QuickBooks Payroll Software Review for 2024
QuickBooks Payroll differentiates itself by providing an integrated payroll solution that simplifies tax calculations and filings for small businesses.
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In this review, I'll share my hands-on analysis and evaluation of QuickBooks Payroll. If you're searching for the best payroll software, check out my top picks first.
QuickBooks Payroll is a popular payroll software, but it's essential to understand its strengths and weaknesses. This detailed review will cover the pros and cons, features, and functionality to help you determine if it suits your needs.
Summary: QuickBooks Payroll
QuickBooks Payroll, part of the QuickBooks Online suite, simplifies payroll management by handling employee paychecks, automating tax computations, and ensuring compliance with labor laws. It benefits businesses by ensuring accurate payroll processing, reducing administrative burdens, and timely employee payouts.
QuickBooks Payroll addresses common issues such as calculating payroll taxes, filing tax forms, and keeping up with new payroll requirements. Key features include automatic tax calculations, employee direct deposits, and real-time payroll reports.
QuickBooks Payroll Pros
- Automatic Tax Calculations: Ensures payroll taxes are accurately calculated and filed, reducing the risk of errors and penalties.
- Direct Deposit: Allows employees to receive their paychecks directly into their bank accounts, improving convenience and speed of payment.
- Real-Time Payroll Reporting: Provides up-to-date reports on payroll status, helping businesses stay informed and make timely decisions.
QuickBooks Payroll Cons
- Learning Curve: Some users may find learning all features and functionalities challenging, especially if they are new to payroll software.
- Standalone Limitations: The standalone version lacks flexibility and features in other payroll solutions.
- Customization Limits: Limited options for customizing reports and features to meet specific business needs.
QuickBooks Payroll Expert Opinion
QuickBooks Payroll is a solid choice for small to medium-sized businesses that are already using QuickBooks Online for accounting. Its integration with QuickBooks Online and QuickBooks Time streamlines payroll processing and ensures accurate financial records. The platform offers features like automatic payroll, same-day or next-day direct deposits, and complete tax filing to maintain compliance and efficiency.
However, QuickBooks Payroll is relatively expensive compared to competitors like Gusto and OnPay. Its standalone version lacks the flexibility and capabilities of other payroll solutions. While the user interface is intuitive and the setup process is thorough, the limited mobile app functionality for employees and additional costs for multi-state tax filings can be drawbacks. Overall, QuickBooks Payroll is best for businesses that prioritize integration with QuickBooks accounting software and are willing to invest in a premium payroll service for enhanced accuracy and convenience.
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Are You A Good Fit for QuickBooks Payroll?
Who would be a good fit for QuickBooks Payroll?
QuickBooks Payroll is ideal for small to medium-sized businesses that need a straightforward payroll solution. If your company already uses QuickBooks accounting software, the seamless integration will save time and reduce errors. The automated tax calculations and filings are perfect for businesses that want to stay compliant without extra effort.
Who would be a bad fit for QuickBooks Payroll?
Large enterprises with complex payroll needs might find QuickBooks Payroll lacking. It is designed for smaller businesses and may not offer the advanced customization or extensive reporting that large companies require. Additionally, businesses not using QuickBooks accounting software may not benefit from its integration features.
Best Use Cases for QuickBooks Payroll
- Small Businesses: Ideal for small businesses that need an easy-to-use payroll solution with QuickBooks integration.
- Medium-Sized Companies: Suitable for medium-sized companies that require automated payroll and tax filings.
- Accounting Departments: Beneficial for accounting departments already using QuickBooks Online for seamless data synchronization.
- Retail Industry: Perfect for retail businesses with hourly employees needing accurate time tracking and payroll.
- Startups: Great for startups looking for a reliable payroll system that supports growth and compliance.
- Remote Teams: Excellent for companies with remote teams needing efficient payroll processing and direct deposits.
Worst Use Cases for QuickBooks Payroll
- Large Enterprises: Not suitable for large enterprises with complex payroll needs and extensive reporting requirements.
- Multinational Companies: Inadequate for multinational companies needing support for multiple currencies and international payroll.
- Freelancers: Not the best choice for freelancers or very small teams that may not need payroll services.
- Advanced financial management: Businesses requiring advanced financial management, inventory management, and analytics might find QuickBooks Payroll and QuickBooks Online insufficient.
- Construction Industry: May not fit the construction industry requiring to run payroll features like job costing.
- Non-QuickBooks Users: Inefficient for businesses not using QuickBooks accounting software, missing out on integration benefits that can include accounts receivable and payable, balance sheets, and sales tax calculations.
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Deel
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Rippling
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Willo
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8
QuickBooks Payroll Evaluation Summary
- Core Functionality: ⭐⭐⭐⭐
- Standout Features: ⭐⭐⭐⭐
- Ease of Use: ⭐⭐⭐⭐
- Onboarding: ⭐⭐⭐⭐
- Customer Support: ⭐⭐
- Integrations: ⭐⭐⭐⭐
- Customer Reviews: ⭐⭐⭐
- Value for Money: ⭐⭐⭐
Review Methodology
We are a team of software experts who focus on analyzing the features and functionality of different platforms. We understand how important and confusing software selection can be. To help, we test and score software to find the best solutions for various use cases.
Using a data-driven testing methodology, we have tested over 300 software tools. We aim to be objective and thorough, cutting through marketing fluff to truly understand each platform. We create realistic testing scenarios to use the software just like you would, drawing on our own hands-on experience and insights from users, experts, and vendors.
How We Test & Score Payroll Software
We have spent years developing and refining our system for testing and scoring payroll software. Our rubric captures the key details of software selection, focusing on what makes payroll software effective and important to the decision-making process.
We evaluate software based on eight criteria: core functionality, standout features, ease of use, onboarding, customer support, integrations, customer reviews, and value for money. This approach allows us to provide an unbiased assessment of each software.
Core Functionality (20% of final scoring)
For payroll software, the core functionality we test and evaluate are:
- Payroll Processing: Automates the calculation of employee wages, taxes, and deductions.
- Tax Filing: Ensures compliance with federal, state, and local tax regulations.
- Direct Deposit: Facilitates the electronic transfer of salaries directly to employees' bank accounts.
- Employee Self-Service: Allows employees to access payroll information, such as pay stubs and tax forms.
- Reporting: Generates detailed payroll reports for analysis and compliance.
- Time Tracking: Integrates with time and attendance systems to accurately calculate hours worked.
Standout Features (20% of final scoring)
We evaluate uncommon, standout features that go above and beyond the core functionality defined and typically found in payroll software. A high score reflects specialized or unique features that make the product faster, more efficient, or offer additional value to the user.
Ease of Use (10% of final scoring)
We categorize how easy it is to execute the core functionality tasks using the payroll software. High-scoring software is well designed, intuitive to use, offers add-ons such as mobile apps, provides templates, and makes relatively complex tasks seem simple.
Onboarding (10% of final scoring)
We know how important rapid team adoption is for a new platform, so we evaluate the learning curve and use the payroll software with minimal training. We evaluate how quickly a team member can get set up and use the software without experience. High-scoring software indicates little or no support is required.
Customer Support (10% of final scoring)
We review how quick and easy it is to get unstuck and find help via a phone number, live chat, forums, or knowledge base. Payroll software that provides real-time support scores best, while chatbots score worst.
Integrations (10% of final scoring)
We evaluate how easy it is to integrate with other tools typically found in the tech stack to expand the software's functionality and utility. Payroll software offering plentiful native integrations, third-party connections, and API access to build custom integrations scores best.
Customer Reviews (10% of final scoring)
Beyond our own testing and evaluation, we consider the net promoter score from current and past customers. We review their likelihood, given the option, to choose the payroll software again for the core functionality. High-scoring software reflects a high net promoter score from current or past customers.
Value for Money (10% of final scoring)
Finally, we review the average price of entry-level plans against the core features and other evaluation criteria. Software that offers more for less will score higher.
By focusing on core functionality, standout features, usability, onboarding, customer support, value, and customer reviews, we aim to identify payroll software that exceeds expectations. This ensures teams have the tools they need to succeed.
QuickBooks Payroll Review
Core Payroll Software Functionality
Automated Payroll Processing: QuickBooks Payroll automates the payroll process, ensuring employees are paid accurately and on time. This feature includes automatically calculating wages, deductions, and taxes, reducing the risk of human error and saving time for payroll administrators.
Tax Filing and Compliance: QuickBooks Payroll handles federal and state tax filings automatically. It calculates, files, and pays payroll taxes, ensuring compliance with tax regulations. This feature also includes year-end filings and the generation of W-2 and 1099 forms for employees and contractors.
Direct Deposit: QuickBooks Payroll offers direct deposit options for employees, allowing them to receive their paychecks directly into their bank accounts. This feature supports next-day and same-day direct deposits, providing flexibility and convenience for both employers and employees.
Employee Self-Service Portal: The software includes a workforce portal where employees can access their pay stubs, W-2s, and other payroll-related information. Employees can also update their personal information, view paid time off balances, and track their hours worked.
Time Tracking: QuickBooks Payroll integrates with QuickBooks Time, a time-tracking app that allows employees to clock in and out, track their hours, and submit timesheets. This feature ensures accurate employee time tracking and simplifies the payroll process by automatically syncing time data with payroll.
Benefits Administration: QuickBooks Payroll enables employers to manage employee benefits, including health insurance, retirement plans, and workers' compensation. The software partners with providers like SimplyInsured and Guideline to offer competitive benefits packages and streamline the workflow.
QuickBooks Payroll Standout Features
Integration with QuickBooks Online: One of the standout features of QuickBooks Payroll is its integration with QuickBooks Online accounting software. This integration allows businesses to manage their accounting and payroll from a single platform, ensuring that financial data is always up-to-date and accurate.
Automated Tax Penalty Protection: QuickBooks Payroll offers its Elite plan users a tax penalty protection feature. If a user receives a tax notice and sends it to QuickBooks within 15 days, QuickBooks will cover up to $25,000 of the payroll tax penalty. This feature provides businesses with financial protection and peace of mind.
Ease of Use
QuickBooks Payroll is easier to use than alternative payroll applications. The intuitive and straightforward user interface makes it accessible for first-time users. The setup process includes step-by-step instructions and live support. Its integration with QuickBooks Online accounting further simplifies the user experience by combining payroll and accounting tasks on one platform. Based on my experience and research, QuickBooks Payroll's ease of use is one of its strongest advantages.
Onboarding
New users can expect a smooth onboarding process with QuickBooks Payroll due to its integration with QuickBooks Online. The software provides a guided setup with live support for the first 30 days. Users can connect bank accounts, set up automation, and learn best practices with help from a QuickBooks expert. Additionally, 24/7 chat support is available for any questions or issues during onboarding. Compared to other payroll software, QuickBooks Payroll offers a supportive onboarding experience.
Customer Support
QuickBooks Payroll users can expect excellent customer support thanks to QuickBooks Online's customer service options. Chat support is available 24/7 for Premium and Elite plan users, and phone support is offered Monday to Friday from 6 AM to 6 PM PT. Users can also seek assistance from other QuickBooks users through community support. Additionally, the QuickBooks Learn and Support portal provides a wide range of help articles, video tutorials, and webinars. There is also a callback option for users to request assistance from a support expert.
Integrations
QuickBooks Payroll integrates natively with QuickBooks Online (QBO) and other applications such as QuickBooks Time, SimplyInsured, Mineral, Next Insurance, TSheets, Expensify, Gusto, Xero, and ADP.
In addition to these native integrations, QuickBooks Payroll offers additional options through an API, Zapier, and an app marketplace, allowing users to connect with a wide range of third-party tools and services.
Value for Money
QuickBooks Payroll, as part of QuickBooks Online, is generally considered priced in line with the industry average for payroll software. While it may not be the cheapest option available, it offers a range of features that justify its cost. The pricing plans are structured to cater to different business needs, from small businesses to larger enterprises, making it a versatile choice for many users. Like most other similar software, payment can be payable via credit card.
The different pricing plans available for QuickBooks Online are as follows:
- Simple Start: From $30 per month
- Essentials: From $60 per month
- Plus: From $90 per month
- Advanced: From $200 per month
Product Specifications
| Feature | QuickBooks Online |
| Payroll Processing | ✅ |
| Direct Deposit | ✅ |
| Tax Calculations and Filing | ✅ |
| Employee Self-Service | ✅ |
| Time and Attendance Tracking | ✅ |
| Customizable Payroll Reports | ✅ |
| Compliance Management | ✅ |
| Mobile Access | ✅ |
| Integration with Accounting Software | ✅ |
| Benefits Management | ✅ |
| Automatic Payroll Runs | ✅ |
| Multiple Pay Schedules | ✅ |
| Garnishment Management | ✅ |
| Workers' Compensation | ✅ |
| 401(k) Plans | ✅ |
| Health Benefits | ✅ |
| Tax Penalty Protection | ✅ |
| HR Support | ✅ |
| Contractor Payments | ✅ |
| Automatic Tax Code Updates | ✅ |
| Customizable Journal Mapping | ✅ |
| Multiple Currencies | ❌ |
| Financial Management Tools | ❌ |
| Pre-submit Audit Flags | ❌ |
| Customization for Unique Business Needs | ❌ |
QuickBooks Payroll Alternatives
If you’re looking for alternative payroll software options to QuickBooks Payroll, here are a few worth checking out:
- Gusto: Known for its user-friendly interface and complete payroll features, Gusto also offers benefits administration and HR tools, making it a great all-in-one solution.
- Paychex: Offers scalable payroll and HR solutions tailored to different business sizes, with advanced features like employee benefits and time tracking.
- OnPay: Provides a straightforward pricing model with all features included, making it a cost-effective option for small businesses needing solid payroll and HR functionalities.
- Rippling: Combines payroll, HR, and IT management into a single platform, offering extensive automation and integration capabilities for tech-savvy businesses.
QuickBooks Payroll Frequently Asked Questions
What is QuickBooks Payroll?
QuickBooks Payroll is a payroll software solution designed to simplify payroll management for businesses. It automates various aspects of payroll, including employee paychecks, tax computations, and compliance with labor laws. Integrated with QuickBooks Online, it allows for accurate payroll processing, reducing administrative burdens and ensuring timely employee payouts. Key features include automatic tax calculations and filings, same-day or next-day direct deposits, and real-time payroll reports.
Is there a mobile app for QuickBooks Payroll?
Yes, there is a mobile app for QuickBooks Payroll. The app allows users to manage payroll on the go, including running payroll, reviewing paychecks, and accessing employee information. However, some users find the mobile app’s functionality limited compared to the desktop version.
Is QuickBooks Payroll HIPAA compliant?
No, QuickBooks Payroll is not HIPAA compliant. It is designed for payroll management and does not meet the specific requirements for handling protected health information under HIPAA regulations.
Is QuickBooks Payroll SOC 2 compliant?
Yes, QuickBooks Payroll is SOC 2 compliant. This certification ensures that the software meets stringent standards for data security, availability, processing integrity, confidentiality, and privacy.
Is QuickBooks Payroll easy to use?
Yes, QuickBooks Payroll is easy to use. Its user-friendly interface allows businesses to manage payroll processes efficiently. Features like automatic tax calculations and direct deposits simplify payroll management for users.
Is QuickBooks Payroll FedRAMP certified?
No, QuickBooks Payroll is not FedRAMP certified. FedRAMP certification is specific to cloud services used by federal agencies, and QuickBooks Payroll does not meet these criteria.
Is QuickBooks Payroll GDPR compliant?
Yes, QuickBooks Payroll is GDPR compliant. It adheres to the regulations set by the General Data Protection Regulation to protect the privacy and personal data of individuals within the European Union.
How secure is QuickBooks Payroll?
QuickBooks Payroll is designed with multiple layers of security to protect user data. These include:
- SSL encryption to secure data transmission
- Automatic data backups to prevent data loss
- Firewall-protected servers to block unauthorized access
- Always-on activity logs and audit trails to monitor account activity These measures ensure that financial data remains private and protected from potential threats.
QuickBooks Company Overview & History
QuickBooks Payroll is a specialized product within the QuickBooks Online cloud-based ecosystem, developed by Intuit Inc. The main competitors of QuickBooks Online include Xero, FreshBooks, Wave, Zoho Books, Sage Business Cloud Accounting, Kashoo, and NetSuite by Oracle. Each offers varying small business accounting features tailored to both small business owners and medium-sized businesses.
Known for creating one of the best accounting software and financial reporting solutions, Intuit is a software company that provides various bookkeeping, budgeting, tax preparation, billable expense tracking, and accounting solutions for small businesses, account teams, CPAs, and self-employed individuals.
Intuit Inc. was founded in 1983 by Scott Cook and Tom Proulx and is headquartered in Mountain View, California, with thousands of employees worldwide. Intuit also owns other products, such as TurboTax for tax preparation, Mint for personal financial management, and is affiliated with Mailchimp, a marketing automation platform.
The company is recognized for its innovative work culture, employee-friendly policies, and commitment to corporate social responsibility. QuickBooks Payroll is used by small business owners to medium-sized businesses across various industries.
Intuit is a publicly traded company on NASDAQ under the ticker symbol INTU.
Want to learn more about QuickBooks Payroll? Check out their site for additional information.
From $30/user/month
30-day free trial
QuickBooks Major Milestones
- 1983: Intuit Inc. was founded by Scott Cook and Tom Proulx.
- 1992: The first version of QuickBooks, including QuickBooks Desktop, was released. This marked the company's entry into providing accounting software solutions.
- 2002: QuickBooks Enterprise Solutions was introduced, catering to the needs of medium-sized businesses.
- 2003: Intuit released industry-specific versions of QuickBooks, tailoring the software to meet the unique needs of industries such as manufacturing, retail, and professional services.
- 2013: QuickBooks Online underwent a significant rebuild to allow third-party app integration
- 2017: QuickBooks Online reached a significant milestone by surpassing 2 million global customers
- 2023: Intuit announced the discontinuation of QuickBooks Point of Sale software, signaling a shift in focus towards other business solutions and services
- 2023: Intuit announced the discontinuation of QuickBooks Point of Sale software
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