Best Payroll Services for Small Businesses Shortlist
Here’s the list of the 10 best payroll service providers that I’ll cover in this article:
Small business owners, especially those who are first-time employers, need to focus on what’s important — growing their business. But it’s easy to get bogged down or overwhelmed by administrative work like running payroll. From keeping track of overtime to benefits administration to filling out tax forms, it can be a lot.
And that’s why full-service payroll companies exist. They handle the grunt work so you can keep your eyes on the prize. I’ve researched and reviewed the best payroll service providers available for small businesses. Keep reading to find the best one for your needs!
What are Payroll Services?
Payroll services are third-party providers that can process payroll on your behalf, freeing you from time-consuming tasks. They can help you with a range of payroll-related tasks, like basic payroll processing and bookkeeping, and submitting direct deposits into employee bank accounts.
Typically, payroll service providers will also file your federal and local payroll taxes. Some will also manage employee benefits for you, and track health insurance deductions and other wage garnishments like retirement plan contributions and workers’ compensation remittances.
Overviews of the 10 Best Payroll Service Providers for Small Businesses
Here’s a brief description of each payroll service provider for small businesses to showcase each system’s best use case, some noteworthy features, and screenshots to give a snapshot of the user interface.
Deel
Simple global payroll, with free HR tools for small businesses
Deel is a cloud-based payroll platform designed for businesses of all sizes. For small businesses looking for additional help, Deel lets you hire and pay freelancers and employees from anywhere in the world without having to figure out local laws, tax systems, or international payroll. You also get access to Deel’s HR suite for free, allowing you to manage your entire team with professional and automated tools.
Deel’s platform includes various elements that make it simple to pay employees and contractors without having to juggle several tools. Their user-friendly interface incorporates advanced payroll capabilities such as contract and stock option management, expense reimbursements, and compliance tracking for every client.
Deel is capable of flexible payment terms, allowing businesses to pay contractors on a fixed plan, per-project basis, or pay-as-you-go model. One of its key features is the ability to support multiple payroll cycles, which means businesses can run their payrolls weekly, biweekly, or monthly. Deel’s in-house experts handle all international employee deductions, withholdings, and benefits, including taxes, insurance, and retirement contributions.
Employees and contractors can self-manage their pay and personal data, which reduces admin load. Deel supports major payment channels like Wise, PayPal, Payoneer, and Revolut to offer flexible withdrawal options and reduce unnecessary international transfer fees.
Deel has positive online reviews from clients and their workers, and offers 24/7 online chat support. Employees can securely access their payroll information and perform various tasks, such as updating their personal information, requesting time off, and viewing their pay stubs.
Deel integrates with popular accounting and HR software systems such as Ashby, BambooHR, Expensify, Greenhouse, Hibob, Netsuite, Okta, OneLogin, Quickbooks, SCIM, Xero, Workday, and Workable, and has an Open API to support additional custom integrations too.
Deel’s payroll services use flat rate pricing, so you can scale up or down depending on your situation. Deel’s HR tools are completely free for businesses with fewer than 200 workers. You can also request a free demo through their website to discuss your hiring needs.
Papaya Global
Best payroll service for small businesses wanting to expand internationally
Papaya Global is a global work operating system (OS) and service provider that offers global payroll, payment, and workforce management solutions for businesses of all sizes. It's designed to help companies manage their international workforce more efficiently by automating payroll processes, ensuring compliance with local labor laws, and providing real-time data and insights.
Papaya Global caught my attention because it's specifically designed for businesses with a global workforce. Their payroll service is available in several styles, giving you end-to-end coverage for paying any type of employee, including contractors, full-time employees, or employer of record (EOR) workers. In addition to their payroll processing services, their team of experts will also help you ensure you're always compliant with local labor laws and payment regulations too, which is crucial when managing employees in different countries.
Papaya's unified platform for managing payroll, off-cycle payments, and workforce data help to streamline these core processes for small businesses. This means you won't have to juggle multiple tools or worry about data inconsistencies. Their team will work with you to automate your payroll process, saving you lots of time in the long run. Their software also incorporates artificial intelligence (AI) to automatically audit payroll data and spot anomalies, reducing the risk of errors.
Another standout feature worth mentioning is that Papaya Global assigns a dedicated account manager to every client account. As your main point of contact with Papaya, your account manager is there to provide expert guidance and support whenever you need it.
Integrations are available with HiBob, Namely, Netsuite, Oracle HCM, SAP SuccessFactors, and UKG Pro, allowing you to easily sync your employee data.
Papaya Global's payroll services range from $3 to $12/employee/month depending on the service plan you choose (payments-as-a-service or their full payroll service).
Paychex Flex
Perform hands-free payroll reviews and approvals
Paychex Flex is a payroll company that helps small businesses organize and run their payroll on desktop or mobile devices. The solution also gives business owners the option to submit payroll by phone to one of its specialists, and its voice assist feature enables managers to perform hands-free payroll checks, submissions, and approvals.
Paychex Flex handles your payroll taxes and reports new hires to government agencies. The software tracks your team’s payroll-related information, allowing you to create year-end reports and 1099s with ease.
Paychex Flex integrates with dozens of solutions, including BambooHR, Hubworks, Indeed, JazzHR, Xero, and QuickBooks Time.
Paychex Flex offers custom pricing upon demand and a free demo.
Bambee
Comprehensive payroll services with a dedicated HR manager for added support
Bambee is a cloud-based HR platform designed specifically for small and medium-sized businesses. In addition to HR functions, Bambee also offers a guided payroll service to help businesses manage their payroll processes more efficiently.
I included Bambee's payroll service because of its ease of use and affordability. Their services cover a comprehensive set of payroll functions, including 2-day direct deposit, tax filings, and year-end reporting. In addition, Bambee also offers personalized support from HR experts, as well as a dedicated HR manager for every client, making it easier for businesses to navigate complex payroll regulations.
One of Bambee's standout services is their compliance assistance. They provide businesses with guidance on payroll-related compliance issues, such as minimum wage requirements and overtime rules. Bambee also ensures that businesses stay compliant with tax regulations, filing all necessary forms and making timely payments.
Another standout feature worth mentioning is their employee self-service portal. This feature allows employees to view their pay stubs, manage their personal information, and request time off, all without having to contact HR. This saves businesses time and resources and provides employees with more control over their own HR processes.
Integration details for Bambee's payroll software are currently not available.
ADP Workforce Now
Scalable payroll services for SMBs with tons of workforce app integrations
ADP Workforce Now is a cloud-based human capital management (HCM) solution designed to help businesses manage their payroll, HR, time and attendance, benefits administration, and talent management. ADP Workforce Now is also scalable, meaning it can grow with a small business as it expands, making it a flexible and cost-effective solution for businesses of all sizes.
ADP Workforce Now offers a comprehensive payroll solution that automates and streamlines the payroll process for businesses. It allows businesses to manage and process their payroll with accuracy and efficiency, while also staying compliant with local, state, and federal tax regulations. ADP Workforce Now offers features such as automated payroll calculations, direct deposit, tax filing and remittance, year-end reporting, and pay statements, providing businesses with a seamless payroll experience. Additionally, ADP Workforce Now offers employee self-service options, allowing employees to access their pay stubs, W-2s, and other payroll-related information online, reducing the workload on HR and payroll staff.
ADP Workforce Now automates many time-consuming HR and payroll tasks, freeing up small business owners and HR staff to focus on more strategic initiatives. This can save small businesses time and money, while also reducing the risk of errors. Additionally, ADP Workforce Now provides access to a range of HR tools and resources, including compliance support, employee handbooks, and job description templates, which can help small businesses ensure they are operating in accordance with the latest HR and employment laws.
Integrations include other ADP software and tools as well as third-party options like Quickbooks, Wave, Xero, Workday, Sage, SAP SuccessFactor, 7Shifts, When I Work, JaxxHR, Ziprecruiter, Slack, Microsoft Teams, Bob, DocuFree, and plenty of other options listed in the ADP Marketplace.
ADP Workforce Now costs from $160/month for up to 49 employees and offers a 30-day free trial.
Paycor
Administer payroll and benefits with a single solution
Paycor is a human resources and online payroll software that enables you to simplify your payroll process with automation. The solution integrates with 401Ks and accounting software, allowing you to set up an automated payroll and manage employee benefits without difficulty.
Paycor offers a mobile-friendly self-service portal where your team members can access all their documents and benefits information. The software automatically updates its system when tax laws and employment regulations change in every US jurisdiction, ensuring that your business is always compliant. Paycor’s reporting feature allows you to create reports based on templates. You can also schedule and share the reports directly from within the platform.
Paycor integrates with multiple apps, including CloudPay, Fidelity, HIREtech, Human Interest, Indeed, and Payfactors.
Paycor costs from $99/month plus $5/employee/month. Businesses that qualify can use the solution for free for three months.
Patriot Software
Customize your payroll and automate your tax calculations
Patriot Payroll is a full-service payroll solution that helps organizations manage their taxes, send payments, track time and attendance, and create custom reports. The software helps you run payroll with ease, simply by entering your employees’ hours. Patriot automatically calculates your payroll, and you only have to approve it to send the payments via direct deposits or checks.
This solution enables you to create reports, year-to-date totals, tax filings, or contribution histories with automation. After you complete your tax forms, the software automatically collects your payroll taxes on approved payrolls, so you don’t have to worry about it.
Patriot software integrates with QuickBooks Time and TSheets.
Patriot Payroll costs from $17/month plus $4/employee/month. They also offer a 30-day free trial and a free demo.
OnPay
Avoid mistakes and save time with automated tax filings
OnPay is a payroll software that helps businesses avoid mistakes and save time by handling their federal, state, and local taxes. The solution helps business owners and managers set up and save custom payroll reports so they can track their spending and oversee their team’s activity.
This service provider allows you to schedule unlimited monthly pay runs and automatically handles all your payments and tax filings. The employee self-service portal lets your team members update their information for W-2 and 1099 forms and is available across the United States.
OnPay integrates with multiple tools, including Deputy, QuickBooks Online, TSheets, When I Work, and Xero.
OnPay costs from $6/employee/month plus a $40/month base fee. They also offer a 30-day free trial and free setup.
QuickBooks Online
Best payroll management and general accounting software
QuickBooks Online offers both payroll management and general accounting software and services for small businesses. Its functionality covers invoicing, expense tracking, and payroll and tax management. The platform is available in the US, Canada, Australia, and the United Kingdom.
You can automate your payroll processing, tax deductions, and tax filings through the system. It sets up your payroll to run automatically, but you can still review and approve pay before it's sent out. Taxes are automatically calculated and deducted, and these tax features cover all 50 US states.
In addition to basic payroll processing, you can also manage garnishments, deductions, health benefits, and workers compensation with the software. It also has more general accounting features, like expense and receipt management and invoicing and payment management. It's a comprehensive solution that covers most of your basic accounting needs as a small business owner.
QuickBooks Online integrates with over 450 business apps like Square, Stripe, Paychex, Insightly CRM, Mailchimp, Shopify, eBay, BigCommerce, Magento, Squarespace, Etsy, Katana, and ProjectWorks. Pricing starts from $30 per month, and a 30-day free trial is available.
Gusto
Run payroll for international contractors from 80+ countries
Gusto is a full service payroll solution that helps businesses pay contractors in 80+ countries and stores all the I-9, W-2, and 1099 forms for their employees. The software also handles the state tax registration process in all 50 states and keeps track of changing tax laws so businesses are always compliant.
This payroll provider enables you to track your employees with geolocation, so you can easily deduct the breaks of hourly workers from their wages. The solution also allows you to create flexible payment schedules, run unlimited payrolls, and pay employee reimbursements. With Gusto, you can also administer benefits and set time-off policies too.
Gusto integrates with dozens of solutions, including 7Shifts, 15Five, Bonusly, Breezy HR, Clover, Greenhouse, JazzHR, and QuickBooks Online Payroll.
Gusto costs from $40/month plus $6/user/month and offers a free demo and a 30-day free trial.
The 10 Best Payroll Service Providers for Small Businesses Comparison Chart
Here’s a comparison chart that summarizes basic details about each of my top selections for small business payroll services. You can view pricing details and the availability of free trials or demos side-by-side to help you find the best payroll service for your budget.
| Tool | Free Option | Price | ||
|---|---|---|---|---|
| 1 | Deel Simple global payroll, with free HR tools for small businesses | Free demo available | Flat rate user pricing, with a free version for businesses with up to 200 people | Visit Website |
| 2 | Papaya Global Best payroll service for small businesses wanting to expand internationally | Free trial available | EOR from $650/employee/month or $2/contractor/month; Global payroll from $3 to $12/employee/month | Visit Website |
| 3 | Paychex Flex Perform hands-free payroll reviews and approvals | Free demo available | From $39/month + $5/employee/month | Visit Website |
| 4 | Bambee Comprehensive payroll services with a dedicated HR manager for added support | Free demo available | From $99/month | Visit Website |
| 5 | ADP Workforce Now Scalable payroll services for SMBs with tons of workforce app integrations | 30-day free trial | From $160/month for up to 49 employees | Visit Website |
| 6 | Paycor Administer payroll and benefits with a single solution | 90-day free trial + free demo available | From $5/employee/month + $99/month base fee | Visit Website |
| 7 | Patriot Software Customize your payroll and automate your tax calculations | 30-day free trial | From $4/employee/month + $17/month base fee | Visit Website |
| 8 | OnPay Avoid mistakes and save time with automated tax filings | 30-day free trial | From $6/employee/month + $40/month base fee | Visit Website |
| 9 | QuickBooks Online Best payroll management and general accounting software | 30-day free trial | From $30/month | Visit Website |
| 10 | Gusto Run payroll for international contractors from 80+ countries | 30-day free trial | From $6/employee/month + $40/month base fee | Visit Website |
Other Options
Here are a few more options that didn’t make the best payroll services for small businesses list:
- PrimePay
Track employee hours and access payroll information remotely
- TriNet
Save time when filing taxes with automation
- WAVE
Automate your payroll process and set up direct deposit payments
- QuickBooks Payroll
Run payroll and create reports for multiple locations
- ADP GlobalView Payroll
Help your team submit accurate timesheets with a mobile app
- Payworks
Payroll service provider for Canadian small businesses
- Justworks
Manage payroll, bonuses, commissions, and reimbursements with ease
- Rippling
Save time with workflow and payment templates
- Buddy Punch
Automate your payroll processes and outsource your tax registration requirements in all 50 US states
- Remofirst
Best payroll management and EOR system for global workforces
Selection Criteria for the Best Payroll Services for Small Businesses
If you're wondering how I compiled this list of the top 10 small business payroll providers, look no further. I'm happy to explain my methodology.
First, I compiled a long list of payroll systems that also offer additional HR services like bookkeeping and other payroll options. With that in place, I drilled into the details further to ensure each service provider truly offered the services that growing businesses would want.
Lastly, to help me decide on my final selections, I compared each payroll provider against each other using my selection criteria below. And that, my friends, is the process I used to determine the best payroll software and service providers for small business owners.
Here's a summary of the selection criteria I used to determine the best payroll services for small businesses in this article:
Core Services
As a baseline, I looked for payroll service providers that cover the following basic functionalities:
- Running payroll: Ensuring employees are paid on time, accurately.
- Bookkeeping: Maintaining the paperwork and records-keeping involved with running payroll.
Key Features
The depth of services provided varies from one payroll company to the next. And the features included in different payroll software can vary, too. Here are some common payroll features and services offered:
- Payroll scheduling: The ability to schedule automatic payroll to run on certain dates.
- Multiple payment options: Like direct deposit, physical paychecks, or even on-demand pay.
- Employee self-service portal: Employees can access their pay stubs and employment documents.
- Time tracking: Clocking employee hours and syncing them automatically with your online payroll services. This could also include managing PTO and time off requests.
- Tax compliance: Ensuring you’re up-to-date on all applicable federal and state tax laws.
- Tax filing: Helping you file taxes locally and federally with the IRS, CRA, or any other relevant governing body. This may also include making year-end tax payments on your behalf.
- Benefits administration: Managing employee health benefits, RRSP contributions, health budgets, and more.
- Reporting: Tools to generate payroll reports and help you track your payroll history.
Usability
During my research, I took ease of use into account when I looked at the software provided with payroll services. HR tools should be user-friendly and easy to navigate, and service providers should offer sufficient onboarding to make sure you’re well set up. If you’re outsourcing your payroll needs, you don’t want that to come with a complex new system or unavailable customer support agents.
Integrations
It’s important that any payroll software will integrate with your other human resource software. I looked for integrations with accounting software like QuickBooks Online and Intuit. I also looked for systems that will sync your employee data from another source, such as a cloud-based human resources information system (HRIS). Any connector that would streamline your HR processes, I took into account.
Pricing
The cost associated with any new service or software is always something to consider, especially for a small business or startup. Some of the providers on this list offer flat-rate pricing, while others have a cost per user per month. I’ve added pricing information in each overview, and in the comparison chart above.
Payroll Services: Frequently Asked Questions
Here are some answers to FAQs I hear often when discussing payroll services for small businesses:
What are the benefits of payroll services?
How much do payroll services cost?
A Payroll Service Helps You Focus On Growing Your Business
By investing in a payroll service for your small business, you’re investing in your people. It shows your staff that getting them paid on time and accurately is important to you. And not only that, it frees up your time for important tasks like strategic planning, product development, and meeting with your team members.
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