Zoho Payroll is a promising option for automating payroll, taxes, and employee compensation across multiple regions. With versions tailored for India, GCC, and the U.S., this payroll software brings statutory compliance and pay cycle management together under one clean, easy-to-navigate interface.

In our demo of the U.S. version, we were able to set up the organization, tax settings, and direct deposit within an hour. The system supports both salaried and hourly W-2 employees, covering regular, bonus, off-cycle, and termination payrolls. The mobile-friendly self-service portal stood out for its simplicity: employees can authorize tax forms, view pay history, and track leave balances directly.

Where Zoho Payroll shines is its automation. It proactively files most U.S. payroll taxes, generates W-2s, calculates benefit deductions, and syncs transactions with Zoho Books. PTO policies are also flexible. You can configure accrual caps, carry-over rules, and state-specific compliance.

However, there are limitations to note. U.S. businesses cannot currently pay contractors (1099s) through Zoho Payroll, though this is supported in the India version. Third-party integrations could benefit from an expansion here, as the available connectors are all within Zoho’s ecosystem and haven’t yet included third-party accounting, time tracking, or HRIS.

We also caution buyers to review Zoho’s fee structure. While base pricing is competitive, you could face additional charges for failed transfers ($8–$100), late tax filings ($150), or manual wire payments. These are not the costs associated with the software, but rather the compliance-related costs, which are automatically added to your next billing cycle.

And because Zoho Payroll's U.S. edition launched as recently as September 2025, the feature set is still maturing. It's a good fit for businesses already using other Zoho products or for SMBs seeking a clean, compliant payroll experience.