The Best Payroll for Small Business in 2024

Payroll software isn’t one-size-fits-all. But the best payroll services for small business will handle all federal, state, and local taxes, keep you compliant, and give you peace of mind that payroll is accurate and on time, every time. It should be able to grow as your business grows, all with a price tag that won’t break the bank. 

We’ve put together a handy guide to compare all the best payroll apps for small business to help you make the right choice for your growing team.

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FAQs

Payroll and compliance are some of the most complex pieces of running a business. For small businesses especially, the learning curve is steep, and it can take valuable hours each month. On top of the time commitment, payroll errors can erode trust with your employees and easily end up in massive penalties if you’re not careful. Automated payroll and tax filing systems take that complexity off your plate and give you peace of mind that things are getting done right.

PEOs, or Professional Employer Organizations, act as “co-employers'' for your team members. They become the employer of record, taking HR administration like payroll, benefits, and compliance off your plate completely, as opposed to small business payroll software that helps your team manage these functions themselves. But it’s important to note that PEOs do not take over any HR decision-making in your company, such as who to hire, when, or how much to pay them.

Every small business will have different payroll needs. Some payroll is very straightforward with salaried employees all living in the same state. Some businesses can have more complex needs including employees in multiple states, hourly employees, international contractors, time tracking and scheduling needs, and more. 

The most basic payroll software for small business should always include federal, state, and local tax filing AND payments. 1099s and W-2s should be included as well. Fast direct deposit as well as unlimited and off-cycle payroll runs give you increased flexibility. Paid time off and vacation tracking should also be included with most basic plans. But the best payroll system for small business will offer a fully integrated solution to seamlessly manage payroll, HR, benefits, and team management tools all in one place. 

As there is a wide range of payroll software for small business, there is a wide range of prices depending on how powerful a tool you need. Many tools built for smaller businesses tend to include only the most basic functionality in order to keep prices low. Many more robust tools are simply too expensive for startups and very small businesses to afford. But there are affordable, yet robust options targeted specifically for businesses with fewer than 50 employees. Generally speaking, you can expect to pay around $40 a month plus $6 per employee per month. 

Prices start at just $46/month

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