The Finest Payroll Providers (In-Depth Assessment)

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What would you do with ten extra hours a month?

You would probably be working on growing your business, right? Maybe you would use it to create new marketing campaigns to get more sales. Perhaps you can take half a day off to spend time with your family.

Regardless, the average small business owner spends five hours per pay period on payroll. That is 21 full working days per year.

Fortunately, your billing process doesn't have to look like this.

With the best payroll services, you can automate the payment of your employees and simplify the whole process so you have more control over how you spend your time.

Without affecting employee satisfaction.

However, with so many options, it's easy to waste time choosing the right one.

To speed up the process, I've reviewed six of the best systems out there and put together a comprehensive list to look for when making your final decision.

The 6 best payroll options for 2020

Gusto – Best Small Business Payroll Service
OnPay – the most flexible payroll service
Paychex – Best for larger organizations
ADP – Best Payroll Service with Integrated Human Resources
QuickBooks Payroll – Best for QuickBooks integration
Wave Payroll – Cheapest Payroll Service

How to choose the best payroll service for you

If you've spent some time researching Google's solutions or asking for recommendations from colleagues, you know there are hundreds of payroll companies to choose from.

With so many options, it can feel like a tough decision to make.

To help you narrow things down, let's go over what to consider as you go through the process.

Number of employees

Most services charge a fixed monthly fee plus a small fee per employee. Hence, it is important to consider the number of employees that you will have to pay.

Some payroll services may limit the number of employees on certain plans, while others may waive the fee per employee altogether. In addition, some may also offer features that make it easier to pay many people at the same time.

You also need to consider paying employees or contractors.

The process and fee structure may be different for different payment types depending on which service you choose.

Basic functions for payroll

There are the best payroll services out there to make paying your employees easy. Therefore, any payroll service you are considering should have a number of critical features, including:

Automatic billing options
Self-service portal for full-time and part-time employees
Mobile function for managing payroll on the go
Direct deposit so your employees get paid quickly
Automatic tax calculations and withholding taxes
W-2 and 1099 leadership

You can also consider other advanced features as needed. This includes things like HR tools, performance management, garnishments, and more.

Therefore, carefully consider the essential functions as well as the extended functions that you need to simplify your billing processes.

Tax characteristics

Filing taxes is a complicated and time-consuming process. It can also lead to unfortunate and expensive penalties if you don't get it right.

However, many payroll services offer tax features that simplify the process. From the calculation of wage tax to automatic withholding tax for employees, there are countless things to consider.

Hence, it is important to choose a payroll service that offers essential tax features to make your accountant's life easier.

Or yours, if you do your own taxes.

Integrated HR tools

When you're providing benefits to your employees, you need a payroll service that can effectively manage things like time off, vacation requests, employee compensation, insurance, and more.

Plus, services with a self-service dashboard make this a lot easier for employees. Employees can log in, update their accounts, request a leave of absence and view an overview of their benefit package.

The cheaper options on this list tend to ditch HR roles. So think carefully about what you need for your budget before making any decisions.

Monthly salary limits

If you have employees or a set billing plan, most billing services are adequate. However, if you are irregularly paying freelancers or contractors, or doing payroll more than twice a month, you need to be careful.

Some services offer unlimited payroll, while others limit the number of monthly payments.

So, think carefully about how often you need to send payments when making your final decision.

Integrations

To further simplify your business processes, it is important to consider the business tools that you are already using to run your business.

It is important to choose a payroll clerk who will integrate seamlessly with these tools. Think about your accounting software, employee scheduling software, and other important tools related to payroll.

The different types of payroll services

Depending on the size of your company and your specific salary requirements, there are different services to consider.

Before we dive into my top picks, I want to talk about the different types and how to choose between them.

1. Hire someone to do it for you

If you can afford it, a great option is to hire someone (either in-house or as a contractor) to do the payroll for you. This ensures that you find someone who knows how to do it and that they have the time to do it well.

However, you still need billing software. They may have their own preferences and expertise that can help you decide which service is right for your business.

Even so, many small businesses don't necessarily have to hire someone.

The best payroll services make it easy to run payroll so anyone on your team can take care of it with just a few clicks.

2. Software as a Service (SaaS)

The SaaS (Software as a Service) model means that you pay to use the software. Most service providers charge for this on a monthly or yearly basis, and as long as you keep paying you can keep using it.

Most SaaS tools are cloud based, meaning you can access them from any web browser.

However, some also offer desktop and mobile apps that you install on a specific device.

This is the most common type of payroll and the most convenient because you and your employees can access their accounts from any device around the world using an internet connection.

All of the recommendations on this list are SaaS payroll services.

3. Solutions for business

Most payroll services offer company-specific and industry-specific solutions for large companies. They come with special, custom pricing to meet the unique needs of businesses.

Such software can be a SaaS tool or on-premise deployment depending on what you need and which company you choose.

Most businesses don't need this. However, if you're managing payroll for a large company or you find that your current solution is limited, it might be a good idea to consider an enterprise solution.

# 1 – Gusto Review – The Best for Small Businesses

If you are a small business looking for a simple payroll service, Gusto is a smart choice. And you are in good company with more than 100,000 other small businesses around the world.

Gusto makes integrating, paying, insuring and supporting employees as easy as possible. And they call themselves a "people platform" for a reason.

They offer the right tools and services to make your (and your employees') life easier.

Running Payroll takes just a few clicks, and you can run unlimited payrolls every month. Do you have to pay seven different contractors at different times? No problem.

Do you have to pay the same employee the same wage in every pay period? You can set it to run automatically without lifting a finger.

It also gives you access to a wide variety of features including:

Automatic tax calculation
Integrated time recording functions
Health insurance, 401 (k), PTO, employee compensation and more
Compliance with I-9, W-2 and 1099
Employee self-service onboarding and dashboards
Next day direct deposits (according to certain plans)

And the best part about it? It's affordable.

If you don't have W-2 employees, Gusto starts at $ 6 per contractor per month. However, if you have full-time or part-time employees, you have to pay a little more. Their other paid plans include:

Basic – $ 19 per month + $ 6 per person per month
Core – $ 39 per month + $ 6 per person per month
Full – $ 39 per month + $ 12 per person per month
Concierge – $ 149 per month + $ 12 per person per month

Gusto is perfect for most startups and small businesses. However, large companies with complex service packages and hundreds of employees can find this limiting.

Get started today with gusto!

# 2 – OnPay Review – The most flexible payroll service

If you are looking for an all-in-one payroll system with transparent pricing and virtually unlimited flexibility, OnPay is an excellent choice.

Whether you are a small business or a fast growing startup, OnPay is versatile enough to meet your needs. Plus, you never have to guess how much you will pay each month with the transparent pricing.

And you can rest assured that you will have access to all OnPay features, regardless of the number of employees, as they only provide one price plan.

Your software provides access to powerful features including:

Unlimited monthly pay slips
W-2 and 1099 functions
Automatic tax calculations and filings
Employee self-service onboarding and dashboards
Intuitive mobile app for management on the go
PTO, e-signing, organizational charts and custom workflows
Integrated employee compensation, health insurance and retirement
Payroll in several states

It's also very easy to get started. All you need to do is set up your account, add your employees, and get started with payroll. In addition, OnPay automatically calculates and withholds taxes so you don't have to worry about manual calculations or human error again.

They also offer specialized solutions for various industries including nonprofits, restaurants, and agriculture.

OnPay is $ 36 per month plus $ 4 per person per month. So you can add new employees to the software for just a few dollars, which makes it great for both fast growing businesses and small businesses.

While OnPay can handle large companies with hundreds of employees, there are better corporate options available. It's best for small businesses and fast-growing businesses that need simple pricing and flexibility.

Try OnPay free for 30 days to see if it's right for you!

# 3 – Paychex Review – Best for Larger Businesses

Paychex is an excellent choice for companies with 50+ employees. They also offer low-tier small business plans, but are quite limited when compared to the other small business options on this list.

However, your medium-sized business plans are perfect for large companies.

The larger your company, the worse small variances and human errors will affect your tax calculations. And false tax returns mean harsh penalties from the IRS, even if it was an accident.

As a large company, it is therefore imperative to have a payroll service that adapts to your needs. Paychex is more than a payroll. It's a Human Capital Management (HCM) system that can save you time and reduce errors.

Your business plans include features like:

Recruiting and onboarding
Performance and learning management
Powerful real-time analysis
100% self-service for employees
Features to automate payroll
Direct deposit, checks and paycards
Salary, hourly and contract workers
Paycheck Attachments
PTO and power management
Contract costs and distribution of work

All of this is scalable for companies with thousands of employees (or just 50). In addition, Paychex serves more than 650,000 companies and has more than 50 years of experience in the industry.

So you can rest assured that you are in good hands.

Even so, getting started isn't as easy as some of the other options on this list. Since every deployment is tailored to your business, you can't go it alone. However, they do offer a team of specialists to help you get the ball rolling.

Contact the sales team for a custom quote.

# 4 – ADP Review – Best for Integrated HR Functions

ADP is the way to go if you are looking for a payroll service with the most built-in HR functionality. It's perfect for smaller businesses with no HR department and growing / large companies looking to streamline the process.

Working with more than 700,000 companies in over 140 countries, ADP is one of the most popular payroll services for businesses of all shapes and sizes.

They offer tailor-made solutions for small, medium-sized and companies, so you are sure to find the perfect solution whether you have five or more than 1000 employees.

The sub-plans include basic payroll features like automatic tax calculations, employee self-service tools, a mobile app, PTO management, and full compliance support.

However, ADP offers more than just basic payroll and personnel. This also includes time tracking, talent recruiting, recruiting, enhanced employee benefits, and the option to outsource your entire HR department.

You can also get unique benefits such as personalized training, legal advice, background checks, and interview scheduling.

In addition, ADP offers industry-specific solutions for nine different industries, including:

Restaurants
construction
Healthcare
Manufacturing
sale
Nonprofit Organizations

Note: ADP pricing is not available online, so may not be suitable for micro or small businesses looking to get started quickly. If you need something quickly and easily, Gusto is my first recommendation.

Request a free quote today to see if ADP is right for you.

# 5 – Quickbooks Payroll – The best for QuickBooks integration

Quickbooks Online is one of the most popular accounting tools out there. And if you're already a user, QuickBooks Payroll is a great addition to your tech stack.

The two tools can be seamlessly integrated and make account reconciliation and the tax season a breeze.

In addition, QuickBooks' payroll system works in all 50 states. Whether you have a remote team or work with contractors across the country, you don't have to worry about mistakes or mishandling taxes.

You can also rest assured that your federal, state, and local taxes are automatically calculated and paid for you on every payroll. Plus, the entire process can be easily automated after your first round of payments.

With QuickBooks, regardless of your chosen plan, you get a full-service payroll system.

The user interface is aesthetically pleasing, with direct deposits coming into your employees' bank accounts within 24 to 48 hours.

The core plan starts at $ 45 per month plus $ 4 per employee per month. It contains:

Full service payroll with unlimited editions
Automatic payments after the first run
Health benefits
Wage garnishments
Direct deposit the next day
24/7 live chat support
All 50 states

So even the most basic plan has everything you need to simplify your HR and payroll processes.

However, if that's not enough, their advanced plans include:

Premium – $ 75 per month + $ 8 / employee per month
Elite – $ 125 per month + $ 10 / employee per month

Get 70% Off Your First Three Months To Take A Test Drive With QuickBooks Payroll Today!

Note: 1099 contractors and freelancers are not included. It comes as an add-on with additional monthly fees. So this is not the cheapest choice if you work with contractors or freelancers frequently.

# 6 – Wave Payroll Review – The cheapest payroll service

If you're on a tight budget, Wave Payroll is a cost-effective billing option. Wave also offers numerous other free tools for small businesses, including invoicing, bookkeeping, and receipt management.

The various apps can be seamlessly integrated to create a cost-effective accounting and payroll solution for small businesses.

With Wave, it only takes a few minutes to get started and payroll runs even faster. They also offer a 100% guarantee of accuracy. You can also pay hourly, salary and contractors and automatically generate the correct tax forms.

In some states, Wave automatically files and pays your income tax for you. However, Wave services are more expensive in these states.

You also get access to features like:

Automatic journal entries (if you are using wave accounting)
Self-service pay slips and tax forms for your employees
Management of employee compensation
Basic payroll accounting
Automatic tax forms at the end of the year
PTO timesheets and provisions

While Wave is one of the most affordable payroll services, it doesn't compromise on functionality or essential features. While it's cheaper than the other options on this list, it still gives you all the essential information you need for your small business payroll.

In tax service states, Wave is $ 35 per month + $ 6 per contractor / employee per month. This service isn't necessarily cheaper than the other options on this list.

However, it's still a great option if you're a small business owner looking for an easy payroll solution.

However, in self-service states it is $ 20 per month + $ 6 per contractor / employee per month. At this price point, it's simply the cheapest option with most of the features available.

And don't forget that Wave Payroll integrates seamlessly with Wave's free accounting and invoicing software.

If you don't already have accounting software, this is a smart choice.

Try Wave Payroll free for 30 days to see if it's right for you and your business!

Summary

For most users, Gusto, OnPay, and Wave are my top recommendations.

They are all great for small and fast growing businesses and can be customized to suit your needs. Plus, they're affordable and easy to use.

However, different companies require different solutions.

So don't forget to keep the considerations we talked about as you step through the process of choosing the best payroll services for your business.

Which payroll services do you prefer?