Best Payroll Services for Small Businesses in 2024

Our Top Picks for Best Payroll Services

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Discover how we reviewed payroll software in our HR methodology.

Choosing Payroll Software: Top Features to Consider

We interviewed HR professionals and surveyed HR software users to get a sense of what features and factors were most important to them. Here are the items they recommended considering when choosing payroll software: 

Integrations

The best payroll software supports integrations with a range of other business platforms. This allows for seamless data sharing across the various applications that a company might rely on to support operations, eliminating manual data entry, which can be prone to errors. Integrations also provide a way for companies to customize their payroll platform to fit within their existing tech stack. 

There are three types of apps that payroll software should integrate with at a minimum. Starting with accounting software, you want your payroll data to sync with your general ledger for accurate reporting on incoming and outgoing funds. A time tracking system tracks how many hours employees work, which affects how much you pay them using your payroll software. Lastly, point-of-sale software sometimes tracks employee hours as well. 

Here is a summary of whether the providers on our list offer these integrations: 

Provider	Accounting	Time Tracking	Point of Sale
Gusto	✅	✅	✅
Paycor	✅	✅	✅
Rippling	✅	✅	✅
Workday	✅	✅	✅
QuickBooks	✅	✅	✅
Paychex Flex	✅	✅	✅
OnPay	✅	✅	❌
TriNet	✅	✅	✅
SurePayroll	✅	✅	❌
ADP Run	✅	✅	✅
Wave Payroll	✅	✅	✅

Customer Support

Companies need to run payroll accurately and on time to avoid legal issues. Therefore, it’s important for payroll software users to have access to several customer support channels as technical issues or product questions arise.

During our survey, we asked respondents about the type of support they expect from HR software vendors. A large majority said they expected 24/7 support.

Though it’s common for most providers to offer chat and email support 24/7, this doesn’t necessarily mean they respond to inquiries outside of regular business hours. This usually means users can submit tickets and requests around the clock, though they won’t be addressed until agents are back online. 

In terms of channels, our survey indicated that users often prefer phone support. That way, they can connect with an agent who can address their issue or question in real-time. 

Below, we break down the providers that offer 24/7 support for all users via any channel. We also indicate who offers phone support for customers, even if it’s not available 24/7.

Provider	24/7 Support	Phone Support
Gusto	❌	✅
Paycor	❌	✅
Rippling	❌	✅
Workday	❌	✅
QuickBooks	❌	✅
Paychex Flex	✅	✅
OnPay	❌	✅
TriNet	✅	✅
SurePayroll	❌	✅
ADP Run	✅	✅
Wave Payroll	✅	❌

Automated Tax Filing 

Compliance with payroll tax regulations is a tedious yet important task. To ease this burden, most HR software providers offer automated payroll tax calculations and filings to the relevant local, state and federal agencies. 

Going one step further, many payroll providers also generate and send W-2 and 1099 tax forms to employees and contractors at the end of the year. This ensures compliance with income tax reporting guidelines.

The following is a review of the providers on our list that include automated payroll tax filing and W-2 and 1099 filing in their base plan: 

Provider	Automated Payroll Tax Filing	Automated W-2 / 1099 Filing
Gusto	✅	✅
Paycor	✅	✅
Rippling	✅	✅
Workday	❌	✅
QuickBooks	✅	✅
Paychex Flex	✅	✅
OnPay	✅	✅
TriNet	✅	✅
SurePayroll	❌	❌
ADP Run	✅	✅
Wave Payroll	❌	❌

Time Tracking

Businesses with hourly employees can benefit from a payroll solution that has native time-tracking features or integrations with third-party time-tracking systems. This makes it easier, faster and more accurate to import hours worked. Based on our survey results, two-thirds of HR software users say time and attendance tracking is an essential feature. 

For platforms with a native feature, this might look like an on-premise kiosk or a mobile app so that employees can clock in and out. Some apps may even have built-in geofencing to ensure that employees can only track hours when they’re on the job site. 

Below is a summary of the providers on our list that help with time tracking, either built into their plans, available as an add-on feature, or offered through integrations:

Provider	Built-In	Add-On	Integration
Gusto	✅	❌	✅
Paycor	❌	✅	✅
Rippling	❌	✅	✅
Workday	❌	✅	✅
QuickBooks	❌	✅	✅
Paychex Flex	❌	✅	✅
OnPay	❌	❌	✅
TriNet	❌	✅	✅
SurePayroll	❌	❌	✅
ADP Run	❌	✅	✅
Wave Payroll	❌	❌	✅

Other Factors To Consider

The above are some of the main factors we recommend looking out for with payroll companies. However, based on your specific needs, you may have some additional requirements, including: 

Privacy and Security

Given the sensitive nature of the data that is collected and stored in payroll software, it’s crucial that these platforms implement robust security measures. Look for platforms that use encryption for data at rest and in transit and are compliant with federal and state data security regulations. 

Advanced Features

It’s growing increasingly more common for businesses to seek HR software solutions that offer advanced features alongside standard payroll capabilities. While they likely aren’t deal-breakers, features like AI-powered assistants, workflow automation and advanced analytics can help HR teams become more efficient with their resources.

Results from our survey show that frequent user complaints center around outdated software. Platforms with frequent updates and advanced features are more appealing to companies. 

The Bottom Line

Frequently Asked Questions About Payroll Software

What is a PEO payroll service?

How long does it take to process payroll?

It can take a few days to process payroll, as it is an involved process that includes wages being calculated, entered into the system, routed to the approver and received by the employees.  

What’s the most commonly used payroll method?

What hidden fees should I keep an eye out for when looking for payroll software?

Aside from the monthly or annual licensing fee to access the payroll software, you may also face a one-time setup or implementation fee. Though the specifics of what the implementation fee covers can vary, it might include hands-on support from your new provider to help you migrate data from your old platform. You may also face additional fees if you add on extra features to your base plan. 

What’s the difference between a payroll service and payroll software?

Payroll software is usually a platform that a business uses to track and manage payroll itself. On the other hand, a payroll service refers to outsourced payroll that a third-party company handles on behalf of a business. 

How much do payroll services cost?

Payroll software costs will vary between providers. Not all vendors on our list offer pricing details publicly. However, of those that do, TriNet offers the lowest price at $14 per employee per month with its Essentials plan plus the payroll add-on. On the higher end, QuickBooks Payroll charges $62.50 per month plus $10 per employee per month for its highest-tier plan. In general, higher-priced plans will include more extensive features, so you’ll need to find the provider and plan that offers the best value for your budget.  

How We Chose the Best Payroll Services

About MarketWatch Guides Team

The MarketWatch Guides team provides reviews of technology products and services to help readers make educated purchasing decisions. Our editorial team consists of seasoned editors, researchers and writers who are experts in the topics they cover. In addition, while we may earn a commission on our articles, our research, featured brands and recommendations are independent of and distinct from any financial compensation.