The ability to handle the employee’s remuneration is a core competency for small businesses, but it has been known to be tedious and strenuous at the same time. In today’s environment of swiftly changing tax rules, compliance mandates, and the desire for precision, the process of managing payroll manually might turn into a significant challenge.
This is where payroll software comes into play in that it provides small businesses with an effective way of operating payroll functions. Most of these software come with priceless benefits especially to small businesses as we will also discuss in this article while giving insights on what should be looked at when choosing the right software.
What do you mean by Payroll?
It is a process that involves determining and processing every employee’s wage or salary, bonuses, premiums, and allowances. Some of the tasks that it entails include; keeping records of the hours that the employees have worked, computation of tax as well as other deductions that have to be made, and the overall payment of the correct amount at the right time.
Payroll generally plays a significant role in any organization because it determines existing and prospective workers’ satisfaction, legal considerations, organizational profitability, etc.
How to Choose the top Payroll Software for small business
Assess Your Business Needs
The first consideration when selecting the right payroll software involves consideration of unique organizational requirements.
It is crucial factors like number of the staff, complexity of the payroll regulations, the number of branches or offices, and some certain industry specifics.
The approach will point you to the exact information about your requirements that enables you to filter out the solutions that do not meet your business needs.
Compliance and Regulatory Features
Payroll in India is a multilayered sequence of numerous statutory and regulatory imposed standards. Ensure that the software you choose for handling payroll meets legal requirements for the present labor laws, taxation laws, and other statutes and legal requirements.
Among other requirements, the software should perform calculations correctly regarding provident fund (PF), gratuity, professional tax, etc. , and other deducted components.
Also, check that the software complies with the requirements for preparing and submitting the following reports and filing returns to the requisite organizations automatically.
Integration Capabilities
When you can find payroll software that links to other applications like accounting software, human resource management systems, and time and attendance systems then you are in a position to consider the most effective solution to the problem by eliminating the mistakes that result from data entry.
Address software that has open APIs or supports integration with the platforms your business utilizes frequently.
User Friendly Interface
It consists of a user-friendly interface and employee self-service.
The ideas, which are easy to use, are thus beneficial in improving the general experience and the performance of the payroll.
Ensure that the software chosen is user-friendly for the administrators and other employees in the organization to meet their production goals by reducing the time they take to learn and navigate the program.
Scalability and Customization
Select the software for payroll that can support the growth or decrease of the company’s number of employees as well as the growth of the number of complicating factors in the process of payment.
Also, consider programs that can be altered to fit your company’s needs and legislation; this will minimize the need for extra changes in the future.
Security and Data Protection
Security of these data is critical since payroll information is always secure and/or confidential. Assess the general security put in place by the software vendor, be it encryption, authorization and authentication mechanisms, or backup among others.
Make sure that the software does not violate the regulations concerning data protection that currently exist in the Indian law like the Personal Data Protection Bill.
Customer Support and Training
Customer support and developing resources that are reliable are always helpful when it comes to using and implementing payroll software.
Several points relate to the selection of training materials sold by vendors; choose the material that comes with training documentation, support channels, and a competent team to handle every query or complication arising from the training material.
Benefits of Using the Payroll Software
- Improved Accuracy and Compliance: This technological solution helps to avoid the calculation of the average number of working days, overtime, and penalties for late payment of taxes and other related charges as well as other errors on payroll.
- Time and Cost Savings: Some of the major benefits of implementing payroll software include that it scales down the time taken in manual payroll and reduces costs since several activities like computation, tax jurisdictions, and report generation will have been automated.
- Enhanced Data Security: A good payroll software most of the time comes with better security measures like encrypting data and authorizing access to information especially for employees and their financial details to prevent different cases of hacking or unauthorized access.
- Streamlined Processes: Payroll software also means that with the computing of your employee’s salaries, the tasks can be integrated and consolidated within a single platform, which will reduce the need to do payroll on several Excel sheets or software which can be time-consuming and full of errors.
- Better Employee Experience: Some of the enhancements are: creating ways through which the employees can gain information on their own, such as through an online portal, providing the employees with their pay slips online, and automating the leave management process.
- Comprehensive Reporting and Analytics: As implied, payroll software is fully capable of generating reports and analyses, making it useful in offering proper insights on the costs, behaviors, and even employees, helping in decision-making and planning.
Top 10 Payroll Software for Small Business
Selecting the appropriate payroll software is a great option for maintaining payroll and growing your business in the necessary areas while eliminating unwanted duties from your list of responsibilities.
In this article, you will come across the list of the 10 best payroll software specifically for small businesses that have descriptions, the list of key features, advantages along with the main disadvantages, their websites, and information about prices.
1. OnPay:
Description: Singularity, OnPay is one of the best and most affordable payroll solutions that small businesses can opt for in the market today. There also offers a wide list of payroll and HR applications, so you can manage your employees effectively.
Key Features:
- Paying taxes: Other processes like Payroll tax calculation and filing is done on an automated process.
- Indeed, straight through pay, recurring pay, never-ending pay runs.
- Employee self-service portal
- It supports the integration with all the main accounting programs which are in use today.
Pros:
- Affordable pricing plans
- Excellent customer support
- Easy-to-use interface
Cons:
- Limited reporting capabilities
- No mobile app
Website: https://onpay.com/
Pricing: Offered at $36 every month and an additional $4 for each staff member.
2. Gusto:
Gusto is a cloud-based solution that serves businesses of varying sizes with features such as Payroll, HR, Time Tracking, and Benefits Administration. Some of the benefits in using this also include services that can be used to facilitate payroll and benefits, and also in managing compliance.
Key Features:
- Payroll tax computation and remitting
- Inexhaustible pay operations and depositing
- Employee self-service portal
- Benefits administration
Pros:
- User-friendly interface
- Well-documented reporting and analysis
- Excellent customer support
Cons:
- relatively expensive for small businesses.
- Limited customization options
Website: https://gusto.com/
Pricing: Pricing details are affordable as the company offers their plans starting from $39 per month plus $6 per employee.
3. ADP RUN:
As for ADP RUN, this is the wide-range package in the field of the payroll and different kinds of the human resource management provided by the company that is often referred to as the market’s leader.
Key Features:
- Integrated systems paying and submitting payroll taxes
- Employee self-service portal
- Systems used in the management of times and attendance.
- Recruiting, employee branding, and other human resources tools.
Pros:
- Strength in the features that are included in customer support it provides for compliance.
- Excellent customer service
- It is an efficient and mobile app designed to enable a company to manage its payroll on the move.
Cons:
- Higher pricing when compared to some of the competitors.
- Limited customization options
Website: https://run.adp.com/
Pricing: This is done mostly by tailoring the price structure of services to match the business requirements that are expected on the part of the customers.
4. Paychex Flex:
While Paychex offers various forms of payroll services, Paychex Flex is actually a flexible Paychex Payroll & HR solution. In general, Anaplan is designed for companies of small and medium sizes.
Key Features:
- Accounting technique of automating the system of payroll tax calculation and submission
- Employee self-service portal
- Pre-employment, intake, and procedural and regulatory tools for recruiting and staffing.
Pros:
- Accurate reporting forms and effective analytics
- Excellent customer support
- Payroll Management
Cons:
- The company’s products are comparatively expensive
- Limited customization options
Website: https://www.paychex.com/
Pricing: There is conflict with the best and most effective pricing tool where pricing is based on the needs of the business and a quote is needed.
5. Justworks:
The Justworks is modern software that is aimed at the management of the payroll and HR duties, suitable for use in SMEs and big business. From this perspective, it is a product that offers a number of resources aimed at the problems associated with the payroll, employee benefits and legislation.
Key Features:
- The assessment of the performance of organizations through the recovery of taxes on employee remuneration is accomplished through innovative APTs.
- Multiple copies and deposits in the banks.
- Employee self-service portal
- Benefits administration
Pros:
- User-friendly interface
- Accounting practices and other methods of analytical business operations.
- Excellent customer support
Cons:
- Making it relatively expensive for most small business
- Limited customization options
Website: https://www.justworks.com/payroll
Pricing: Prices may vary depending on the needs
6. TriNet:
TriNet is a PEO that provides an array of services, including HR and payroll administration, for small and medium-sized businesses.
Key Features:
- Ongoing payroll tax determination and filings
- Employee self-service portal
- Benefits administration
- Employment recruitment, selection, and administration and general compliance
Pros:
- Comprehensive solution offering in the field of HR and payroll
- Excellent customer support
- Robust reporting and analytics
Cons:
- higher pricing
- Limited customization options
Website: https://www.trinet.com/
Pricing: The pricing is generally per location and per month and needs an estimate to determine.
7. Wave Payroll:
Wave Payroll is the newest product of Wave Financial, the company that provides small businesses with cloud-based accounting and financial tools, and services and Payroll is one of the free services.
Key Features:
- It encompasses tasks such as automated payroll tax calculations and filing.
- paychecks and computerized banking.
- Employee self-service portal
- Recording and sharing of information with Wave, chosen online accounting solution.
Pros:
- Free basic payroll software (if user signs up for tax services)
- Easy-to-use interface
- This feature can be readily integrated with Wave’s accounting software.
Cons:
- Few HR & benefits connections
- Limited reporting capabilities
Website: https://www.waveapps.com/payroll/
Pricing: Professional payroll software with paid tax service starting at $ 35 per month plus $ 6 per employee.
8. Paycor:
Another valuable service offered by Paycor is applicant tracking and recruitment which can be helpful for small and medium-sized companies with various types of workers.
Key Features:
- Payroll tax computation, processing and filing when using an absorptive system.
- Employee self-service portal
- Time and attendance tracking
- Recruitment, new employee orientation, and report employment-related issues.
Pros:
- Rich analytical tools for generating reports.
- Excellent customer support
- Can be tailored to the capabilities of businesses.
Cons:
- Higher price standards as compared to some competitors we have in the market.
- Some users may require time before they can understand how to use the application properly.
Website: https://www.paycor.com/
Pricing: They are a few bucks depending on the business that needs to be done, and quotes are needed to fix the price.
9. Deluxe:
Deluxe is a popular brand that offers various services for small business owners, especially in terms of payroll and overall human resources. Their payroll software fits organizations that are classified as a small business venture.
Key Features:
- Handling of the payroll tax with features related to the determination of amount as well as filing of the same
- Employee self-service portal
- Time and attendance tracking
- Pre-employment and recruitment and selection tools
Pros:
- Affordable pricing plans
- Excellent customer support
- Easy-to-use interface
Cons:
- Limited reporting capabilities
- Limited customization options
Website: https://www.deluxe.com/payroll/
Pricing: Cosourcing plans begin at $39 per month plus $5 per employee.
10. Rippling:
Rippling is perhaps the most modern workforce management platform that can deliver both payroll and HR, IT, and employee management systems for small and midsize businesses.
Key Features:
- Proficient handling of payroll taxes whereby the system can both calculate the taxes to be paid and make the payments itself.
- Employee self-service portal
- Recruitment and selection software for the HR services, organization and management of new employees and HR requirements.
- IT tools that help manage the devices used in organizations and app delivery.
Pros:
- Integrated range of products for the management of labor resources
- User-friendly interface
- Excellent customer support
Cons:
- Relatively higher prices when compared to some other companies in the same league.
- Limited customization options
Website: https://www.rippling.com/
Pricing: Currently, there is no set price as pricing depends on the specific requirements of a business, and prospective clients will need to request a quote.
Conclusion
To select the best payroll software for a small business, one should consider the factors like number of people to be paid, how complex the payroll is, if other software have to integrate with payroll, and how much one can spend.
Most of these solutions provide a trial version or a demo so you will be able to see what the software is like before using it. Moreover, it also suggested that advice from other traders or professionals could also gain valuable information.
However, these Top 10 Payroll Software for Small Businesses will aid you!
FAQs
1. Which one is best payroll software for the startup or a very small business?
OnPay, Gusto and Wave Payroll were labeled affordable especially for start-ups and very small businesses as they are easy to use.
2. What payroll software that has a mobile app ?
The best payroll software such as gusto, ADP, Paychex, and Paycor are some of the payroll software that have integrated a mobile application.
3. Are these payroll software solutions capable of supporting multiple pays ?
Absolutely. Typically most of the leading payroll software can support various pay rates, frequency of payment, and other forms of remuneration for different employees.
4. Can any of these payroll software include feature of HR and benefit administration?
Yes, various options, such as Gusto, Justworks, TriNet, Paycor, and Rippling, hold other HR and benefits administration solutions in addition to processing payments.
