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Best Small Company Payroll Software

Best Payroll Software for Small Business (Q1 2024)

We’ve carefully demoed and tested dozens of payroll services to arrive at this selection of the best payroll software for small businesses. See expert insight, pricing info, pros & cons, integrations, and more below.

Phil Strazzulla
Written by
Phil Strazzulla
HR Tech Expert, Harvard MBA, Software Enthusiast
Contributing Experts
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Last Updated: Dec 13, 2023
TOP
Canonical SMB Payroll Platform
Gusto
4.0
Popularity Score
4.0
User Score
4.1
Product  Score
Visit Website
TOP
Canonical SMB Payroll Platform
Gusto
4.0
Popularity Score
4.0
User Score
4.1
Product  Score
Learn More
TOP
Great Price & a Solid SMB Product
Patriot
4.1
Popularity Score
4.8
User Score
4.4
Product  Score
Visit Website
TOP
Great Price & a Solid SMB Product
Patriot
4.1
Popularity Score
4.8
User Score
4.4
Product  Score
Learn More
TOP
All-in-One Classic for SMB Payroll
PayChex
4.1
Popularity Score
3.9
User Score
4.1
Product  Score
Visit Website
TOP
All-in-One Classic for SMB Payroll
PayChex
4.1
Popularity Score
3.9
User Score
4.1
Product  Score
Learn More
Over 3 million HR leaders trust our advice

Introduction to Payroll Software for Small Companies

As a small business owner, having a system that helps you manage and administrate your employee’s payroll is a necessity. It saves you time you would otherwise spend on manually processing your payroll –time you simply cannot afford to spare. 

Payroll services also save you fines you could incur as a result of incorrect payroll fillings. According to an Internal Revenue Service (IRS) report, 40% of small to medium-sized businesses in the United States pay payroll penalties each year. This can be avoided with payroll software. Not just any payroll system, but one suited to the delicate needs of a small business. That is why, in this article, we set out to review some of the best payroll providers on the market for small businesses.

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Best Small Company Payroll Software

Gusto

: Canonical SMB Payroll Platform

Patriot

: Great Price & a Solid SMB Product

PayChex

: All-in-One Classic for SMB Payroll

Zenefits

: Payroll & Multi-Feature HR Platform

QuickBooks

: Well-Known Platform with SMB Payroll

Remote

: SMB Payroll & Global Capacity

Square

: Payroll & SMB Staff Services

OnPay

: Reliable Payroll & Benefits & HR

Our Criteria: Here's How We Chose The Best Small Company Payroll Software

We’ve come to this list of the best SMB payroll software companies by evaluating literally dozens of them. We’ve been writing about payroll for years, building a lot of familiarity with these tools. Many of them we’ve followed from their earliest days, getting updates and re-doing demos as they evolve.

Of course, we also complement this research by talking to our community of HR experts. For this buyer guide, we focused on small business owners. Knowing which payroll tools are making their lives easier was crucial. Once we had a shortlist, we cherry-picked the best of the best based on various considerations, chief among which are: automation capabilities, compliance features, and price.

  • Payroll Automation: One of the primary considerations for any small business looking for payroll software is reliably automating tasks. We prioritized the tools with the most advanced features here, which translates to saving more hours each payroll cycle.
  • Compliance: Then there’s the question of peace of mind. You want to know that the system helps you remain compliant and avoid fines. The companies we chose all do an excellent job when it comes to helping small business owners adhere to all regulations regarding payroll.
  • Pricing: Lastly, we know that price is a significant consideration for most small businesses. We picked tools that would adapt to all kinds of budgets and situations. This ranges from tools that are good for solopreneurs paying contractors to premium plans designed for larger headcounts but that still won’t break the bank.

To learn more about our process for evaluating software companies, read this blog on how we select the best HR tech.

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Compare the Best Small Company Payroll Software

Popularity Score
Best for
Key Differentiator
Pricing
Free Trial
Customers
Users Score
Product Score

Gusto

Most Popular
4.0
Startups with limited budgets and growing SMBs
Premium plan offers on-call services of HR experts
Starts at $6/month/person
Yes
200,000+
4.0
4.1

Patriot

Most Popular
4.1
Ideal for small team with basic payroll needs
Simple, solid, and budget friendly
Starts at $10/month
Yes
10,000+
4.8
4.4

PayChex

Most Popular
4.1
Startups, SMBs, and "solopreneurs" that need basic HR tech
Appealing add-ons for SMBs in addition to payroll
Starts at $39/month
No
740,000+
3.9
4.1

Zenefits

Most Popular
4.0
Small and mid-sized US-based teams looking for HR staples
Established, easy to operate, and affordable
Starts at $8/employee/month
Yes
10,000+
3.9
4.0

QuickBooks

Most Popular
4.1
Small businesses already using Quickbooks for accounting
Seamless integration with QuickBooks Accounting software
Starts at $22/month
Yes
29 million
4.0
4.0

Remote

Most Popular
4.0
Remote-first, global companies with international payroll
Simplifies the process of international operations
Starts at $50/month
Yes
Undisclosed
4.6
4.5

Square

Most Popular
4.3
Retail businesses who use the Square POS
POS for retail connects labor to sales ecosystem
Starts at $35/month
Yes
70M+
4.2
4.4

OnPay

Most Popular
4.3
First-time business owners who need foolproof payroll
Ease of use and customer service via chat
Starts at $36/month
Yes
10,000+
4.8
4.7
Phil Strazzulla
HR Tech Expert, Harvard MBA, Software Enthusiast

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Detailed Reviews of the Best Payroll Software for Small Companies

Gusto

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Gusto
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Popularity Score
4 / 5
User Score
4 / 5
Product Score
4.1 / 5

Why we picked Gusto

Gusto is a top-notch payroll solution for startups and small businesses because of its full-service payroll and unparalleled customer service. We think you will agree that Gusto has one of the best UI in this space.

PROS

  • Gusto supports payroll for both US W2 workers and either domestic or international contractor workers.
  • The software enables online signatures and automated tax filing.
  • Flexible payroll options cater to different schedules with unlimited pay runs.
  • Automatic deductions streamline benefits administration.
  • Phone, email, and customer service support available.
  • Licensed benefits advisors assist all plan users.
  • Transparent pricing with no long-term contracts or setup fees.
  • The dashboard feature keeps tabs on compliance tasks
  • The hiring and onboarding sequence is nicely streamlined between HR and the new hire
  • Post-offer, pre-start tasks are made easy with integrations like CorpNet (state tax set up) Checkr (background checks)
  • Easy payroll for U.S.-based W-2 folks, domestic, and international contractors
  • Person-to-person phone support, email, and other customer service resources
  • The business model is responsive to customer needs

CONS

  • No payroll support for international employees.
  • No accounting tool for tracking earnings and spending.
  • Their simple plan lacks time tracking and online signature features, requiring integrations with other software.
  • Basic analytics dashboard.
  • Features like federal & state compliance alerts and broker/health insurance integration are priced separately.
  • There is no free trial of Gusto
  • Gusto can support payments for international contractors, but not employees
  • No native accounting feature to keep earning and spending under the same roof
  • Analytics dashboard is simplistic
Gusto Payroll Program for Small Business screenshot

Gusto Review

Gusto is an excellent choice for startups and SMBs seeking a reliable payroll solution.

Let’s begin with its full-service payroll capabilities. Gusto supports payroll for U.S.-based W-2 employees and domestic and international contractors. This flexibility makes it a versatile solution for businesses with diverse staffing needs.

Our editors (and accountants) also love that Gusto provides e-signature collecting and automated tax filing because of its ease of use and usefulness in simplifying essential administrative tasks.

Flexibility is another strength of Gusto. The software offers an automatic deductions feature, varied payroll schedules, and unlimited pay runs so businesses can ensure employees receive their salaries and benefits promptly.

Transparency is a key aspect of Gusto's pricing. The payroll software does not require long-term contracts or setup fees, allowing SMBs to manage their payroll efficiently without any unexpected costs.

But you may notice we didn’t mention payroll for global employees earlier. It’s because it isn’t available in Gusto’s current offerings.

Another feature Gusto lacks is built-in accounting, meaning you must use third-party integrations for complete financial management.

While the Simple plan is cost-friendly, it lacks essential features like native time tracking and e-sign. To access these features, thus, you, again, will have to integrate third-party tools with Gusto — more money spent.

Lastly, compliance alerts and broker integration are terrific features, but the platform requires you to either opt for its Premium plan or pay extra to use them.

Gusto Customers

Gusto Pricing

  • Simple Plan: $40/month base fee plus $6/month per person.
  • Plus Plan (Limited Time Sale): $60/month base fee plus $9/month per person.
  • Premium Plan: Contact sales for customized plan options.
  • Contractor Only Plan: $6/month per person (suitable for businesses without W-2 employees).

Best For

Gusto offers a budget-friendly basic plan, making it accessible for startups with limited budgets. For SMBs with smaller HR departments and greater financial capacity, the Premium plan is highly recommended, providing additional features and benefits.

Gusto in action
Reviewer's Rating
7/10

We used Gusto to manage payroll, streamline benefits administration, and centralize HR tasks. The platform simplifies payroll processing, ensures compliance with tax regulations, and automates various HR functions. Additionally, Gusto facilitates employee self-service, allowing individuals to access their pay stubs, tax forms, and benefit information conveniently. Its reporting tools provide valuable insights for strategic decision-making. Overall, Gusto plays a pivotal role in enhancing our HR efficiency and employee experience.

What do you like about this tool?

Gusto offers an intuitive interface that makes it easy to navigate various tasks. Their system consolidates our processes and reduces the need for multiple platforms. Additionally, they provide excellent customer support, offering timely assistance whenever needed.

Why did your organization buy this tool, and how long have you used it for?

We chose Gusto due to its comprehensive payroll, benefits, and HR solutions, streamlining our administrative processes. The user-friendly interface and automation features enhance efficiency. Overall, Gusto has been a valuable asset to our HR team.

What do you dislike about this tool?
  • While Gusto is comprehensive, we have encountered some challenges with integrating it with other existing HR tools. Also, there are instances where we wished for more customization options within Gusto.
  • Periodic updates to the platform have previously disrupted our workflow.

How is this tool different than their competitors?

Gusto is a bit more user-friendly. Also, their comprehensive approach distinguishes them from competitors that may offer specialized services but not the same breadth of integrated solutions.

What Instructions should people think about when buying this type of tool?

Ensure it aligns with your organization's specific needs and growth objectives. Also, look for a platform that is intuitive and requires minimal training for your team to navigate and operate effectively.

How has this tool changed or evolved over time to meet users needs?

Given the dynamic nature of tax regulations and HR compliance, Gusto has demonstrated platform update agility. Over time, they have refined the platform's interface, making it more intuitive and user-friendly.

What specific type of user or organization is this tool very good for?

It seems to be best fit for smaller organizations.

What specific type of user or organization would this tool not be a good fit for?

A small team that is looking to grow and provide more impact for their organizations.

Patriot

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Patriot
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Popularity Score
4.1 / 5
User Score
4.8 / 5
Product Score
4.4 / 5

Why we picked Patriot

Patriot is the most affordable full-service payroll for small businesses

PROS

CONS

Patriot dashboard screenshot - one of the best Payroll Software for Small Business

Patriot Review

Of all the full-service payroll software on this list, Patriot is the most affordable. It offers basic payroll and tax management with an intuitive interface that is easy to navigate.

It is designed with the small business owner in mind, providing free payroll setup and expert support from US-based professionals to make the experience a lot easier.

Patriot Customers

Patriot Pricing

Patriot’s basic payroll service goes for $10 per month plus $4 per employee. Their full-service payroll is tagged at $30 per month plus $4 per employee.

Best For

Small businesses with very basic payroll needs.

Patriot in action
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PayChex

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PayChex
Learn More
Popularity Score
4.1 / 5
User Score
3.9 / 5
Product Score
4.1 / 5

Why we picked PayChex

There are flexible options and add-ons designed with small businesses in mind.

PROS

CONS

Paychex Flex Payroll Software for Small Business screenshot

PayChex Review

Paychex Flex offers HR functionality, retirement packages, online payroll services, and benefits for businesses ranging from solopreneurs to SMBs. It is user-friendly and has numerous plans that cater to the needs of any company size. 

Unlike Gusto, which provides health insurance in just 39 states, Paychex Flex covers all 50 states in the US.

PayChex Customers

PayChex Pricing

Paychex Flex offers a variety of plans depending on your specific needs. There are three curated packages readily available on their website - Paychex Flex Essentials, Paychex Flex Select, and Paychex Flex Pro.

Their Essentials plan is available for a $39 monthly base rate plus $5 per employee per month. Select and Pro are custom plans and you would need to call to get a quote.

Best For

Small companies with basic payroll needs and solopreneurs that want HR software with payroll features.

PayChex in action
Reviewer's Rating
7/10

Paychex was a great payroll service to use since the company is a medium sized business. It helped us compliantly garnish child support and work around loans with the pay stub being very detailed for the employee. The continuous articles in regards to new HR standards were great to keep up to date with new laws. The employee portal was a great tool so employees could manage their personal plans, alleviating extra work for the payroll department. The onboarding feature was also convenient to cut down on errors that are all too common with new hire paperwork. Being able to perform background checks on potential management was also a wonderful feature.

What do you like about this tool?

The multiple blogs on the ever changing employment laws was a huge benefit to the company. Being able to have employees manage their deductions and plans is also a great way to alleviate pressure off the payroll department. Customer service was also very kind and helpful when questions or issues would arise. Being able to have a company calculate and file taxes was also a great way to reduce accounting labor.

Why did your organization buy this tool, and how long have you used it for?

We used Paychex for approximately 7 years to streamline the payroll process between multiple restaurants. After many years of self service payroll, Paychex helped us make payroll more error proof. It was used in organizing employee compliance and benefits. It was also great for tracking taxes and being able to send needed info to the accounting department. It was easy to use when garnishing child support from employees' paychecks.

What do you dislike about this tool?

Paychex sales team is not as knowledgeable or fluid as their customer service staff members were. We did encounter login issues frequently. It usually was rectified with opening and closing the program but it was still time consuming. As pleasant as customer service is, I would like to be able to make minor changes without having to call a specialist.

How is this tool different than their competitors?

Paychex is a good service for smaller companies. I feel that integration and reports were not as easy to use as other programs such as Toast or 7shifts.

What Instructions should people think about when buying this type of tool?

The cost is fair although the tool can be time consuming. It is a great tool to keep up to date with employee relations and laws. I feel Paychex is continuing to grow and be better but I would compare other companies before signing a contract.

How has this tool changed or evolved over time to meet users needs?

Paychex has evolved with the changing labor laws and requirements and keeps their clients up to date. I also feel that they are streamlining scheduling and AR/AP into the application

What specific type of user or organization is this tool very good for?

Small offices or businesses.

What specific type of user or organization would this tool not be a good fit for?

Large companies or companies who do not have much time to devote to completing weekly payrolls.

Zenefits

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Zenefits
Learn More
Popularity Score
4 / 5
User Score
3.9 / 5
Product Score
4 / 5

Why we picked Zenefits

Zenefits is a type of software that can handle payroll for various types of employment: full-time employees, part-time employees, contractors, and freelancers in 49 states. The payroll software is known among SMBs in the US for its wonderful UI and budget-friendly price.

PROS

  • Zenefits is one of the top names in HR tech and payroll software for American small businesses.
  • Among the easiest payroll tools to figure out.
  • Scalable plans with transparent pricing.
  • Offers a free trial.
  • Doesn’t charge setup fees.
  • Mobile-friendly, with good built-in self-service capabilities.
  • Simple and effective automated workflows.
  • It’s one of the top names in HR tech and payroll software for American small businesses. 
  • Their platform is one of the best-looking and easiest to figure out among the sector. 
  • Zenefits can grow with you. Its pricing plans allow you to pay and tweak as you go, add certain modules when you need them, or get rid of them if you don’t.

CONS

  • Zenefits is among the easiest payroll tools to figure out.
  • Scalable plans with transparent pricing.
  • Offers a free trial.
  • Doesn’t charge setup fees.
  • Mobile-friendly, with good built-in self-service capabilities.
  • Simple and effective automated workflows.
  • As oriented to small businesses as the tool is, it doesn’t give you the chance to create a custom bundle of the services and/or modules you’d like to have. For instance, Zenefits does not offer a standalone ACA module. Therefore, you will need to purchase an entire HRIS plan if you want to access that offering.
  • In addition, Zenefits focuses on small to mid sized companies. If you're an enterprise organization, you may want to consider another option. 
  • Zenefits is also rather focused on the US market at this point. So, if your team is mostly in another country and you need more of a local know-how, it might not be the best bet for certain modules like payroll and benefits.
Zenefits Payroll Software for Small Companies screenshot

Zenefits Review

Zenefits offer a host of solutions, ranging from onboarding to benefits, payroll, performance, and offboarding, at a transparent and scalable pricing structure. Plus, Zenefits offers a free trial and doesn't charge for the tool's setup, making it more approachable than some other HR tools in the market.

Zenefits offers a gorgeous user interface. The mobile app is also well-designed, with built-in features for self-onboarding, time tracking, org charts, and payroll. Zenefits’ payroll is also pretty cool. It lets businesses pay full-time workers, independent contractors, and freelancers in a single platform.

The automated workflow is a nice touch that sets Zenefits apart from several HR solutions. It’s simple to set up but can lend HR leaders a good hand in automating workflows for key employee events like career advancements, birthdays, and job anniversaries.

However, there are a few things you should watch out for before purchasing Zenefits. First, the payroll feature isn’t included in any of Zenefits' plans but offered as an add-on. In other words, you need to pay extra to use the payroll tool. Second, Zenefits' customer service is noted to be slow in responses. Since there isn’t any support via phone or a dedicated person, it can be difficult to get help promptly. Lastly, Zenefits is tailored to the US-based SMBs, so the software won’t be that helpful if your hires are in other countries.

Zenefits Customers

Quora, Universal Group, Reddit, Asana

Zenefits Pricing

  • Zenefits has three plans, and its monthly pricing starts at $8 per employee.
  • The software also offers some add-ons with prices starting at $5 per employee per month.
  • Zenefits doesn’t charge setup fees.

Best For

Zenefits is a good deal for startups and small businesses that require HR services, employee management functions, and payroll for their hires in the U.S.

Zenefits in action
Reviewer's Rating
7/10

I use Zenefits at least once a week to update employee information. I approve vacations and time off for staff. The HR team adds new employees by setting up basic information. I sit with new hires to learn the system. I also manage processing 1099s/W2s with the company.

What do you like about this tool?

Zenefits is easy to use. The mobile app is very convenient and popular with employees. The platform is also very affordable.

Why did your organization buy this tool, and how long have you used it for?

We purchased Zenefits to handle onboarding for new employees. Zenefits allows you to manage many of the processes required for employees. Zenefits has a mobile app that streamlined access for staff to information like PTO, insurance information, and timekeeping. I have used the service for 3 years.

What do you dislike about this tool?

Zenefits relies on chat assistance and it can be inconvenient to wait for a response. The payroll processing can be a little tricky as you have to recheck data. Email notifications can be improved as they sometimes don't send at the appropriate time.

How is this tool different than their competitors?

Zenefits is a great tool and comparable to others like Gusto and BambooHR. I feel that there are more comprehensive programs but the price point is very fair.

What Instructions should people think about when buying this type of tool?

Do you want a simple program that handles all major HR, Benefit and Payroll needs? Do you need consistent access to tech support? Do you have a dedicated person to troubleshoot and verify data?

How has this tool changed or evolved over time to meet users needs?

Zenefits has improved their app and their processing time for updates in the system.

What specific type of user or organization is this tool very good for?

Zenefits is best for small/mid sized businesses and independent contractors.

What specific type of user or organization would this tool not be a good fit for?

It is not a good fit for large or multinational businesses.

QuickBooks

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QuickBooks
Learn More
Popularity Score
4.1 / 5
User Score
4 / 5
Product Score
4 / 5

Why we picked QuickBooks

Easily integrates with other Quickbooks products and has the fastest direct deposit.

PROS

CONS

Quickbooks Payroll Software for Small Business screenshot

QuickBooks Review

Most small businesses use Intuit Quickbooks accounting software for their lightweight bookkeeping. It is effective, simple, and affordable. The same is true for their online payroll software. Quickbooks payroll processes employee pay stubs and automatically files taxes in a simple, intuitive interface.

Quickbooks online stands out as having the fastest direct deposit amongst its competitors, processing same-day and next-day payments.

QuickBooks Customers

QuickBooks Pricing

Quickbooks pricing is as follows:

  • Core Plan: $22 per month plus $4 per employee
  • Premium Plan: $37.50 per month plus $8 per employee
  • Elite Plan: $62.50 per month plus $10 per employee

Best For

Small businesses that are already using Quickbooks accounting.

QuickBooks in action
Reviewer's Rating
7/10

We use QuickBooks on a weekly basis for all of our AP and AR needs. We send client invoices through QB, and we pay vendor invoices through a QB integration with Bill.com. We also use QuickBooks to distribute team payroll on a bi-monthly payroll. All of these features are directly tied to our management of the company's P&L and Balance Sheet.

What do you like about this tool?
  • QuickBooks is very affordable and reasonably intuitive.
  • Out-of-box, it comes with a generous offering of features, and you are able to add more through its ability to connect with third-party applications (Bill.com).
  • The online version allows us to access our financials from any computer, and there is a mobile app available for quick views and expense tracking.
  • QuickBooks also has a fairly extensive self-help library if you are unfamiliar with certain features or processes.
Why did your organization buy this tool, and how long have you used it for?

My company was in the market for a new accounting software to handle AR, AP, and payroll. The software we used before QuickBooks Online was too complex and more robust than what we needed, and the pricing structure was simply unaffordable. We've been using QuickBooks Online for 3+ years. It handles all of our invoices and vendor payments, and also helps us manage and distribute our payroll.

What do you dislike about this tool?
  • Unfortunately, QuickBooks has terrible customer service. In most cases, it is extremely difficult to contact a human customer service representative, and their support ticket system is very slow.
  • QuickBooks also has issues connecting with smaller banks, so some features may not be available if you use a local bank or credit union.
  • There are also a number of CSS and UX issues that hide certain Call To Action buttons or make them altogether unusable.
How is this tool different than their competitors?

QuickBooks stands out from its competitors through its offering of a robust set of features at an affordable price. The price structure allows for affordable scalability, as you only need one license for each business entity. The interface is user-friendly and does not require a lot of details steps in order to customize your experience.

What Instructions should people think about when buying this type of tool?

Before purchasing a license, you should think about how businesses you want to connect to the application. Other platforms may accommodate more elaborate business structures. You should also think about the total feature set you are looking to obtain. QuickBooks is great for general accounting, but its reporting capabilities are somewhat limited compared to other more customizable platforms.

How has this tool changed or evolved over time to meet users needs?

QuickBooks continues to add integrations that increase the number of available features without directly altering the platform. Connections to third-party services like Bill.com allow you to do more than what is offered out of the box.

What specific type of user or organization is this tool very good for?

QuickBooks is great for small businesses and business owners that handle all of their own accounting needs.

What specific type of user or organization would this tool not be a good fit for?

QuickBooks is not ideal for companies that are looking for advanced accounting reports or performance metrics. Larger organizations that have dedicated implementation teams would be better suited for a more customizable platform.

Remote

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Remote
Learn More
Popularity Score
4 / 5
User Score
4.6 / 5
Product Score
4.5 / 5

Why we picked Remote

This service makes it easy for businesses to hire and pay employees remotely across the globe.

PROS

CONS

Remote Payroll Program for Small Business screenshot

Remote Review

As the name suggests, Remote helps employers and business owners hire and manage their workforce across the globe. The software combines benefits, tax, HR, and compliance services to give you a well-rounded solution to onboard employees from any part of the world without getting into trouble with local labor laws in respective countries.

Remote functions as an employer of records (EOR) with local entities in over 50 countries and counting. They plan to set up in 130 more countries this year.

Remote Customers

Remote Pricing

Remote offers three pricing packages:

  • Contractor Management: Free
  • Employer of Record: Starts at $299
  • Global Payroll: Call to get a quote

Best For

An excellent choice for remote-first companies wanting to run payroll internationally.

Remote in action
Reviewer's Rating
8/10

We use Remote to maintain and track payroll and PTO for our international hires.

What do you like about this tool?
  • Very organized to track international payroll and PTO.
  • User friendly for both hiring manager and employee.
  • Great dashboard and easy to navigate.
Why did your organization buy this tool, and how long have you used it for?

We made international hires. Remote provided a safe space for us to negotiate, track and provide timely payments to our international employees. Remote provides similar HR/Payroll usage as another in-house system for example like TriNet.

What do you dislike about this tool?
  • If you’re unfamiliar with international payroll processing, it can be confusing.
  • Invoices need to be attended to so employees do not miss timely payouts.
  • Benefits and policies can be different country to country.
How is this tool different than their competitors?

Remote is the only platform I have used for international hiring purposes.

What Instructions should people think about when buying this type of tool?
  • What does the hiring manager and employee need access to regarding payroll, benefits and HR purposes when hiring internationally.
  • Confirmation that Remote can support the respective country you are hiring someone
How has this tool changed or evolved over time to meet users needs?

I’ve used Remote for about 6 months now and it’s worked like a charm. They provide a great customer support team that is responsive and knowledgeable about everything related to hiring and payroll policies with respect to regions and countries.

What specific type of user or organization is this tool very good for?

Companies that are looking to expand hiring internationally.

What specific type of user or organization would this tool not be a good fit for?

This tool would not be a fit for departments outside of talent acquisition, payroll and/or HR. Remote is primarily used for hiring and tracking invoices of international hires. It would not make sense for someone in sales, marketing or CS to ever use remote.

Square

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Square
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Popularity Score
4.3 / 5
User Score
4.2 / 5
Product Score
4.4 / 5

Why we picked Square

Seamlessly integrates with Square POS and other Square labor management tools.

PROS

CONS

Square Payroll System for Small Business screenshot

Square Review

Square is known for its retail payment-processing tools such as Square reader and Square POS. In 2015, they introduced Square payroll to cater to the payroll needs of SMBs.

The platform provides basic tools for you to automatically file taxes, manage employee work hours, and run payroll. For small businesses using Square POS, this software integrates seamlessly to provide a labor-sales ecosystem.

Square Customers

Square Pricing

Square payroll gives a $35 per month flat rate plus $5 per employee. They also offer a contractors-only plan for $5 per contractor.

Best For

Square is an incredible option for retailers, especially store owners and restaurants. These small businesses will find the combination of Square POS and Square payroll useful in many ways.

Square in action
Reviewer's Rating
9/10

We use Square for mobile sales. It allows us to avoid a hodgepodge of Venmo and PayPal transactions going through multiple workers. We use it a few times a month when we run large events and sell concessions. It's made the sales transactions much easier for customers. And it's also allowed us better control over our budget.

What do you like about this tool?

It's very convenient to use on the go. We don't have to pay a monthly fee - we just pay a percentage of transactions. Customers like having this option instead of using cash.

Why did your organization buy this tool, and how long have you used it for?

My organization bought Square for mobile sales transactions. It's a small operation, and we had been operating cash only, but a lot of customers didn't have cash. We tried using other online payment services, but they were going through organization volunteers instead of directly to the organization. This made it difficult to manage the budget and track down payments.

What do you dislike about this tool?

We are a very small non-profit operation so the transaction charges can add up. I don't like that we have to pay more if we have to manually enter a payment card number.

How is this tool different than their competitors?

I can only compare this to using Venmo, PayPal, and Zelle and Square is much easier for us to use. Customers don't need to have a pre-existing account - they can just use their credit or debit card. It makes things much easier.

What Instructions should people think about when buying this type of tool?

Consider whether this would be easier to use than cash or cash apps. Also consider the transaction fees. They can add up when you are a small business and/or nonprofit.

How has this tool changed or evolved over time to meet users needs?

I think they are always trying to be more user-friendly and accessible. It's nice to have a pricing model where we don't have to pay a monthly or annual fee.

What specific type of user or organization is this tool very good for?

It could be good for a range of organizations from large to small. Mine is very small and the pricing flexibility is good for us and allows us much easier transactions with our customers.

What specific type of user or organization would this tool not be a good fit for?

I think most organizations would benefit from Square. Again, I would just caution you to consider the transaction fees and make sure they are within an acceptable range for your organization.

OnPay

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OnPay
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Popularity Score
4.3 / 5
User Score
4.8 / 5
Product Score
4.7 / 5

Why we picked OnPay

It is fast, easy to use, and does not require a steep learning curve.

PROS

CONS

OnPay dashboard screenshot - one of the best small business payroll software

OnPay Review

Like all of the cloud-based software mentioned in this list, OnPay performs basic payroll, HR, and benefits management functions. It is the fastest among the software mentioned, saving businesses up to 15 hours a month. It is also extremely easy to use with very intuitive functions and it has a responsive chat feature operated by helpful professionals.  

OnPay has curated solutions for businesses in several business niches ranging from agriculture to NGOs, franchise to healthcare, and more. It also integrates with Xero accounting software.

OnPay Customers

OnPay Pricing

OnPay starts at $36 per month plus an additional monthly fee of $4 per employee. Your first month is free.

Best For

OnPay is best for small business owners that have no prior background knowledge on anything payroll.

OnPay in action
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Pro Tips on Payroll Software for Small Companies

Payroll Software Benefits and ROI for Small Businesses

For small businesses, time is money. You don’t want to spend time on repetitive tasks that can be easily automated. It is estimated that an hour wasted per employee amounts to $3,750 per year, and that figure can be as high as $11,250! For a small business, this is too high of a cost to bear. It affects your profitability and growth.

On the other end of the spectrum, automated payroll management saves you a lot of time (up to 40 hours a month) and money. Money lost due to human error during payroll  preparation proves to be a huge problem. The American Payroll Association estimates that human error can reach 8% while processing payroll manually. To give an example of what this means in hard numbers, an 8% human error rate on a $15,000 payroll equals $1,200 lost in erroneous wage calculation.  

With payroll software solutions, you are protected from compliance issues. Small businesses do not have the time nor resources to be at the front of the ever-changing tax policy landscape. 

It is especially complicated when you have employees in different states or beyond US borders. Each state and country has differing tax policies (deduction rates, compulsory contributions, etc.). If you default in filing correct tax returns, you will be penalized. In 2019 alone, the IRS levied $13.7 billion in tax penalties relating to payroll. As a small business looking to grow and expand, losing money to tax penalties will grossly affect your bottom line. All these can be avoided with a simple automated payroll solution.

Pricing Models for Small Business Payroll Service

For small businesses, payroll softwares mostly offer two kinds of pricing models:

  • Flat rate per month/year 
  • Base rate plus per employee per month/year

The majority of the payroll software companies mentioned in this article use a base rate model. That is a good choice for small businesses, especially those with few employees. If you are a rapidly-growing business or you already have a sizable number of employees (say > 50) then a flat-rate pricing model might be best.

FAQs

Which payroll company is best for small businesses?

It depends on your business needs and the price you are willing to pay. If you want an affordable, stand-alone full-service payroll, you can go for the more affordable options like Patriot, Quickbooks, and Zenefits. If you want HR solutions too, Gusto, and Paychex Flex, are a good fit.  

What is the most used payroll software?

Quickbooks is the most used payroll software due to their accounting suite. Paychex and Gusto are close runner ups.

What is the best international small business payroll service?

Amongst the payroll software providers on our list, Remote offers the best international options.

Final Advice on Buying a Small Business Payroll Solution

For small businesses, the process of choosing a payroll service provider can be cumbersome. The extreme dynamicity of small businesses requires you to choose one that fits your exact needs. We advise you to highlight your needs using these questions:

  • How big is my business? Are you a solopreneur, a microbusiness with fewer than 10 employees, or maybe a small enterprise with over 100 staff?
  • Who are my employees? Are your employees salaried workers or contractors? If they are salaried, do you pay an hourly wage or monthly salary?
  • What is my budget? How much can you spend per employee/per month?

Answering these questions satisfactorily will streamline your payroll options. If, for example, you have employees that get paid per hour, you will likely opt for a payroll software that has time tracking to calculate and sync employee hours with payroll. 

In the end, make sure to take your time and ask a lot of questions before you choose the best payroll software for your small company.    

Please note that the services mentioned in this article are for small companies in the United States. If you are a global business looking to compensate your remote employees while staying compliant with international labor laws, check out our roundup of the best international payroll companies

About Us

  • Our goal at SSR is to help HR and recruiting teams to find and buy the right software for their needs.
  • Our site is free to use as some vendors will pay us for web traffic.
  • SSR lists all companies we feel are top vendors - not just those who pay us - in our comprehensive directories full of the advice needed to make the right purchase decision for your HR team.

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