10 Best Payroll Software for Small Business in 2024 [Latest Updated] (2024)

Payroll software plays a crucial role in managing employee salaries and wages efficiently for small businesses. In 2024, as payroll software companies continue to innovate, these tools are becoming essential for automating payroll processes, ensuring accuracy, and complying with legal requirements. This software simplifies tasks like calculating wages, deductions, and tax withholdings, which can be complex and time-consuming when done manually. From tracking hours worked to calculating employee wages, your duties can be overwhelming. That’s when payroll software comes into play.

For small businesses, using in-house payroll solutions is vital to avoid errors, save time, and maintain employee satisfaction by ensuring timely and accurate payments. In this article, we will explore the top 10 payroll software for small business in 2024, highlighting their key features, benefits, and why they are indispensable for effective business operations.

10 Best Payroll Software for Small Business in 2024 [Latest Updated] (1)

Table of Content

  • What is a Payroll Software?
  • How does HR Payroll Software Work?
  • Importance and Goals of Payroll Software
  • List of Best payroll software forsmall businesses in India
  • Gusto
  • QuickBooks Payroll
  • ADP Run
  • Zenefits
  • Square Payroll
  • Wave Payroll
  • OnPay
  • Patriot Payroll
  • Paycom
  • Paychex Flex

What is a Payroll Software?

Payroll software is an amazing way to automate payroll. It’s affordable for most corporations and simple to use, so it saves a little labor time. Processing payroll is an important role of any business and necessitates knowledge of current regulations, and in-depth tax knowledge to ensure proper withholding and filing, it is a highly effective software that can be relied upon to pay every employee the proper amount of money. For many companies, the use of payroll systems can help mitigate stress and reduce errors.

Payroll software is budget-friendly for most businesses and easy to apply, so it saves some hard work time. There are various payroll software options, so you can pick the amount of help you need with payroll. Since payroll is still taken care of in-house with payroll software’s, it is less difficult to make modifications and retrieve historical data, which can also be an advantage over payroll outsourcing.

How does HR Payroll Software Work?

Payroll software generally takes worker data that has been entered into the system (Name, National Insurance data, and many others) and uses this data against your organization’s policy information to calculate net pay for employees and carry out the payroll process.

Depending on which system you use, this data may already exist inside the software (if your HR and payroll systems are integrated) or it may need to be inputted.

Payroll software systems calculate how much each worker will get in their pay package every month and create a pay slip to show this information. If an employee has been off sick or on vacation, this data is taken into consideration as per your company policy (in terms of payroll).

Any tax or NI contributions are deducted (with some other taxable deductions, like company benefits), giving the net pay. Payroll software systems then make payments to employees and create reports relevant to that payroll run or month.

Importance and Goals of Payroll Software

Payroll is a vital part of a business’s operations. It isn’t only responsible for personnel’s salary payments; it also plays a vital role in shielding an organization by ensuring its compliance with tax rules.

Here are a few reasons why payroll software is so essential:

1. Compensation

An employee’s compensation can also consist of bonuses and other benefits besides their earnings. Bonuses and earnings will increase according to overall performance evaluations, which are also managed via the payroll system.

2. Paying Taxes

To follow state and federal tax laws, organizations have to withhold salary and payroll taxes from a worker’s payroll and pay the taxes on time.

3. Reputation

Not only does an employer have a financial obligation to its employees, but it also needs to ensure that its payroll is compliant with the country’s tax and employment laws.

4. Following Labor Laws

Understanding labor compliance is another way to ensure your business has satisfied employees and is following local and federal legal laws.

5. Government Reporting

Payroll software helps corporations follow tax and employment laws.

List of Best payroll software forsmall businesses in India

Here are some of the best payroll software companies offering solutions tailored for small businesses in India. These best payroll software in India provide essential key features like automated payroll processing, tax calculations, and employee self-service portals. Explore their pros and cons to find the ideal payroll solution for your business needs.

Gusto

Gusto’s complete-service payroll software helps businesses take care of their teams. With it, you can easily run payroll for salaried employees and contractors as often as you need every month. It additionally lets you automatically file payroll taxes, manage healthcare and different employee benefits, perform next-day, two-day, and four-day direct deposits, and more.

Gusto is a superb choice for business owners and marketers seeking to automate their payroll procedures to reduce administrative hiring and, alternatively, direct their resources closer to the business’s mission.

Best For : Effortless Payroll Management and HR solutions

Features:

  • Benefits management
  • Check printing
  • Direct Deposit
  • Electronic forms

Pros

Cons

  • User-friendly interface
  • Comprehensive payroll and HR solutions
  • Integration with accounting software
  • Excellent customer support
  • Pricing can be higher for smaller businesses
  • Advanced HR features may require higher-tier plans

Pricing:

  • It starts at $40 per month plus $6 per person per month.
  • Trial: No
  • Free Plan: No

Website: Gusto

QuickBooks Payroll

QuickBooks Payroll is a leading payroll software company that simplifies payroll management for businesses of all sizes. It integrates seamlessly with QuickBooks accounting software, offering comprehensive solutions for payroll processing, tax calculations, and employee benefits administration. As of 2024, QuickBooks Payroll serves millions of businesses worldwide, handling payroll for over 1.4 million employees.

Best For: Small to Medium-sized businesses

Key Features:

  • Automated payroll calculations and tax filings
  • Employee benefits management
  • Integration with accounting software
  • Time tracking and attendance management

Pros

Cons

  • User-friendly interface
  • Accurate payroll calculations
  • Customizable payroll reports
  • Excellent customer support
  • Higher pricing tiers compared to some competitors
  • Additional fees for some advanced features
  • Limited customization options for certain payroll processes

Pricing of QuickBooks Payroll

QuickBooks Payroll offers several pricing plans:

  1. Core Plan: $45/month + $4 per employee per month
  2. Premium Plan: $75/month + $8 per employee per month
  3. Elite Plan: $125/month + $10 per employee per month

Website Link: QuickBooks Payroll

ADP Run

ADP Run is a popular payroll management tool designed specifically for small to medium-sized businesses. It simplifies the payroll process by automating calculations, tax withholdings, and payroll submissions, ensuring compliance and accuracy. ADP Run is trusted by thousands of businesses, managing payroll for companies across various industries.

Best For: Small to Medium-sized businesses to manages payroll but also integrates with other HR functions.

Key Features:

  • Automatic payroll processing
  • Compliance with tax regulations
  • Integration with HR systems
  • Real-time payroll reports

Pros

Cons

  • User-friendly interface that simplifies payroll operations
  • Reliable customer support
  • Ensures compliance with local and federal tax laws
  • Can be expensive for very small businesses
  • Some features might be excessive for businesses with very simple payroll needs

Pricing of ADP Run

  • Essential Plan: Starts around $59 per month plus $4 per employee.
  • Enhanced Plan: Starts around $109 per month plus $4 per employee.
  • Complete Plan: Starts around $139 per month plus $4 per employee.
  • HR Pro Plan: Starts around $169 per month plus $4 per employee.

Website Link: Visit ADP Run

Zenefits

Zenefits is a cloud-based human resources software designed to help small to medium-sized businesses streamline their HR processes. It integrates various HR functions into a single platform, including payroll for small business, benefits administration, and compliance management.

Key Features:

  • Automated payroll processing
  • Benefits management
  • Compliance tracking
  • Employee onboarding
  • HR analytics

Pros

Cons

  • Comprehensive HR solution with extensive features
  • User-friendly interface
  • Efficient automation of routine tasks
  • Can be costly for very small businesses
  • Some reports of limitations in customization options

Best For: To manage payroll, benefits, and compliance all in one place.

Pricing of Zenefits

Zenefits offers three pricing plans:

  • Essentials: $10 per employee per month
  • Growth: $18 per employee per month
  • Zen: $27 per employee per month

Website Link: Zenefits Official Website

Square Payroll

Square Payroll is a streamlined payroll service tailored for small businesses, focusing on ease of use and integration with other Square products. It’s recognized as one of the top payroll software for small business in india, especially for those already using Square’s suite of tools.

Key Features:

  • Automatic tax calculations and filings
  • Integration with Square POS and timecard systems
  • Benefits and health insurance management
  • Online employee portals

Pros

Cons

  • Simple and intuitive interface
  • Seamless integration with other Square services
  • Affordable pricing for small businesses
  • Limited customization options for larger businesses
  • Dependence on other Square products for full functionality

Best For: Retail or Hospitality companies

Pricing of Square Payroll

  • Monthly Subscription Fee: $35 per month
  • Per Employee/Contractor Fee: $5 per person per month

Website Link:Square Payroll

Wave Payroll

Wave Payroll is a component of Wave’s financial management suite, specifically designed to address the payroll needs of small businesses. It is recognized as one of the top payroll software for small business, offering an integrated approach to financial and payroll management.

Key Features:

  • Automatic tax calculations and filings
  • Direct deposit and employee self-service portals
  • Seamless integration with Wave’s accounting and invoicing tools

Pros

Cons

  • Affordable pricing tailored for small businesses
  • Intuitive user interface that simplifies payroll processing
  • Efficient synchronization with other Wave products for holistic financial management
  • Limited to only available in the U.S. and Canada
  • Features might be too basic for larger businesses

Best For: Eesy-to-use, cost-effective payroll solution that integrates well with other financial management tools.

Pricing of Wave Payroll

  • Base Fee: $35 per month
  • Additional Employee Cost: $6 per employee per month

Website Link:Wave Payroll

OnPay

OnPay is a highly respected provider of payroll services, catering specifically to the needs of small to medium-sized businesses. It is recognized for its comprehensive service that combines payroll processing, tax filing, and compliance in a user-friendly platform.

Key Features:

  • Unlimited payroll runs in all 50 states
  • Automatic tax calculations and filings
  • Employee self-service portal for accessing pay stubs and tax forms
  • HR tools, including document templates and compliance updates
  • Easy integration with popular software like QuickBooks, Xero, and time tracking tools

Pros

Cons

  • User-friendly interface that simplifies payroll management
  • Transparent and predictable pricing with no hidden fees
  • Excellent customer service with accessible support
  • While comprehensive for payroll, its HR features might be less extensive compared to larger, more integrated HR systems
  • Some users may find the customization options for reports and payroll processing somewhat limited

Best For: Accounting or time tracking without the complexity of larger HR platforms.

Pricing of OnPay

  • Monthly Fee: $40 base fee + $6 per employee
  • No Hidden Fees: Transparent pricing
  • Free Trial: 1-month free trial available

Website Link:Visit OnPay

Patriot Payroll

Patriot Payroll is a top-tier provider in the realm of payroll services, specifically tailored for small businesses. It offers a user-friendly platform designed to make payroll processing both simple and efficient. Patriot Payroll aims to take the complexity out of payroll management, allowing small business owners to focus more on growing their businesses and less on administrative tasks. The platform ensures that all payroll processes are handled accurately and in compliance with federal, state, and local regulations. With features like automated tax calculations, direct deposit, and an employee self-service portal, Patriot Payroll provides a comprehensive solution that meets the unique needs of small businesses.

Key Features:

  • Unlimited payroll runs with flexible pay schedules
  • Automated tax calculations and filings
  • Direct deposit and printable checks
  • Employee self-service portal for accessing pay stubs and W-2s
  • Integration with accounting software like QuickBooks and Xero

Pros

Cons

  • Affordable pricing with straightforward plans
  • Intuitive interface that is easy to navigate
  • Excellent customer support with various resources for learning and troubleshooting
  • Limited HR features compared to more comprehensive HR software
  • Some advanced features may require additional fees

Best For: Aaffordable, reliable, and easy-to-use payroll solution.

Pricing of Patriot Payroll

  • Basic Payroll: $17/month + $4 per employee
  • Full Service Payroll: $37/month + $4 per employee

Website Link:Visit Patriot Payroll

Paycom

Paycom is payroll software that aims to empower employees to manage their personal records. With it, personnel can do their payroll, as well as their timecard, PTO, expenses, and benefits, with guided self-service. The software tests the payroll to make certain there are no mistakes and allows employees to fix mistakes. Paycom additionally provides garnishment administration and payroll tax control.

Best For : Best for integrated HR and payroll solutions

Features:

  • Benefits management
  • Check printing
  • Compensation management
  • Health coverage administration

Pros

Cons

  • Comprehensive all-in-one HR and payroll solution
  • Excellent customer support
  • Scalable for businesses of various sizes
  • Higher cost compared to some competitors
  • Can have a steep learning curve for new users
  • Some users report issues with the mobile app functionality

Pricing:

  • Contact service provider for cost
  • Trial: No
  • Free Plan: No

Website: Paycom

Paychex Flex

Paychex Flex is a comprehensive HR and payroll platform designed to meet the needs of businesses of all sizes, from small startups to large enterprises. It offers a wide range of services to streamline HR and payroll processes, ensuring compliance and efficiency.

Best For: HR and payroll solution with extensive features, compliance support, and scalability.

Key Features:

  • Payroll processing with automatic tax calculations and payments
  • Employee self-service portal for managing pay stubs, benefits, and time-off requests
  • HR administration tools, including onboarding, performance management, and compliance
  • Benefits administration, including retirement plans and health insurance options
  • Time and attendance tracking with mobile app integration

Pros

Cons

  • Scalable platform suitable for businesses of varying sizes and industries
  • Comprehensive HR and payroll solutions in a single integrated platform
  • Customizable reporting and analytics for better insights into workforce data
  • Cost may be higher for small businesses compared to other payroll providers
  • Complex pricing structure with additional fees for certain services and add-ons

Website Link:Paychex Flex Official Website

Conclusion

In conclusion, choosing the right payroll software for small business can significantly streamline operations and enhance efficiency. The 10 best payroll software options for 2024 offer a range of key features such as automated payroll processing, tax management, and employee self-service portals. Each software reviewed provides unique pros like user-friendly interfaces and comprehensive HR tools, alongside potential cons such as pricing variations and feature limitations. By selecting a payroll software that meets your business needs, you can simplify payroll management, ensure compliance, and focus more on business growth. Investing in the right payroll solution is crucial for maintaining accurate financial records and keeping employees satisfied with timely and precise payments.

10 Best Payroll Software for Small Business In India – FAQs

Can payroll software assist with troubles like tax compliance and worker reimbursem*nt?

Yes, Strong payroll software is able to calculate payroll while concurrently calculating taxes, employee compensation, salary garnishments, PTO, and more. Not all payroll software services offer this, so make sure that the payroll software you select supports those features.

Is payroll software hard to use?

That depends on which payroll software you choose for your business. Not all payroll software is straightforward to use. Some of the payroll software listed above can let you request a guided tour with a customer service agent who can help you learn more about their software. After a demo, you’ll have a better idea of whether or not it will be easy for you and your HR supervisor to use.

How can payroll software help me with payroll taxes?

Payroll software automatically calculates and deducts both state and federal taxes from your worker’s wages. It also handles payroll tax assistance and bills to the government.

Is payroll an HR or finance feature?

Payroll functions each have HR and finance potential. It entails finance because payroll is one of your business’s overhead charges. Payroll is likewise a feature of HR because it involves tracking employees’ hours, time-off requests, and benefits.

Which payroll software is used in India?

Popular payroll software used in India includes Saral PayPack, greytHR, and Zoho Payroll. These platforms are tailored to meet local regulatory requirements and streamline payroll processing for businesses operating in India.



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