When it comes to calculating employee pay, determining payroll taxes, making payments, and sending necessary tax forms for ensuring compliance, a small business payroll option is just what you need. Payroll is usually complex and difficult to tackle entirely on your own. You are likely to struggle if you have several employees to manage.
According to data provided by the IRS, it was found that 40% of small businesses lose an average of $845 every year on tax penalties. This is why it makes sense to use a payroll solution. It would handle all the hard work and help you stay on top of the legal requirements for your state.
As there are various payroll providers, you might not know which payroll software to use. However, there is no need to worry. We’ll give you exactly the information you need to move forward with confidence.
7 Trusted Payroll Service Options
These choices represent some of our favorite payroll services. Each one carries its own features and benefits. Only you can decide which is best, but this guide will give you a quick view of a handful of options.
1. Gusto
One of the best payroll companies that offers a powerful payroll tool is Gusto. It allows you to perform all types of tasks, simplifying the payroll process. You can generate reports, prepare tax filings, and make important decisions. Take advantage of this all-in-one accounting solution to take your business to new heights.
Known for its competitive pricing, you can browse through its different prices to determine which plan to go with. What sets Gusto apart is that it is packed with features that allow you to handle everything. Besides, your employees would appreciate you using the software.
Automate your payroll no matter which state you operate in and get all the support you need when you use it. As it is very easy to use, it won’t require any prior experience to unleash its full potential. Its tax services include automatic calculation of taxes and withholdings, along with end-of-year tax forms. Moreover, Gusto offers excellent customer service that you can rely on for dedicated support.
For quick reference, here’s a list of some of Gusto’s features:
Automated Taxes
W2s and 1099s
Child-support Garnishments
Tip Credits: Minimum Wage Adjustments
Gusto Debit Card
Paperless Paychecks
Multiple Pay Rates
Unlimited Payrolls
Flexible Payment Schedules
Net-to-Gross Calculations
Contractor Payments
Expense Integration
Payroll Reports
Time-Tracking Integrations
Federal R&D Tax Credit
Deductions
And so much more…
2. QuickBooks Payroll
Another amazing small business payroll option that allows you to fully utilize your resources is QuickBooks Payroll. Most of its features are similar to those offered by Gusto. It even accounts for checks, deposits, and employee health benefits.
If you’re looking for a well-rounded online payroll service with upfront pricing, that offers different pricing plans, QuickBooks has got you covered. It’s possibly the most used software out there. And for good reason. For years, individuals and business owners across industries have learned to trust their most important bookkeeping needs to QuickBooks suite of services, allowing them to manage their finances, their payroll, and continue filing taxes with ease. You’ll likely find it to be the perfect fit for your business.
Some of its full-service payroll tools and advanced features include company tax payments, automatic calculations of withholdings, 1099 e-file, tax penalty protection, time-tracking, connections with bank accounts, same-day direct deposit, automated payroll reports, and much more. As it integrates with most accounting platforms, you should have no trouble using it. Besides, it also provides strong customer support from a dedicated team and decades of use and refinement which have made it, perhaps the most recognizable bookkeeping and payroll software solution out there.
3. Paychex
The next payroll software that we just had to mention is Paychex. It allows you to expand beyond payroll and covers HR modules, including recruitment and hiring. Boasting world-class compliance expertise, you can use this tool to stay on the right side of the law. The system is regularly updated to keep up with the latest changes in the tax code.
Features include employee self-service, direct deposit and on-site check printing, general ledger support, garnishment payment services, accounting software integration, W2s and 1099s, new-hire reporting, labor compliance and worker’s comp insurance, tax credit services, financial wellness programs, an awesome 5-star mobile app, and several others.
Besides, it even offers 24/7 support, which is often not the case with other options. With an online library and comprehensive resources, you can rely on the software for tackling all types of issues. Even if your accountant or bookkeeper isn’t proficient, he or she should be able to learn how to make the most of the system to maintain compliance.
4. OnPay
Considered a solid payroll solution, OnPay provides integrations for just about every accounting software out there. It is possibly the best time-tracking tool available. Generally, it is recommended for businesses that are on the lookout for integration options.
You’ll have an easy time processing payroll as it streamlines the entire process and even allows you to run things using your smartphone. It’s also extremely easy to use and handle all 1099 and W2 filings as well as annual employer tax filings. OnPay also has positive customer support reviews.
Some features include:
Integration with QuickBooks, Xero and more, integrated 401k, wage garnishment, employee self-onboarding, time off tracking, multiple PTO accrual rates, automated tax payments, reimbursements, digital paystubs, mobile friendly access, a tax-accuracy guarantee and too many others to list here.
5. Wave
Offering a flat rate to businesses, Wave is a great payroll option. The price you pay for the service depends on which state you live in. It even provides free accounting software which you can combine for a more affordable option.
If you’re contemplating which payroll tool to use, you can try out Wave for free for up to 30 days. Its tax services include free tax filings, contractor 1099s, and employee W2s in 14 states, such as Texas, New York, and California. However, you should keep in mind that it has average reviews for customer service.
Here’s a look at some of Wave’s great features, which include both payroll and comprehensive bookkeeping.
Estimates, invoice payment reminders, invoice scheduling, live bank feeds, expense tracking, receipt scanning, contract management, 12 different reports, multi-currency support, exchange rate calculations, customizable invoices, and more.
6. ADP
A major reason we’ve included ADP is that it’s possibly the most experienced solution out there. It caters to every type of business regardless of the size. It can easily handle hundreds of workers. As your business grows, you will find ADP to be an incredible asset.
ADP offers automated payroll, time and attendance tracking, multiple integrations, tax compliance support, integration with HR and benefits, a wide range of apps from ADP Marketplace, and countless other tools and solutions.
It is worth mentioning, however, that it is not as easy to use as some other solutions. The learning curve may be a bit more involved. Still, it is definitely worth it. Its tax services include 1099 and W2 filings and even employer tax filings. With 24/7 customer support, you can reach out to the company at any hour to get the help you need.
7. SurePayroll
Lastly, SurePayroll is also a notable choice. It is suitable for small businesses that operate in a niche industry and struggle to find an appropriate payroll solution. The service works for just about every type of business, from retail outlets to churches and even non-profits.
Even though it’s not the easiest option, it’s quite intuitive, so you should have no trouble navigating through it. Some of its tax services include employer, 1099, and W2 filings. You can either opt for its no-tax filing plan or full-service plan. Its customer support also has a great reputation online. Just a few of SurePayroll’s tools include:
Calculates payroll taxes
Mobile functionality
Payroll step-by-step
Process year-end forms and reports
Auto Payroll
Pay 1099 contractors
Employee self-serve access
Why Certain Choices Work Better Than Others For Certain Businesses?
Not every business is the same. This is why a payroll option might work for some businesses and not for others. There are many factors that come into play when selecting payroll software, such as payroll legislation compliance, integrations, security, support, features, and ease of use.
It’s important for you to think about and discuss your priorities, the features that benefit your business and workflow the most. You can line them up side by side or use a chart online that someone else may have already compiled and created and use it to compare and contrast to figure out which one is best for you.
The Importance of Keeping Payroll Organized and Well-Managed
Maintaining your payroll is necessary to ensure that your small business continues to operate without any issues. Here are some of the benefits of an organized and well-managed payroll that will convince you to invest in a small business payroll solution.
Saves Time: When you organize your payroll, you get to save a ton of time. It ensures that you are able to load data quickly, right when you need it most. In addition to this, it even lets you generate reports instantly rather than having to go through an endless pile of payroll records.
Cost-Effective: A major advantage of using a payroll solution for keeping your payroll well-managed is that it is cost-effective. By using a payroll service, you get to save money by avoiding compliance penalties. Similarly, you also get to make sure that you don’t overpay employees, vendors, or different subscriptions and services.
Improves Compliance: As the possibility of making errors would be mostly eliminated when you use a small business payroll solution, it would help improve compliance. The fact is that there are countless payroll tax rules and regulations that you need to keep up with. By using the right tool, you get to avoid stress.
Conclusion
With the right payroll software, you get to calculate how much your employees earn based on the wages set and the hours worked. It also ensures that you pay the correct payroll taxes, including local, state, and federal taxes.
Managing payroll manually often results in errors, leading to confusion and IRS fines. Opting for a payroll solution helps you maintain compliance and avoid these nasty consequences. Payroll and bookkeeping service solutions keep track of multiple streams of information, allowing you to know exactly where your money is going, how it’s being used, how it might be used more effectively, and how to capitalize on new opportunities. It’s always wise to take advantage of the best tools available. Don’t hesitate to get on board with a trusted digital payroll solution and experience the peace of mind they can provide.
Sound Accounts is your complete bookkeeping service solution. We help business owners find greater productivity, organization, compliance, and success by managing their books and opening greater opportunities through sound financial practice. Contact us today to get started.
For answers to some of your payroll service inquiries, check out our frequently asked questions below.
FAQs
What Is The Best Way To Handle Payroll?
The best way to do payroll for your small business is by starting with a good payroll software. It will ensure that you stay organized, efficient, and compliant. It’s also wise to link up with an experienced outsourced bookkeeping service provider to make the most of your software, provide financial advice and help you spot opportunities for improvement.
Do I Need a Payroll Service if I Only Have One Employee?
Since payroll taxes apply even if you only have one employee, you must maintain your payroll. There are no special exemptions for any type of business. While managing payroll and bookkeeping in smaller companies is often more straightforward than with larger corporations, it is usually the right idea to use a dedicated program to keep yourself organized, avoid mistakes, and set the precedent for continuity and success as your business grows.
What Is The Easiest Payroll Software To Use?
If you’re searching for the easiest payroll software, QuickBooks is probably your best option. It offers an intuitive user experience that you will quickly become familiar with. Besides, it even provides plenty of resources and how-to videos to help you get started. There’s a reason it’s one of the most trusted options out there.
