Best payroll software of 2023
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Updated 2:06 p.m. UTC Oct. 24, 2023
Editorial Note: Blueprint may earn a commission from affiliate partner links featured here on our site. This commission does not influence our editors' opinions or evaluations. Please view our full advertiser disclosure policy.
The best payroll software helps businesses run payroll and remit employment taxes. Many also provide employee portals or mobile apps, human resources (HR) tools and third-party integrations with time-tracking and accounting software.
We evaluated 19 online payroll systems. Our assessment included more than 20 hours of interacting with customer service agents, and we examined user feedback to identify patterns and trends. During our process, we compared service plans and monthly fees, employee payment options and benefits management features. Additionally, our appraisal considered payroll analytics and customer support availability.
As a result of this analysis, here are the best payroll software solutions.
-
Rippling
: Best overall
-
Patriot
: Best for brands on a budget
-
Homebase
: Best for managing hourly workers
-
Gusto
: Best for automation
-
Workful
: Best for payroll with HR services
-
OnPay
: Best flat-fee service with expert support
-
Payroll4Free
: Best for basic payroll services
-
QuickBooks Payroll
: Best for integrations
-
Roll by ADP
: Best mobile payroll solution
-
Wave Payroll
: Best for solopreneurs and contractors
Why trust our small business experts
Our team of experts evaluates hundreds of business products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 25 companies reviewed.
- 40 hours of product testing.
- 1,025 data points analyzed.
Featured payroll software offers
Gusto
Monthly fee
Starting at $40 plus $6 per month per employee
Direct deposit
Yes
Rippling
Monthly fee
Starting at $8 per month per user
Direct deposit
Yes
Paycor
Monthly fee
$99 plus $5 per month per employee
Direct deposit
Yes
Best payroll software
Rippling
Patriot
Homebase
Gusto
Workful
OnPay
Payroll4Free
QuickBooks Payroll
Roll by ADP
Wave Payroll
Compare the best payroll software
Methodology
We extensively research the key competitors within an industry to determine the best products and services for your business. Our experts identify the factors that matter most to business owners, including pricing, features and customer support, to ensure that our recommendations offer well-rounded products that will meet the needs of various small businesses.
We collect extensive data to narrow our best list to reputable, easy-to-use products with stand-out features at a reasonable price point. And we look at user reviews to ensure that business owners like you are satisfied with our top picks’ services. We use the same rubric to assess companies within a particular space so you can confidently follow our blueprint to the best payroll software of 2023.
The best payroll software has positive user reviews on customer review sites. Payroll service companies should provide customers with fast and reliable support. Using a combination of phone support, live chat and knowledge bases, customers should be able to quickly resolve issues 24/7.
Payroll software should include fast direct deposit and tax compliance with all states. It should be affordable compared to competitors and offer plans that can grow with your company to meet larger workforce needs. Software should include HR features, time tracking capabilities and benefits administration to ensure a properly managed workforce. You should be able to pay contractors and support foreign and domestic currencies.
All payroll software should expand on a basic feature set that includes mobile apps, self-service employee portals, HR libraries, new hire reporting, third-party software integrations, payroll analytics, wage garnishments, vacation/leave tracking, ledger reports and 401k tracking.
Final verdict
Overall, the best payroll software automatically calculates wages and withholdings, handles tax filings and allows unlimited pay runs. Most top-rated solutions provide employee self-service portals and ledger reports. However, features and pricing differ, making some payroll systems stand out for specific business needs.
Payroll software differences
Our payroll software testing and evaluation highlighted distinct differences in usability, features, customer service and pricing. Here are a few ways payroll systems differ:
Ease of use
Some payroll software required more steps to complete a process or were a bit less user-friendly than others. We also preferred the layout of specific reporting tools or dashboards because they offered an intuitive experience for users. Not all providers have mobile-friendly websites or support mobile payroll processing. Likewise, some employee mobile apps were more straightforward to use than others.
Payroll software pricing and fees
Although most payroll providers display pricing online, some require a custom quote for services or enterprise plans. The monthly base and per-person fees also differ. Still, in many cases, a business needs to compute its total cost per month per provider for a fair comparison, as a low monthly fee but a higher per-employee cost could increase the overall price. And, while some had all-inclusive pricing, many only offered some features for an additional fee.
Additional HR features and tools
Some payroll services focus strictly on payroll and offer few, if any, HR tools, whereas others provide many HR features, from automated onboarding to new hire reporting. Some even allow users to outsource their HR processes altogether. A company looking for a single-vendor solution for HR and payroll may prefer payroll software that supports more HR processes. Still, small teams will appreciate the simplicity of a standalone payroll system.
Customer service
Customer support varies among providers. While most provide customer service via email or ticketing, not all payroll software services include phone support or live chat. Hours also vary, although most companies are available during standard business hours. A few make exceptions for emergencies or offer extended or priority support for higher plan tiers.
Our recommendation
Rippling is our top pick for the best payroll software. Its full-service payroll processing module calculates wages and taxes; remits payments to federal, state and local agencies; and pays employees via direct deposit or paper checks. The operating system (Rippling Unity) supports HR teams with robust workflow automations and permission management policies. In addition, small businesses can store documents, track time off and integrate Rippling with over 500 third-party applications.
Unlike competitors, Rippling doesn’t offer a standalone payroll solution. Instead, you must select a Rippling Unity plan (Core, Pro, Unlimited or Enterprise). This plan allows you to “unify” your core business processes. As such, you can add modules for payroll, benefits administration, time and attendance and more, creating a customized and unified solution only for the features and tools they want.
However, Rippling can be expensive compared to other providers on this list, and its robust feature set may be overwhelming. Alternatives like Patriot and Gusto may be a better option for these businesses.
What is payroll software?
Payroll software is a business application that companies and HR professionals use to run payroll, cut paychecks and send direct deposits. It automatically calculates wages and withholding amounts (including taxes and benefits deductions). Also, payroll services can automate tax filing by submitting payroll taxes and forms to local, state and federal agencies. Most also allow businesses to process payroll for independent contractors and employees.
Internet-connected payroll software updates when tax or labor laws change. It may assist with benefits administration, wage garnishment, child support withholding and unemployment insurance. While on-premise solutions exist, many organizations prefer cloud-based payroll systems, which allow employers and employees to access payroll data from desktop and mobile devices.
Since most payroll solutions integrate with time-tracking and accounting software, business owners can reduce manual data entry by syncing payroll ledgers and attendance information. Moreover, the best payroll services provide employee self-service (ESS) portals, which give staff access to pay stubs and end-of-year tax forms.
Payroll software features and terminology to know
Payroll service providers offer various features for managing payroll, taxes and HR tasks. Some charge fees or lock tools behind higher-priced tiers. The best way to compare services is to understand what each payroll company offers.
To do so, here are important payroll features and terms you should know:
- New hire reporting: Depending on state laws, companies may have to inform state agencies when they hire or rehire employees. Payroll software that handles payroll tax payments and filings may also file new hire reports after a business enters employee data into the system.
- Pay run: Each time a company processes payroll and disburses wages for a specific time period or one-off occasion, it’s a pay run. Most providers offer unlimited pay runs, but some charge per pay run.
- Annual tax filing: Depending on the composition of their workforces, employers must file W-3, 940, W-2, 1099-NEC and 1099-MISC forms to the Social Security Administration (SSA) and provide copies to employees or contractors. Payroll services may generate and file the documents with government agencies and provide digital copies to staff.
- Quarterly tax filing: Businesses that paid wages subject to payroll taxes must file Form 941 and remit the taxes due. Full-service payroll systems can automatically withhold payroll taxes, file tax forms and send payments on a business’s behalf.
- Direct deposit: Most payroll providers give businesses tools to pay employees via direct deposit. This payment method replaces a paper check and deposits funds electronically into employees’ bank accounts.
- Prepaid debit card: This payment method, known as a payroll or pay card, enables employees without a bank account to receive paychecks on a prepaid debit card.
- On-demand pay: This payroll service, also called earned wage access (EWA), lets employees receive some or all of their wages as they make them.
- Flexible pay schedules: A good payroll software allows for flexibility around pay schedules. A pay schedule defines when employees get paid, such as monthly, semi-monthly, bi-weekly or weekly. Alternatively, some companies pay on the 15 and 30 of each month.
- Multiple pay rates: Hourly employees may have roles with different wage rates, such as a restaurant server earning the minimum wage for tipped employees while earning a different wage when working as a hostess. Not all payroll software can handle multiple pay rates for one employee.
- Wage garnishments: This legal process requires employers to withhold part of a worker’s earnings to repay a debt. Some payroll services will deduct wage garnishments and disburse payments following federal and state regulations.
- Unemployment insurance: Many payroll providers calculate withholding amounts based on the state where workers earn income and withhold state and federal unemployment insurance payments.
- Multi-state payroll: Businesses must remit payroll taxes to the states their employees work in, so companies with remote workers may need to send tax payments to multiple agencies across multiple states. Not all payroll subscriptions support multi-state payroll.
- Tip credits: Companies with tipped workers must accurately calculate wages, including overtime, and file form 8846. Some payroll services provide extra support for these industries and tax filing processes.
- Employee self-onboarding: This feature allows employees to complete and sign I-9 and W-4 forms (new hire documents) online, sign up for direct deposit and submit payroll data.
- Paid time off (PTO) management: Payroll software may let businesses define paid time off policies and how employees accrue hours. It can calculate hours automatically when you run payroll, allow staff to request time off and let managers approve it. Some even alert companies if employees request more time off than approved.
- Benefits management: HR and payroll systems may integrate with your current benefits broker or let you choose a new one, and you can manage enrollment, plans and more through your payroll platform. Others offer benefits brokering services or even allow you to outsource your benefits management processes altogether.
- Workers’ compensation administration: Several payroll providers offer pay-as-you-go workers’ compensation policies that automatically update each time you run payroll.
How does payroll software work?
Cloud-based payroll apps facilitate payroll processing, tax filing and payroll reports. Most provide full functionality on desktops but may offer mobile-responsive sites or apps. Authorized users can run payroll or view tax filing status through the main dashboard. Many offer a means by which authorized individuals can set up recurring and automated payroll.
Payroll processing
A payroll platform provides a dashboard with a tab or menu for payroll functions. It often pulls data like wage rates and benefit deduction amounts from your database, so you won’t need to enter this information every pay period. For example, suppose you use a payroll service with built-in time-tracking like Homebase or integrate it with your point-of-sale (POS) system. In that case, the payroll software will automatically sync employees’ work hours into the pay period and auto-populate the fields for an accurate payout come payday.
While payroll processing differs slightly among systems, it typically works like this:
1.View the payroll menu: This section provides an overview of payroll data, including the next pay run date, upcoming tasks and alerts. Click a tab or button to run payroll, and the software opens the payroll screen.
2. Select the pay period and verify details: Most payroll software lists the pay period and check date. Confirm that these are correct or if you are running an off-cycle payroll. Also, verify your bank account information.
3. Enter hours worked, as needed: Many payroll systems auto-populate salaried employee hours, but you must manually adjust the time if they don’t work as expected. You will also enter regular hours for non-exempt workers, including overtime, bonus and commission earnings. The software automatically pulls wage rates from your database.
4. Add a personal note, if desired: Several payroll platforms let you enter a message that appears on your worker’s pay stub.
5. Input any one-time deductions: If you need to add a post-tax deduction, most tools have a field for this. It can be used for deducting uniform expenses, for example. (The payroll software displays and calculates deductions for employee benefits, and you can see this data on your screen).
6. Verify unpaid and PTO hours: Review and adjust vacation or sick hours for each employee.
7. Review the payroll run: The software displays a preview with all details for the pay period, including an itemized list of wages, withholdings, deductions and taxes for the entire workforce and per employee. It also shows your total payroll cost, direct deposit details, the amount to be withdrawn from your bank account and any errors or warnings.
8. Submit payroll: Once you’re satisfied that the payroll is correct, you can click to approve and submit payroll. You can then view payroll reports and summaries, printable checks or a list of who will receive direct deposits.
9. Payroll processing: The payroll system shows when it’ll withdraw funds from your connected bank account to pay employees. Then, depending on your service, it can take up to five days to process payroll, although most providers complete direct deposits within two to three days.
Tax filing and payments
Full-service payroll software providers can automatically remit tax payments to government agencies on your business’s behalf. The payroll service withholds federal, state, and local payroll taxes from your employees’ wages. It then submits the amount (along with your company’s tax liability) to the correct agencies when required.
For the federal government, using the employer’s EIN, payroll providers use the electronic federal tax payment system (EFTPS) to complete employee tax administration tasks. Such tax services may consist of:
- Preparing and filing Forms 940, employer’s annual federal unemployment (FUTA) tax return and 941, employer’s quarterly federal tax return.
- Remitting federal tax deposits (FTDs) and federal tax payments for the amounts reported on Forms 940 and 941.
- Completing and submitting annual W-2s and 1099s for employees and contractors.
Payroll companies may handle local and state filings differently, depending on the tools provided by local and state governments. Regardless of the method, small businesses should verify that their payroll provider makes timely and accurate payments. Indeed, the IRS advises employers to “enroll in the EFTPS to view payments and deposits made under its EIN by the third party.”
What does payroll software cost?
How payroll software services compare
Most payroll providers charge a monthly subscription fee plus a fee per employee or contractor. Full-service payroll software ranges from $17 to $45 monthly for entry-tier subscriptions, and per-person fees cost $0 to $8. However, upper-tier payroll packages can cost much more. For example, Gusto’s Plus plan is $80 plus $12 per employee monthly, whereas QuickBooks Payroll Elite is $125 plus $10 per person monthly.
Self-service payroll software pricing ranges from free to $20 monthly. Payroll4Free doesn’t charge any per-person fees for companies with 25 or fewer employees, whereas per-person rates are $4 per month via Patriot Software and $6 per month through Wave Payroll.
The per-person fees can make a significant difference in your total payroll costs. For instance, a company with 10 employees will pay $77 monthly using Patriot ($37 for full-service payroll plus $4 per worker per month). In comparison, payroll service through Roll by ADP costs $79 ($29 for full-service payroll plus $6 per employee per month) and Workful costs $95 ($35 plus $6 per person per month).
QuickBooks Payroll has the highest monthly pricing, but its $5 per person fees mean a firm that employs 25 people will pay less through QuickBooks than Homebase, Gusto, Workful, OnPay and Wave. Aside from Payroll4Free, Patriot Software and Wave offer the lowest prices for self-service payroll solutions.
Payroll pricing for contractor-only solutions
Two of the best payroll software providers (Gusto and QuickBooks) offer contractor-only subscriptions. These plans are less expensive than full-service payroll systems for employee payments. Of these, QuickBooks Contractor Payments is a great deal for unlimited payments to up to 20 contractors. It costs $15 monthly and any additional contractors cost $2 each.
Gusto’s Contractor-only plan is $35 monthly plus $6 per contractor, but Gusto waives the subscription fee for the first six months. QuickBooks and Gusto support end-of-year 1099s but QuickBooks offers next-day direct deposit, whereas Gusto’s direct deposit take four days.
Additional payroll processing and service fees
Besides monthly and per-person costs, some payroll service providers charge fees for add-ons and other services. Always review the terms before signing up for a new payroll service and request written clarification for any fees that seem out of place.
Fees to look out for include the following:
- Benefits administration fees: Some payroll companies charge service fees on top of your monthly premiums. In addition, you may pay a fee to bring your own health care broker.
- Annual tax form fees: If you want the payroll system to file and mail W-2 and 1099 forms, there may be additional charges.
- Setup fees: Payroll services may require a one-time payment to migrate from another payroll platform, configure integrations, train employees or get onboarding assistance.
- Other payroll services: Payroll providers may offer check printing and mailing (check stuffing) for a per-envelope fee or charge more for expedited direct deposits.
- Extra employees: Some payroll providers put a cap on the number of employees who can be paid per month, then charge an extra fee for each employee above that cap.
How to choose the right payroll software for your small business
Payroll services function similarly but vary in ease of use, features and pricing. Some work better for small businesses in niche industries, like restaurants or farms. Others function as an all-in-one HR and payroll platform with built-in document storage and onboarding tools. Find the right fit for your company by assessing your current payroll challenges and goals and then using this information to identify your ideal payroll software and its feature set.
Review your business goals and challenges
Many small businesses switch to online payroll systems to save time and reduce errors. But your company may also want to improve employee experiences by offering direct deposit and an online employee portal. Conversely, you may be looking to hire more remote staff and need a service that can handle multi-jurisdiction payroll. Your choice of provider should align with your ultimate goals.
Kelly Hopper, a QuickBooks Certified ProAdvisor, bookkeeper and payroll specialist, suggests that small businesses start their software research “by asking themselves what does and doesn’t work with their current process.” Suppose your team likes your existing benefits broker and time-tracking tools but wants to access their pay stubs online. In this case, you’d want to prioritize payroll software that syncs with your time-tracking app or POS program and integrates with third-party benefits brokers.
List the factors that affect your payroll software decision, such as:
- Budget: Determine how many employees and contractors you will pay regularly. Use this to estimate your per-person fees and decide how much you can afford for monthly payroll expenses.
- Industry-specific needs: Decide if you need support for the FICA tip credit, agricultural worker tax filings or non-profit unemployment tax exemptions. Also, some payroll providers assist with the federal R&D tax credit.
- Location: Consider if your company requires multi-state payroll or benefits administration. Not all full-service payroll platforms work in all 50 states. In addition, some payroll providers offer global payroll processing in multiple currencies.
- Payment types: Note if your software can support bonuses, expense reimbursements or commissions.
- Deductions: Write down what types of deductions your payroll system must calculate, including any flex or fringe benefits.
Determine onboarding and ongoing support requirements
Payroll systems offer varying levels of onboarding and customer service. If your staff is relatively tech-savvy and comfortable working with new platforms, then an all-digital self-onboarding system like Gusto may be perfect.
However, a solution like OnPay that offers extra migration assistance may work better if you prefer more hands-on support. Some payroll providers also offer professional employer organization (PEO) services, which outsource payroll, HR and benefits administration processes completely.
Additionally, payroll services provide different types of customer support. For example, payroll clients can contact Wave via email and live chat, whereas QuickBooks Payroll offers live chat, callbacks or a toll-free phone number.
Identify your must-have payroll features
The biggest decision you should make is if you want self or full-service payroll for tax filing purposes. Wave, Payroll4Free and Patriot have self-service plans that cost less than full-service systems because your business handles the tax filing paperwork and payments. In contrast, Rippling offers full-service tax filing globally.
After deciding which type of service you want, involve your HR and payroll staff to learn which features would help them do their jobs better. Also, your team managers can advise on tools that support your workforce.
Consider the following options:
- Employee payment methods: Aside from printing paper checks or receiving direct deposits, payroll systems may support prepaid debit cards, on-demand pay or may print and deliver paychecks.
- Payroll reports: See what types of analytics your team requires and if they want basic spreadsheets or advanced data visualization tools. Common payroll reports include wage and tax summaries, tax liability overviews, payroll summaries and deductions and contribution overviews.
- Mobile access: If you or your payroll staff want to run payroll or view reports from mobile devices, look for services like Roll by ADP, offering mobile apps or mobile-friendly websites.
- Workers’ comp administration: Decide if your business wants to integrate workers’ compensation management into payroll, meaning the system would send employment data to carriers and deduct premiums during each pay run.
- Employee apps and portals: Consider what tools your staff needs to manage their personal data, like paystubs, year-end tax forms and time-off balances.
List any required payroll integrations
Accounting and time-tracking integrations can save time and reduce errors. Indeed, businesses “spent 26 minutes per employee” resolving incorrect and missing time punches in the last fiscal year, according to the Ernst & Young survey. By selecting software that syncs with your time and attendance tools, you won’t need to enter hours manually each pay cycle.
Alternatively, Hopper suggested seeing if the payroll software integrates with your POS system. She said, “Employees can clock in and out on your POS system and ultimately save you a lot of time by preventing manual data entry errors.” However, “check with your POS provider also, as some payroll providers say the payroll and POS integration is seamless, but it’s not always true.”
Lastly, Hopper stresses the importance of accounting integrations. “While QuickBooks offers payroll services within the accounting program, most other payroll apps sync with QuickBooks, including Gusto and Roll by ADP. You just set the parameters, download the file, and upload it into QuickBooks. For other accounting programs, Hopper recommends “double checking to ensure the payroll software and accounting programs accept CSV and XLSX formats, which are pretty standard.”
Consider HR add-ons
Although not all payroll software includes HR features, some small businesses want an all-in-one system. However, these tools typically come on higher-priced plans. Hopper cautions entrepreneurs to avoid paying extra for expanded HR capabilities if your team doesn’t use or won’t need them.
But, if you want a single platform for document signing and storage, benefits administration and management, and employee onboarding, consider providers like OnPay, Gusto or Rippling.
HR features and add-ons may include the following:
- PTO management.
- Accrual tracking.
- New hire reporting.
- Organizational charts.
- HR templates and resources.
- Employee management.
- Job listings.
- Offer letter templates.
- Applicant tracking.
- Onboarding checklists.
- 401(k) plans and administration tools.
- Health and dental benefits and management.
- Flexible savings account administration tools.
What we don’t recommend
Outsourcing payroll is a big decision and the wrong choice can cause problems for your company and employees. According to the IRS, “Even though the employer may forward the tax amounts to the third party to make the tax deposits, the employer is the responsible party.” Therefore, it’s imperative to vet payroll providers carefully and review their history with clients.
While considering payroll software services, we came across a few products that lacked essential features. Even if the application is free, businesses might face problems if they manually transfer payroll ledger data or can’t pay employees via direct deposit.
When selecting payroll software, we suggest avoiding or, at minimum, researching further:
- Companies that charge per pay cycle instead of offering unlimited pay runs or a reasonable amount of included pay runs.
- Services with poorly rated mobile apps, especially those with many employee complaints.
- Providers that charge add-on fees for integrations, direct deposit services or other functions essential to your business.
- Payroll systems that don’t support your preferred customer service communication methods or reasonable outreach schedules.
Regardless of your decision, Hopper recommends reading the fine print carefully and avoiding long contracts: “Some payroll services hide costs in their terms of service or charge hefty fees if you cancel before your term ends.”
Online payroll services help companies of all sizes, even if you only pay yourself as the owner. While small firms may feel comfortable handling simple calculations for a handful of workers, things get more complicated as organizations add employees or contractors. Deploying a payroll system improves operations, reduces risks and supports business growth.
Here are a couple (of many) reasons businesses should have a payroll software working for them:
- Ensuring accurate payroll data: According to an Ernst & Young survey, on average, “a company has an 80.15% payroll accuracy rate.” And, on average, each mistake costs businesses $291. Payroll software automatically calculates wages and withholdings, reduces manual data entry and alerts admins to potential mistakes.
- Preventing tax and compliance issues: The NFIB reported, “The Internal Revenue Service penalizes nearly one in three businesses for payroll mistakes.” Payroll software automatically updates to account for the latest regulations and remits your tax payments and forms, so your business isn’t delinquent.
Payroll platforms provide tax, compliance and security features. These tools help companies avoid substantial fines and legal issues related to payroll mistakes. Indeed, the Internal Revenue Service assessed over $13 billion in employment tax-related civil penalties in the fiscal year 2022.
Although companies can fix errors to avoid fines, dealing with the IRS is resource intensive. Moreover, businesses can face litigation resulting from payroll mistakes. Ernst & Young’s survey found that errors lead to job cuts, reputational decline and poor employee morale.
Aside from accurate payroll and tax filing, payroll software helps to protect your business against data breaches and helps prevent unauthorized internal access. It does so by offering accuracy guarantees, tax compliance features, error notifications, permission levels based on employees’ roles, payroll software encryption and secure storage facilities.
Some providers offer an onboarding checklist to help you set up your software. For instance, Gusto provides an onboarding overview and checklist, and you configure your account solo.
In contrast, some payroll services handle some or all of the payroll data entry for you. OnPay also has an onboarding list. But OnPay’s team enters your workers’ personal information and pay histories.
Some payroll systems invite workers to self-onboard via an online portal or mobile app. The entered data syncs to your payroll software, eliminating the need to manually enter payroll tax exemptions and direct deposit banking information. After the initial setup, you can connect your accounting software and time-tracking tools.
A pay period is a fixed timeframe when employees earn wages for an upcoming paycheck. It has a start and end date. Pay cycles commonly recur weekly, bi-weekly, semi-monthly or monthly.
Payroll systems provide self-service and full-service options for managing payroll and employment tax obligations.
With self-service payroll, the service calculates and withholds the correct amounts from employee paychecks. But you’re responsible for filing forms and remitting payments to federal, state and local agencies. Additionally, you must submit annual tax forms.
Full-service payroll software files Forms 940, 941, W-2, and W-3 to tax agencies each quarter or at the end of the year. It also remits federal, state and local tax deposits and payments.
Several payroll service providers, including OnPay, QuickBooks Payroll and Patriot, guarantee accuracy and cover fines or penalties resulting from an error on their side.
Several payroll platforms have built-in HR features and offer add-ons, such as employee benefits and new hire onboarding. The most common HR functions found on payroll software include new hire reporting, self-service or automated new hire onboarding tools, PTO management and document storage.
While assessing the best payroll software, we found Gusto, Rippling and OnPay offer the most HR features in their base plans. Roll by ADP has new hire reporting whereas Homebase has native time tracking and scheduling tools. Our top pick, Rippling, also offers add-on modules for employee benefits administration, flex benefits and time and attendance tracking.
Yes, you can use ad-supported free payroll software like Payroll4Free. Free payroll apps calculate wages, deductions and taxes. They provide basic features for small companies with a limited number of employees.
Typically, unpaid tools offer self-service payroll, meaning you must file and remit federal, state and local taxes yourself. Most have fewer customer service options than paid versions. However, small businesses and startups with a limited budget can ditch spreadsheets by switching to free payroll software. Plus, free payroll apps usually have employee self-service portals to remove some HR and payroll tasks off your to-do list.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
