Small Business Payroll

 

 

Outsourcing payroll has never been easier or more cost effective for the small business owner, but the choices can be overwhelming. With hundreds of payroll solutions available, how do you go about choosing a payroll service that meets all of your payroll needs? In this article, we’ve done some of the legwork for you: learn more about how you can benefit from a full-service payroll solution, and read about our top five recommendations for meeting your particular payroll needs.

How Smart Small Business Payroll Solutions Can Make Your Life Easier

Why should you consider a payroll software service? Payroll mistakes often come with direct (and costly) consequences. A payroll error doesn’t just potentially affect your employees; it can also result in government fines and penalties. And payroll is complex, too. Even if you’re a whiz at small business finance, you’re likely still spending a lot of time managing your payroll.

So the right payroll software for small business owners can take most of the payroll burden off your shoulders. True, payroll services are an added expense, and perhaps one you hadn’t been considering, but making a payroll software decision today can reap ample rewards in the long run by making your payroll process more accurate and more efficient.

How to Choose Your Small Business Payroll Solutions

Google “small business payroll” or “payroll software for small business”, and you’ll be flooded with an abundance of payroll solutions. It’s easy to feel daunted by the vast number of choices available. So it’s good to know that most of the top payroll services offer a common set of features. For example, payroll programs typically include the following features:

• Payroll processing. Most payroll solutions are designed to handle your payroll processing effectively and efficiently. Once your employee information has been entered, the programs do the rest, from calculating wages to making payments to your employees.
• Payroll taxes. Depending on the tier of service you choose, most payroll companies can take on your payroll tax preparation tasks, including filing required tax returns, making tax payments, and issuing W-2 forms for employees and 1099 forms for contractors.
• Employee self-service. Handling your own payroll means you’re also the one your employees turn to when they need payroll information. Top payroll companies offer employee portals to take over this part of the process, enabling your employees to log on and find the information they need directly.
• Payroll reports. Having access to all of your employee payroll data in one place when using a payroll service gives you a number of payroll analytics in the form of reports. These reports can provide you with relevant data to guide your HR and budgeting decisions.
• Paid-time-off (PTO). Whether it’s vacation time or paid sick leave, many payroll companies help you stay on top of tracking and calculating employees’ PTO. By having a payroll service solution in place, you can easily see an employee’s time earned, and review the balance of PTO remaining.
• Software integration. Payroll companies recognize that you’re likely using other small business software solutions, and while the level of integration varies, you’ll find that most of them offer integration with a number of popular small business software programs.

Since most payroll services will give you these basic features, knowing your particular payroll needs will help you further evaluate the right software for you. While there is no one perfect payroll company, there is likely one that will meet your needs in the most optimal way.

To give you a head start in your research, we’ve set out our list of the top five payroll companies below, along with our recommendations as to the type of small business needs each company meets.

The Final Five: The Best Payroll Software for Small Business Owners

In compiling our top five list, we looked for factors that enhance the more basic payroll features provided, such as:

• Ease of access. Payroll is complex enough. What you don’t need is a steep learning curve and a complicated dashboard you have to battle your way through. The best payroll solutions have simplified, streamlined payroll processes that won’t leave you feeling more frustrated than you were before you signed onto their service.
• Customer support. Payroll is a complicated process, and the consequences of a mistake can be costly. Because of this, top-notch customer support is an important factor when choosing a payroll service provider.
• Pricing. Staying within budget is important to any small business owner. All of the recommended payroll services on our list offer transparent pricing, so you can see the potential costs right from the start. (Note that all prices quoted in this article are current as of the day of writing; we’ve included a link to pricing plans to make it easier for you to check for price updates.)
• Mobile access. While Square Payroll is the only one of our top five payroll services that offers a mobile app, the remaining four have mobile-friendly sites, enabling you to access their services via your phone or tablet.

Of course, just because a payroll company is one of our final five doesn’t mean it’s the right payroll service for your business, but we’re hopeful that our list will provide you with a solid starting point. Each of them offers a free trial, so you can try out the software before making a firm commitment.

Gusto

You’ll often see cloud-based Gusto topping “best of payroll software” lists, and there’s a good reason for that. This full-service payroll company has made ease of use a priority, meaning you’ll be able to dive right into their simplified dashboard.

Other benefits offered by Gusto include workers comp administration, unlimited payroll runs, and, if you sign up for either of their top two plans, simple time tracking. And if employee wages don’t change much during each pay period, you can also utilize Gusto AutoPilot, the software’s automated payroll option.

User reviews point to the company’s excellent customer support as well. Access to support is available via phone, email and live chat. And their Concierge level provides dedicated support.

Gusto offers four different pricing plans, which means you won’t find yourself paying for services you don’t need. Current prices range from a base price of $39 per month plus $6 per month for each employee for the basic Core plan, to $149 per month plus $12 per employee for their comprehensive Concierge plan. Gusto also offers a Contractor plan for businesses without any W-2 employees, which will cost you $6 per month per contractor, with no monthly base fee.

Our recommendation: Gusto is an excellent overall payroll solution for the small business looking for ease of use, solid payroll features, a range of HR add-ons, and excellent customer support.

OnPay

The hard part of getting started with any payroll program is getting all of your employee data into the program initially. This is where OnPay shines. It offers you the option of using its professional setup service for free, so you can choose to have their payroll expert do the initial setup for you.

OnPay also offers an accuracy guarantee when it comes to your tax filings. This guarantee states, “If we don’t get your payroll right, we’ll fix things with the IRS and take care of any fines for you.” And if you need comprehensive PTO management, OnPay allows custom PTO policies, offers three accrual tiers, automates accrual tracking, and facilitates PTO requests and approvals.

OnPay’s pricing is also transparent, and with only one pricing plan available, it’s very simple for you to calculate the total cost. For a base fee of $36 per month, plus $4 per person, you get access to all of OnPay’s many payroll features.

Our recommendation: If you’re looking for solid customer support, particularly during the initial setup or migration phase, or if you’d like efficient PTO management, OnPay may be the ideal option for you.

Patriot Software

For many small businesses, the monthly cost of payroll software can often be a dealbreaker. This is where Patriot Software shines. While it’s not as feature-rich as the other payroll programs on our list, it offers the budget-conscious small business owner a solid payroll solution.

In addition to its Full Service Payroll plan, Patriot also offers a Basic Payroll plan that’s very affordable. For $10 per month, plus $4 per person, you gain access to a set of basic payroll features.

Going with this budget-friendly option does mean you’ll have to prepare your own tax filings and year-end tax forms. But if you don’t mind this, Patriot can lessen your payroll burden while offering you access to unlimited payroll runs, workers comp integration and integration with Quickbooks.

Our recommendation: Patriot Software is an ideal solution for the budget-conscious business owner who doesn’t mind handling payroll tax compliance matters on their own.

Intuit/Quickbooks

While the costs of Intuit/Quickbooks’s payroll program can add up, it’s earned a place on our list because of its seamless integration with the popular Quickbooks accounting software.

All of the Intuit/Quickbooks payroll plans are full-service plans that include features such as unlimited payroll runs, payroll reports and an employee portal. The Premium plan offers additional features such as workers’ comp administration, time tracking on the go, and expert setup review. And at the Elite level, there’s enhanced customer support, including “white glove” customized setup, 24/7 product support, and a personal HR advisor.

Both of the upper-tier plans do come with a somewhat hefty increase in monthly costs, however. While there is currently a 50% sale offer, the non-sale price for the basic Core plan is $45 per month plus $4 per employee. The Premium plan is normally $75 per month plus $8 per employee, while the Elite level, with its optimized customer support, has a regular price of $125 per month plus $10 per employee.

Our recommendation: The Intuit/Quickbooks payroll program may be the right solution for you if you’re looking for payroll software that offers an optimal integration with Quickbooks, and your payroll software budget can handle a mid-to-upper price point.

Square Payroll

While Square Payroll is not quite as feature-rich as some of the other payroll services on our list, its integration with its sister Square apps makes it worthy of consideration if you’re currently using other Square tools.

Square Payroll offers basic full-service payroll features such as calculating and paying wages, filing payroll taxes, and an employee portal. There are also HR add-ons such as health insurance, workers’ comp and 401(k) retirement plans.

It’s the only one of the services on our list that provides a mobile app, and like the other apps in the Square family, it’s easy to use. It also offers seamless integration with Square Point-of-Sale timecards and an automatic payroll option. And if your business handles tips for your employees, it’s tips feature is a definite bonus.

Square Payroll’s price point makes it an affordable option, as well. You can choose its regular plan, with a monthly payment of $29 plus $5 per person, or you can select the contractors plan, which charges $5 per contractor per month, with no other monthly base fee.

Square Payroll is an ideal choice for the small business already using Square Point-of-Sale or any of the other Square apps.

For small business owners, payroll management is a time-consuming process that can take up a lot of your time. Add to this the sometimes costly consequences of making payroll mistakes, and the burden on you might feel almost overwhelming. Turning to an online payroll service provider can be a cost-effective way to get back some of your time, leaving you free to focus on other important parts of your business.

~Belle Wong~