10 Best Payroll Software for Small Businesses

Payroll software is designed to make your life easier. It allows you to process your employees’ payroll and onboard employees online.

Some full-service payroll software can automatically calculate and handle state and federal taxes, filings, and payments.

Payroll software is faster, more secure, and more accurate than third-party payroll service providers or dedicated departments.

SEE ALSO: Best Accounting Software for Small Business

However, small business owners feel the pressure as they often have a tight budget and don’t have much to invest in payroll software.

This is where we jump in. We recommend 10 of the top payroll solutions for small businesses, and all you have to do is choose the one that best suits your needs.

Best Payroll Software for Small Business

Gusto: Gusto is a cloud-based platform that combines payroll, benefits administration, HR, and compliance functionalities.
Zoho Books: Zoho Boks is a cloud-based accounting solution for small businesses.
Patriot Payroll: Patriot Payroll is an online accounting and payroll platform for small and mid-sized businesses.
Paychex: Paychex is a complete HCM suite that combines Payroll, HR, and benefits management in a single package.
Kronos Workforce Ready: Kronos Workforce Ready is an online HR management solution with full human capital management capabilities.
Xero: Xero is an industry-leading, cloud-based accounting solution for over half a million businesses.
Wave: Wave is free accounting software perfect for businesses just starting up and freelancers and consultants.
Intuit Payroll: Intuit Payroll is an accounting and payroll platform for small businesses, entrepreneurs, and consultants.
ADP Now: ADP Workforce Now is a well-known, web-based Human Resources application for small and mid-sized businesses.
Dayforce HCM: Dayforce HCM is an online platform that combines payroll and tax, workforce management, analytics, benefits, talent management, and HR management in one package.

All the options recommended here offer, at least, the most basic features that allow them to manage payroll with efficiency for free or a very low cost.

Table of Contents

1- Gusto

Gusto is a cloud-based platform that combines payroll, benefits administration, HR, and compliance functionalities.

It is designed for small businesses to help them manage their workforce’s core Human Resources needs.

Thanks to its robust set of payroll features, automation capabilities, and easy-to-use user interface, Gusto is used by over 40,000 business users in the United States alone.

With Gusto, you can streamline and automate the calculation, payment, and submission of your business’s federal and state payroll taxes.

Also, there is one thing to worry about because the software will ensure that you comply with the year-end forms and taxation.

Why Use Gusto?

Accuracy

There are no human errors with Gusto.

Full compliance with Standards

Gusto meets HIPAA, ACA, and ERISA standards.

No long-term to tie you

You can suspend your account at any time.

A free trial

A one-month free trial is available to try out the software before committing.

Simple benefits administration

Gusto will handle employment tax reporting, new hire reports, detailed budget plans, workers’ comp insurance, and payments, and you can even set up and manage 401(K) plans.

2- Zoho Books

Zoho Books is a cloud-based accounting solution that’s perfect for small businesses. It is made to help them manage payroll, finances, and cash flow with ease and efficiency.

With Zoho Books, you can control expenses, send professional invoices, receive payments, and organize all financial transactions from a single platform.

You can also manage project finances, add tasks, assign team members, and follow processes from anywhere.

Why Use Zoho Books?

Works well with other Zoho Products

As a part of the Zoho family of solutions, Zoho Books integrates smoothly with other Zoho apps for extensible accounting and added functionality.

Manage and track projects

You can log in and enter the time you spend to complete any project, and the app will record the expenses and invoice the clients directly.

Work on the go with mobile apps.

Zoho Books has dedicated apps for mobile devices, so you can always manage your finances on the go.

3- Patriot Payroll

Patriot Payroll is an online accounting and payroll platform for small and mid-sized businesses.

Patriot Software helps businesses by simplifying the processes involved in managing and handling invoices, accounting data, salary calculation, and payments.

You will efficiently manage bills and payments to vendors and contractors using Patriot Payroll.

You also can track those payments and generate the reports to send them to your accountant.

Patriot payroll comes with an online basic payroll service that streamlines the payroll process and makes it more accessible.

It’s an entirely automatic payroll service that only needs you to enter your employees’ working hours and let the solution do the calculations.

Running Payroll processes has never been easier.

Why Use Patriot Payroll?

Payroll Service

With Patriot payroll, you can opt for basic payroll or full-service payroll. Both are affordable and do what they are designed for very well.

User-friendly

The solution is so intuitive and user-friendly that you pick it up and start using it immediately without training. Then, you can set it up in a few minutes and get suitable for business.

Affordable

The solution is well-priced, has no long-term contract, and doesn’t have hidden fees or penalties. Their explicit pricing scheme and no-hidden-fees policy make it an excellent option for small businesses and startups.

Accuracy

The software has been tested, audited, and bonded to ensure it is 100% accurate.

Security

Patriot payroll’s servers are housed in secure data centers with redundant firewalls and high-level encryption to ensure the safety and security of your data.

4- Paychex

Paychex is a complete HCM suite that combines Payroll, HR, and benefits management in a single package.

It is well-suited for businesses of all sizes. It manages HR, time and attendance, Payroll and taxes, insurance, employee benefits, 401(k) retirement plans, accounting, and finance.

Paychex has dedicated Care Act solutions that take action on complex health rules and regulations.

The solution can automate applicant tracking and expense management, making recruiting and expense processes more comfortable and efficient.

The payroll solution is flexible and scalable, so you can keep using it as your business grows without worrying about moving to another solution.

Why Use Paychex?

Works for all businesses, made for small businesses

Paychex is created for small and mid-sized companies to help them manage their finances. Still, its flexibility and scalability make it a good option for enterprises and small businesses.

Easily-accessible info

You can access payroll information quickly via the web, email, or phone.

Paychex PEO

Paychex Professional Employer Organization (PEO) helps businesses handle employee relations issues.

Financial Platform

The suite comes with accounting and finance solutions; these include expense management, online benefits management, Kashoo online accounting integration, and – of course – payment processing services.

Paychex is an excellent solution for small businesses, similar to ADP and Paylocity. So if you like them but can’t make up your mind about them, take a minute to dive more in-depth into this ADP VS Paychex VS Paylocity Comparison.

5- Kronos Workforce ready

Kronos Workforce Ready is an online HR management solution with full human capital capabilities.

The solution offers a wide range of features that should be of great help in managing your business. For example, the solution features time and attendance, scheduling, employee engagement, payroll, applicant tracking, and talent acquisition.

Kronos Workforce Ready uses a single employee record, shared across all solution tools. This allows business owners to pull out reports from the database easily.

With Kronos, there’s no lag as it constantly updates its data in real-time to let HR managers make informed but quick decisions using the latest information available.

Why Use Kronos Workforce Ready?

Automation

Kronos workforce ready automates almost every HR process.

Self-service

The solution’s self-service features are beneficial for both workers and managers. Constant supervision is not needed so the staff can update information independently.

Full HR and HCM platform

Companies can adequately manage their workforce from end-end-end thanks to the solution’s workforce management and human capital management capabilities.

Detailed Reporting

Reports and analytics are comprehensive and give deep insights into the strengths and weaknesses of specific human resource areas.

6- Xero

Xero is an industry-leading, cloud-based accounting solution used by over half a million businesses in over 180 countries worldwide and has won multiple awards.

The accounting platform is suitable for small businesses. It has the functionalities to handle invoicing, inventory, expense management, project tracking, time tracking, expense claims, bills payment, and bank connections and reconciliation.

The solution is fully featured, which means you can find all the payroll features you want and more. These features include financial reporting, sales tax calculation, online payment, and a business performance dashboard.

However, the payroll benefits and features are only available for businesses based in the U.S. and Australia.

Why Use Xero?

An Excellent Payroll Processing solution

Xero can process and run payrolls and automatically adjust taxes for over 20 U.S. states.

Detailed Reporting and Financial Overview

The reporting feature gives business owners an overview of all their business’s financial activity.

Secure

Xero uses multiple approvals and two-factor authentication to minimize and eliminate financial fraud.

Work on-the-go

The solution’s dedicated mobile apps will let you handle your finances even when you’re away from the office.

7- Wave

Wave is free accounting software perfect for businesses just starting up and freelancers and consultants.

Thanks to the features per price ratio, Wave has become one of the most popular payroll systems and is currently used by over 2 million users in more than 200 countries worldwide.

The solution combines payroll processing, accounting, and invoicing functions in one easy package to set up and use. In addition, the easy-to-navigate dashboard has everything you need and is easy to access.

Wave streamlines accounting and invoicing processes to eliminate the complexities of monitoring expenses, payments, and managing taxes.

Why Use Wave?

It’s completely free.

It’s a free platform. There are no hidden charges, fees, or penalties to be found.

Simple expense tracking

Wave will streamline expense tracking and speed up the process without sacrificing accuracy through its tolls.

Create invoices in no time

Create professional invoices, receipts, and estimates in minutes.

Accept payments via credit cards.

With Wave, you can monitor the status of all your invoices and accept payments via credit cards.

Automatic Billing

The software can automatically handle recurring billing and invoices. It can also send you notifications about paid and unpaid items.

8- Intuit Payroll

Intuit Payroll is an accounting and payroll platform for small businesses, entrepreneurs, and consultants.

The solution can take care of payroll management with efficiency and accuracy. It can also automate tax calculations and generate paychecks.

Intuit Payroll integrates with QuickBooks for added accounting functionalities and improved cash flow and compensations.

It also brings talent acquisition and employee management tools, which allow you to hire top talent while keeping up with existing labor and hiring laws.

You also get the payroll option of paying your employee through Intuit’s free direct deposit, or you can print paychecks instantly.

Why Use Intuit Payroll?

Payroll Management and Tax Calculation Made easy.

With Intuit Payroll, you can pay employees with ease. The solution will automatically calculate payroll taxes and take them into account.

Top-notch customer support

Intuit’s customer support is of the highest quality. They offer support via phone and chat, and you will always get an expert on the other side of the call or chat that will help you through your setup step-by-step.

Unlimited Paychecks

With your online payroll account, the solution can create and print unlimited paychecks after you approve salaries or enter hours.

9- ADP Workforce Now

ADP Workforce Now is a well-known, web-based Human Resources application for small and mid-sized businesses.

The solution helps businesses automate their HR and Payroll processes using a single dashboard.

From It (the dashboard), you will manage employee payroll, time and attendance, and benefits.

Some features include bonuses, time and attendance, employee health insurance statistics, benefits, and talent management.

You will also be able to generate insightful reports from this dashboard.

ADP Workforce Now comes with a benefit plan creation wizard that you can configure to meet the policies and processes of your business.

Why Use ADP Workforce Now?

Benefits Administration Features

ADP Workforce Now comes with robust benefits administration features that ensure compliance with the annual reporting requirement for IRS 1094 and 1095.

Real-Time Analytics

ADP Workforce Now synchronizes and displays analytics in real-time. You can create graphs, charts, spreadsheets, and reports and customize them to your needs.

Manage Human Resources

The solution comes with workforce and Human resources management functionalities such as recruiting, engaging, retaining, and promoting your employees.

See how well you are doing.

With ADP Workforce Now, you can see how your company compares against benchmark data.

10- Dayforce HCM

Dayforce HCM is an online platform that combines payroll and tax, workforce management, analytics, benefits, talent management, and HR management in one package.

The platform gives access to real-time data across all areas of HCM to allow you to process pay, manage compliance, manage benefits enrollment, maintain HR records, and Schedule Staff.

Dayforce HCM uses a single-employee record in all the HCM processes to give you a unified platform from which you can manage core human resources, payroll, benefits administration, and much more.

The platform is flexible and compatible with all popular browsers.

Why Use Dayforce HCM?

Embedded analytics in reports

Managers and business owners can access real-time reports which have integrated analytics.

Pay information Access

The solution allows employees to view their pay information through its platform. They can see things such as pay breakdown, pay history, and earnings statement.

Made for Mobile Devices

The solution’s platform was designed mainly for tablets so managers can review, edit, and approve timecards regardless of where they are.

Using payroll software may not seem like the most important thing when starting a business, but it is. Most experts and business advisers recommend that small businesses employ a payroll software solution when starting.

As your business expands and your team gets more extensive, you will find that the investment was worth it for the benefits you get from the payroll solution.

We hope you enjoyed this article. If so, you might enjoy these resources:

10 Best Payroll Software for Small Business