Managing payroll is a critical task for small businesses, and choosing the right software can save time, reduce errors, and ensure compliance. Here are the top payroll platforms for small businesses in 2024, along with their standout features:
- Gusto: Offers payroll and HR tools with automated tax filings. Pricing starts at $40/month + $6 per employee.
- OnPay: Budget-friendly with flat pricing ($36/month + $4 per employee) and unlimited payroll runs.
- Paychex: Scalable for growing businesses, starting at $59/month + $2-$12 per employee.
- Square Payroll: Best for businesses using Square POS, priced at $35/month + $6 per employee.
- Patriot Software: Affordable, starting at $17/month + $4 per employee, ideal for basic payroll needs.
Quick Comparison
| Payroll Platform | Starting Price | Key Features | Best For |
|---|---|---|---|
| Gusto | $40/month | HR tools, automated tax filings, compliance | Growing businesses with HR needs |
| OnPay | $36/month | Flat pricing, benefits admin, integrations | Simple, affordable payroll |
| Paychex | $59/month | Scalable, 401(k) integration, HR tools | Expanding businesses |
| Square | $35/month | POS integration, mobile app, tax filing | Retailers using Square POS |
| Patriot | $17/month | Affordable, tax compliance, accounting tools | Budget-conscious businesses |
Each option caters to different needs. Gusto and Paychex are great for HR tools and scalability, while OnPay and Patriot focus on simplicity and affordability. Square Payroll is ideal for retailers using Square’s POS system. Choose based on your business size, budget, and specific requirements.
Payroll for Small Business - Overview of Gusto, SurePayroll, OnPay, Wave
1. Gusto Payroll Software
Gusto is a payroll platform designed to simplify payroll management for small businesses. It combines easy-to-use tools with a range of features that handle payroll and HR tasks efficiently.
Key Features
Gusto offers full-service payroll processing that includes automated tax filings, direct deposits, and compliance tools. The platform calculates and files taxes at federal, state, and local levels, ensuring everything is accurate and on time [1].
Pricing Options
Gusto provides several pricing tiers to suit different needs:
- Simple Plan: $40/month + $6 per employee, covering basic payroll needs.
- Plus Plan: $80/month + $12 per employee, which adds HR tools.
- Contractors Only Plan: $35/month + $6 per contractor.
- Premium Plan: Custom pricing for businesses requiring advanced features [2].
Tax Management Made Easy
The platform automates tax calculations, filings, and payments, helping businesses stay compliant. It also sends alerts about tax law updates and includes built-in reminders for filing deadlines [3].
Integrated HR Tools
Gusto goes beyond payroll by offering HR features like onboarding, benefits management, and time-off tracking. The Plus plan is particularly useful for businesses that need more advanced workforce management tools [3].
Customer Support
Support is available during standard business hours. However, businesses needing 24/7 assistance might find this limiting. Plus plan users get priority support and access to HR experts [6].
While Gusto is a strong option for many businesses, smaller teams might prefer a simpler and more budget-friendly alternative like OnPay.
2. OnPay Payroll Service
OnPay provides an easy-to-use payroll solution designed for small businesses that need simplicity without losing key functionalities. It’s known for its clear pricing and range of essential features.
Pricing Structure
OnPay uses a flat pricing model: $36 per month plus $4 per employee [8]. This straightforward approach covers all core features, with no surprise fees, making it appealing to small businesses on a tight budget.
Core Features
OnPay simplifies payroll management with:
- Automated Tax Management: Takes care of tax compliance, including withholdings, payments, and filings at all levels - federal, state, and local [8].
- Unlimited Payroll Runs: Process payroll as many times as needed without any extra fees.
- Benefits Administration: Manage employee benefits directly within the platform [7].
- Software Integration: Seamlessly connects with tools like QuickBooks and Xero, reducing manual data entry and boosting accuracy [7].
User Experience
The platform’s user-friendly interface makes payroll tasks easier, especially for small business owners who may lack payroll expertise or dedicated HR teams [7].
Customer Support
OnPay provides customer support during weekdays (9 AM–8 PM EST) and offers emergency weekend assistance for urgent payroll needs [7] [8].
With its simple features and clear pricing, OnPay is a solid option for small businesses looking for an affordable and hassle-free payroll service. However, businesses with more complex needs might consider alternatives like Paychex.
3. Paychex Payroll System
Paychex is a great choice for small businesses looking to expand, offering a mix of payroll and HR tools designed to grow with your company. It combines payroll processing with HR features and tax management tools.
Pricing Structure
Paychex pricing starts at $59 per month, plus an additional $2-$12 per employee. Custom plans are also available to fit specific business needs [3].
Core Features
Paychex provides a range of payroll and HR solutions, including:
- Automated Payroll: Streamlines payroll and tax filings, ensuring compliance and accuracy.
- Benefits Management: Simplifies managing health insurance and workers' compensation in one place.
- HR Tools: Offers a variety of human resources tools and access to expert support [3].
Integration Capabilities
The platform works with QuickBooks, Xero, and other HR systems, making it easy to sync data and manage employees in one system [3].
Customer Support
Paychex provides 24/7 support through multiple channels:
- Phone
- Live chat
- Payroll specialists [3]
Tax Compliance
Paychex takes care of tax calculations, filings, and year-end reports, including W-2 and 1099 forms. It also features a dedicated compliance team and real-time updates on tax laws [3].
While Paychex offers excellent scalability and support, businesses needing straightforward POS system integrations might find Square Payroll a better fit.
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4. Square Payroll Features
Square Payroll provides a straightforward payroll solution, especially useful for businesses already using Square's point-of-sale (POS) system.
Pricing and Key Features
Square Payroll is priced at $35 per month plus $6 per person, with a contractor-only option available at $6 per contractor and no base fee [2]. Its features include:
- Automated tax calculations and filings
- Unlimited payroll runs
- Mobile app for managing payroll
- Direct deposit payments
- Benefits management [3]
Integration with Square POS
A major advantage of Square Payroll is how smoothly it integrates with Square POS. This is particularly helpful for retail businesses, as it automatically imports timecards and syncs with popular accounting software, simplifying record-keeping [3].
Tax Handling
Square Payroll takes care of tax calculations, filings, and year-end forms automatically. It also stays updated with any changes to ensure compliance [2] [3].
Best Fit for Businesses
Square Payroll works well for:
- Seasonal employers
- Retail businesses using Square POS
- Companies managing both employees and contractors [1] [3]
For those on a tighter budget, Patriot Software offers another option worth considering.
5. Patriot Software for Payroll
Patriot Software offers a wallet-friendly payroll solution, with Basic plans starting at $17 per month plus $4 per employee and Full Service plans at $37 per month plus $4 per employee [1]. This pricing makes it an appealing choice for small businesses looking for payroll management that doesn’t break the bank.
Key Features
Patriot Software combines payroll essentials with helpful business tools, including:
- Direct deposit and payroll processing
- Integration with workers' compensation
- Automated tax calculations and filings
- Benefits administration
- Accounting integration with QuickBooks and Xero [1][3]
Simplified Tax Management
The platform takes the stress out of tax compliance by offering real-time alerts, automated calculations, and preparing year-end tax forms [1]. Its user-friendly approach helps small businesses stay on top of tax obligations without added hassle.
Support Options
Patriot Software ensures small businesses get the help they need with customer support available via live chat and an extensive library of online resources. Their team is well-versed in tackling payroll-related issues for small businesses [1][3].
How It Helps Businesses
Small businesses using Patriot Software report smoother payroll processes, faster processing times, and fewer mistakes. These improvements lead to cost savings and allow businesses to redirect resources to other priorities [1][3].
Who Benefits Most?
This platform is a great fit for:
- Small businesses on a budget
- Companies needing simple tax compliance tools
- Organizations looking for basic accounting integration
- Businesses with straightforward payroll requirements [1][2][3]
With a 30-day free trial, businesses can test the platform before committing. For those seeking an affordable payroll solution that covers the essentials, Patriot Software is a strong option to consider.
Strengths and Weaknesses of Each Option
Let's break down the key advantages and drawbacks of each payroll platform to help you decide which one aligns best with your business needs.
| Payroll Solution | Strengths | Limitations |
|---|---|---|
| Gusto | • Wide range of HR tools • User-friendly interface • Next-day direct deposit |
• Higher costs for larger teams • Limited multi-state features in Simple plan [3][6] |
| OnPay | • Transparent flat-rate pricing • Excellent accounting integration • Benefits management |
• Basic feature set • Limited HR functionality [3] |
| Paychex | • Scales easily with growth • 401(k) integration • Comprehensive HR services |
• Complicated pricing structure • Steeper learning curve [1][3] |
| Square | • POS integration • Simple pricing • Free online store tools |
• Lacks advanced features • Best suited for existing Square users [2][3] |
| Patriot | • Affordable pricing • Tax compliance tools • Accounting integration |
• Limited to basic features • U.S.-only businesses [1] |
If HR tools are a priority, Gusto and Paychex stand out. Their extensive HR features and ability to scale make them great choices for businesses planning to expand [4][5]. On the other hand, OnPay and Patriot Software are excellent options for businesses focused on keeping costs low while still covering essential payroll needs [1][3].
For retail businesses, Square Payroll is a strong contender, especially if you're already using Square's POS system. Its easy POS integration and straightforward pricing make it ideal for small retailers and restaurants [2][3].
When choosing a platform, think about your business's current needs and future plans. Consider factors like multi-state operations, benefits management, and integration requirements to find the best match [3].
Final Thoughts
Choosing the right payroll software can make a big difference in keeping your small business running smoothly and staying compliant. Among the options, OnPay is a strong choice for small businesses thanks to its clear pricing, easy-to-use design, and reliable customer support - ideal for those looking for straightforward payroll management [7].
For businesses aiming to grow or needing more advanced HR tools, Gusto's Plus plan offers features designed to support expansion [4]. If you're a retail business already using Square's POS system, Square Payroll offers seamless integration [2]. And for those on a tight budget, Patriot delivers the essential payroll features without breaking the bank [1].
When deciding on a payroll solution, keep these factors in mind:
- Current and Future Needs: Evaluate what you need now and anticipate your growth over the next couple of years.
- Total Costs: Don’t forget to factor in per-employee fees and any additional features you might need.
- Support Quality: Check if customer support is available when you need it most, especially outside standard hours [7].
While OnPay shines for its simplicity, businesses with specific needs should explore other options to find the best match. The most expensive option isn’t always the right one - retailers may find Square's POS integration invaluable [2], while growing companies could benefit from Gusto's advanced HR tools [4].
Ultimately, your choice should reflect your business's unique needs and growth plans. Focus on the features that matter most to your operations, avoiding unnecessary extras. By weighing these considerations carefully, you can pick a payroll solution that simplifies your processes and supports your business's goals.
