Running a small business takes a lot of work. There are many things to worry about, from sales and marketing to customer service and operations.

Payroll shouldn’t be one of them, but let’s face it, it is.

Payroll can be tedious, between calculating wages, withholding taxes, and handling direct deposits.

Mess up, and you could face hefty fines or even legal trouble. That’s why using the right payroll software is crucial.

But with so many options, how do you know which is best for your business? That’s where doola comes in.

We’ve researched to find the top payroll software solutions for small businesses in 2024.

We’ll break down each option’s features, pricing, pros, and cons so you can pick the perfect software for your needs.

Let’s get started!

Understanding Your Payroll Needs

Payroll is more than just cutting checks. It’s a complex process involving calculations, deductions, and compliance.

Getting it wrong can be costly and time-consuming. That’s why accuracy is paramount.

A single payroll error can trigger a chain reaction of problems. Incorrect tax withholdings can lead to hefty IRS and state tax agency penalties.

Overpaying or underpaying employees can cause morale issues and legal complications. And let’s not forget the time and stress involved in correcting mistakes.

To avoid these headaches, you need payroll software that handles the nitty-gritty details.

Here are some essential features to look for:

• Automatic tax calculations: Payroll involves federal, state, and sometimes local taxes. Good payroll software will calculate these taxes automatically, saving you time and reducing the risk of errors.

• Direct deposit: We’re in the digital age. Direct deposit is faster, more secure, and more convenient than paper checks. It’s a must-have feature for any modern payroll system.

• Employee self-service: Empower your employees to manage their payroll information. Self-service portals can update personal details, view pay stubs, and request time off, freeing up your time to focus on other tasks.

• Time tracking: Accurate time tracking is essential for hourly employees. Look for software that integrates with time clocks or offers built-in time-tracking features.

• Comprehensive reporting: You need to monitor your payroll expenses. Robust reporting features help you track payroll costs, identify trends, and ensure compliance with labor laws.

By understanding your payroll needs and selecting software with these features, you can streamline your payroll process, reduce errors, and maintain compliance.

Top 7 Payroll Software for Small Businesses in 2024

Now that you know what to look for in payroll software, let’s discuss the top 7 options for small businesses.

#1 Gusto

Gusto is a popular payroll software choice for small businesses. It’s known for being user-friendly and packed with features.

Gusto does more than just payroll. It offers tools to help you manage your employees. With it, you can handle everything from on-boarding new hires to providing benefits.

Features

Here’s a breakdown of what Gusto offers:

• Payroll: Automatically calculates payroll, taxes, and deductions.

• Benefits: Offer your employees health insurance, 401(k) plans, and other benefits.

• HR: Manage employee information, time off, and performance reviews.

• Time tracking: Keep tabs on employee hours with time tracking tools.

• Compliance: Stay up-to-date with ever-changing labor laws.

Pricing

Gusto’s pricing depends on the size of your team and the features you need. They offer different plans to fit your business’s budget.

• Simple: Priced at $40/month

• Plus: Priced at $60/month

• Premium: Priced at $135/month

We also recommend checking the product website for the latest prices and discounts.

Pros and Cons

• Pros: Easy to use, lots of features, excellent customer support.

• Cons: It can be expensive for larger teams, and some features might be overkill for small businesses.

Customer Support

Gusto is known for its helpful customer support team, which offers phone, email, and live chat support.

Gusto is a solid choice for small businesses looking for a comprehensive payroll solution.

#2 ADP RUN

ADP RUN is another great option for small businesses seeking a robust payroll solution. It’s part of the larger ADP family, a well-known HR and payroll services name.

Features

ADP RUN offers a range of features to help you manage your payroll efficiently. Here’s what you can expect:

• Payroll: Accurate and timely payroll processing with automatic tax calculations.

• HR Tools: Basic HR functions like time tracking, employee self-service, and benefits administration.

• Compliance: Stay up-to-date with ever-changing tax laws and labor regulations.

• Mobile App: Manage payroll on the go with the ADP RUN mobile app.

• Customer Support: Access to ADP’s extensive customer support network.

Pricing

ADP RUN offers flexible pricing plans to suit different business needs. You can choose from basic payroll plans — Essential or Enhanced.

You can also opt for a more comprehensive package that includes HR tools — Complete or HR Pro.

For specific numbers, fill out the form on the website with your business details.

Pros and Cons

• Pros: Reliable and established company focusing on compliance and various pricing options.

• Cons: It might be overkill for small businesses due to pricing; the interface can be complex.

Customer Support

As part of ADP, RUN benefits from a large customer support team, and you can expect helpful assistance when needed.

ADP RUN is built for small businesses that need a reliable and feature-rich payroll solution.

#3 Paychex Flex

If your small business demands more than payroll software, Paychex Flex is the solution for you. It offers a combined payroll and HR solution.

Features

Paychex Flex packs a punch with its features:

• Payroll: Accurate and timely payroll processing. It also offers automatic tax calculations.

• HR: Comprehensive HR tools like employee onboarding, time and attendance tracking, and benefits administration.

• Time and Attendance: Manage employee schedules and track hours worked efficiently.

• Compliance: Stay on top of ever-changing labor laws and tax regulations.

• Mobile App: Manage payroll and HR tasks on the go.

Pricing

Paychex Flex offers various pricing plans — Select, Pro, and Enterprise — to fit different business needs. You must fill out the form on their website to get a quote.

Pros and Cons

• Pros: Comprehensive HR and payroll features, strong reputation, and good customer support.

• Cons: It can be more expensive than other options, which might be overkill for very small businesses.

Customer Support

Paychex is known for its solid customer support. They offer multiple channels for assistance, including phone, email, and live chat.

Paychex Flex is an excellent option for small businesses that need a robust HR and payroll solution.

#4 QuickBooks Payroll

QuickBooks Payroll is a natural fit if you’re already using QuickBooks for your accounting. It’s designed to work seamlessly with your existing system.

Features

• Integration: Smoothly integrates with QuickBooks accounting software for efficient financial management.

• Payroll: Streamlined payroll processing with precise calculations, ensuring employees receive correct wages on time while handling complex tax deductions automatically.

• Time Tracking: Track employee hours and job costing.

• Direct Deposit: Easy and secure direct deposit for your employees.

• Tax Filing: Handles federal, state, and local tax filings.

Pricing

QuickBooks Payroll offers different pricing plans based on your business size and needs. You can choose from the following basic to advanced packages:

• Payroll Core + Simple Start: Priced at $42.50/month

• Payroll Core + Essentials: Priced at $57.50/month

• Payroll Premium + Plus: Priced at $92/month

We also recommend checking the product website for the latest prices and discounts.

Pros and Cons

• Pros: It integrates with QuickBooks accounting, has a user-friendly interface, and provides reliable payroll processing.

• Cons: It might be limited for businesses without QuickBooks; pricing can increase with additional features.

Customer Support

QuickBooks offers various support options, including phone, email, and online resources.

QuickBooks Payroll is a great choice for businesses that already use QuickBooks and want a streamlined payroll solution.

#5 OnPay

OnPay is a full-service payroll provider that focuses on simplicity and customer service. It’s a good option for small businesses that want to outsource their payroll tasks.

Features

OnPay takes care of most of the payroll process for you. Here’s what you can expect:

• Payroll Processing: Handles all aspects of payroll, including tax calculations and filings.

• Direct Deposit: Easy and secure direct deposit for your employees.

• Tax Filing: Takes care of federal, state, and local tax filings.

• Employee Onboarding: Helps you bring new employees on board smoothly.

• Customer Support: Offers dedicated payroll specialists to assist you.

Pricing

OnPay’s pricing is based on the size of your payroll and the services you need. It costs $40/month (base fee) + $6/month (per employee).

Pros and Cons

• Pros: Full-service payroll, dedicated payroll specialists, easy to use.

• Cons: It might be more expensive than self-service options, and there is less control over the payroll process.

Customer Support

OnPay prides itself on its excellent customer support. You’ll have access to dedicated payroll specialists who can help you with any questions or issues.

OnPay is a good choice for small business owners who prefer to outsource their payroll tasks and want personalized support.

#6 Patriot Payroll

Patriot Payroll is a popular choice for small businesses seeking a budget-friendly payroll solution. It offers a balance of features and affordability.

Features

Patriot Payroll provides essential payroll features without breaking the bank:

• Payroll Processing: Handles payroll calculations, tax withholdings, and direct deposit.

• Tax Filing: Takes care of federal, state, and local tax filings.

• Employee Management: Manage employee information, time off, and pay rates.

• Time Tracking: Track employee hours for accurate payroll calculations.

• Reporting: Generate payroll reports to monitor labor costs.

Pricing

Patriot Payroll offers two main plans: Basic and Full Service. The Basic plan covers payroll processing and costs $17/month+ $4 per employee.

The Full Service plan includes tax filing and payroll support and costs $37/month+ $4 per employee.

Pros and Cons

• Pros: Affordable, user-friendly, and suitable for small businesses with basic needs.

• Cons: It has limited HR features compared to some competitors and might not be suitable for businesses with complex payroll requirements.

Customer Support

Patriot Payroll offers customer support through phone, email, and live chat. They also have a helpful knowledge base.

Patriot Payroll is a solid option for small businesses prioritizing affordability without sacrificing essential payroll features.

#7 Justworks

Justworks is more than just payroll software. It’s a comprehensive HR platform designed to simplify the lives of small business owners. It combines payroll, benefits, HR, and compliance into one easy-to-use package.

Features

• Payroll: Precise payroll with automatic tax calculations, ensuring timely and accurate employee payments.

• HR: Comprehensive HR tools, including employee onboarding, time-off management, and performance reviews.

• Benefits: Offer a variety of benefits to your employees, from health insurance to retirement plans.

• Compliance: Stay up-to-date with ever-changing labor laws and regulations.

• Employee Experience: Improve employee satisfaction with tools like PTO tracking and performance management.

Pricing

Justworks offers the following plans based on the number of employees you have:

• Payroll: $8/month per person + $50/month base fee

• PEO Basic: $59/month per person

• PEO Plus: $109/month per person

Pros and Cons

• Pros: Comprehensive HR and payroll features, excellent customer support, focus on employee experience.

• Cons: It can be more expensive than standalone payroll software and might have a steeper learning curve.

Customer Support

Justworks is known for its exceptional customer support. You can expect personalized assistance from HR experts.

Justworks is a great option for small businesses that want to streamline their HR and payroll processes and offer competitive benefits to their employees.

Factors to Consider When Choosing Payroll Software

Picking the right payroll software is crucial for smooth operations. Here are some key factors to consider:

• Ease of use: Payroll can be complex, but your software shouldn’t be. Look for a system that’s intuitive and easy to navigate, even for non-accounting folks.

• Customer support: Things happen. You need a software provider with excellent customer support to help you when you need it. Look for options like phone, email, and live chat support.

• Integrations: Your payroll software should integrate with other tools you use. Check if it integrates with your accounting, HR, or time-tracking systems.

• Security: Your employees’ personal information is sensitive. Make sure the software has robust security measures to protect data.

• Scalability: Your business might grow. Choose software that can grow with you. Look for options that can handle increasing numbers of employees and payroll complexity.

Choosing the right payroll software depends on your business’s size and specific needs. Small companies prioritize affordability and ease of use, while larger businesses might need more advanced features and integrations.

Take the time to evaluate your options carefully and select the software that best fits your needs.

Turn Your Dream Business Into Reality With doola

Choosing the right payroll software is a big deal. It can save you time, money, and headaches. We’ve covered the top options and essential factors to consider.

Remember, the best payroll software for your business depends on its size and needs. Take your time, compare options, and don’t be afraid to ask questions.

Need more help? doola can assist with business formation and total compliance packages. Let our experts guide you through the process. Schedule a free consultation today.