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With so many online payroll companies to choose from in 2021, finding the service that has all of the functionality your business needs can be a difficult task. To help you find the right service for your business, we examined nearly 80 payroll providers. We looked at cost, features and tools, and customer support to find the online payroll services we think are best for small businesses.
With so many online payroll companies to choose from in 2020, finding the service that has all of the functionality your business needs can be a difficult task. There are several factors to consider when trying to choose online payroll software that is right for you, including whether it offers all the services and tools you need, fits your budget, and provides a high level of customer support. To help you narrow down your options, we've studied and evaluated the top payroll service providers on the market.
We recommend Intuit as the best payroll software for small businesses, Gusto as the best payroll service provider for sole proprietors or S corporations, OnPay as the best payroll service for very small businesses, ADP as the most popular payroll company, and Paychex as the best payroll service for larger businesses.
You can read more about each of our best picks and the types of organizations we think they are best for, in our reviews. If none of our recommendations work for you, scroll down to see more reviews and a list of other online payroll services.
| Starting Monthly Price | # of Service Plans | Unlimited Payroll | Mobile App | |
| Paychex | $59 plus $4 per employee | 3 | Yes | Yes |
| Intuit | $22.50 plus $4 per employee | 3 | Yes | Yes |
| Gusto | $19 plus $6 per employee | 4 | Yes | No |
| OnPay | $36 plus $4 per employee | 1 | Yes | No |
| ADP | Custom | 4 | No | Yes |
Paychex is a robust cloud-hosted payroll service that manages payroll processing and tax obligations, and provides a host of other HR-related survives. The Paychex Flex platform is accessible online or via the mobile app for iOS and Android devices. You can pay anyone who does work for you through Paychex, including W-2 workers, 1099 contractors and freelancers.
Running payroll is a simple process with Paychex. In essence, all you have to do is enter your employees' salaries and pay rates, note how many hours they worked, and then submit your payroll for processing. Paychex takes care of the rest. It calculates each paycheck, withholding the proper amounts for payroll taxes and other benefits. It then pays your employees via direct deposit, pay card or printed check.
Paychex is available in three pricing plans that start at $59 per month, plus $4 for each employee. Customer support is available 24/7.
In addition to its payroll services, Paychex offers human resources tools and services, time and attendance systems, employee benefits, and business insurance.
QuickBooks Online Payroll by Intuit provides businesses of all sizes with payroll and related tax services. As a cloud-hosted service, it doesn't require you to install or maintain any software. You can log in to the system to process payroll, review and pay payroll taxes, and view detailed labor reports, while your employees can view their paystubs, pay history and PTO accruals.
QuickBooks Online is available in three service plans – Core, Premium and Elite – which all allow small business owners to run payroll and file taxes automatically. Other services in the various plans include a workforce portal for employees, health benefits from SimplyInsured, time tracking, an HR support center and project management.
Costs range from $45 to $125 per month, plus $4 to $10 per employee. Intuit offers a 50% discount for the first three months of service.
QuickBooks is a flexible service that can meet the needs of just about any small business looking to run payroll online. If you're interested, the company provides access to the QuickBooks accounting software as part of its payroll offering, giving you intuitive accounting and payroll software in one simple plan. By focusing on plan variety and addressing a full spectrum of small business needs, QuickBooks defines itself as a versatile small business payroll provider.
Gusto is our choice for the best online payroll software with added HR tools because of the many HR services it offers. In addition to taking care of all your payroll processing and payroll tax needs, Gusto can handle many of your HR tasks, such as managing your staff's paid time off (PTO) and administering health insurance. It also grants access to certified HR professionals who can guide you through all sorts of situations.
Gusto is available in four service plans that range from $19 to $149 per month, plus $6 to $12 per employee. The range of service plans gives you the option to use Gusto just for your payroll needs, or to upgrade plans if you want to tap into the HR resources.
To run payroll with Gusto, you can log in to the system from anywhere online, enter an employee's hours plus any PTO and any bonuses or commissions they earned, and click Submit Payroll. The employee is then paid with direct deposit or a printed check. The flexibility of payment method and the ease of running payroll makes Gusto an ideal service for small businesses.
OnPay is our top choice for very small businesses because it handles all payroll and payroll tax needs, has an easy-to-use online platform, and is affordable even on a tight budget. The service costs $36 per month, plus $4 for each employee.
OnPay doesn't sacrifice features and value by edging toward simplicity. Users can enjoy payroll processing, tax compliance, multiple employee types, multiple payment options and employee self-service access. This software can also integrate with many popular small business services, like QuickBooks Online, Xero, Kabbage, Humanity, Guideline and ThinkHR.
OnPay includes a full suite of HR tools with its payroll services for no extra charge. In addition to online onboarding, this new suite offers PTO accrual and approval, e-signable legal document templates, in-app messaging, secure document storage, and a full library of free HR guides and resources.
ADP is the most popular payroll service among business.com readers, and it has a strong reputation as a payroll industry leader. It is used by businesses across a wide range of industries, and it's the payroll industry's market share leader.
This company offers specified payroll platforms for small, midsize and large businesses. Its Run platform is designed for businesses with fewer than 50 employees, while its Workforce Now platform is for businesses with 50 to 999 employees. Organizations with more than 1,000 employees have various options, including the Enterprise platform.
The breadth of ADP's services alone makes it a standout payroll provider.
There are four basic plans for the Run platform: Essential, Enhanced, Complete and HR Pro. Marquee features of each plan include payroll processing, payment options, payroll tax compliance, year-end tax forms, integrations with accounting platforms like QuickBooks, payroll reporting, new-hire reporting and additional HR services.
ADP's payroll software can easily integrate with its other services, like its time and attendance software. If you're interested in a full suite of business solutions, ADP gives you several different packages to choose from.
While the costs of payroll services differ by company, each provider uses a similar cost structure. There is typically a base fee and a per-employee charge. Our best picks charge base fees of $29 to $150 and per-employee fees of $2 to $12.
How often you are charged also varies by provider. Some charge monthly, while others charge each time you run payroll. The providers that charge monthly allow unlimited payroll runs each month.
While some providers offer just one package that includes all their services, others offer several plans at various price points with different levels of service. For example, the cheapest plan may include payroll processing only, with the most expensive plan handling all payroll tax filing and payment responsibilities.
Besides the monthly or per-pay-run costs, some providers charge for services like setting up the system and completing year-end tax filings.
Many payroll services don't charge any implementation or setup fees. For the most part, getting set up in the software is an easy process that employees can even do on their own. Some companies may charge a one-time fee to transfer over all of your previous payroll and employee data; while this isn't hard to do on your own, the transfer fee might be worth it to save you some time.
When determining the true cost of payroll services for your small business, you need to factor in any taxes and implementation or other fees. Be sure to inquire about fees when discussing prices with vendors.
Before signing up with a payroll service provider, ask the company these questions to get the best deal possible:
It is critical to review the contract thoroughly before you sign anything. Make sure the contract includes everything you have agreed to and doesn't have any built-in price increases after a certain time period.
Also, ask about the process for canceling service. Find out if there are any costs associated with that and how much notice you need to give.
Many payroll providers offer first-time customers a 30-day free trial. This gives you the chance to run payroll at least once to determine how you like the service. In addition, many payroll providers don't require long-term commitments, so if you test it out for a few months and decide the program you selected doesn't fit your needs, you can easily cancel your service and find a better match elsewhere.
As part of our research, we reached out to small businesses to find out which online payroll solutions they use and what they find most valuable about them.
John Holloway, co-founder of NoExam.com, said he uses QuickBooks because of how simple it is to run payroll with the software. He specifically pointed to how simple it is to log in and run payroll while updating his books.
"QuickBooks has the most features and integrates nicely with our accounting software, which is the main reason we stick with it," Holloway told business.com.
Marcus Anwar, co-founder of classifieds website OhMy, said he uses QuickBooks for its wide range of features.
"One of the features I really like is how you can pay employees with direct deposit for free," he said. "Many other payroll services charge a fee for direct deposit."
Anwar said he previously used ADP for his payroll needs, but switched because of the added features QuickBooks offers.
"The reason why we switched from ADP to QuickBooks was some of the features we wanted ADP didn't have, and the price was the other important factor," he said. "QuickBooks is cheaper with more options."
Over the past year, the outsourced payroll industry grew 27%, due in large part to the physical limitations of 2020. That growth rate is projected to continue increasing over the coming years. Advances in cloud computing will be the largest driver of its widespread adoption throughout the industry. Businesses are more willing to outsource their payroll due to concerns regarding staff sizes and the increasing number of digital platforms capable of quickly and efficiently handling these functions.
Further, major online payroll software solutions cut their prices in 2020. Entry costs have been lowered because of both global economic damage and the rapid improvements to AI and automation technologies allowing for cheaper implementation. These services will grow in importance as governments update information regarding 2021 sick-leave practices, and their improved automated functionality will help businesses that are prepared to invest more in a 2021 market dominated by freelance work.
Having an online payroll service handle your taxes will remain critical in 2021, with increased uncertainty around the Paycheck Protection Program, unpredictable stimulus packages and political change that accompanies a new presidential administration. Tax season may face delays after the IRS announced that it still holds millions of pieces of unopened mail and incomplete tax returns.
Sage is a provider of business management software and services to small and midsize businesses. The company's payroll offerings include Sage Essentials, for businesses with fewer than 10 employees, and Sage Payroll Full Service. Sage Payroll Essentials provides unlimited processing, tax filing and direct deposit for a flat monthly fee, while Sage Payroll Full Service outsources your work to Sage's payroll professionals. Read Review.
