We completed comprehensive research to identify the top vendors for payroll service providers for small businesses in 2022, including sole proprietors and domestic employers.
Top Vendors for Payroll Services
The best payroll services, such as online payroll software, professional employer organizations, and HR companies, pay employees appropriately, handle tax withholdings, and guarantee deductions for benefit premiums and retirement savings.
We’ve compiled a list of the top nine payroll services for small businesses in this guide.
OnPay
OnPay is an easy-to-use payroll solution for small businesses and startups. Employees can be paid through direct deposit or paper cheque. The program also allows you to run payroll an infinite number of times, which is useful for companies that run payroll weekly or pay contractors on a regular basis.
ADP
ADP is most likely the largest payroll outsourcing company in the United States. ADP has a great reputation and high customer service scores, despite being more expensive than some of the other alternatives.
Pros:
- Multiple plan options
- Offers secure paychecks with advanced fraud protection
- A feature-rich solution package that includes hiring, people management, and learning capabilities, as well as PEO services.
- Employee discounts are among the standard and nonstandard benefits schemes.
Cons:
- Pricing isn’t transparent
- Lacks unlimited pay runs
Intuit Quickbooks
If you currently use Intuit Quickbooks to manage your business transactions, choosing their Enhanced Payroll or Full-Service Payroll option is a simple next step.
Pros:
- Unlimited and automatic payroll runs
- Next- and same-day direct deposit options
- Seamless integration with QuickBooks Accounting
- The tax penalty protection scheme covers fines (up to $25,000 per year) regardless of who is at fault.
- Discounts can also be passed to clients in Partner program for accountants
Cons:
- Only its higher tiers have access to automated local tax filings.
- Only elite plan subscribers enjoy Tax penalty protection
- The payroll package with accountant discounts needs the usage of QuickBooks Accounting.
- Basic HR features
Square
Square provides payroll services to help you run your small business. The standard subscription charge is $35. In addition, each person pays $5 extra every month. That is an all-inclusive pricing that includes no hidden fees.
Square’s mission is to make it easier to operate your business from a single location. With a wide range of administration possibilities, this automation will undoubtedly be useful.
Pros:
- Affordability
- Low-cost contractor-only plan
- Seamless integration with square products
- Next-day direct deposits and instant payment options are available
Cons:
- For next-day direct deposits and fast payments a square payment account is required
- The standard direct deposit timeline is four days
- Phone support requires a customer code
Gusto
Gusto simplifies payroll management by being simple to use and compliant with all 50 state laws. This payroll software is completely equipped with a slew of useful features.
Benefits, healthcare plans, taxes, 401 thousand plans, and time tracking are all supported. It’s also fully interoperable with the vast majority of accounting software systems, including household brands such as FreshBooks, QuickBooks, and Xero.
Small companies can begin with the most basic Core plan and progress to more full-service alternatives as their operations expand. Gusto’s program includes HR services like onboarding and surveys at the higher Concierge level.
Pros:
- All options include full-service payroll with federal, state, and local tax payments.
- Pay runs are unlimited. It provides a low-cost contractor-only solution.
- Offers a low-cost contractor-only option
- Intuitive and user-friendly platform
- Basic job posting tools
Cons:
- Health insurance is limited to 39 states
- Premium plans include Time tracking and paid time off (PTO) management
- No dedicated payroll specialist
Paychex
Paychex is one of the major payroll software companies, handling payroll for 8% of private-sector workers in the United States.
Pros:
- Paychex is another large payroll company.
- They are said to cover 8% of private-sector workers in the United States. Even with their entry-level plan, they automatically handle all local, state, and federal taxes for every registered employee.
Cons:
- Payroll professionals are frequently overworked, thus response times might be slow.
- Bonus checks, for example, might be difficult to establish. They may try to upsell you on other services on occasion.
Top Vendors for Payroll Services Frequently Asked Questions
Which is better, ADP or Paychex?
Paychex is seen to be the preferable alternative for SMBs.
Does ADP Outsource?
ADP’s human resource outsourcing services currently serve over 3 million workers.
How many payroll businesses exist in the United States?
500
Which payroll is best?
- OnPay.
- Gusto.
- ADP RUN.
Who is ADP’s biggest competitor?
- Oracle.
- SAP.
- UKG.
- Ceridian.
- Paycor.
Are ADP and Paychex the same?
Both ADP and Paychex are major payroll providers in the United States.
