Deeper Dive: Our Top Tested Picks
Best for Larger SMBs and Vertical Industries
OnPay
Pros & Cons
Fast, capable payroll processing for SMBs
Terrific user experience
Exceptional new guide for choosing medical insurance
Supports numerous vertical industries
Exceptional employee versions
Mobile admin version is missing some functions
No automatic payroll
Why We Picked It
OnPay serves both general businesses and specialized ones, such as those in professional services, medical offices, and farming. It’s easy to use, with a great user interface and navigation tools. It’s also flexible and reasonably priced at $40 per month plus $6 per employee or contractor per month.
Who It’s For
OnPay is ideal for small businesses new to payroll, though it can also handle hundreds of employees. The service doesn’t pile on extra fees the way some payroll services do, so it’s good for small businesses on a budget. Its potential user pool is large since it’s an exceptional general payroll solution that also provides support for numerous vertical industries. OnPay rivals Gusto in terms of usability, so both novice and experienced payroll managers can get up to speed on it quickly.
Specs & Configurations
Mobile Admin Access
Responsive Site
Submits Federal, State, Local, and Payroll Taxes
Best for Businesses That Plan to Grow
ADP Run
Pros & Cons
Comprehensive employee records
Voluminous customizable reports
Robust set of HR tools
Simple, understandable interface
Exceptional mobile apps
Pricey
Limited to 49 employees
Some awkwardness manually entering hours
Why We Picked It
ADP is a well-known provider of payroll and benefits administration services. ADP Run is its version for SMBs. It gives small business owners an exceptional combination of usability and flexibility. ADP Run’s depth and customizability show in every part of the service, including its mobile apps.
Who It’s For
ADP Run targets businesses with fewer than 50 employees. Its attention to detail makes it a good choice for organizations that need deep recordkeeping, payroll processing, and reporting capabilities. Because ADP has plans for businesses of all sizes, it’s an appealing option for businesses that are poised to grow.
Learn More
ADP Run Review
Best for Novice Payroll Managers
Gusto
Pros & Cons
Flexible, thorough employee records
Clean, understandable payroll processing
Excellent employee-side apps
Comprehensive admin mobile access
Exceptional user experience
Expensive
Mobile access is comprehensive, but difficult to view
Why We Picked It
Gusto has four subscription levels for payroll processing, making it more scalable than most competitors. You can start with Gusto Simple, which offers everything you need to run payroll and upgrade as your need for features (such as time-tracking tools and more HR options) grows. A contractor-only version is also available. Gusto’s user experience is outstanding, and it takes much of the drudgery out of payroll and almost makes it a pleasant experience.
Who It’s For
Gusto is best suited to small businesses and novice payroll managers, thanks to its usability, understandable workflow, and company support. But the app is capable of serving larger companies, and its scalability makes it possible for businesses to grow with it.
Specs & Configurations
Mobile Admin Access
Responsive Site
Submits Federal, State, Local, and Payroll Taxes
Best Low-Cost Payroll Service
Patriot Software Payroll
Pros & Cons
Exceptional setup process and guidance for new users
Intuitive, attractive user interface
Improved payroll flexibility
Excellent employee portals
Great mobile access
Time & Attendance, HR incur extra fees
Some flexibility missing for pay runs
Doesn’t act as benefits broker
Why We Picked It
There’s something almost charming about Patriot Software Payroll. It’s simple to use and friendly, yet so capable. The information it shows you is, for the most part, easily scannable, though its simplicity is deceptive. Behind those modest pages is an efficient and intuitive payroll-processing engine. It’s flexible, thorough, and inexpensive.
Who It’s For
Because of its exceptional setup wizard, guidance for new users, and focus on payroll, Patriot Software deserves consideration by smaller businesses that aren’t likely to want to scale up and don’t need expansive HR support. It can handle more than 100 employees, but it’s best for companies with fewer than 10. A simple, inexpensive, integrated accounting application called Patriot Software Accounting adds to its appeal.
Specs & Configurations
Mobile Admin Access
Responsive Site
Submits Federal, State, Local, and Payroll Taxes
Learn More
Patriot Software Payroll Review
Best for QuickBooks Users
Intuit QuickBooks Payroll
Pros & Cons
Simple, understandable user experience
Flexible, thorough setup
Deep integration with QuickBooks Online and QuickBooks Time
Good, customizable reports
Expensive
Limited employee mobile apps
Post-payroll wrap-up could be improved
Standalone version toolbar looks barren
Why We Picked It
QuickBooks Online is the best overall small business accounting service, and it integrates beautifully with QuickBooks Payroll. If you don’t use QuickBooks for accounting, you can still use QuickBooks Payroll as a standalone application. It has a flexible and thorough setup process, as well as numerous customizable payroll reports. Like all Intuit products, its user interface and navigation tools are simple and understandable.
Who It’s For
We recommend QuickBooks Payroll primarily for QuickBooks Online users. It’s more expensive than most competitors, but its deep, smooth integration may justify the expense for payroll managers who want to take advantage of this all-in-one system. However, it doesn’t integrate with any other accounting applications. There are better, less expensive payroll services that you could use as a standalone or integrated service.
Specs & Configurations
Mobile Admin Access
App
Submits Federal, State, Local, and Payroll Taxes
Learn More
Intuit QuickBooks Payroll Review
Best for Small Businesses With Hourly Workers
Workful
Pros & Cons
Reasonably priced
Clean, intuitive user experience
Built-in time clock supports geolocation
Suitable for very small payrolls, such as a nanny
Good employee portals
Excellent mobile access
Payroll runs lack flexibility, access to supporting pages
Minimal HR tools
Unimpressive employee-side mobile apps
Only one third-party integration (QuickBooks Online)
Why We Picked It
Workful was only introduced five years ago, but it was developed by the same people who created TaxSlayer, so the company’s financial expertise goes way back. It has a mobile-first design, and both its apps and its browser-based version are intuitive to use and attractive. Its rating is lower than some competitors because it lacks the flexibility and access to supporting data competitors offer, but that may not be an issue for some very small businesses.
Who It’s For
Workful excels at supporting hourly workers who punch a time clock, though you can also use it to pay salaried workers. Its usability and simplicity make it a good choice for novice payroll managers. Workful is among the least expensive sites we reviewed, so small businesses on a budget might consider it. Because it’s such a new service, though, we don’t recommend using it if you have dozens of employees. There are better payroll websites for larger organizations.
Specs & Configurations
Mobile Admin Access
Responsive Site
Submits Federal, State, Local, and Payroll Taxes
Learn More
Workful Review
Best for Square POS Users With Hourly Workers
Square Payroll
Pros & Cons
Competent payroll processing for Square users
Contractor-only option
Good integration with Square’s POS app
New third-party HR add-on options
Expensive for what you get
Few earnings types
Uninspired user experience
Minimal report options
Why We Picked It
Square has an excellent financial application ecosystem consisting of multiple websites and other tools that work well together. Its payroll piece, Square Payroll, is especially well integrated with Square Point of Sale (POS). Together, they make a great team, supporting hourly workers and payroll administrators as they record hours, schedule shifts, and complete other compensation-related tasks. We include Square Payroll among the best online payroll services because of this powerful connection. By itself, however, Square Payroll is expensive (considering its scope) and not as feature-rich as its competitors.
Who It’s For
Square Payroll is best used in conjunction with Square POS. Its ideal user is a small business that wants to use both. We wouldn’t recommend Square Payroll alone for companies that have dozens or even a handful of employees. It really works best with that POS integration.
Specs & Configurations
Mobile Admin Access
App
Submits Federal, State, Local, and Payroll Taxes
Learn More
Square Payroll Review
Buying Guide: The Best Payroll Services for 2024
How We Test Payroll ServicesWe test and review payroll services (whether you call them apps or services or even software is moot) every year to find the best ones and help you pick the one that’s right for your business. How do we choose and review the best payroll services? We look at payroll services that we deem best for small businesses processing payroll for 10 workers or fewer—that’s our sweet spot, though these applications can handle many more employees. Then, we do hands on testing using sample payroll data. We also look at each payroll service’s history, reputation, and security practices. Most small businesses have modest needs for human resources and benefits administration. Some of the payroll services we review go well beyond these basics and can work for larger organizations, but we focus on small businesses and their payroll needs.What Is a Payroll Service?Online payroll services are web-based tools that process your organization’s payroll and distribute the correct amount of money to employees every payday. They calculate and submit payroll taxes and filings and track other withholdings, such as for health insurance and retirement plans. These services are compliant with standard HR guidelines and best practices.
(Credit: OnPay/PCMag)
How Much Does Payroll Cost for a Small Business?Every payroll website we reviewed charges a base price, averaging around $40 per month, and a per-worker (employee or contractor) monthly charge of usually just a few dollars. Some, like Patriot Software and Gusto, have additional fees for some services.Gusto is the most expensive. Its top tier, Premium, does not make its price public. You have to request a quote from the company. The version we reviewed, Gusto Plus, is $80 per month plus $12 per person per month. ADP Run and QuickBooks Payroll are not far behind. To be fair, these applications have more depth and flexibility than the less expensive ones do. Yet OnPay, one of our Editors’ Choice winners, gives you roughly comparable capabilities for about half the price.What Is the Best Payroll Service for Small Businesses?Based on our hands-on testing, the three top-rated payroll services currently are ADP Run, Gusto, and OnPay. Those three are the PCMag Editors’ Choice winners. ADP Run is ideal for businesses that are poised to grow. Gusto is best for people who are new to running payroll. OnPay is best for larger SMBs and those in vertical industries.Why Do You Need Payroll Software?If you process payroll manually, you know it is a complex, exacting, and deadline-driven process. Your employees count on you to dispatch their paychecks and authorize direct deposits on scheduled paydays. They expect you to know how much to withhold for all the taxes they owe and the benefits you offer.There’s an enormous amount of detail to track, especially if you try to do it all on paper. Mistakes aren’t tolerated well by anyone involved. Tax agencies can assess stiff fines and other penalties if payroll filings and taxes aren’t received by the scheduled dates. Benefits providers can cut off services such as health insurance if you fall behind on payments.Payroll services help you process accurate and timely payday runs. They count on you to provide correct information about your payroll configuration and employees. And they won’t let you complete a payroll if you’re missing any required inputs. They make supporting data like employee profiles available while you’re getting ready to pay your workers. They also offer special assistance and flexibility in areas like state registration and earnings types. Gusto can complete your state compliance requirements for you (for a fee), and OnPay is especially good at troubleshooting pay runs.These services can save you an enormous amount of time. They minimize the frustration and headaches associated with payday. They promote goodwill with your employees because of their accuracy, flexibility, and timeliness. And they may even save you money you would otherwise pay in penalties.What’s the Cheapest Payroll Service?The least expensive service is the Basic version of Patriot Software. It’s $17 per month plus $4 per worker per month (Time & Attendance and HR Software cost extra). But this version requires that you submit your payroll taxes and filings, a task that competitors take on themselves.
(Credit: Gusto/PCMag)
Initial Setup Is the Most Difficult PartThough each payroll service has a unique user experience, they all share similar structures. They begin with the setup process, which is the most time-consuming and detail-oriented element of paying your staff. Though the exact order varies, some services walk you through pages of questions in an orderly, step-by-step fashion. Others provide partial setup wizards and leave the rest to you. These setup wizards ask for information about your company, such as address and Employer Identification Number (EIN). You select your payroll schedule, which is usually weekly or biweekly, and you connect the application to your payroll bank account.If your business offers employee benefits such as health insurance and retirement plans, you can create records that outline the cost to employees and any company contributions. The companies that provide payroll solutions like OnPay and ADP Run are themselves benefits brokers, while QuickBooks Payroll allows you to work with a third-party provider. The required amounts are then deducted during the payroll process and submitted to these providers.You must also create thorough records for each employee, with details such as contact information, date of birth, Social Security number, salary or hourly pay rate, and number of allowances from form W-4.
(Credit: ADP/PCMag)
You need to enter any existing payroll history if you’ve compensated employees in the past. This process can be arduous and may require assistance from the site’s onboarding specialists because absolute accuracy is critical. Some sites, like ADP Run, include tools to help automate this process.If you offer additional payroll types like paid time off and sick pay, you can define your policies for accruing these benefits. The services then keep track of them for you. Bonuses and commissions can also be paid during a regular pay run, or you can issue them by creating an off-cycle payroll. Need to include garnishments like child support on paychecks? Payroll services can do that, too. Most also offer custom pay types, so you can create your own, sometimes even when you’re in the middle of a pay run.Once you complete the setup, you generally can’t return to the dedicated setup tools, so it’s essential to get it right the first time. That said, every payroll service we tested has a comprehensive settings section where you can modify and add to the payroll information you’ve already entered.Setup takes time and may require you to consult many resources. But in the end, it allows you to run your payrolls so much faster than you could with a manual system. How Long Does Running Payroll Take?Running payroll is the easy part. Though they differ in many ways, payroll services function similarly during the actual pay run. When you launch a payroll, they show you a list of employees (and possibly contractors; you may run them separately) and their pay rates. You first check to make sure the pay period and pay date are correct. After that, you simply enter the number of hours worked, where applicable, in the appropriate pay type boxes (regular, overtime, vacation, and so on) or import them. Every service has a way to import hours from timesheets or a time clock, which is more likely to be accurate than if you enter them manually. Sometimes, there’s an extra charge for this, like with ADP Run, which lets you turn a tablet into a time clock for punching in and out. Payroll software also lets you allocate funds for other earnings types and reimbursements on this same page.
Recommended by Our Editors
After you enter all the necessary details, you preview your payroll. You can see each employee’s gross and net pay, plus withholding for taxes and benefits, as well as any company contributions. The payroll service then shows you the total amount of money to be withdrawn from your bank account for direct deposits and taxes, as well as the exact date it will be debited. And it usually provides a link to checks that must be printed.
(Credit: Gusto/PCMag)
After you approve a payroll, your payroll service can generate additional tables or reports with the details of the pay run. And many allow you to edit, void, or cancel a payroll after it’s been approved, but before a stated deadline.If you have few employees or a very simple payroll, the process shouldn’t take more than a few minutes. Depending on which service you use, you may be able to let payrolls process automatically (assuming there are no changes from the previous run). Some even offer same-day payroll and advances on paychecks.Combined Payroll and Benefits AdministrationIn larger companies, payroll and benefits administration are usually handled by separate departments. In your small business, though, both of those responsibilities may land on your desk or that of another employee. There’s so much overlap between payroll and HR that even if you’re strictly running your payroll through a payroll service, you’ll still be doing HR tasks.Most of the payroll services we review offer basic HR components, such as online W-4 and W-9 forms, new-hire reporting, document templates, and document storage. We look primarily at each site’s payroll processing capabilities, with additional HR support being considered a bonus.Payroll On the RunIf you need to, you can run a payroll from your phone. It’s easier to do so on your desktop or laptop, but if you need to process payroll remotely, you can do so. You can view employee records and sometimes reports. Some payroll services are accessible through mobile browsers, and others through dedicated apps. They don’t all replicate absolutely every feature of the desktop version, but some of them do.As mentioned, you can invite employees to create login credentials and enter some of their own personal information on their personal worker portal, either on the desktop or mobile app. In many cases, they can do much more than that, like punch in and out, request time off, view benefits, and see pay stubs.Are Payroll Sites Safe?The thought of using a payroll service may leave you wondering whether it’s safe to put all your business’s payroll data online. All the payroll services we review come from reputable companies with years or even decades of experience. They make every effort to keep your sensitive payroll data safe, as you can read about in their reviews.Payroll Apps Have Many BenefitsUsing a payroll service has numerous advantages over running payroll manually, like greater accuracy and compliance, as mentioned earlier. They can save an enormous amount of time and frustration and provide comprehensive access to current and historical payroll runs. There are really no downsides to paying your employees and contractors in this fashion. So check out our reviews to see which one seems like a good fit for your small business.For more small business tools, see our coverage of the best small business accounting software and the best CRM software.
