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Managing payroll is an essential yet complex task. It involves calculating wages, overtime, and vacation pay while withholding payroll taxes. Many companies streamline this process by adopting payroll software. The payroll software for small businesses can be a game-changer, automating calculations, generating payroll reports, and even filing taxes.
Comparison Table
Payroll Solution
Pricing
Free Trial
Processing Time
Initial Price
Employee Limit
>>Recommended Reading: ADP Review: Pros & Cons of the Payroll Software for Your Small Business<<
What is Payroll Software?
Payroll software is an application that automates the process of paying salaries to employees. It calculates wages, deductions, and taxes, leading to each employee’s net pay. Employers can print paychecks or pay through direct deposit. Some payroll software offers additional capabilities, such as time and attendance tools, reducing the need for manual data entry.
What to Look at for Payroll Software for Small Businesses
When considering small company payroll software, it’s important to weigh several factors:
- Pricing:
The cost of the software is a significant consideration. While many offer free versions or trials, these often have limitations, and upgrading may be necessary for complete functionality.
- Features:
Consider essential features such as automatic tax calculations, direct deposit, paycheck printing, and comprehensive reporting.
- Ease of Use:
The software should be user-friendly and intuitive, requiring minimal training to use effectively.
- Customer Support:
Customer support is crucial for technical difficulties or queries.
- Scalability:
The software should accommodate your business as it grows without switching to a different platform.
How to Choose a Free Payroll Software
When selecting a free payroll software, it’s crucial to understand the limitations of the free version. Some offer only basic features in their free plans, and you may need to pay for additional services.
As you assess your business’s payroll needs, determine whether the free software provides the necessary features to pay your employees accurately and on time.
Checking user reviews on software review sites can also provide valuable insights about the software’s ease of use, customer support quality, and potential glitches.
Now, let’s delve into some of the best payroll software for small businesses:
Payroll4Free.com is a platform offering payroll services, notably free payroll solutions for companies with 25 or fewer employees. It encompasses payroll management, tax calculations, employee leave tracking, and customer support, aiming to cater to the needs of smaller businesses without imposing initial costs for basic services.
Pricing:
Payroll4Free.com provides a free service for businesses managing 25 or fewer employees. However, additional features like tax filings or bank-assisted direct deposits incur a monthly or annual fee.
Why Choose:
‘It is for businesses under 25 employees; this software offers payroll management, tax calculations, employee leave tracking, and limitless customer support.
Why Not Choose:
Limited compatibility with Windows only. Direct deposits via Payroll4Free’s bank aren’t free, and the service is capped at 25 employees for free usage.
Initial Cost:
Free for businesses handling 25 or fewer employees.
Trial Option:
Not available as the primary service is complimentary.
Monthly Employee Fee:
None for up to 25 employees.
Direct Deposit Processing:
It varies based on your bank’s turnaround time.
Gusto is a comprehensive payroll software for small and medium-sized businesses. It provides various payroll services, including payroll processing, tax calculations, benefits administration, employee onboarding, and time tracking.
Gusto aims to simplify HR and payroll processes through an intuitive interface, offering a user-friendly experience for businesses managing their workforce and compliance needs.
Pricing:
Gusto’s pricing varies based on the plan chosen. Its Basic plan starts at $19 per month plus $6 per employee.
Why Choose:
Gusto offers a complete payroll solution, including automatic tax filing and payments, employee self-service, and HR tools.
Why Not Choose:
While Gusto does provide a comprehensive suite of services, its pricing can be higher than other options for businesses with many employees.
Initial Cost:
The Basic plan costs $19/month plus $6 per month per employee.
Trial Option:
Yes, a one-month free trial is available.
Monthly Employee Fee:
$6 per employee per month for the Basic plan.
Direct Deposit Processing:
Two to four days, depending on the plan.
eSmart Paycheck is an online payroll calculator and resource for assisting individuals and small businesses in calculating payroll taxes and estimating take-home pay. It offers tools for federal and state tax calculations, paycheck estimators, and other financial calculators.
eSmart Paycheck aims to provide users with accurate and convenient payroll-related estimates and information to facilitate better financial planning and understanding of payroll deductions.
Pricing:
eSmart Paycheck is free to use. However, there’s a fee if you want access to federal and state payroll forms and tax filing support.
Why Choose:
eSmart Paycheck offers an easy-to-use, customizable, and reliable paycheck calculator with paycheck and paystub printing.
Why Not Choose:
eSmart Paycheck offers limited customer support and is only suitable for paycheck calculation.
Initial Cost:
Free
Trial Option:
It is not applicable as the service is free
Monthly Employee Fee:
Nil
Direct Deposit Processing:
Not available.
Intuit QuickBooks is a leading accounting software for small and medium-sized businesses. It offers various financial tools, including invoicing, expense tracking, tax filing, payroll management, and financial reporting.
QuickBooks simplifies bookkeeping tasks, allowing users to manage their finances, track expenses, create invoices, and handle payroll efficiently. It’s known for its user-friendly interface and ability to streamline various financial processes for businesses of different scales.
Pricing:
Prices vary based on the plan chosen. The Self-Service Payroll plan costs $25 per month plus $4 per employee.
Why Choose:
QuickBooks provides an integrated accounting and payroll solution, making it easy to manage your business’s finances in one place.
Why Not Choose:
While QuickBooks offers a comprehensive suite of services, it can be more expensive than other options, especially for businesses with many employees.
Initial Price:
For the Self-Service Payroll plan, $25/month plus $4 per month per employee.
Trial Option:
Yes, a 30-day free trial is available.
Monthly Employee Fee:
$4 per employee for the Self-Service Payroll plan.
Direct Deposit Processing:
Next-day direct deposit is available.
SurePayroll is a web-based payroll service for small businesses. It offers online payroll processing, tax filing, direct deposit, and other payroll-related services. SurePayroll aims to simplify payroll management for small business owners by providing a user-friendly platform to handle payroll tasks efficiently. Acquired by Paychex, it continues to cater to the needs of small businesses looking for a straightforward payroll solution.
Pricing:
SurePayroll’s pricing varies based on the plan chosen.
Why Choose:
SurePayroll offers full-service payroll, including automatic tax filing and payments, employee self-service, and HR tools.
Why Not Choose:
SurePayroll provides a comprehensive suite of services, but its pricing can be higher than other options.
Initial Price:
It varies based on the plan.
Trial Option:
Yes, a one-month free trial is available.
Monthly Employee Fee:
This varies based on the plan.
Direct Deposit Processing:
Two-day direct deposit is standard, with a next-day option available.
HR.my is a cloud-based HR management software offering various HR-related tools and features. It provides solutions for employee management, leave management, attendance tracking, timesheets, expense claims, and document management.
HR.my streamlines HR processes for small and medium-sized businesses, offering a free version with fundamental features and paid plans for additional functionalities. It aims to simplify HR operations and enhance efficiency in managing employee-related tasks and data.
Pricing:
HR.my is entirely free to use. However, you can pay a monthly sponsorship fee for an ad-free experience and additional features.
Why Choose:
HR.my supports multiple languages and has a feature-rich mobile app. It also enables businesses to pay unlimited employees and set custom access roles.
Why Not Choose:
HR.my does not offer built-in US labor law compliance or tax support.
Initial Price:
Free
Trial Option:
It is not applicable as the service is free.
Monthly Employee Fee:
Nil
Direct Deposit Processing
It depends on your bank.
ADP offers several payroll software solutions tailored to meet the needs of businesses of varying sizes. Their payroll software provides features for accurate payroll processing, tax calculations, direct deposit, wage garnishments, and compliance management.
ADP’s payroll software automates and simplifies the payroll process, offering customizable options to suit specific business requirements. It integrates with other HR and financial systems to streamline data management and ensure accuracy in payroll administration. ADP’s payroll software aims to enhance efficiency, reduce errors, and facilitate compliance with evolving payroll regulations.
Pricing:
ADP’s pricing varies based on the plan chosen and the number of employees.
Why Choose:
ADP offers a complete payroll and HR solution, including automatic tax filing and payments, employee self-service, HR tools, and benefits administration.
Why Not Choose:
While ADP offers a comprehensive suite of services, its pricing can be higher than other options.
Initial Price:
It varies based on the plan and number of employees.
Trial Option:
Yes, a three-month free trial is available.
Monthly Employee Fee:
It varies based on the plan and number of employees.
Direct Deposit Processing:
Two-day direct deposit is standard, with a next-day option available.
OnPay is a cloud-based payroll and HR software for small to medium-sized businesses. It provides payroll processing, tax filings, benefits administration, HR tools, and employee self-service features.
OnPay aims to simplify payroll management with an intuitive platform that allows users to handle payroll, taxes, and HR tasks efficiently. Known for its user-friendly interface and straightforward pricing model, OnPay caters to businesses seeking a comprehensive yet easy-to-use solution for their payroll and HR needs.
Pricing:
OnPay’s pricing is straightforward, with a base fee of $36 per month plus $4 per employee.
Why Choose:
OnPay offers a simple and easy-to-use payroll solution, with all features available for one flat fee. It includes automatic tax filing and payments, employee self-service, and HR tools.
Why Not Choose:
While OnPay offers a comprehensive suite of services, its pricing can be higher than other options for businesses with many employees.
Initial Price:
$36/month plus $4 per employee.
Trial Option:
Yes, a one-month free trial is available.0
Monthly Employee Fee:
$4 per employee per month.
Direct Deposit Processing:
Two-day direct deposit is standard.
TimeTrex is an open-source workforce management software offering solutions for time and attendance tracking, employee scheduling, HR management, payroll, and job costing. It provides tools to manage various aspects of workforce administration, catering to businesses of different sizes and industries.
TimeTrex aims to streamline workforce management processes, improve accuracy in timekeeping, facilitate payroll processing, and enhance overall HR operations. As an open-source platform, it allows for customization and scalability to fit diverse business needs.
Pricing:
TimeTrex offers a free plan with optional paid upgrades available.
Why Choose:
TimeTrex offers a range of features in its free plan, including payroll, employee time tracking, and HR tools. It also supports an unlimited number of employees.
Why Not Choose:
TimeTrex’s free plan offers no tax filing support, and customer support is limited to a community forum.
Initial Price:
Free
Trial Option:
It is not applicable as the basic service is free.
Monthly Employee Fee:
Nil
Direct Deposit Processing:
It depends on your bank.
Rippling is a comprehensive HR and payroll software designed for modern businesses. It offers a unified platform for managing various HR functions, including payroll processing, benefits administration, employee onboarding, IT provisioning, and compliance.
Rippling’s platform integrates payroll with other HR and IT tools, allowing businesses to streamline workflows and automate tasks related to employee management. Known for its user-friendly interface and focus on simplifying complex HR processes, Rippling aims to provide a holistic solution for businesses looking to manage their workforce efficiently.
Pricing:
Rippling’s pricing varies based on the plan chosen and the number of employees.
Why Choose:
Rippling offers a complete payroll, HR, and IT solution, making it easy to manage your business’s finances, HR, and IT in one place.
Why Not Choose:
While Rippling offers a comprehensive suite of services, its pricing can be higher than other options.
Initial Price:
It varies based on the plan and number of employees.
Trial Option:
Yes, a demo is available.
Monthly Employee Fee:
It depends on the chosen plan and the number of employees.
Direct Deposit Processing:
Two-day direct deposit is standard, with a next-day option available.
Final Thoughts:
Choosing the perfect payroll software for your small business hinges on your unique requirements. Whether it’s a straightforward payroll solution, sophisticated HR capabilities, or seamless integration with your existing accounting software, there’s an option to suit your needs.
>>Recommended Reading: Best 5 ADP Payroll Alternatives – 2023<<
Frequently Asked Questions
Remember, while free payroll software aids in managing payroll and minimizing errors, ensure the chosen software aligns with your business’s specific needs and adheres to pertinent tax laws and regulations.
