Below we compare 78 of the most popular payroll software solutions on the market.
Payroll Software Review Comparison
Company Name | Trustpilot Rating | Iphone App Rating | Android App Rating |
---|---|---|---|
ADP | 1.4 | 4.7 | 4.4 |
Deel | 4.8 | not available | not available |
Rippling | 4.8 | 4.1 | 2.8 |
Gusto | 3.4 | 4.8 | 4.3 |
OnPay | 4.1 | 1.8 | not available |
Paychex | 1.2 | 4.8 | 3.8 |
Multiplier | 2.9 | not available | not available |
Oytser HR | 3.3 | not available | not available |
Patriot Software | 4.9 | not available | not available |
Roll by ADP | 0 | 4.5 | 4.3 |
Remote | 4.6 | 5 | 4.3 |
Square Payroll | 4.2 | not available | not available |
Papaya Global | 4.1 | 4.7 | 4.7 |
Paycom | 3.9 | 4.2 | 4.4 |
Zenefits | 2.9 | 2 | 2.3 |
PrimePay | 0 | 2.3 | 3.6 |
Heartland | 0 | 4 | 3.8 |
APS Payroll | 1.6 | 4.5 | 3.7 |
Wave | 3.6 | 4.4 | 0 |
Microkeeper | 4.2 | 4.8 | 3.8 |
ThePayStubs | 3.7 | 4 | 3.7 |
greytHR | 1.1 | 4.6 | 4.1 |
QuickBooks Payroll | 4.2 | 4.7 | 3 |
SurePayroll | 4.3 | 4.3 | 4.1 |
Justworks | 1.8 | 4.2 | 4.2 |
Paylocity | 0 | 0 | 0 |
isolved | 3 | 4.2 | 4.2 |
Fingercheck | 0 | 0 | 2.4 |
EPAY Payroll | 0 | 0 | 0 |
SumoPayroll | 4.5 | 0 | 0 |
Wagepoint | 0 | 3.2 | 3.9 |
Greenshades | 0 | 5 | 0 |
Ready Pay by HR3 | 0 | not available | not available |
Excelforce | 3.7 | not available | not available |
Online Paystub Generator | 3.5 | not available | not available |
CheckMark Payroll | 0 | 4.3 | 3.5 |
eBacon | 0 | 3 | 0 |
CloudPay | 4.5 | 0 | 0 |
Arbonum | 0 | not available | not available |
Paymate | 3.8 | 0 | 0 |
Revelo | 0 | not available | not available |
Aruti | 0 | not available | not available |
Plane | 0 | not available | not available |
Payfit | 4.4 | 4.8 | 0 |
PayCaptain | 0 | not available | not available |
Gloroots | 2.1 | 4 | 0 |
Razorpay | 0 | 4.5 | 3.7 |
Everee Payroll | 0 | 3.6 | 3.4 |
Checkwriters | 3.2 | 4.2 | not available |
Wrapbook | 1.8 | 4.7 | 3.7 |
Paycor | 0 | not available | not available |
Trolley | 4.4 | 4.8 | 4.8 |
Sage | 3.8 | 4.1 | 4.3 |
Toast | 4.3 | 4.7 | 4.3 |
Xero Payroll | 3.5 | 4.7 | 3.1 |
Namely | 1.3 | 0 | 0 |
Kashflow Payroll | 0 | 3.7 | 3.8 |
Keka | 2.9 | 4.6 | 4.8 |
BambooHR | 0 | 4.6 | 0 |
HRONE | 1.1 | 4.7 | 4.5 |
Workday | 2.9 | 4.1 | 2.1 |
UKG | 0 | not available | not available |
Inova Payroll | 0 | 4.5 | 4.5 |
Darwinbox | 1.6 | 4.8 | 2.7 |
TriNet | 0 | 3.9 | 4.2 |
Push Payroll | 0 | 5 | 0 |
PDS Vista Payroll | 0 | 4.7 | 4.5 |
Dayforce | 4.4 | 4.9 | 3.7 |
Hourly | 0 | 2.3 | 3.5 |
Proliant | 0 | 0 | 0 |
EBS PaySuite | 0 | 1.7 | 2.3 |
CAVU HCM | 0 | 5 | 0 |
Superworks | 0 | 0 | 3.5 |
Netchex | 4.7 | 0 | not available |
Zelt | 0 | 4.2 | 3.6 |
Paypro | 0 | 0 | 0 |
Payroll Software Cost Comparison
Company | Free Trial | Free Trial Length | Cheapest Paid Plan Per Month | Top Plan Cost Per Month |
---|---|---|---|---|
ADP | Yes | 4 months | By request | By request |
Deel | n/a | n/a | $49 | $599 |
Rippling | n/a | n/a | $8 | n/a |
Gusto | n/a | n/a | $40 | By request |
OnPay | Yes | 1 month | $40 | n/a |
Paychex | n/a | n/a | $39 | By request |
Multiplier | n/a | n/a | $39 | $400 |
Oytser HR | Yes | 1 month | $29 | $599 |
Patriot Software | Yes | 1 month | $17 | $37 |
Roll by ADP | Yes | 3 months | $29 | n/a |
Remote | Yes | n/a | $29 | $599 |
Square Payroll | Yes | 14 days | $9 | n/a |
Papaya Global | n/a | n/a | n/a | n/a |
Paycom | Yes | n/a | $10 | $33 |
Zenefits | n/a | n/a | $99 | $200 |
PrimePay | n/a | n/a | $89 | By request |
Heartland | n/a | n/a | By request | By request |
APS Payroll | Yes | 1 month | $20 | $40 |
Wave | Yes | 1 month | $9 | $150 |
Microkeeper | n/a | n/a | $6 | $41 |
ThePayStubs | Yes | 7 days | $42 | $90 |
greytHR | Yes | 1 month | $38 | $85 |
QuickBooks Payroll | Yes | 2 months | $20 | $30 |
SurePayroll | n/a | n/a | $59 | $99 |
Justworks | n/a | n/a | n/a | n/a |
Paylocity | n/a | n/a | n/a | n/a |
isolved | Yes | 1 month | $20 | $99 |
Fingercheck | n/a | n/a | n/a | n/a |
EPAY Payroll | Yes | n/a | $2 | n/a |
SumoPayroll | n/a | n/a | $22 | n/a |
Wagepoint | n/a | n/a | n/a | n/a |
Greenshades | n/a | n/a | n/a | n/a |
Ready Pay by HR3 | n/a | n/a | n/a | n/a |
Excelforce | n/a | n/a | $6 | n/a |
Online Paystub Generator | Yes | 2 months | $549 | $619 |
CheckMark Payroll | n/a | n/a | n/a | n/a |
eBacon | n/a | n/a | n/a | n/a |
CloudPay | n/a | n/a | n/a | n/a |
Arbonum | n/a | n/a | n/a | n/a |
Paymate | Yes | n/a | $50 | $300 |
Revelo | Yes | n/a | $1 | By request |
Aruti | n/a | n/a | $19 | $499 |
Plane | Yes | n/a | $31 | $167 |
Payfit | n/a | n/a | $99 | $399 |
PayCaptain | n/a | n/a | $29 | $299 |
Gloroots | Yes | n/a | $- | $36 |
Razorpay | n/a | n/a | $1 | By request |
Everee Payroll | n/a | n/a | By request | By request |
Checkwriters | n/a | n/a | n/a | n/a |
Wrapbook | Yes | 1 month | By request | By request |
Paycor | Yes | n/a | $233 | By request |
Trolley | Yes | 1 month | $12 | $14 |
Sage | Yes | n/a | $69 | $165 |
Toast | Yes | 1 month | $3 | $18 |
Xero Payroll | n/a | n/a | By request | By request |
Namely | Yes | n/a | $10 | $36 |
Kashflow Payroll | Yes | n/a | $500 | $1,100 |
Keka | Yes | n/a | By request | By request |
BambooHR | Yes | n/a | $1 | By request |
HRONE | n/a | n/a | n/a | n/a |
Workday | n/a | n/a | n/a | n/a |
UKG | n/a | n/a | n/a | n/a |
Inova Payroll | n/a | n/a | n/a | n/a |
Darwinbox | n/a | n/a | n/a | n/a |
TriNet | n/a | n/a | $5 | $10 |
Push Payroll | n/a | n/a | n/a | n/a |
PDS Vista Payroll | n/a | n/a | n/a | n/a |
Dayforce | n/a | n/a | $40 | $60 |
Hourly | n/a | n/a | n/a | n/a |
Proliant | n/a | n/a | n/a | n/a |
EBS PaySuite | n/a | n/a | $11 | $20 |
CAVU HCM | Yes | 1 month | $1 | $2 |
Superworks | n/a | n/a | n/a | n/a |
Netchex | Yes | n/a | $- | $20 |
Zelt | n/a | n/a | n/a | n/a |
Paypro | n/a | n/a | $4 | n/a |
Payroll Software Features Comparison
Company | Automated Tax Filing & Payments | Live Customer Support | Manage Employee Benefits | Employee Access To Platform | Expense Reimbursement | Background Checks |
---|---|---|---|---|---|---|
ADP | ✔ | ✔ | ✔ | ✔ | ✘ | ✔ |
Deel | ✘ | ✘ | ✔ | ✔ | ✔ | ✘ |
Rippling | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
Gusto | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
OnPay | ✔ | ✔ | ✔ | ✔ | ✘ | ✘ |
Paychex | ✔ | ✘ | ✔ | ✔ | ✘ | ✔ |
Multiplier | ✘ | ✘ | ✔ | ✔ | ✔ | ✘ |
Oytser HR | ✘ | ✘ | ✔ | ✔ | ✔ | ✘ |
Patriot Software | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
Roll by ADP | ✔ | ✔ | ✘ | ✔ | ✘ | ✘ |
Remote | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
Square Payroll | ✘ | ✘ | ✘ | ✘ | ✘ | ✘ |
Papaya Global | ✔ | ✘ | ✔ | ✔ | ✔ | ✔ |
Paycom | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
Zenefits | ✔ | ✔ | ✔ | ✔ | ✘ | ✘ |
PrimePay | ✔ | ✔ | ✘ | ✔ | ✘ | ✔ |
Heartland | ✔ | ✔ | ✔ | ✔ | ✘ | ✘ |
APS Payroll | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
Wave | ✘ | ✘ | ✔ | ✔ | ✘ | ✘ |
Microkeeper | ✔ | ✔ | ✔ | ✔ | ✘ | ✘ |
ThePayStubs | ✘ | ✘ | ✔ | ✔ | ✔ | ✘ |
greytHR | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
QuickBooks Payroll | ✔ | ✘ | ✔ | ✔ | ✘ | ✘ |
SurePayroll | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
Justworks | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
Paylocity | ✔ | ✘ | ✔ | ✔ | ✔ | ✔ |
isolved | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
Fingercheck | ✔ | ✘ | ✔ | ✔ | ✘ | ✔ |
EPAY Payroll | ✘ | ✘ | ✘ | ✔ | ✔ | ✘ |
SumoPayroll | ✔ | ✘ | ✘ | ✔ | ✔ | ✘ |
Wagepoint | ✔ | ✘ | ✔ | ✔ | ✘ | ✘ |
Greenshades | ✘ | ✘ | ✘ | ✘ | ✘ | ✘ |
Ready Pay by HR3 | ✔ | ✘ | ✔ | ✘ | ✘ | ✘ |
Excelforce | ✘ | ✔ | ✘ | ✘ | ✘ | ✘ |
Online Paystub Generator | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
CheckMark Payroll | ✔ | ✘ | ✔ | ✔ | ✘ | ✘ |
eBacon | ✘ | ✘ | ✘ | ✘ | ✘ | ✘ |
CloudPay | ✘ | ✔ | ✘ | ✘ | ✘ | ✘ |
Arbonum | ✘ | ✘ | ✘ | ✘ | ✘ | ✘ |
Paymate | ✘ | ✘ | ✘ | ✘ | ✔ | ✘ |
Revelo | ✘ | ✘ | ✘ | ✔ | ✘ | ✘ |
Aruti | ✘ | ✘ | ✘ | ✔ | ✔ | ✘ |
Plane | ✘ | ✔ | ✔ | ✔ | ✔ | ✘ |
Payfit | ✘ | ✘ | ✔ | ✔ | ✘ | ✘ |
PayCaptain | ✘ | ✘ | ✘ | ✘ | ✘ | ✘ |
Gloroots | ✘ | ✘ | ✘ | ✔ | ✔ | ✔ |
Razorpay | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
Everee Payroll | ✔ | ✔ | ✔ | ✔ | ✘ | ✘ |
Checkwriters | ✘ | ✘ | ✘ | ✔ | ✘ | ✘ |
Wrapbook | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
Paycor | ✘ | ✘ | ✘ | ✘ | ✘ | ✘ |
Trolley | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
Sage | ✘ | ✔ | ✘ | ✘ | ✘ | ✘ |
Toast | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
Xero Payroll | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
Namely | ✘ | ✘ | ✘ | ✔ | ✘ | ✘ |
Kashflow Payroll | ✘ | ✘ | ✔ | ✔ | ✔ | ✘ |
Keka | ✘ | ✔ | ✔ | ✔ | ✘ | ✘ |
BambooHR | ✘ | ✘ | ✔ | ✔ | ✔ | ✔ |
HRONE | ✘ | ✘ | ✔ | ✔ | ✔ | ✔ |
Workday | ✘ | ✘ | ✔ | ✔ | ✘ | ✔ |
UKG | ✔ | ✘ | ✘ | ✔ | ✔ | ✘ |
Inova Payroll | ✘ | ✘ | ✔ | ✔ | ✔ | ✔ |
Darwinbox | ✔ | ✘ | ✔ | ✔ | ✘ | ✘ |
TriNet | ✘ | ✘ | ✔ | ✔ | ✘ | ✘ |
Push Payroll | ✘ | ✘ | ✔ | ✔ | ✘ | ✘ |
PDS Vista Payroll | ✔ | ✘ | ✔ | ✔ | ✘ | ✘ |
Dayforce | ✔ | ✘ | ✘ | ✔ | ✔ | ✘ |
Hourly | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
Proliant | ✔ | ✘ | ✔ | ✔ | ✘ | ✘ |
EBS PaySuite | ✔ | ✔ | ✘ | ✔ | ✘ | ✔ |
CAVU HCM | ✘ | ✘ | ✘ | ✔ | ✔ | ✘ |
Superworks | ✘ | ✘ | ✔ | ✔ | ✘ | ✔ |
Netchex | ✘ | ✘ | ✘ | ✔ | ✘ | ✘ |
Zelt | ✔ | ✘ | ✔ | ✔ | ✔ | ✔ |
Paypro | ✘ | ✘ | ✔ | ✔ | ✔ | ✔ |
ADP
Basic Features
- Payroll & Tax
- Enhanced HR Tools
- Intelligent Self-service
- Voice of the Employee
- New Hire Onboarding
- Digital Record Keeping
- Talent Acquisition / Recruitment
- Performance Management
- Compensation Management
- HR Assist
- Analytics and Enhanced Insights
- Learning Management
User Reported Pros
- User Friendly
- User Interface
- Reporting
- Customer Service
- All In One Place
User Reported Cons
- Technical Issues
- Not User Friendly
- Customer Service
- Slow
- Reporting Issues
Deel
Basic Features
- Avoid misclassification risks with locally compliant contracts and guidance on local laws
- Automatically collect any local tax agreements
- Pay your team in one bulk payment with 10+ flexible methods in 150 currencies
- Automate invoicing, expenses, time off, and more
Advanced Features
- Hire international employees and let us handle local payroll, benefits, taxes, and compliance
- Competitive benefits packages tailored to each country
- Support from 200+ local HR and legal experts
- Ensure your IP is fully protected
- 20+ integrations for HR, Finance, and more
User Reported Pros
- Customer Service
- User Interface
- User Friendly
- Comprehensive Solution
- Onboarding
User Reported Cons
- Need Improvements
- Expensive
- Slow
- Customer Service
- Not User Friendly
Rippling
Basic Features
- All 50-States & International
- Direct Deposit or Check
- Federal, State & Local Tax Filing (W2, W4, 1099, etc.)
- Job Codes & Multiple Pay Rates
- Time Off and PTO Tracking
- Workers Comp & Garnishments
User Reported Pros
- User Friendly
- User Interface
- Easy Processes
- Easy To Navigate
- Saves Time
User Reported Cons
- Not User Friendly
- Technical Issues
- Mobile App Issues
- Need Improvements
- User Interface
Gusto
Basic Features
- Full-service single-state payroll including W-2s and 1099s
- Full support
- Employee profiles and self-service
- Basic hiring and onboarding tools
- Gusto-brokered health insurance administration
- Employee financial benefits
- Payroll and time-off reports
- Custom admin permissions
- Integrations for accounting, time tracking, expense management, and more
Advanced Features
- Dedicated Customer Success Manager
- HR Resource Center
- Compliance alerts
- Access to certified HR experts
- Full-service payroll migration and account setup
- Health insurance broker integration
- R&D tax credit discount
- Waived fees and exclusive pricing
- Priority support
- Time Kiosk
User Reported Pros
- User Interface
- Customer Service
- User Friendly
- Ideal for Small Businesses
- All In One Place
User Reported Cons
- Need Improvements
- Customer Service
- Not User Friendly
- Room for Improvement
- Adjustment Issues
OnPay
Basic Features
- Unlimited monthly pay runs
- Automated tax payments and filings
- Free W-2 and 1099 processing
- HR tools and software integrations
- Expert support whenever you need it
User Reported Pros
- Customer Service
- User Interface
- User Friendly
- Pricing
- Saves Time
User Reported Cons
- Not User Friendly
- Need Improvements
- Slow
- Customer Service
- Room for Improvement
Paychex
Basic Features
- Payroll Processing
- Taxpay® Payroll Tax Administration with W-2/1099
- Employee Pay Options
- Garnishment Payment Service
- Employee Self-Service and Mobile Experience
- Financial Wellness and Cashflow Assistance
- Employee Onboarding
- HR Library
- Analytics and Reports Center
- New Hire Reporting
- Labor Posters
Advanced Features
- Payroll Processing
- Taxpay® Payroll Tax Administration with W-2/1099
- Employee Pay Options
- Garnishment Payment Service
- General Ledger Service
- Employee Self-Service and Mobile Experience
- Financial Wellness and Cashflow Assistance
- Learning Management System1
- Employee Onboarding
- HR Library
- Employee Handbook Builder
- Pre-Employment Screening
- Analytics and Reports Center
- New Hire Reporting
- Labor Posters
- State Unemployment Insurance Service
- Workers’ Compensation Payment Service2 or Report Service
- General Ledger Integrations
User Reported Pros
- User Friendly
- Saves Time
- Customer Service
- Reporting
- Easy Processes
User Reported Cons
- Not User Friendly
- Technical Issues
- Adjustment Issues
- Slow
- Customer Service
Multiplier
Basic Features
- Multi-country payroll
- Multi-currency payments
- ESOPs, Benefits and Insurance administration
- Expense Management
- Payroll Reports
- 24/5 support from local HR and legal experts, no third-party delays
Advanced Features
- Instant Employment Contracts
- Multi-country payroll
- Multi-currency payments
- ESOPs, Benefits and Insurance administration
- Expense and Leave Management
- 24/5 support from local HR and legal experts, no third-party delays
- Employee Payslips
User Reported Pros
- Customer Service
- User Interface
- Onboarding
- User Friendly
- Comprehensive Solution
User Reported Cons
- Slow
- Expensive
- Need Improvements
- Not User Friendly
- Adjustment Issues
Oytser HR
Basic Features
- Generate compliant agreements to hire global contractors
- Onboard contactors in minutes
- Process invoices and payments on time in 120+ currencies
- Manage expenses, allowances, time-off, and reports
Advanced Features
- Hire full-timers in 130+ countries with compliance and liability coverage
- Reduce time-to-hire with automations and insights
- Set up global payroll, manage expenses, allowances, and bonuses in 130+ countries
- Offer attractive local and global benefit packages
- Reduce risk with unmatched IP protection
User Reported Pros
- Easy Payroll and Time Off Management
- Fast and Responsive Customer Support
- Seamless Onboarding of Remote Contractors
User Reported Cons
- Lack of Dedicated Account Manage
- Unclear Instructions for Connecting Bank
- Slow Support Response Times
Patriot Software
Basic Features
- Free expert support
- Free payroll setup
- Free 2-day direct deposit for qualified customers
- Free employee portal
- Free workers’ comp integration
- Unlimited payrolls
- On-the-fly pay rate changes
- All pay frequencies
- Multiple locations
- Customizable hours, money, deductions
- Mobile friendly
- Accounting Software integration
- Electronic or printable W-2s
- Time-off accruals
- Multiple pay rates
- Repeating, additional money types
- Pay contractors in payroll
- Departments
- Add unlimited users with permissions
- Time and Attendance integration
- HR integration
- Optional 1099 e-Filing
- Net to Gross Payroll tool
- Free 401(k) integration
Advanced Features
- We’ll file and deposit federal payroll taxes
- We’ll file and deposit state payroll taxes
- We’ll file and deposit local payroll taxes
- We’ll file year-end payroll tax filings (no additional fees)
- Tax filing accuracy guaranteed
User Reported Pros
- Customer service
- Easy to use
- Set up
User Reported Cons
- Direct deposit
- Quick turn
- Scheduling tool
Roll by ADP
Basic Features
- Unlimited payroll (run payroll whenever you want)
- Taxes calculated, deducted, and paid for you
- Pay W-2 and 1099 workers
- Unlimited live chat support
- Payroll in all 50 states
- Pay workers who live and work in different states
- Pay by direct deposit or company check
- Same-day and next-day direct deposit available
- If you write company checks, we’ll calculate any taxes/deductions
- Tipped wage support, including cash and charged tips
- QuickBooks® Online integration
- Proactive task and deadline reminders
- NEW GenAI chat functionality, offering HR and business management assistance
- Real-time, AI-driven error checks
- Payroll reports sent to you
- Payroll registers sent to your accountant
- Easily change employee pay amounts, company info, and more
- New hire reporting
- Automatic deductions for benefit plans
- Automatic deductions for retirement plans
- Garnishments
- Google Sign On
- Apple Sign On
- Desktop access
- No training required
User Reported Pros
- Simple to use with minimal data entry requirements.
- Solid payroll features.
- Handles both employee and contractor payroll
- Three-month trial period.
- Next-day direct deposit.
User Reported Cons
- Only integrates with QuickBooks Online for accounting.
- 1099 reporting not included.
- Chat commands require some time to get used to.
- Time tracking functionality is limited.
Remote
Basic Features
- Only pay for contractors you actively work with
- Work with contractors in 180+ countries
- Create, edit, and sign tailored, compliant contracts
- Approve contractor invoices with one click or auto-pay
- Transparent payments with zero hidden fees
Advanced Features
- Satisfaction guaranteed
- No deposits or hidden fees
- No onboarding or offboarding fees
- Compliant equity incentives support including withholding and reporting
- Built-in security and compliance
- Fast onboarding (average 2-3 days)
- Flexible, localized benefits
User Reported Pros
- Capacity to pay international employees in their local currencies.
- Automated tax calculation and reporting.
- Offers a demo option to make it easier to test out the product.
- Customizable reporting feature.
- Customizable payment plans to suit different levels of business.
User Reported Cons
- Pricey for smaller businesses.
- Pricing is not transparent on all plans.
- No phone support — customer support only by live chat, help widget and email.
- Dedicated support team is available only with the Enterprise plan.
How does payroll software work?
Payroll software works by automating the process of paying salaries to employees, making it faster, more accurate, and less labor-intensive than manual payroll processing. Here’s a general overview of how payroll software works:
- Employee Information Management: The software stores detailed profiles for each employee, including their personal information, tax withholding details, salary, benefits, and deduction information. This is usually a one-time setup process, with occasional updates.
- Time and Attendance Tracking: Many payroll systems integrate with or include time-tracking features that record employee work hours. This is essential for calculating pay for hourly workers and can also be used for salaried employees to monitor leave and absence.
- Calculation of Gross Pay: Based on the hours worked (for hourly employees) or the salary information (for salaried employees), the software calculates the gross pay for each pay period.
- Deductions and Withholdings: The software automatically calculates deductions for taxes (federal, state, and local), social security, medicare, and any other deductions like retirement contributions or health insurance premiums based on the employee’s profile.
- Net Pay Calculation: After all deductions and withholdings are subtracted from the gross pay, the software calculates the net pay, which is the amount that will be paid out to the employee.
- Generating Pay Stubs: The software generates detailed pay stubs for each employee, which outline gross pay, deductions, and net pay for the pay period.
- Processing Payments: Payroll software can process payments to employees through direct deposit, printing checks, or even using pay cards. The software typically integrates with the company’s bank account to facilitate these transactions.
- Tax Filing and Reporting: Many payroll software solutions offer tax filing features, automatically calculating and filing the required payroll tax documents with the appropriate federal, state, and local agencies. They can also generate reports for internal and external use, such as for audits or compliance purposes.
- Compliance Management: Payroll software is updated regularly to comply with the latest tax laws and regulations, helping businesses avoid penalties for non-compliance.
- Integration with Other Systems: Often, payroll software can integrate with other business systems like HR management and accounting software, enabling a more streamlined flow of data across different departments.
By automating these processes, payroll software reduces the risk of human error, saves time, and ensures compliance with tax and employment laws. It also provides a more transparent and efficient system for managing employee compensation.
What is the most popular payroll software in the US?
The most popular payroll software in the United States often includes a mix of solutions that cater to different sizes of businesses, from small startups to large enterprises. Some of the most widely used and recognized payroll software platforms include:
- QuickBooks Payroll: Integrated with QuickBooks, a leading accounting software, it’s popular among small to medium-sized businesses for its ease of use and integration capabilities.
- ADP: A global leader in payroll services, ADP offers comprehensive payroll and HR solutions suitable for businesses of all sizes, known for its reliability and extensive features.
- Paychex: Offering payroll, HR, and benefits management solutions, Paychex is suitable for small to medium-sized businesses, providing customizable services.
- Gusto: Particularly popular among small businesses, Gusto is known for its user-friendly interface, comprehensive payroll features, and excellent customer service.
- Square Payroll: Ideal for small businesses, especially those already using Square for payment processing. It offers an easy-to-use platform with seamless integration for businesses that sell products and services.
- Sage Payroll: Part of Sage’s broader suite of accounting and business management software, Sage Payroll is designed for small to medium-sized businesses, offering customizable payroll processing.
- Ceridian Dayforce: A comprehensive cloud platform that provides payroll, HR, benefits, workforce management, and talent management, suitable for larger businesses looking for an all-in-one solution.
- Workday: Known for its enterprise-level solutions, Workday offers a comprehensive suite of financial management and human capital management software, including payroll, suitable for large organizations.
The popularity of these software solutions can vary based on the specific needs of a business, including the size of the company, industry, budget constraints, and desired features.
How much does payroll software cost?
The cost of payroll software can vary widely depending on several factors, including the size of your business, the number of employees, the features you need, and whether you’re looking for a basic or a comprehensive solution. Here’s a general breakdown to give you an idea:
Basic Payroll Software
- Cost Range: Free to $50 per month
- Features: Basic features typically include payroll processing, tax calculations, and direct deposit.
- Ideal for: Small businesses with a few employees and straightforward payroll needs.
Mid-Range Payroll Software
- Cost Range: $50 to $200 per month
- Features: In addition to basic features, these solutions may offer benefits management, time and attendance tracking, and HR features.
- Ideal for: Small to medium-sized businesses looking for more comprehensive payroll and HR solutions.
Comprehensive Payroll Software
- Cost Range: $200 to $600+ per month
- Features: Comprehensive solutions include all the features of mid-range software, plus advanced reporting, compliance management, and dedicated support.
- Ideal for: Larger businesses or those with complex payroll and HR needs.
Additional Costs to Consider
- Setup Fees: Some providers charge a one-time setup fee, which can range from a few hundred to several thousand dollars.
- Per Employee Fees: Many payroll services charge an additional fee per employee, which can range from $2 to $12 per employee per month.
- Year-End Processing Fees: There may be additional fees for year-end tax form processing, such as W-2s and 1099s.
Free Trials and Demos
Many payroll software providers offer free trials or demos, allowing you to test the software before committing to a purchase. This can be a good way to see if the software meets your business’s specific needs.
Custom Solutions
For very large or complex organizations, custom payroll software solutions might be necessary. These are typically the most expensive options and can cost thousands of dollars per month, depending on the level of customization and support required.
It’s important to carefully assess your business’s needs and budget when choosing payroll software. Additionally, consider the software’s scalability if you anticipate your business growing in the future.
Also see: free payroll software
Payroll Software Comparisons