Best Payroll Services for 2024

Payroll is often one of the largest expenses incurred by a company, and managing it can be frustrating for everyone involved. Payroll errors are time-consuming to fix and can cause employee satisfaction to plummet. That’s why many small businesses turn to payroll services for processing payroll. However, not all small business payroll services are created equal. The most basic will simply help you crunch numbers, while the best will allow you to automate your payroll and simplify tax filings.

When it comes to choosing a payroll service for your business, you’ll want to select one that can handle everything you need. To help you make an informed decision, we researched the top small business payroll service providers to identify the best providers, highlighting the brands that excel in specific areas.

Payroll is often one of the largest expenses incurred by a company, and managing it can be frustrating for everyone involved. Payroll errors are time-consuming to fix and can cause employee satisfaction to plummet. That’s why many small businesses turn to payroll services for processing payroll. However, not all small business payroll services are created equal. The most basic will simply help you crunch numbers, while the best will allow you to automate your payroll and simplify tax filings. When it comes to choosing a payroll service for your business, you’ll want to select one that can handle everything you need. To help you make an informed decision, we researched the top small business payroll service providers to identify the best providers, highlighting the brands that excel in specific areas.

Rippling

Rippling’s online payroll software has a user-friendly interface and requires little training for new users. The software works with over 500 third-party applications to improve your payroll process, tax preparation and other business operations. The payroll process is so simple that you can run it in as little as 90 seconds.

The software tracks important metrics like total hours worked per employee, paid time off and labor expenses. You can set up direct deposits directly in Rippling or give employees paper checks. The software automatically deducts an employee’s tax withholdings based on their filing status, and it automatically files international taxes.

Rippling advertises a price of $8 per person per month but requires custom quotes for the base fee.

Read our Rippling review for more information.

JustWorks

Outsourcing payroll and HR services to a professional employer organization (PEO) can help your company save on benefits and payroll expenses. Justworks offers an affordable and comprehensive solution with robust online payroll services, employment practices liability insurance, and seamless accounting software integrations. Its high-quality health insurance options and built-in time-tracking tools make it our top choice for PEO services.

Justworks’ pricing starts at $59 per employee per month, which is higher than standard payroll software solutions. However, by acting as your PEO and co-employer, Justworks provides access to a 24/7 customer service team available via Slack, phone, email, chat, and text, ensuring continuous support for your business needs.

Zenefits (formerly TriNet)

Zenefits Payroll is a smartly presented software platform that can run payroll in just three mouse clicks. It offers all the core functionality we look for in our review of payroll services at a highly competitive cost. There’s extensive report functionality, including pre-prepared reports, while niche features include reported tips and assistance with child support remittance. Part-month payments are automatically prorated, dynamic pay stubs can be personalized with messages, and workers are able to view documents even after they’ve left the company to work elsewhere.

In terms of pricing, Zenefits offers modular packages that can be built on one of three base plans, which range from $8 to $21 per month, plus $6 per employee per month.

Read our Zenefits review for more information.

The full Zenefits HR platform integrates seamlessly with TriNet Zenefits. Source: TriNet Zenefits

Papaya Global

If you plan to expand your business globally, Papaya Global is a great option for payroll processing. The vendor can run payroll in more than 160 countries for all types of employment. That’s why it’s used by large brands like Microsoft, Toyota and Shopify.

The company’s employer of record service ensures that you stay compliant with the various employment laws in all the countries where you have workers. Papaya Global will even help you secure short-term or long-term work permits for employees outside their home countries.

Papaya Global doesn’t charge a base fee for running payroll; the payroll package simply costs $20 per employee per month. But if you need to use the company as your global employer of record, it costs $650 per month.

Read our Papaya Global review for more information.

Heartland

Not all online payroll services offer prompt responses when issues arise, but Heartland Payroll stands out by providing on-demand access to professionals who can address your questions about payroll tax preparation and labor laws. Its HR Support Center features Ease and Employee Navigator, which streamline new-hire reporting and benefits-related payroll deductions. With a comprehensive payroll solution and extensive HR resources, small businesses can avoid manual data entry errors and stay current with the latest regulations. That’s why we consider Heartland Payroll the best payroll software for HR support.

Patriot

A small team doesn’t always require a full-service payroll system, and we appreciate that Patriot Software offers a manual tax filing solution. This option allows small businesses to save over $200 annually on monthly fees while still providing unlimited payroll runs for all pay frequencies and support for both 1099 and W-2 workers. For those who need more, upgrading to the full-service payroll solution remains more affordable than most competitors. Based on our evaluation, Patriot Software is the best online payroll system for small teams.

Patriot Software’s pricing starts at $17 per month, plus $4 per employee for self-service tax filing.

Paychex

Paychex is a payroll service that’s a great option for businesses of all sizes. The company offers weekly, biweekly, semimonthly and monthly payroll schedules. Paychex can accommodate all types of workers, including full-time and part-time employees, 1099 contractors, and freelancers. Team members can choose to receive their paycheck as a direct deposit, paper check or prepaid debit card.

Paychex offers three packages, which start at $39 per month, plus $5 per employee per month.

Read our Paychex payroll review for more information.

With Paychex, you can access both HR and payroll solutions. Source: Paychex

Online payroll providers typically have a monthly or per-payroll cost structure. With monthly plans, you pay a base fee and a per-employee fee. Base fees typically range between $30 and $150 per month, and per-employee fees often range from $5 to $15 per month. Some firms are open and honest about their costs, while others prefer to generate a customized quote in response to a new business inquiry. This means handing your contact details over to a sales rep, who is free to give you the hard sell on that company’s products and services.

With a monthly fee structure, you can usually run payroll as often as you like for one flat fee. This is often a more economical choice for a business that runs payroll several times per month. With a per-payroll fee structure, companies may charge you anywhere from $10 to $100 per payroll run, plus per-employee fees of $2 to $15 per month. A per-payroll model might work better for a business that runs payroll more infrequently. In addition, some providers charge extra for year-end tax services and initial setup.

A few online payroll services offer a free trial, giving you the chance to try out the software for at least one payroll run to see if it meets your needs. Even if you can’t get a free trial, several vendors will let you cancel your contract at any time. Other vendors, such as QuickBooks, offer bundle deals for their accounting and payroll software. Be sure to take advantage of any available discounts and introductory offers.

Payroll services offer a variety of features and tools that streamline payroll processing for small businesses. Here are some of the most valuable features to look for when considering payroll companies.

• Unlimited payroll processing: Some payroll services allow you to run payroll as many times as you want each month. This gives you the freedom to determine the pay periods that make the most sense for your employees. This flexibility also lets you pay independent contractors whenever they complete a project, without paying extra for additional payroll runs.
• Payment options: Most online payroll services allow you to pay employees by direct deposit, paper checks or prepaid debit cards (also known as pay cards).
• Payroll taxes: Online payroll services determine how much your business owes in payroll taxes. They’ll also complete and file the paperwork with the appropriate federal, state and local tax agencies, and make the required payments on your behalf.
• Automation: Cutting-edge artificial intelligence (AI) technology is on the rise in payroll software. This technology automates mundane payroll tasks like data entry, time tracking and calculations, which diminishes the likelihood of human errors.
• Year-end tax forms: Payroll services prepare all of the necessary year-end tax forms for your workforce and provide them to your employees and independent contractors.

Payroll software helps you generate employee forms come tax time. Source: Intuit

• PTO management: Some payroll services handle some or all of your PTO management. This can include tracking how much PTO employees earn and use, as well as allowing employees to request time off and managers to approve or deny those requests.
• Employee self-service: Payroll software typically has an online portal that employees can access to view their pay stubs and year-end tax forms.
• New-hire reporting: Many payroll services can complete and file the required paperwork each time you hire a new employee. These documents need to be filed in the state where your business operates.
• Mobile access: Most payroll services provide a dedicated mobile app or a mobile-friendly website, ensuring the platform is accessible from smartphones and tablets.
• HR services: In recent years, many payroll vendors have started offering additional HR services, like onboarding tools, employee benefits management and HR compliance. Additionally, some payroll companies give your business access to dedicated HR professionals who can help you navigate HR issues.
• International coverage: Some payroll software platforms will support payments to overseas contractors, while companies like Remote and Papaya have been built from the ground up to facilitate payments to foreign workers, freelancers and clients.

There are three key stages involved in choosing the right payroll service for your small business. We outline these below.

1. Determine Your Business’s Needs

When choosing an online payroll service for your small business, there are several factors to consider. For most companies, budget will play a big role in figuring out which provider to go with. What can your organization afford to spend on payroll processing and assorted services? What features can you live without, and which are absolute necessities? Many payroll platforms are bundled into larger suites of HR and human capital management (HCM) software, indivisible from these wider offerings and therefore unsuitable for businesses that want a payroll package only.

You will also need to determine how often you process payroll. Is it every week, biweekly or just once a month? Some payroll providers offer unlimited payroll runs, while others charge per run, so this is an important factor to consider.

Evaluate your firm’s competing priorities. Is same-day or next-day deposit important to you? Is it more vital than other functions? Does your business need a platform that includes additional HR services? Make a list of everything you want your payroll software to help you accomplish so you can look for providers that meet your company’s needs.

2. Research Potential Vendors

Once you know the specific features you’re looking for in a payroll software provider, you can compile a list of potential vendors. From there, you can review the features each vendor offers and get a sense of where each one stands out or falls short. Compare each system against your list of desired functions, and remove from consideration the platforms that don’t align.

Once you’ve narrowed your list down to just a couple of options, it can help to schedule demos with these providers. During a demo, you can see how the software works and ask the sales team pertinent questions. For instance, can you run payroll as often as you want each month? Does the package come with a mobile app and an employee self-service portal? You should also evaluate how intuitive and easy it is to use the program. The platform’s interface should be simple to understand and allow you to run payroll in a matter of minutes. Remember that sales reps will talk up positives and gloss over negatives, so be probing in your questions and don’t let them distract you from getting the answers you need.

Make sure you fully comprehend how the provider’s pricing works and what you can expect to spend each month. For instance, many payroll providers charge a base fee along with an additional per-employee fee. What structure do they use, and are any setup charges or fees levied for additional payroll runs? Do you pay for the software when it’s installed, a month after subscribing or when you perform your first payroll run?

Finally, you should look into what kind of customer service the company provides. How is the payroll provider rated by the Better Business Bureau, and how many customer complaints are there? Is there phone, email and chat support, or are you limited to just one of those options? The answers to these questions should further narrow down your prospects, as will the hours in which support is available. We found many companies offering fixed hours based on either Pacific or Eastern time, which obviously isn’t ideal if those hours of business don’t align with yours.

3. Make Your Selection

After you’ve weighed the pros and cons of each provider, you can identify your top options and begin the sign-up process with your preferred vendor. If possible, take advantage of demos or free trials so you can get some hands-on experience. Many providers also provide introductory offers and discounts. See if you can negotiate the advertised price, and always ask if any discounts are available; recently withdrawn offers or incentives may still be available on request. Once you’ve chosen the software that’s best for your business, you can move forward with the setup phase.

If you prefer to run your business from a smartphone, consider a payroll provider that offers a mobile app. Source: ADP

Here are some of the biggest advantages of using a payroll service:

• Increased efficiency: Using a comprehensive payroll service means you don’t have to hire someone in-house to handle all of your business’s payroll needs.
• Ease of use: The software does most of the heavy lifting for you. It calculates pay amounts, withholds the proper deductions and automatically distributes payments based on the method chosen.
• Ensured tax compliance: Payroll companies also take care of tax filings and payments for you, ensuring you meet your legal obligations. Most offer a tax guarantee, so if the payroll service makes a mistake when filing or paying your taxes, it will fix the problem and pay any fines you incur. If a particular platform doesn’t make this promise, look elsewhere.
• Reduced expenses: The best payroll services can save your company money by streamlining tax preparation. It can also help you cut costs by running more accurate payrolls and, if you go entirely digital, eliminating the need for paper documents.
• Reliable processing: Payroll services are the most reliable way you can run payroll each week. If you set up automatic payroll, it will run without any input from you. But even if you choose to operate it manually, the system can still send you reminders each week. This ensures employees are paid accurately and on time.
• Wide accessibility: If your payroll service offers a self-service app, employees can easily access any details they need. Logging in to the app should reveal their pay stubs, W-2s and direct deposit information. Some platforms let employees check their pay slips before payroll is run, providing a useful window to correct errors preemptively.
• Manage remote workforces: Payroll services provide you with the tools to stay in compliance with laws and regulations in almost any jurisdiction. Some providers also offer employee-of-record services for overseas workers.

To choose the best payroll software on the market, our team of analysts and business operations experts evaluated an initial list of 77 platforms. Through a rigorous selection process, we whittled this list down to 22  options, ultimately crowning eight payroll software programs as our top picks. Our expert reviewers meticulously dissected each solution’s functionality, putting them through the wringer on a comprehensive 22-point assessment.

To reach our final recommendations, we meticulously evaluated various factors weighted by their significance to business owners. These categories echo the real-world priorities that savvy business owners consider when selecting software for their companies.

• Pricing: (30%): Our team crunched the numbers and meticulously compared features across all vendors. We left no stone unturned, analyzing everything from monthly subscriptions and per-employee costs, to optional add-ons and any per-payroll fees.
• Features (25%): We looked for standard payroll software functions, including seamless processing (both unlimited and per-payroll options), efficient employee management, user-friendly PTO tools, insightful reporting and analytics, comprehensive benefits administration, and streamlined hiring/onboarding tools. Additionally, our team assessed the availability of integrations with third-party business applications, ensuring a well-connected ecosystem.
• Ease of Use (20%): Leveraging demos and free trials, we put each platform’s user experience to the test. Our team meticulously evaluated both employer and employee perspectives, considering user feedback and the availability of mobile apps for maximum convenience.
  
• Customer Service: (15%): Because robust customer support is essential for small businesses, we assessed the range of options offered by each vendor. This included evaluating phone support availability across different subscription tiers and the quality of online resources for self-service troubleshooting.
• Expert Analysis (10%): Our recommendations are informed by the extensive experience of our in-house business operations experts. Their years of reviewing and  testing of payroll software ensures that we only recommend the most effective solutions.

By evaluating these factors, we not only identified the most trustworthy payroll software options, but also analyzed how each platform caters to specific business needs. We recognized that some software shines brighter for certain tasks or is a perfect fit for particular company types. This analysis underpins the “Best For” categories displayed on this page, empowering you to identify the software that aligns perfectly with your unique business goals.

To learn more about our methodology, see our full editorial process.

Mike Berner contributed to this article.