the integration, ease of use, tax compliance, and customer support when choosing the perfect payroll software for your small business. Read on to find out which option suits you best.
● Integration with existing systems
Choosing a payroll software that seamlessly integrates with your existing systems is crucial for small businesses. Integrating your payroll software with other software you use, such as accounting or time-tracking solutions, can save you time and prevent errors caused by manual data entry.
Look for payroll software that offers easy integration options and supports popular integrations like QuickBooks or Square POS.
This way, you can streamline your processes and ensure accurate data transfer between different platforms, making it easier to manage your finances and monitor employee hours accurately.
By choosing payroll software that integrates well with your existing systems, you can maximize efficiency and reduce administrative tasks in your small business operations.
● Ease of use and user interface
The ease of use and user interface are crucial factors to consider when choosing payroll software for your small business. You want a system that is intuitive and straightforward, allowing you to navigate effortlessly through the various features and functions.
A user-friendly interface ensures that even those without extensive technical expertise can manage payroll tasks efficiently.
Look for software with a clean design, logical layout, and clear instructions so you can easily input employee information, process payroll runs, generate reports, and handle tax compliance seamlessly.
With an intuitive user interface, you’ll save time and minimize errors in managing your small business’s payroll processes.
● Tax compliance and reporting capabilities
Ensure your small business stays in compliance with tax laws and regulations by choosing payroll software that offers robust tax compliance and reporting capabilities. These features will automate the calculation and deduction of taxes, including federal, state, and local taxes.
The software should also generate accurate reports for quarterly and year-end filings, making it easier to file your taxes on time. With the right payroll software, you can minimize errors and penalties while ensuring your employees’ tax obligations are met efficiently.
● Customer support and service
Receiving reliable customer support and service is crucial when choosing payroll software for your small business. The best payroll software options offer responsive and knowledgeable support to help you navigate any issues or questions that may arise.
Whether it’s troubleshooting technical difficulties, understanding complex tax regulations, or simply needing assistance with system navigation, having a dedicated team available to provide prompt and helpful guidance can make all the difference.
Look for payroll software providers that prioritize exceptional customer service to ensure a smooth experience as you manage your small business’s payroll needs.
What factors should I consider when choosing payroll software for my small business?
When choosing payroll software for your small business, it is important to consider factors such as the size of your business, the complexity of your payroll needs, the level of automation and integration required, and the budget you have allocated for payroll management solutions.
Can I use the same payroll software if I have multiple locations or branches?
Yes, many payroll software systems are designed to handle multiple locations or branches. It is important to choose a system that can accommodate your specific needs and has features like multi-location management and centralized reporting capabilities.
How secure is my data with payroll software providers?
Payroll software providers understand the importance of data security and implement various measures to protect sensitive information. Look for providers who offer encryption protocols, regular backups, user access controls, and compliance with industry standards such as GDPR or HIPAA if applicable.
What kind of customer support should I expect from payroll software providers?
Customer support varies among different payroll software providers. Ideally, you want a provider that offers responsive customer support through various channels such as phone, email, or live chat. It is also beneficial to check if they provide resources like knowledge bases or online tutorials to help you navigate their system effectively.
Choosing the right payroll software is crucial for small businesses in July 2023. The top 9 options mentioned above offer a range of features and benefits to streamline payroll processes, automate calculations, and ensure tax compliance.
Whether you need all-in-one HR solutions or simple DIY options, there’s something for every business size and budget. Take advantage of these efficient and user-friendly tools to simplify your payroll management and focus on growing your business.