Are you seeking to automate payroll management and avoid spending countless hours sorting spreadsheets and calculations? Look no further as payroll software simplifies complex calculations and currency conversions, automates data capturing and payments, and ensures compliance with state laws. All to free you up for what truly matters—enhancing employee experience and growing your small business.
Various payroll solutions are available in the market, from basic to advanced management, processing, and reporting features. To help you get the research right, this article highlights the seven top rated payroll software products, in alphabetical order, based on verified software reviews. Read more.
During evaluation, we identified that all the listed products are suite HR solutions with payroll management capabilities for multiple employment types, payment schedules, and geographical locations.
1. ADP Workforce Now
ADP Workforce Now is an HR suite with payroll management features that automatically sync the new hires' data from the applicant tracking system and update the database for payroll processing. The tool offers comprehensive payroll features to simplify administration for your human resource team. You can use the ADP payroll tool for real-time gross-to-net calculations before submission, automated reporting of new hires to the state agencies, and electronic payroll tax filing and deductions.
Product features of interestBuilt-in reports library: Lets you access a collection of predefined reports that cater to diverse payroll needs. These ready-made reports cover payroll summaries, tax reports, time and attendance analytics, employee demographics, and more.
Employee self service portal: Offers a self service portal for employees to view pay stubs, update personal information, and access tax documents. The employees can also enroll in or modify health insurance, retirement plans, and other benefits during open enrollment periods.
Error detection: Uses built-in features to identify and weed out inaccuracies, such as missing data or incorrect calculations. The feature automatically alerts the user when any error is detected in an uploaded document.
Customer support options: Email, chat, call, webinar, and knowledge base
Who should consider ADP workforce Now?
HR managers looking to automate employee data capturing for payroll management can benefit from ADP Workforce Now’s payroll system. From syncing the application tracking system’s data to allowing employees to update their information via a self service portal, the tool frees up time for the HR team to focus on other aspects of payroll and employee management.
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2. Gusto
Gusto HR, with payroll management capabilities, offers flexible payroll processing options for quick payments. You can pay your employees hourly, weekly, or monthly instead of making them wait for a preset duration. The tool also lets you customize pay schedules based on your team’s requirements.
A distinguishing factor of Gusto is its vault debit card. Employees can opt for a debit card with Gusto for easier access to their money on payday.
Product features of interestHealth insurance administration: Offer access to health insurance benefits for your employees to select and get insured. The options include health savings accounts (HSA), disability insurance, flexible spending accounts (FSA), life insurance, and dependent care.
Payroll and time-off reports: View and export employee timesheet data for payroll benefits, employees, contractors, taxes, and more. The feature allows organizing this data by date, department, or employees.
Custom admin permissions: Create custom admin accounts to limit the team’s access to specific data. The feature allows administrators to provide role-based access to these accounts.
Customer support options: FAQs, customer reviews, help center, and online form
Who should consider Gusto?
Gusto payroll solution is for HR managers looking to simplify the payroll process for contract employees. From flexible payment schedules to health insurance benefits, the tool enhances the employee experience and eliminates payment-related concerns. With the Gusto debit card, employees can receive their wages directly on the card, giving them instant access to their earnings on payday.
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/ Pro tip
Consider payroll software to process unlimited payroll cycles within a specific billing period. With this payroll feature, you have the flexibility to run payroll as frequently as needed without incurring additional charges for each payroll processing.
3. Homebase
Homebase HR suite’s payroll management capabilities offers a mobile application for employees to view, add, and edit their details and receive on-time payments. The application provides on-demand access to their hours, schedules, earnings, pay stubs, and form W-2s for payroll tax filing. Employees can submit and track time-off requests and work with each other to trade and cover shifts. Additionally, the application sends real-time notifications to employees on payday as the amount credits into their accounts.
Product features of interestTeam communication: Share upcoming events and create personalized employee shift notes. The feature allows creating custom messenger channels for employees to share payroll announcements.
Direct deposit and printable checks: Transfer employee wages or salaries directly into their bank account shared during onboarding. The feature allows generating and sharing printable paychecks via the mobile application.
Multiple wage rates: Set and manage different employee pay rates based on various factors, including job roles, skills, shifts, projects, and employment type.
Customer support options: How-to blogs and videos, email and chat
Who should consider Homebase?
If you are looking for a mobile application for employees to add/edit details (personal information, work hours, account details, etc.) and view their payment history on the go, consider Homebase. The application also makes it convenient for employees to view their tax documents, verify deductions and download forms for future reference.
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Searching for a payroll service provider to hire for your business? We’ve got you covered. Check out our list of companies in the following areas:
4. Paychex Flex
Paychex Flex is also an HR suite offering payroll management capabilities that enable employees to review and select pay options, including paper checks, direct deposit, tip disbursement for tipped employees, and pay cards. Based on the pay option chosen by employees, the tool automatically calculates, file, and pay payroll taxes as per the state norms. Additionally, Paychex Flex allows transferring data to accounting software via integration, letting you create customized financial statements for audits and other payroll tasks.
Product features of interestPaycheck preview and approval: Allow employees to review their paychecks before payday with the Paychex Pre Check tool. Employees can raise concerns about their pay via comments and tags for the administrators to correct them.
Financial wellness and cash flow assistance: Assist employees in meeting their financial goals with various learning materials and short-term loan plans. Employees can select any of the provided options and seek assistance for a hassle-free experience.
Garnishment payment: Deduct and remit garnished wages to the appropriate agency automatically. This includes child support orders, unpaid taxes, loans, or other outstanding financial obligations owed by the employees.
Customer support options: FAQs, knowledge center, and call
Who should consider Paychex Flex?
Paychex Flex focuses on enhancing the experience of contract employees. From selecting their preferred payment schedule to getting financial assistance, the tool ensures long-term association with the employees while fulfilling their learning and development needs. With automatic garnishment payment, employees can pay their financial obligations on time without missing a due date.
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/ Pro tip
Evaluate a payroll software for its capabilities to grow with your business. This includes multiple pay schedules, types of employees, and other changing payroll demands. Finding a single scalable solution will stay with you in the long run and save you from unnecessary spends on new tools and add-ons.
5. Paycom
Yet another suite HR solution that specializes in payroll management, Paycom offers an integrated employee dashboard for tracking activities, including final payouts, transaction approvals, timesheets, and payroll warning. The dashboard is customizable for every employee based on their preferred tracking metrics. It also has a section displaying any upcoming payroll events, such as payroll submissions, reimbursements, and due approvals. Using the dashboard, employees can check their earning statement with details of net and gross pay, tax deductions, credited reimbursements, and garnishments.
Product features of interestExpense management: Allow employees to submit expense reports using their self service platform. The reports include travel expenses, meals, accommodation, and other work-related costs. The feature uses artificial intelligence (AI) to identify incorrect and duplicate entries before sending them for approval.
Automated payroll: Pull real-time data on employees’ work hours, approved expenses, and other charges. The feature also alerts employees of pending payroll activities, such as missing information and form submissions, to kickstart automated payroll processing.
On-demand financial reports: Control the data output with on-demand financial reports and combine them with multiple employer identification numbers (EINs). The feature allows monitoring the user activity on the generated reports and alerts when the changes are made.
Customer support options: Blog, webinar, and podcast
Who should consider Paycom?
Paycom automates the entire payroll management process from data submission to parsing. This benefits HR managers looking to reduce employer liability and provide an automated managing, troubleshooting, verifying, and approving system for employees to receive on-time payments.
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6. Paycor
Paycor HR suite’s payroll system offers advanced tax management capabilities for you to manage tax deductions for employees. The tool handles payroll tax calculation, filings, and payments to ensure compliance with federal, state, and local tax regulations. You can use the tool to automatically calculate employee payroll taxes based on their withholding information, wages, and tax jurisdictions.
Paycor also keeps track of changes in tax laws and regulations, ensuring you can comply with the latest norms and requirements.
Product features of interestTax notice handling: Address tax-related notices and inquiries from tax agencies, assisting employees with resolution and compliance. The feature allows employees to access these documents through the self service portal.
Tax recommendations: Evaluate employees’ tax situation and provide guidance for optimizing their tax withholdings. The feature considers filing status, dependents, deductions, and credits to make personalized and appropriate tax suggestions.
Tax compliance dashboard: Send alerts and compliance warnings directly from the employee dashboard, including missing or invalid tax IDs, recommendations, and unverified contact details.
Customer support options: Chat, call, FAQs, and a guided tour
Who should consider Paycor?
HR managers looking to simplify employee tax management can consider Paycor software. The tool’s advanced tax management system can automatically deduct the due amount based on the entered employee data and wages. Employees can also seek recommendations for optimizing deductions based on their financial liabilities and investments.
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/ Pro tip
Prioritize the payroll software with robust security measures to safeguard sensitive business and employee data from data breaches, unauthorized access, and misuse. You can look for various security measures, including encryption (converting stored data into codes), SSL certificates (providing secured communication over the internet), multi-factor authentication (adding an extra layer of security to data accessibility), and data backup (backing up data regularly on servers to protect from hardware failure).
7. Paylocity
Paylocity is an HR suite with payroll capabilities to assist you with global employee management. The tool handles payroll processes across 100+ countries or jurisdictions with varying tax laws, regulations, and employment practices. All the global employee data is available on a single platform and can be analyzed using the activity dashboard for pending submissions, transaction approvals, and payments.
Product features of interestCustomized global payroll reports: Capture and update employee data, including payroll details, contact information, tax filing, forms, benefits administration, and other relevant information in real time. Use the custom reporting templates to analyze the captured data for payroll processing and management.
Currency conversion: Provide in-country bank accounts with currency conversion to stay compliant with employee payroll funding regulations.
Time tracking integration: Enable automatic and accurate transfer of employee work hours and attendance data from the time tracking system via API integration.
Customer support options: Blogs, case studies, product training, podcast, eBooks, webinars, chat and call.
Who should consider Paylocity?
HR managers looking to simplify managing global employees can benefit from Paylocity’s global payroll management capabilities. You can use the tool to track all employee data via a unified dashboard from anywhere globally. This data (contact information, account details, and tax submissions) is updated in real-time as and when added or modified by the employees. Further, you can automate the tracking of leaves and work hours by integrating Paylocity with the existing time-tracking system.
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How much does payroll software cost?
Payroll software can cost as low as $5.83 per user, per month, or up to $100+ per month, depending on various factors—features, payroll runs, number of employees, localization, reporting capabilities, and platform integration. Most payroll solutions typically include the following pricing plans:
Free trial: No-cost trial plans ranging from 14 to 30 days, giving users access to all or limited software features.
Free version: Free software plans offer basic features and limited premium feature access; ideal for small businesses or individuals with a limited budget.
Entry-level: Entry-level plans range from $5.83 per user, per month to $40 per month and offer limited features; good option for small businesses or teams with basic payroll needs such as time tracking, payment, and tax compliance.
Mid-tier: Mid-range pricing ranges from $8.33 per user, per month to $80 per month and offers advanced features such as custom payment schedules, currency conversion, garnishment payment, and general ledger.
High-end: Advanced plans range between $43 and $100 per month and offer unlimited access to entry and mid-level features. Ideal for large enterprises with cross-functional teams such as accounting and finance, HR, and enterprise resource planning.
Hidden costs associated with payroll software
Besides the software license, there may be additional costs related to payroll software. These may include:
Integration: Integrating payroll software with existing systems, such as HR, resource planning, and accounting software, may incur additional costs. This is based on the type of integration , including APIs or add-ons.
Data migration: Transitioning from one payroll software to another might require help from the software support team for an extra cost.
Cloud storage: Storing a large amount of content might lead to storage costs if your software has limitations on storage capacity.
Frequently asked questions when selecting payroll software
Here are some common questions to ask payroll software vendors when evaluating the best payroll software for your business’s HR and workforce management needs.
Does the software align with the employment requirements?
As a business can have multiple types of employees (full-time, on-contract, and freelancers), payroll software solutions cater to all or specific employment types. You need to check if the selected payroll solution meets your employee requirements, including national and international payroll. These include currency conversions, local bank accounts, employee benefits administration, and access to the self service dashboard via web or mobile applications.
Can the software handle custom payroll deductions?
Custom payroll deductions refer to specific deductions or withholdings that are specific to a particular employee. These include benefits, reimbursements, donations, loans, equipment costs, and other non-regulatory expenses. Check if you can set up such custom payroll deductions using the selected payroll solution based on voluntary agreements and arrangements between you and the employees.
Can the software handle different pay frequencies?
With multiple employment types comes multiple payment frequencies (daily, weekly, monthly, quarterly, etc.) That being said, you need to check if the selected payroll software supports custom payment frequencies or offers preset frequencies that meet your employee payroll requirements.