Which payroll company is best

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Most notably, we added an informational section to explain the main types of payroll options for small-business owners. We also added Bookkeeper. We wanted to include a virtual payroll solution to our list for businesses that want outsourced help for bookkeeping only, not HR. We recently reviewed this page to ensure none of our top picks had changed their plans or pricing recently.

None had, and we're happy to stand by our recommendations. Additionally, Square is currently running a three-months-off promotion for Business. Square is currently running a three-months-off promotion for Business.

The bottom line: Gusto is Business. Its basic payroll software plan automates most aspects of running payroll, including automatic payroll tax administration at no extra cost. And its most expensive software plan caters to midsize businesses that want dedicated HR help without fully outsourcing HR or creating an in-house human resource department. If you want to keep HR in house but want more features than Gusto offers, Paychex could be a solid choice.

Finally, if you only work with contractors, Square Payroll waives its monthly base fee and charges you per payee only. From running payroll by hand to outsourcing all of payroll and HR to a third party, small-business owners have multiple options for paying their employees. Here are the most common payroll solutions:. For a more in-depth exploration of each type of payroll provider, including their pros and cons, read through our ultimate guide to small-business payroll. Gusto comes close to proving that in the world of online payroll software, you really can have it all—from a beautiful, user-friendly interface to a full spectrum of employee benefits.

PEOs, or professional employer organizations , are HR companies that split ownership of your small business with you fifty-fifty: you handle the business side of the company and the PEO handles the HR side. In technical terms, your employees to the PEO, which then files your taxes under its own company, accepts payroll liability, distributes paychecks, and handles benefits. ADP also takes over issues like recruiting, hiring, and onboarding. If you have questions about payroll, you can reach out to your dedicated payroll specialist.

Just know that when ADP runs your payroll, its payroll team is responsible for any problems with tax deductions. Its user-friendly platform has thorough self-service features so employees can check their pay stubs and tax records. Bear in mind that PEOs are typically the most expensive payroll solution.

Paychex recognizes that payroll solutions for small businesses are different from those with over 1, employees. Every plan includes payroll processing and payroll tax help, and most plans include some HR basics too:. Additionally, Paychex has a few PEO plans for midsize to large businesses. If taking on any aspect of bookkeeping and accounting sounds daunting, you might do better with a fully outsourced accounting solution. Virtual bookkeeping providers like Bookkeeper. You can also add on payroll and tax-filing services—usually at any additional cost, which is the case with Bookkeeper.

We like that Bookkeeper. If your graphic design company mostly employs freelancers or your construction business works exclusively with roofing contractors, you don't need a full-fledged online payroll plan much less a PEO. You can pause contractor payments anytime, which makes Square Payroll a good pick for employers who work mainly with seasonal workers.

Plus, Square Payroll syncs with the entire suite of Square products. Contractors can clock in and out using Square's point of sale app , which then automatically syncs with Square Payroll to make running payroll a breeze. Like Square, Gusto also offers a contractor-only plan with no monthly base fee. However, while you can use it to easily and affordably pay contractors, that's pretty much all you can do. For instance, you won't get the in-depth reports and analysis you would with, say, Paychex.

Then again, if you're just paying contractors, you don't necessarily need that much reporting: you need a cheap online payroll service, and that's what you'll get with Square. Want more small-business payroll options than the five listed here? Our piece on the best payroll software for small businesses overviews 10 of the best payroll software options for businesses like yours.

Self-service payroll means in-house payroll. In contrast, if you run full-service payroll, you outsource at least some parts of your payroll process to another company. Full-service payroll usually costs more than self-service payroll, but it saves you time, which could translate to saved money. Most importantly, a full-service payroll company takes on the responsibility for withdrawing the right amount of taxes. In general, payroll services are cheaper, especially if you go the self-service rather than full-service route.

You can use self-service payroll most of the year and hire an accountant for a few hours a week during tax season.

But we have a few favorites, starting with Gusto , a full-service payroll software provider with add-on employee benefits. Want another company to manage most of your payroll and HR services? Sources 1. With unlimited payroll runs and automatic tax filing, Gusto helps small-business owners worry less about payroll and put more time into growing their business.

In , there were just over a million accountants employed in the United States. For instance, accountants in Washington, DC are paid a higher salary than accountants anywhere else in the nation. Accessed February 8, The majority of payroll service providers give businesses the option of totally outsourcing payroll administration tasks.

It is a good idea for companies to weigh the cost of outsourcing all payroll tasks against doing them in-house. Using a full-service payroll provider can save time and labor costs for some companies. Manage your accounting, including bookkeeping, payroll and taxes all in one place. Businesses can choose from two, do-it-yourself plans or a full-service plan where Intuit does payroll for them.

Its services help businesses of all sizes take on human resources, payroll, talent, tax and benefits administration tasks using technology to simplify processes. ADP tailors its payroll services for small, midsized, large and multinational business solutions. SurePayroll is known for offering the first online payroll and payroll tax-filing solution for small businesses.

Aside from small businesses, SurePayroll provides payroll solutions for restaurants, churches, restaurants, and families with household employees and nannies helping them stay compliant with current tax laws and avoid fines. Its payroll services include features like time clock integration, SureAdvisor federal and state law compliance, accounting integration and mobile payroll apps. Paycor got its start over 25 years ago providing HR and payroll services to small and medium-sized businesses.

Today, it uses cloud-based software to provide customized payroll service to over 30, clients. For over 14 years, Patriot Software has been developing and supporting accounting and payroll software for small businesses.

You can choose to run your own payroll using their software, or have Patriot handle all aspects of your federal, state and local payroll taxes.

You can also choose to add features like time and attendance tracking and an HR software package for an additional fee. Headquartered in Atlanta, Heartland Payment Systems is a worldwide provider of payment technology services. It services over 10 industries including restaurant, petroleum, education and hospitality organizations, with its extensive list of payment products and payroll services. OnPay has over 25 years of experience in payroll technology and focuses on saving small business owners time and money.

It boasts a fast, easy and affordable way to calculate, review and finalize payroll. OnPay payroll services include payroll tax payments and filings, employee payment options, employee online access, multiple access levels, unlimited pay runs and more. Payroll features include online payroll, direct deposit, tax services, online employee access, HR information access and ACA monitoring.

Information in this guide is general in nature and is intended for informational purposes only; it is not legal, health, investment or tax advice. A Certified Payroll Professional since , Loy Loveless has mastered the payroll service industry in a variety of business settings. Sign up to receive our free weekly newsletter.

We value your privacy. Unsubscribe easily. Learn More. Compare payroll services Payroll company questions Payroll service types Payroll services FAQ Payroll service reviews Want your company to be on this guide? Questions for payroll companies How can I pay my employees with a payroll service?

Direct deposit: Online payroll software lets your employees input their personal bank account information so their paycheck can be automatically sent to their account.

This saves money by eliminating the need for printing paper checks while still giving employees access to a pay stub online. Checks: If you pay your employees with paper checks, look for online payroll software that lets you print your own checks from an in-house printer.

This keeps you from having to pay shipping costs. Paycards: Paycards are a payment option that acts like direct deposit accounts in card form. Can I integrate the payroll process with other applications? Accounting integration: Being able to integrate payroll with accounting software saves a lot of time and reduces the chance for data-entry errors when it comes time to update your general ledger.

You can automatically sync each pay run with software like QuickBooks or Xero. Integrating with HR software makes it easy to keep your business in compliance and keep your employees' information current by updating content seamlessly across both platforms.

Timekeeping integration: If you already use a timekeeping software for employees to clock in and out, look for a payroll service that integrates with your current software. Timekeeping software integration prevents you from having to enter time, PTO and sick days twice when it comes time to run payroll. How do payroll service providers manage my taxes? Payroll taxes: Online payroll services can take care of things like withholding employee taxes, paying tax withholdings to the proper state and federal agencies and filing quarterly payroll tax reports.

They will also issue employee W-2s and s at the end of each year. Tax compliance: A good payroll service provider will make sure your business is up to date on state and federal tax requirements. Self-service payroll software should also provide important information like IRS instructions and forms, payroll tax reporting tips, immigration information and state-specific tax forms.

Are payroll services scalable? If you plan on growing your company significantly, make sure you use a payroll service that can accommodate your growth. Multinational payroll: If you have employees in multiple countries, or plan to expand globally, it is a good idea to look for a payroll service that handles multinational payroll to minimize the risks of non-compliance.

Streamlined onboarding: If you plan on growing your business, payroll service providers can help you streamline your onboarding process and bring in new employees quickly by using an online platform to keep track of employee payroll information. Do payroll service providers offer mobile applications? Run payroll: Many payroll services let you calculate paychecks, pay workers by direct deposit and file tax forms from your mobile app with a push of your finger. Easy access for employees: Using a mobile app is an easy way for employees to manage their personal information, request PTO, view pay stubs or access health benefit and information.

Mobile reminders: You can set mobile alerts to remind you about payday and tax deadlines. How much does a payroll service cost? Some providers charge a per-employee fee on top of the base fee. Full-service: Full-service payroll, where the payroll service provider does your business's payroll for you, is the most expensive option and will vary based on the number of employees you have.

Custom: Some providers let you customize a payroll service package if you only need certain services. This could be the cheapest option, especially for startups with a minimal number of employees. Types of payroll services Self-service software Most payroll service providers offer software that can be downloaded or a cloud-based, SaaS software as a service subscription that lets businesses customize and manage their own payroll tasks.

Full-service outsourcing The majority of payroll service providers give businesses the option of totally outsourcing payroll administration tasks. Payroll services FAQ Is there any free payroll software? Yes, there are a variety of free payroll software options for small businesses. Most include essential features, like automated taxes and payroll, but a few offer advanced options, like tax filing and assistance complying with state laws. Remember, some are only available for a limited time or a limited number of employees.

How do I set up payroll for my small business? Another affordable and extensive payroll solution is OnPay. These two physical payment options are usually an extra charge or only included in upper-level plans for other payroll outsourcing companies. You can also use OnPay for k contributions and health benefits too.

SurePayroll specializes in offering online payroll solutions for business with up to 10 employees. With SurePayroll, you can either submit payroll online or with their mobile app.

SurePayoll automatically calculates your withholding taxes at the local, state, and national levels automatically. PayUSA is a payroll service provider offering services for up to 1, employees.

With direct deposit, your employees have the opportunity to deposit their check into one bank account or several bank accounts at the same time. If you prefer paper checks, PayUSA also offers check stuffing services and will automatically print your signature on each check. Like other online payroll companies, you can use PayUSA for the following services:. You might like PayUSA because of its customized payroll services that you might not get from other online-based payroll services. You can also track employee time and attendance, plus iSolved also offers multiple portals for the following company positions:.

With role-based access controls, you can easily make sure that each department gets the necessary payroll information they need to make sure your employee needs are addressed. You can use Pay c or for the following business services:. The payroll system is clean and efficient. Direct deposit is the standard payment method, but you can also offer paper checks or prepaid cards as an additional service to your employees. In addition to using Paycor to automatically calculate employee tax withholdings and deductions, you can also use the Paycor tax software to pay your own payroll taxes.

And, the payroll tax services also help you claim tax credits that can minimize your business tax liability. Paylocity is a cloud-based payroll platform.

You can also use Paylocity for degree and degree integration with over third-party software programs. With degree integration, all of the information you enter into your program like Quickbooks automatically uploads to Paylocity. As you might guess with degree integration, information submitted via Paylocity automatically transfers to your third-party platform and vice versa.

Payroll is easy with Paylocity as you can quickly submit your information because of the third-party integrations and the customizable forms. If customization is important to you, Paylocity also quick edit HR templates and custom checklists that make it easy to onboard employees and make sure payroll executes smoothly.

Sage is another payroll outsourcing services company that cloud-based payroll services. This means if you currently track your business finances with Office, Sage might be your best option. Like other payroll companies, Sage handles your local, state, and federal taxes.

They also take it a step further and handle any government notices for you; talk about convenience! Maybe you already use Upwork to hire freelancers to complete your one-time or recurring business tasks. When you need to hire W-2 employees, Upwork also offers payroll solutions if you need to hire online-based employees through Upwork. According to Upwork, using their payroll services can also be cheaper than using a traditional staffing agency. In addition to paying the employees you find through Upwork, you can also bring your current non-Upwork employees onboard and pay their salaries through Upwork Payroll too.

You can use this figure to run some quick calculations to determine if Upwork can save you money and time compared to your current payroll method. If you keep your business bank account with Bank of America , you can qualify for their in-house payroll services. Besides receiving a discount on full-service payroll services, you can also enjoy these bank perks:. Payroll outsourcing is a common practice by most small business owners. Choosing a payroll outsourcing company goes beyond making sure your employees get paid on schedule.