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This page has been updated with new answers to frequently asked questions about online payroll services, including whether you can pay contractors and whether payroll appears on your company's balance sheet.
Running payroll can be time-consuming and, if done incorrectly, can result in fines. It can be overwhelming, but online payroll services can lighten the load. Many small businesses have turned to online payroll services to smooth out the process of paying employees accurately and on time.
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 | Custom | 4 | No | Yes |
| Intuit | $22.50 plus $4 per employee | 3 | Yes | Yes |
| Gusto | $39 plus $6 per employee | 4 | Yes | No |
| OnPay | $36 plus $4 per employee | 1 | Yes | No |
| ADP | Custom | 3 | No | Yes |
Bigger companies have different payroll needs from small businesses. They need a solution that can offer basic human resources services, reliable payroll processing features and dependable payroll tax management.
Paychex absolutely fits this bill. It is our choice as the best online payroll service for larger businesses.
Paychex offers a flexible, full-featured payroll service for payroll processing and payroll tax obligations. The company provides a host of other services as well. You can choose the payroll schedule you want – weekly, biweekly, semimonthly or monthly – and pay all types of employees, including part-time W-2 employees, 1099 contractors and other freelancers.
A one-size-fits-all solution may work for small businesses, but larger ones have complicated needs. They need a solution that offers a range of plans and can be customized to meet needs of critical importance.
What makes Paychex an appealing option for larger businesses is the flexibility in its service offerings. The Paychex Flex platform is available in four different service plans that vary in features. In addition to plans designed for small businesses, there are service plans built specifically for large and enterprise organizations.
The plans for midsize and enterprise businesses go beyond the traditional payroll processing services by including HR tools and features, such as onboarding, HR administration and pre-employment background check services.
Large businesses also want flexibility in how employees are paid. You can pay your employees in multiple ways with Paychex. All of its service plans allow payments by direct deposit and prepaid debit cards, while three of the plans also allow paper checks. Paychex offers check signing and check logo services.
Typically, larger organizations look for payroll services as part of a complete human resources platform. Many enterprise businesses want a platform that can also manage time and attendance, benefits administration, and hiring.
Paychex fills that need for employers. In addition to payroll processing, Paychex Flex supports online timekeeping, benefits administration, compliance services, employee onboarding, employment screening, retirement plans, business insurance and health insurance.
Paychex offers custom pricing for its services. None of the representatives we spoke with, however, would provide pricing estimates on any of the service plans, so we can't pass along any price quotes.
Paychex offers four service plans: Express Payroll, Paychex Flex Select, Paychex Flex Pro and Paychex Flex Enterprise. All the plans include Paychex's core payroll processing and payroll tax administration services.
Here is a breakdown of each plan:
Since pricing is customized, you'd be best served by contacting Paychex directly and speaking with a sales representative to get specific information on pricing. Once they learn how many employees you have, how often you plan to run payroll, and what additional Paychex services you may be interested in, they should be able to give you a detailed price quote.
Paychex offers a number of different services and features, including the following:
The Paychex Flex platform is very easy to use. As a cloud-hosted system, it's accessible from any web browser. You can also manage your payroll from the Paychex mobile app, which is available on iOS and Android devices.
When you log in, the homepage provides a quick glance of your important information. This includes a notice of when your next payroll is due, a link to start the payroll process, upcoming check dates, the cash required for the next payroll, and a quick link to the payroll reports section of the system.
Running payroll is a simple task with just a few steps. All you have to do is enter your payroll information (salaries, hours worked and pay rates), confirm that the data is correct and submit the payroll for processing. Rather than running payroll manually each pay period, you can set up recurring amounts for faster processing.
The system offers employee self-service. Employees get their own login so they can access the system to see their paystubs and year-end tax documents.
In addition to accessing the payroll tools and features, you can use the Paychex Flex platform to access other Paychex services your business uses.
We were disappointed in the customer service we received from Paychex. To test the customer support, we contacted the company multiple times by phone and email, posing as a business owner interested in payroll services.
When we called the company, the representative we spoke with refused to give us any details about the system and its cost over the phone. He said that, for him to fully explain the system and give more information on pricing, we would have to meet in person. When we explained that we were just looking into payroll systems and wanted to see how Paychex compared to its competitors in pricing, the representative said he couldn't even provide us with an estimate.
Additionally, even though we said we were only looking for payroll services at this time, the representative kept trying to sell us on Paychex's other services. So, while the representative peppered us with questions, he wasn't able to answer any of the questions we had for him, which was disappointing.
The service we received over email wasn't much better. When we reached out to a representative and explained we were interested in learning more about the different service plans and pricing, we didn't receive the level of information we were looking for. While the representative sent a document with a service plan comparison, he offered no other information. He didn't offer to walk us through the plans or give us more detailed information on the services available. We still didn't receive any type of price quote or estimate either.
One positive of Paychex's customer support is that Select, Pro and Enterprise plan users receive a dedicated payroll specialist to handle any issues. Many of the other payroll services we looked into don't offer a dedicated point person to help with problems.
Regardless of the plan you use, Paychex support is available by phone and live chat 24/7.
The biggest drawback we encountered with Paychex was the customer support. Nearly all of the other payroll companies we investigated were willing to speak with us over the phone and provide detailed answers to our questions about what their service offers and how it works. Most of them also provided us with a price estimate to give us an idea of how much their payroll software would cost us.
We were also disappointed to see that, as of September 2018, more than 200 complaints had been filed against the company with the Better Business Bureau. Despite the complaints, however, Paychex is an accredited member of the BBB with an A+ rating.
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 varies by provider. Some charge monthly, while others charge each time you run payroll. The providers that have monthly charges allow unlimited payroll runs each month. Among our best picks, Intuit, OnPay and Gusto all have monthly fees, while ADP and Paychex have a per-payroll cost structure.
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 including 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.
Here is a breakdown of the costs of each of our best picks:
When trying to determine the true cost of payroll services for your small business, you need to factor in any taxes or other fees that the payroll provider may charge. Be sure to inquire about that when discussing pricing.
Before signing up with a payroll service provider, ask the company these questions to get the best deal possible:
It is critical that you review the contract thoroughly before signing anything. Make sure the contract includes everything you have agreed to and doesn't have any built-in price increases after an extended time.
Also inquire about the process for canceling service. Find out if there are any costs associated with that and how much notice you need to give.
In 2020, what online payroll services offer is expected to expand. Gary Anderson, director of sales at Criterion, told SelectHub that he expects payroll services to offer more comprehensive HR services, rather than companies having to pay for a stand-alone payroll service and a separate HR management solution. He said this will allow businesses to keep the payroll service they feel comfortable with while having an HR service integrated right into it.
Some payroll providers, such as Gusto, have already moved in this direction. Knowing that some payroll providers have started offering all-in-one solutions, we expect other payroll services to quickly follow suit. If they don't, they stand to fall behind their competition.
The integration of artificial intelligence is another trend we expect to continue in 2020. Payroll AI is able to pick up on errors that can lead to fines. As more payroll services incorporate this technology into their platforms, we predict a drop in the cost of compliance concerns and violations.
April 2020: As small businesses continue to be negatively affected by the COVID-19 pandemic, many online payroll services are offering resources and tools in an effort to help.
For example, a number of payroll providers have launched resource hubs on their websites to provide their customers with information about legislative initiatives that have been launched to help support small businesses. Gusto, ADP, OnPay, and Intuit all have online guides and tool kits designed to help employers learn more about the Paycheck Protection Program and the CARES Act.
In addition, Paychex is partnering with PayActiv to provide on-demand payroll service for employees who need immediate access to their wages. This option gives employees some flexibility as to when they get paid versus waiting for their traditional payday. PayActiv is offering $250 to Paychex customers who enroll in its Pay-on-Demand service.
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.
