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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.
| 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 |
| Rippling | $8 per employee per month | 2 | Yes | Yes |
| Deluxe | Custom price | 1 | Yes | Yes |
| Square | $29 per month, plus $5 monthly per person paid | 2 | No | Yes |
| Zenefits | $8 per employee per month | 3 | No | Yes |
| Paycor | $99 per month | 3 | Yes | 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.
Paychex offers plans suitable for businesses small and large, making it a good option for businesses seeking a payroll processing partner they can scale with. Paychex offers three different service plans, and payment methods are customizable as well, including direct deposit, paper checks and prepaid debit cards.
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.
To ensure paychecks are accurate, Paychex users now have the opportunity to review paystubs before payday. The new feature, Paychex Pre-Check, lets users choose how they want to be notified, such as via email, a smartwatch or smart speaker, when their paystub is ready to be reviewed. Users can then confirm accuracy or report a problem.
Paychex recently unveiled a new labor cost tool that gives business owners and their financial team a real-time look at their total labor costs and labor distribution. Having instant access to labor costs and allocation helps businesses better understand their financial standing, as well as plan more adeptly for the future. One use of this data from Paychex can, for example, help business owners see how salary cost adjustments would impact overall expenses.
Paychex recently began offering a self-service tool that allows new hires to get set up in the Paychex Flex platform quickly. Employers send an invite to new employees. That invite gives new hires access to the Paychex system and allows them to sign up for direct deposit and fill out their W-4 forms.
The Paychex Flex platform also makes it easy for employers to track employee vaccination and COVID-19 testing status. The platform allows employees to upload their vaccination card information and COVID-19 test results. This can be especially valuable to larger employers, which may soon be subject to vaccination mandates by the U.S. government.
Paychex has three pricing plans: Go, Flex Select and Flex Enterprise. Each of these plans include all the core payroll processing and payroll tax features we looked for in our review. Here's more about these three plans.
In addition to its payroll services, Paychex offers human resources tools and services, time and attendance systems, employee benefits, and business insurance. This is another element that makes Paychex a scalable platform. Larger organizations can also leverage Paychex to manage time and attendance, recruiting, hiring, and benefits.
ADP has a strong reputation as a leader in the payroll industry. For complex businesses, including those in highly regulated industries or those operating in multiple states, ADP offers several highly effective tools.
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.
ADP offers four plans for businesses. Here's what is included in each plan:
The breadth of ADP's services alone makes it a standout payroll provider.
Payroll processing is especially flexible with ADP; you can manage it on your desktop or mobile device (iOS and Android), as well as over the phone. ADP automates payroll tasks like calculating an employee's paycheck based on wages and time off, saving you time and improving accuracy in payroll by reducing the likelihood of human error.
ADP's RUN is also taking advantage of artificial intelligence and machine learning. The platform's smart technology is able to examine all of your company's payroll history in order to flag possible errors before they occur. In addition, the platform lets users receive alerts from state and local tax jurisdictions on possible mistakes with tips on how to address them.
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.
ADP recently unveiled a new timekeeping solution that is available to businesses with less than 50 employees that are using the Run payroll platform. The new timekeeping system lets employees clock in and out via tablets. The system features facial recognition software, which ensures the entire process is touchless. The solution's dashboard provides insight into who is working and when, as well as who is missing work and who is incurring overtime. The scheduling tools make it simple for managers to create schedules and share them with their staff. Additionally, employees can use the system to claim shifts and let those in charge know when they are unavailable to work.
Rippling stands out as a user-friendly online payroll software that requires little to no training to quickly become proficient with the system. The company claims that Rippling allows you to "run payroll in 90 seconds," which certainly could be true given how many sources the software pulls data from – in all, Rippling integrates with more than 400 apps to automate the processing of your payroll.
A sleek, organized user interface organizes key information like the total hours worked per employee, time off by employee, total labor expenses and more. Further, you can manage direct deposits and paychecks through Rippling so your employees are paid on time in the manner they prefer. Rippling displays all of the tax and benefit withholdings by employee per paycheck, offering a complete record for both employer and employee to reference with ease.
Rippling offers custom quotes based on the services you need, but plans start at $8 per user per month.
To leverage Rippling's payroll processing capabilities, you need to subscribe to the company's Employee Management Platform, a broader HR suite that includes tools like onboarding; benefits; employee changes such as promotions, offboarding, etc.; time and attendance, and device management. Rippling sales representatives will develop a customized plan that meets your business's needs and takes your budget into consideration.
The payroll processing module of Rippling offers automatic compliance and tax-filing tools that can streamline the way you report payroll to the relevant state and local government agencies and remit payments accordingly. Rippling also supports international payments, especially important in an increasingly remote work environment where distributed workforces are the norm.
The payroll module also includes a PTO-tracking tool that allows you to set a custom policy for your employees and then monitor time-off requests with a single click. PTO requests automatically sync with payroll processing and require no additional manual input from managers.
Finally, payroll reporting is custom and powerful with Rippling. You can run a report, for example, that shows your total labor expense in Q1 or a report that shows how much you withheld in employee taxes last pay period. Various visualizations such as donut charts, line graphs and bar graphs can be used to view all your data.
For companies that want an even closer partner, Rippling also offers a PEO service in addition to its employee management platform.
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.
Gusto is available in four service plans, including:
Gusto also supports the hiring of employees around the country by allowing quick and easy tax registration for employees in all 50 states. This is especially beneficial in the current workplace environment, with a growing number of employers hiring employees from anywhere to work remotely. In addition, the Gusto platform now allows for contractor payments in more than 80 countries.
Gusto is an intuitive, easy-to-use software platform that most users can learn quickly with minimal training. Running payroll, for example, is as easy as logging in, clicking the Run Payroll tab, and filling out the fields regarding employee hours, vacation time, bonuses, commissions, etc. When the information is entered, simply click Submit Payroll. Most of the processes in Gusto are similarly straightforward.
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.
There is only one plan available through OnPay for all customers. The service costs $36 per month, plus $4 for each employee. "Employees" are any individuals you compensate for their services, so part-time employees and independent contractors are considered "employees" and are included in this fee.
The only other additional fee you might incur with OnPay is if you have them print and mail year-end tax forms to your workers. You can print W-2s and 1099s for free, but to have OnPay send those forms through the mail to your office costs $5 plus shipping per form. It costs $6 plus shipping to mail those forms to an employee's home.
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.
One of the standout aspects of OnPay is its unlimited payroll runs and automated payroll processing features. OnPay stays up to date with federal, local, and state payroll tax rates and calculates how much your business owes based on where your employees are located. OnPay even takes responsibility for any fines associated with payroll tax errors. If your company offers employees benefits like a 401(k) or commuter benefits, OnPay automatically withholds the correct amounts for these items.
OnPay includes a full suite of HR tools with its payroll services for no extra charge. In addition to online onboarding, companies get 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. It also offers an employee self-service portal, where employees can see their paystubs and year-end tax forms. They can also update their banking information or their address, saving time for your staff and ensuring your payroll records are up to date.
The reporting tools give small businesses the ability to create enterprise-level expense reports. The tools can examine 50 different data points, rearrange columns as needed and save the report in multiple views based on who within the company is reviewing it. The reporting functionality is available to all users.
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.
QuickBooks has multiple service plans covering payroll processing and payroll tax preparation. They include:
QuickBooks accounting software can be included with each of these plans as an add-on. Each plan includes a 30-day free trial.
QuickBooks also offers three desktop payroll plans that include different services, features and prices than the plans listed above. These include:
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.
Deluxe shines when it comes to supporting your team in processing your company's payroll and complying with federal and state payroll tax laws. Not only do you gain access to Deluxe's online payroll software, but you are assigned a dedicated customer service team who can offer guidance and serve as a liaison between you and the company. Deluxe also offers additional service beyond payroll, including identity theft protection.
Pricing is customized and depends on the features and services your business requires. Deluxe develops a singular approach for each client, given the consultative nature of its team, so it can be difficult to understand the full scope of services Deluxe can provide to your organization. To better understand all that Deluxe can do for your company and how much it will cost, contact a sales representative, who will give you a custom quote.
August 2021: Deluxe recently announced a new partnership with Microsoft that will add Deluxe’s payroll and HR solutions to the Microsoft Dynamics 365 Business Central platform. With the addition of Deluxe’s services to the cloud-based business management solution, users can now access payroll, HR, and financial services and reporting all from one easy-to-use platform.
Deluxe's payroll processing tool is easy to use; users can complete payroll in three steps. It's also precise, allowing you to adjust pay for fractions of hours worked. It can be used to issue employee checks or direct deposit payments, as well as generate a series of reports to monitor your labor expenses.
You can also work with your dedicated customer service team for tax advice or general guidance. Not only can they help you comply with your payroll tax obligations, they can offer tips to improve your reporting and filing processes to save you time and money.
Deluxe includes employer and employee portals. Employers can run payroll and a variety of reports in their portal, while in the employee portal, workers can look up their paystubs and withholding information, as well as time-off requests and direct deposit information. Employees can also update their information here as well.
Deluxe interfaces with dozens of third-party software providers, including accounting software and point-of-sale (POS) systems. Integration includes seamless data migration as well.
Square is a highly popular payment processing platform, but it also offers Square Payroll, an online payroll software program that is easy to use and makes payroll tax compliance simple. Square automatically compiles and files your federal, state, and local payroll taxes based on the data that already exists in your system, giving you more time to focus on operations.
Additionally, Square offers expert support through a live chat tool that allows you to connect with payroll specialists who can help you manage your business's payroll and improve your process. Square can sync with a wide range of time and attendance systems and POS systems, tracking employee hours automatically. When it's time to run payroll, you can pay employees directly from your Square Balance, rather than waiting for ACH transfers to go through the banks.
Square Payroll is intuitive and easy to use. Like its payment processing counterpart, it doesn't have a steep learning curve, and most users will not be wanting for additional features. Square Payroll can be used to process payroll for W-2 employees and 1099 contractors.
In addition to payroll processing tools, Square offers a team management feature that can help you sync hours, review an employee's performance and manage system permissions for each team member. This is an especially important function in a time where remote work is more common than ever.
There is no contract requirement for Square Payroll, and pricing plans start at $29 per month, plus $5 per employee paid. Alternatively, there is a contractor's only option that charges you $5 per payment with no monthly base fee.
Paycor is an online payroll software platform that includes an exceptionally user-friendly employee self-service portal, which allows employees to take charge of their time-off requests, monitor their compensation, check their paystubs, manage their benefits, and update their personal or financial information.
Paycor offers three plans, all of which are based on flat monthly rates. This is unlike many of the other payroll software solutions we reviewed, which often included a base rate and a per-employee, per-month fee. Midsized and larger companies could see saving based on Paycor's pricing model, but very small businesses might pay less with a per-employee, per-month model.
Here's a breakdown of the three pricing plans Paycor offers:
Zenefits offers an easy-to-use payroll system that enables you to run payroll in four steps. Making manual adjustments, such as including bonuses, is easy when running payroll as well. Zenefits' payroll solution offers unlimited payroll processing, wage garnishment support, direct deposits, tips reporting, multiple pay schedules/rate tables, 1099 contractor payments, general ledger reporting and mobile paystubs.
Zenefits Payroll seamlessly integrates with other Zenefits HR modules, including Time Tracking, Benefits and HR. Zenefits Payroll works best when you purchase all of the modules, because these integrations expand its functionality. For example, the connection between Zenefits Payroll and HR enables easy benefits changes and salary changes, while an integration with Time Tracking can automatically tabulate paid time off when running payroll. Zenefits Payroll is an add-on to this larger HR software suite; it costs $6 per employee, per month.
Zenefits larger HR software suite comes with three pricing plans. These include:
Zenefits Payroll can be added on to any of these plans for an additional $6 per employee per month, but it cannot be purchased as a stand-alone product. However, the expanded functionality of the payroll module within Zenefits larger HR software suite may make it a cost-efficient choice for businesses that may evaluate dropping their other HR software in favor of Zenefits.
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.
