Top 10 Best Payroll Software for Small Businesses in 2021
As a small business owner, you know how important it is to stay on top of payroll. Payroll can be a time-consuming process, and the last thing you want is to make mistakes that could lead to unhappy employees or even legal issues. That's why investing in a good payroll software is a must for any small business.
But with so many payroll software options out there, it can be hard to know which one to choose. That's why we've compiled a list of the top 10 best payroll software for small businesses in 2021. These software options are easy to use, affordable, and offer features that can help you streamline your payroll process.
Whether you're a small business owner with just a few employees or a larger company with multiple locations, there is a payroll software on this list that will meet your needs. From Gusto and QuickBooks to Zenefits and ADP, these payroll software options come highly recommended by both users and experts in the industry.
If you're ready to take the next step in streamlining your payroll process, make sure to check out our top 10 best payroll software for small businesses. Your employees will thank you, and you'll have peace of mind knowing that your payroll is accurate and running smoothly.
Introduction
As a small business owner, one of the most important tasks is to handle payroll efficiently. Increasing workforce and complexities in compliance requirements can make it challenging, time-consuming and stressful. However, with the advancement in technology, various software applications are available that can streamline your financial management process, providing you with the peace of mind you deserve.
Top 10 Best Payroll Software for Small Businesses in 2021
1. Gusto
Gusto is an intuitive online payroll platform that is perfect for small businesses. It offers great features such as automatic tax filing, W-2 preparation, employee portal, and health benefits administration. Furthermore, it comes at an affordable price point starting at $39 per month, making it accessible for all companies despite their size.
| Pros | Cons |
|---|---|
| Integrated HR tools | Limited customization of reports |
| Easy-to-use interface | No offline payroll processing |
2. QuickBooks Payroll
Quickbooks Payroll is an add-on service of QuickBooks and is perfect for small businesses who already use Quickbooks for accounting. QuickBooks Payroll plans come with various features, including paychecks for employees, payroll taxes calculated and paid automatically, and free direct deposit. The basic plan starts at $45 per month.
| Pros | Cons |
|---|---|
| Automatic Tax Filling | Not great for Large Teams |
| Integrated time tracking | Poor customer service |
3. Zenefits
Zenefits is a great payroll and HR software that is known for its outstanding human resources capabilities. Not only does it offer core payroll features, but it also provides businesses with a range of HR tools such as onboarding, performance management, and compliance management. The basic plan starts at $8 per month.
| Pros | Cons |
|---|---|
| All-in-one HR platform | Expensive to upgrade |
| Compliant with state and federal rules | No phone support for the basic plan |
4. ADP
ADP is a cloud-based payroll software designed for small to large-sized businesses that can manage various HR functionalities, including payroll processing, tax compliance, time tracking, and benefits administration under one roof. The pricing plans vary based on the unique business requirements.
| Pros | Cons |
|---|---|
| Easy payroll administration | Reports are difficult to customize |
| Detailed employee data management | Expensive for small businesses |
5. Paychex Flex
Paychex is ideal for small and medium-sized businesses that need a comprehensive payroll solution along with additional HR features such as time and attendance, retirement services, and group health insurance. Paychex's pricing structure is based on the needs and size of your business.
| Pros | Cons |
|---|---|
| Flexible pricing options | Additional fees for basic features |
| Great customer service | Not the best user interface |
6. Wave Payroll
Wave Payroll is a free online payroll software for small businesses but lacks advanced features compared to other payroll services. It provides basic features such as direct deposit, automated tax filing, and simple adjustment of salary and hours worked.
| Pros | Cons |
|---|---|
| Free to use | No phone support |
| Easy to navigate interface | Limited features and customization options |
7. OnPay
OnPay is a cloud-based payroll software that is affordable for small businesses with prices starting at $36 per month. It offers features such as automated payroll tax filing, extensive off-cycle payroll options, and ACA compliance reporting.
| Pros | Cons |
|---|---|
| Unlimited pay runs | Limited third-party integrations |
| Compliance with multiple states | No weekly payroll option |
8. Sage Payroll Essentials
Sage Payroll Essentials is an online payroll application tailored to small businesses. It is simple and affordable, providing features such as tax calculation, automatic sync with the general ledger, and check printing. Sage Payroll Essentials is priced at $49.95 per month.
| Pros | Cons |
|---|---|
| Easy to set up and use | Higher price point compared to other services |
| Free direct deposit | Limited integration with other software |
9. Xero
Xero offers great value for small businesses with its comprehensive suite of features, including automatic payroll tax processing, unlimited payroll runs, and easy integration with accounting software. The pricing plan starts at $30 per month.
| Pros | Cons |
|---|---|
| Easy-to-use system | Limited integrations with other apps |
| No additional fee for multiple pay schedules | No phone support available with the starter plan |
10. Patriot Payroll
Patriot Payroll offers a cloud-based payroll software system for small businesses, startups, and even non-profit organizations. It offers features such as payroll tax calculations, direct deposits, and electronic filing of W-2s and 1099s. The basic plan starts at $10 per month.
| Pros | Cons |
|---|---|
| Affordable pricing plans | No phone support available |
| User-friendly interface | Does not handle multi-state payroll processing |
Conclusion
There are many payroll software options available in the market, each with its unique features and pricing plans. Deciding which payroll service provider is right for your business can be challenging. However, investing in payroll software is essential for the success of any small business. After reviewing the top 10 best payroll software for small businesses in 2021, you can make an informed decision to choose a payroll service provider that best suits your business requirements.
Thank you for taking the time to read through our list of the Top 10 Best Payroll Software for Small Businesses in 2021. We hope that this article has provided valuable insight into the various options available on the market today and has helped you in your search for the perfect payroll solution for your needs.
Whether you're a small business owner looking for a payroll software that can streamline your HR processes, or an accountant searching for a scalable solution that can handle the demands of multiple clients, there's a software on this list that is sure to meet your requirements. From Gusto to QuickBooks Payroll, these top-rated options offer a wide range of features and integrations that make payroll processing easy, efficient, and pain-free.
At the end of the day, payroll management is a crucial part of running any successful business, and investing in the right software can make all the difference. So, whether you're looking to upgrade your current system, or starting from scratch, we hope that this guide has provided you with the tools needed to make an informed decision and find the perfect payroll software for your small business needs.
Below are some of the most commonly asked questions about the Top 10 Best Payroll Software for Small Businesses in 2021:
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What is payroll software?
Payroll software is a tool that helps businesses manage their employee payroll and related tasks, including calculating wages, withholding taxes, and generating paychecks or direct deposits.
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What are the benefits of using payroll software?
There are several benefits to using payroll software, including increased accuracy in calculations, time savings, improved compliance with tax laws, and enhanced security for sensitive employee information.
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What features should I look for in payroll software?
Some key features to consider when evaluating payroll software include automated calculations, tax compliance, direct deposit capabilities, reporting and analytics, and integrations with other HR or accounting systems.
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Which payroll software is best for small businesses?
Some of the top payroll software options for small businesses in 2021 include Gusto, QuickBooks Payroll, ADP, Paychex, and Zenefits.
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What is the cost of payroll software?
The cost of payroll software can vary depending on the provider and the specific features included. Some software options offer tiered pricing based on the number of employees or additional services required, while others may charge a flat monthly fee.
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Can payroll software integrate with other business systems?
Yes, many payroll software options offer integrations with other HR or accounting systems to streamline processes and ensure accurate data transfer between platforms.
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What level of support is available for users of payroll software?
The level of support provided by payroll software providers can vary, but most offer some form of customer service, including email, phone, or chat support, as well as online resources such as user guides and FAQs.
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How easy is it to use payroll software?
The ease of use of payroll software can vary depending on the provider and the specific features included. Many modern payroll software options offer intuitive interfaces and user-friendly workflows to simplify the process of managing employee payroll.
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Is payroll software secure?
Yes, most reputable payroll software providers employ robust security measures to protect sensitive employee information, including encryption, multi-factor authentication, and regular security audits.
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What is the best way to evaluate and select payroll software for my business?
The best way to evaluate and select payroll software for your business is to carefully consider your specific needs and budget, research different providers and their offerings, and read reviews from other small business owners to get a sense of the pros and cons of each option.