Payroll Management: The Ultimate Guide

Mobile apps, self-service portals and employee benefits can increase staff satisfaction, resulting in lower turnover and higher engagement. Workers appreciate flexible payment options like direct deposit and payroll cards. Naturally, the quality of payroll outsourcing will vary, but it’s how to get backlinks like an seo pro clear many companies still see these third-party payroll managers as more effective than internal capabilities. Mistakes involving taxes or adherence to regulations can be time-consuming and costly to resolve, so there’s a strong incentive to get everything right the first time.

It helps you manage payments for your employees by making it easy to set up direct deposits, withhold payroll taxes, and keep accurate records, so you don’t get fined. These processes can be time-consuming when done manually, and it’s easy to make a mistake. In 2020, the IRS assessed more than $4.9 billion in penalties for issues such as failure to pay and bad checks. Quickbook is one of the most mobile-friendly, affordable, and easy to use payroll software used globally. Through this software, one can generate payslips, efiling of taxes, manage leaves, tax computation, processes payroll. Like SAGE and Paycom one can access Quickbook pro from anywhere and anytime and check their payroll as well as can do payments.

You can also check our buyer’s guides where we compare many of these providers side by side. However, you have to contact TimeTrex to discuss your requirements and software implementation options—either cloud-hosted or installed directly on your computer servers. Based on the quote we received, monthly fees for its cloud-hosted version start at $3 per employee. Meanwhile, the on-site hosted version costs $35.88 per employee yearly. While ADP Run ranked in several of our best payroll lists, ADP’s other products also made it to some of our payroll and HR buyer’s guides.

The #1 payroll software for small businesses

Check overtime hours and tips, especially for employees who work shifts. (In some states, tips count toward hourly pay.) Look for errors in withholdings or deductions, calculated hours and total pay for the period. Payroll software will generally flag some potential inaccuracies automatically, but other mistakes may be subtle and harder to catch. Be mindful of simple updates — like new addresses — and watch for adjustments that affect pay rates, deductions or taxes. A recent pay raise could affect the pay rate, for example, while benefit elections could affect deductions and an updated W-4 could affect an employee’s tax withholdings. This website is using a security service to protect itself from online attacks.

  • The benefits of payroll software are payroll accuracy, timeliness and compliance.
  • It also takes on 100% of your HR duties, so you don’t have to hire an HR or legal expert in-house.
  • The single full-service payroll subscription costs $35 per month plus $5 per employee.
  • It also tracks and files federal, state, and local taxes automatically.
  • With the software, you enter each employee and then some additional details, including their salary or hourly wage, their benefit deductions, and where they live, among others.

Setup is easy enough, with a tutorial that walks you through establishing your services. This system automatically performs all the action and reduces paperwork to a great extent. You can download it as an ICS file, which lets you sync the calendar with whatever online calendar you use. This software also allows you to manage who can access what data and set permissions so everyone can access the information they need without compromising sensitive data.

OnPay is our number one pick for payroll apps and is ideal for full-service payroll needs. Gusto is similar to other payroll software solutions in that it offers direct deposit or checks to pay your employees. It also tracks and files federal, state, and local taxes automatically. What sets Gusto apart from the other options is that it offers a better plan for each tier you go up. OnPay is user-friendly software for small and medium-sized businesses.

Most providers provide access to basic HR solutions like employee data management, onboarding, and benefits administration. The provider appears in several of our buyer’s guides, even ranking high on our best nanny payroll list and best payroll apps guide. Having access to a dedicated payroll specialist is one of its best features, in addition to flexible pay options and a “Voice Assist” solution for hands-off pay processing.

“Leaving it to the pros” can be especially beneficial for large companies with complex and burdensome payroll responsibilities. In many cases, companies outsource payroll because they’ve determined it to be more cost-effective than managing payroll in-house. This has historically been one of the main incentives for any kind of outsourcing, and payroll functions are no exception. Dedicated employee self service portals eliminate the hassle of employees contacting the HR spoc for payroll-related issues. They should be able to log in using their registered username and password to access the portals with their payroll and tax summaries.


It wasn’t until the late 1980s that many companies, hindered by bloated internal structures, began to see broad strategic value in “hiring away” work once completed in-house. Once the possible cost savings of the practice became clearer, there was no turning back. It encompasses a variety of tasks, not all of which are necessarily carried out by the same entity. The process begins with the integration of employees into a payroll system and extends through end-of-year tax responsibilities.


Additionally, the portal should allow uploading and downloading of the relevant documents required for tax calculation and return filing. While you can handle payroll yourself, we recommend finding an affordable payroll software or service to handle it for you to save time and headaches. From your overall process to every single pay period, it’s important to have documentation for everything. In the event that you happen to miss a payroll tax filing or you get audited, not having proper documentation can hurt your business. Payroll software will keep most of the required documentation for you without you having to worry about keeping track of anything manually.

Employer Forms

ADP RUN offers tiered plans with payroll by direct deposit, a self-service employee platform, new hire onboarding and optional benefits administration for additional fees. The platform provides automated, full-service through its AutoPilot payroll software for both employees and contractors—and even offers a low-cost contractor-only plan. It facilitates employee benefits including health care, employee financial wellness, retirement plans and more. They lack the resources, expertise, and budget that larger companies have.

Paying employees can be challenging, especially for employers who don’t know how to handle payroll, and partnering with a reliable payroll service eliminates the need for manual pay calculations. Plus, there are legal obligations and laws you need to follow when paying employees. Payroll companies can help you manage compliance requirements—from state new hire reporting to payroll tax computations and tax form filings.

Best Practices for Outsourcing Payroll

Kelly is an SMB Editor specializing in starting and marketing new ventures. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. Browse our complete list of state and federal new hire forms and tax withholding certificates, always updated and available for immediate download. Filter by software platform or use the search function to find a video that teaches you anything you’ll need to know on any one of our advances software platforms. We’re constantly releasing new tools to help you with payroll, HR and other administrative objectives.

1,000+ Employees

Syncing payroll journal entries to accounting software can be a pain for small business owners and accountants alike. Intuit QuickBooks eliminates this headache with its integrated payroll and accounting software solutions. Payroll administrators can pay employees and contractors through QuickBooks Payroll or update wages and benefits deductions, and all information syncs with QuickBooks Online. Its competitive price and bundled services made it our top choice for a payroll provider with accounting integration. We were pleased with how Papaya Global helps small businesses avoid contractor misclassification. It handles the legal paperwork, including country-specific tax forms and agreement templates.

ADP RUN is a fit for businesses that need a customizable platform for payroll and benefits. It’s designed for companies with fewer than 50 employees, but is a good fit if you expect to grow beyond that because you could upgrade to ADP Workforce now or ADP’s enterprise platform. Online human resources (HR) and payroll solutions take a lot of the work off your plate so you can focus on the work you go into business to do.



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