Once I’ve reviewed the pay run, I simply had to click “approve payroll” to run my payroll for that pay period. In addition, if you own a seasonal business and only need payroll software during parts of the year, you can deactivate your subscription for off-seasons and avoid paying Wave during that time. Then, when your business season kicks back in, simply reactivate your subscription and account. This capability, coupled with its contract payment options, makes Wave an ideal option for seasonal businesses such as garden centers and landscaping companies. TriNet’s standout features include automated tax and filing support, unlimited payroll runs, a mobile app and time and attendance tracking.
Paychex key features
Some payroll services are part of comprehensive HR platforms that include not only pay and benefits but also employee development, education and coaching programs. In addition, it offers comprehensive support from a team of knowledgeable experts who are dedicated to resolving all customer inquiries quickly and completely. When I contacted customer support, I found this popular user opinion to be accurate. However, glitches in reporting can make the TriNet software frustrating to use at times. TriNet is a professional employer organization (PEO), offering businesses the option of payroll and HR outsourcing.
This guide will explore some of the best payroll software for small businesses, their winning features, pros and cons, pricing details, and highlights from customer reviews. We’ll also walk you through the factors to prioritize when weighing your options, to ensure you find the right fit for your team’s payroll requirements. If you go with payroll software, you should also think about who will manage the payroll process going forward. If your business is small and you plan to have only a handful of employees, you can probably run payroll yourself. But if you think your company is going to grow quickly or you just won’t have the time, it might be worth hiring a payroll specialist to run it for you. If you’ve received court orders for wage garnishments, consider using payroll software with garnishment management services to stay in compliance and avoid penalties.
How do I find the best payroll service?
In addition to a federal EIN, you may have to register your business in your state and get a state ID number. This number will be used when you pay state taxes for income and employment (nine states have no state income tax). You can check whether you need a state ID number by using the Small Business Administration’s state-by-state resource. At the same time, check with an accountant or attorney about whether you need to apply for state withholding and unemployment insurance accounts. The Internal Revenue Service requires businesses to keep employment tax records for at least four years and the U.S. Department of Labor requires companies to keep payroll tax data for at least three years.
Backup Your Payroll Data
Consider opening a separate payroll bank account for your collected and contributed taxes. This will help ensure you don’t use your payroll taxes to pay for other business expenses. If you become short on cash, you can access your emergency funds rather than payroll tax funds.
This means that you (or someone in your company) needs to understand what your legal and financial obligations are as an employer. Justworks offers two PEO plans, plus a couple of add-ons to expand your chosen plan’s functionality. However, I noticed that payroll and adding new transaction statement definition team members, in particular, require a lot of manual data entry upfront. In addition, customization of reporting, templates and the dashboard is limited.
- The app also offers Touch ID and Face ID authentication to ensure only authorized access.
- I had to first set up people groups within the platform, including their permission levels and other specifications.
- Or, if you’re managing benefits in-house, you’ll have to make benefit payments on behalf of your employees.
- Ideally, you should consult with an accountant or a labor attorney to make sure you’ve set up payroll according to your industry requirements and state laws.
Manage payroll and access tools and services in one place
There are plan tiers with OnPay—you pay one base monthly rate and then a flat fee per person per month. The base rate is $40 per month, and then you pay $6 per person per month, so, for a company with 100 employees, OnPay would cost $640 per month. As you lose or gain employees, the price adjusts to reflect the new user number. So, when evaluating solutions, pay close attention to their costing model and select the one with transparent pricing that fits within your budget and best aligns with your needs. Dig through online reviews for each software to find out if it has hidden costs that may apply so you’re not caught by surprise. Startups and smaller organizations with less than 50 employees that need an effective basic payroll provider with customizable plans.
Maintain a standard payroll processing manual for the payroll department. This should include all the payroll processing steps as well as the reporting and check-handling processes. It will also be useful to have instructions on how to process payroll manually in case of emergencies. Employers need to stay on top of their tax obligations and any changes in state and federal reporting requirements. Changes can occur for various reasons, including business relocation, employee relocation, and hiring remote employees.