What Is Payroll Automation Software?
Payroll automation software enables businesses to streamline employee payment processes and other payroll functions. This reduces the need for manual, time-consuming tasks and minimizes the risk of error. Why is payroll automation software needed? Well, many growing businesses struggle to manage payroll efficiently, and manual processes can lead to mistakes or waste valuable time for HR staff. Research shows that more than 57% of HR professionals spend their time on administrative tasks. To improve this situation, businesses should switch to automated payroll systems.
These systems help reduce compliance issues and errors. Payroll mistakes are common; nearly 70% report issues with payroll data, and over 82 million workers in the US have received incorrect paychecks. In this post, we review 15 top payroll solutions for growing businesses looking to automate their payroll while ensuring efficiency, accuracy, and compliance.
Table Of Contents
- Benefits Of Implementing Payroll Automation Software
- How To Choose Automated Payroll Software
- Best Automated Payroll Software For Growing Businesses
- Conclusion
Benefits Of Implementing Payroll Automation Software
Automated Payments
This software's core function is to automate the payment process. You can use it to make direct deposits to employees' bank accounts and ensure they are paid accurately and on time.
Tax Management
Payroll automation software is highly effective in managing taxes efficiently. It calculates the total amount of tax withholdings, deducts this amount from employee paychecks, and pays government employment taxes on behalf of the business. The software also keeps records of these payments for tax season and notifies employers when it's time to file tax forms.
Time Management
The software can also track and manage employee time, including regular hours, overtime hours, and holiday hours, which enables businesses to handle employee compensation efficiently.
Self-Service Portals
Many automated payroll solutions have built-in employee self-service portals. These tools provide employees with access to their pay stubs, enable them to update personal information, and help them manage other payroll-related tasks independently.
Organization And Reporting
Companies can also organize and report all payroll data, giving them a comprehensive view of expenses, tax payments, and employee wages. This insight is valuable for internal management and financial auditing.
How To Choose Automated Payroll Software
Selecting an automated payroll system is a crucial decision that can significantly impact the efficiency of your organization's payroll operations. To ensure that the tool you choose aligns with your business goals, consider the following important aspects.
What Problem Are You Trying to Solve?
Before selecting a solution, closely examine your current operations. First, identify the problems in your payroll workflow. Is your team overwhelmed by the volume of manual data entry? Or are they stressed about accurate payroll tax calculations and compliance? Clearly identifying these issues will help you choose automated payroll systems based on how effectively they address your problems.
Who Will Need to Use It?
Consider who will be using the system. Typically, HR teams, finance staff, and team managers access payroll records regularly. Each group requires different levels of access, though. Administrators manage processing tasks, while employees benefit from self-service tools. The right software will streamline the payroll process for everyone involved, featuring an intuitive UI and appropriate access levels and permissions for each user group.
What Other Tools Does It Need To Work With?
Integration is crucial for payroll systems. Your chosen solution should seamlessly sync with time-tracking platforms, HR Information Systems (HRIS), and accounting tools, among others. Compatibility reduces manual work and brings data from various systems into one centralized location. Therefore, assess your existing tech stack, including accounting software, HR management systems, and time-tracking tools, and find a platform that minimizes data silos and enhances overall operational efficiency.
What Outcomes Are Important?
When evaluating the effectiveness of a payroll management system, prioritize the following outcomes: accuracy of calculations, timely payments to employees, compliance with all relevant tax regulations and labor laws, measurable cost savings, and high levels of employee satisfaction. An effective payroll tool should reduce payroll tax errors, streamline the entire payroll processing workflow, and enhance transparency for all stakeholders.
How Would It Work Within Your Organization?
Consider how the automated payroll system will fit into your daily tasks. Map out your current payroll processes and identify how the new software will integrate with these workflows. Also, think about the level of support and training required for your team to effectively use the new system and maximize its benefits.
Best Automated Payroll Software For Growing Businesses
For growing businesses, moving beyond spreadsheets and manual calculations can significantly improve accuracy, compliance, and time efficiency. So, the automated payroll software you select for your business should be comprehensive and designed to simplify the entire payroll process. Let's take a closer look at some of the top automated payroll systems that can enhance your growing business operations.
1. Gusto
This payroll and HR automation software is a modern tool designed specifically for small business owners. Its intuitive dashboard makes tax calculations, filings, employee time management, and payments simple.
Key Features
- Payroll processing and management.
- Tax calculations and filings.
- Analytics and real-time reporting.
- Onboarding and documentation for new employees.
Pricing
The platform provides three pricing tiers: Simple, Plus, and Premium. Simple costs $19.60 per month, with an additional charge of $2.40 per user. Plus is priced at $32 per month, and an extra $4.80 per user. For businesses requiring comprehensive payroll and HR support, the Premium option is available for $72 per month, plus $8.80 per user.
Pros
- Benefits administration.
- Automated payroll tax filings.
- Gusto-brokered health insurance.
- Available in over 120 countries.
Cons
- Dedicated account manager provided only with Premium subscription.
- Limited customer support.
2. OnPay
With OnPay, HR professionals can set up an end-to-end payroll system that accommodates multiple payroll schedules, worker types, and pay methods. It features a user-friendly interface that allows for easy management of routine payroll functions with greater efficiency.
Key Features
- Multi-state, on-demand payroll runs.
- Supportive of various payment methods.
- Automated tax filings across multiple states.
- Direct deposit and payment flexibility.
Pricing
The pricing of OnPay is transparent and straightforward. With a $49-per-month base charge and $6 per user, your organization gains access to an affordable solution.
Pros
- Affordable for small- to mid-sized businesses.
- Free setup and data migration.
- Solid phone, chat, and email support.
- Comprehensive features like employee rosters, organizational charts, and customizable onboarding.
Cons
- Lack of time-tracking and accounting modules.
- Not suitable for large enterprises.
3. QuickBooks Payroll
A great option for growing businesses is QuickBooks Payroll. Many companies that already use QuickBooks Online are likely familiar with this platform. QuickBooks Payroll offers features and pricing comparable to Gusto and OnPay, which makes it a popular choice among growing business owners.
Key Features
- Centralized employee and vendor bill payments.
- Payroll ledger integration between QuickBooks Online and QuickBooks Payroll.
- Payroll tax penalty protection.
- Employee benefits and deductions.
Pricing
This platform offers various pricing packages, depending on whether users require only payroll features or a combination of payroll and accounting features. The three main categories are Payroll Core, Payroll Premium, and Payroll Elite. For small businesses, Payroll Core includes all the essential features and starts at $44 per month, plus $6.50 per user per month.
Pros
- 24/7 chat support available.
- Integration with QuickBooks Online and other Intuit products.
- Automated tax calculations and filings.
- Quick setup for existing QuickBooks users.
Cons
- Serves only 150 employees.
- Multi-state tax filing is only available with the Elite plan.
4. Square Payroll
Square Payroll is an effective payroll automation solution for businesses that already use Square POS. Its easy setup and automatic syncing with payment systems help businesses create a unified workflow. The tool also integrates seamlessly with existing systems, making it a popular plug-and-play solution among businesses.
Key Features
- Real-time tracking and reporting of payroll costs and tax obligations.
- Control of user access and permissions.
- Web-based employee self-service portal.
- Tax calculations and filings with benefits management.
Pricing
This platform provides full-service payroll features at just $35 per month, plus $5 per employee. Higher plans, including Plus and Premium, are also available for those seeking advanced features.
Pros
- Multi-state payroll processing.
- Integration with Square POS for employee data syncing.
- Supports payments for employees and contractors.
- Direct deposits for fast employee payments.
Cons
- Lack of international payroll support.
- Limited employee self-service functionality.
5. Rippling
This tool combines HR and payroll tasks to help organizations manage employee data effectively. It gathers information from different systems to create a reliable, single source of truth. The tool also automates compliance and tax filings, which many companies prefer for better payroll management.
Key Features
- Efficient automated onboarding.
- Real-time analytics and reporting.
- Built-in compliance management tools.
- Automated direct deposits.
Pricing
Rippling's pricing starts at $8 per user per month, but you can contact the provider for a custom quote tailored to your organization's specific requirements.
Pros
- One platform for HR and payroll processing.
- Scalable to large teams.
- Modules for payroll management and onboarding.
- Over 500 integrations and automation tools.
Cons
- Gets pricey as you opt for more modules.
- Limited functionality for time and attendance management.
6. ADP Workforce Now
ADP Workforce Now is an all-in-one platform that combines HR, payroll, and other workforce functions, supporting a unified system for managing employee operations. Through integration, it streamlines processes and enables growing organizations to meet their unique needs.
Key Features
- Convenient payroll processing and tax calculation.
- Built-in timekeeping and attendance tracking.
- Talent acquisition and onboarding tools.
- Data-driven analytics and compliance management.
Pricing
The platform provides three flexible pricing plans. The Select plan offers an all-in-one HR and payroll suite. The Plus plan includes everything the Select plan does, along with benefits administration for a more comprehensive offering. Lastly, with Premium, users receive everything included in the Select and Plus plans, along with additional workforce time and attendance management.
Pros
- Automated payroll workflows that boost HR managers' productivity.
- All plans feature the AI-powered ADP Assist.
- Custom reports for real-time employee data.
Cons
- No benefits management with the entry-level Select plan.
- Workforce management is only available with the Premium plan.
7. RUN By ADP
RUN (powered by ADP) offers a user-friendly payroll solution that boosts efficiency. It streamlines payroll management by integrating all core tasks into one platform for accurate and reliable processing. Designed for ease of use, RUN is a strong choice for businesses that aim to spend less time managing payroll and more time focusing on business-related activities.
Key Features
- Automated payroll and tax processing.
- Integrated mobile app for on-the-go payroll.
- Accurate employee time-tracking tools.
- Customizable reporting and dashboard insights.
Pricing
RUN provides four packages: Essential, Enhanced, Complete, and HR Pro. The pricing starts at $79 per month, plus approximately $4 per employee, but the final quote depends on your organization's size and specific needs.
Pros
- Automated workflows for tax filing and reporting.
- Marketing and legal assistance add-ons.
- Customizable plans.
Cons
- An additional module is needed to pay contractors.
- Separate cost for benefits administration.
8. Patriot Payroll
Patriot Payroll is a platform designed for growing businesses that need essential payroll tools without unnecessary complexity. It offers unlimited pay runs, supports multiple pay rates, and allows real-time edits during payroll processing. While it has limited HR features and integrations, it covers core payroll needs with standard payroll reports.
Key Features
- Net-to-gross payroll tool.
- Flexible payroll service that includes a DIY option.
- Convenient mobile access.
- Multi-state tax compliance.
Pricing
The Basic Payroll package costs $17 per month, plus $4 per worker. Full-Service Payroll is also available at $37 per month, plus $5 per worker.
Pros
- Intuitive automated payroll solution.
- Free setup available.
- Affordable full-service payroll plan and DIY options.
Cons
- Added costs for multi-state payroll.
- Lacks filing of new hire reports.
9. Paycor
This all-in-one HR platform is perfect for growing businesses that want better control over payroll in a unified system. It features flexible payroll scheduling, a customizable pay grid, and an integrated design that caters to essential payroll functions as well as broader Learning and Development (L&D) needs.
Key Features
- Allows employee payments through direct deposits or checks.
- Payment via paycards is also available.
- Custom analytics and reporting.
- Issuance of post-termination payments.
Pricing
Paycor offers four small business plans: Basic, Essential, Core, and Complete. The pricing starts at $99 monthly plus $6 per employee. Larger businesses must request a custom quote.
Pros
- Customizable payroll and HR tools.
- Scalable plans for growing businesses.
- User-friendly interface with automation features.
Cons
- Pricing estimates not shared publicly.
- Limited third-party tool integrations.
10. SurePayroll
For the past 20 years, SurePayroll has helped growing US businesses manage their payroll with a full-service suite. This platform is ideal for startups, restaurants, nonprofits, and other businesses. Even with the standard plan, HR staff can process payroll in just two days, which is faster than many other payroll tools.
Key Features
- Same-day and next-day payroll processing is available for salaried employees.
- Tax filings.
- Employee self-service portals.
- Check and direct deposit payment options.
Pricing
SurePayroll offers a Self-Service plan starting at $19.99 per month, plus $4 per employee, and a Full-Service plan at $29.99 per month, plus $5 per employee.
Pros
- One of the most affordable full-service payroll options.
- Mobile access with an easy-to-use app.
- Automated tax filings.
Cons
- Limited third-party integrations.
- Advanced functionality requires paid add-ons.
11. Zenefits
Zenefits is a cloud-based HR platform with a powerful payroll add-on. It streamlines everything from onboarding and paid time-off (PTO) tracking to performance reviews and benefits management. With its all-in-one approach, Zenefits streamlines both payroll and people operations within a single, cohesive system.
Key Features
- Streamlined onboarding.
- Centralized employee benefits administration.
- Built-in HR compliance management.
- Customizable reporting dashboards.
Pricing
The platform offers three pricing plans, including a free trial: Essentials at $8 per employee per month, Growth at $14 per employee per month, and the comprehensive Zen plan at $21 per employee per month.
Pros
- User-friendly interface and mobile app.
- Comprehensive all-in-one HR platform.
- Streamlines onboarding and compliance.
Cons
- Slow customer support response times.
- Separate pricing for platform and payroll features.
12. Paychex
Paychex is a user-friendly payroll solution built for efficiency. It offers an intuitive interface and mobile access, which makes it easy to manage payroll anytime and from anywhere. With quick-run payroll, time-tracking options, and robust security, Paychex helps businesses simplify and streamline tasks using a single platform.
Key Features
- Automated payroll management and tax filing.
- Employee time and attendance tracking.
- Self-service HR portal.
- On-demand payments with direct deposit.
Pricing
Paychex offers three plans (Select, Pro, and Enterprise) with custom pricing. Contact the provider to get a quote based on your company's size and specific payroll and HR needs.
Pros
- Comprehensive payroll system.
- Garnishment payment with some plans.
- There are plans with custom pricing available.
Cons
- Added costs for W-2 and 1099 filing.
- Slow customer service.
13. Paylocity
Paylocity is designed to simplify essential HR tasks and enhance operational efficiency for modern businesses. It provides tools that streamline daily administrative processes. With its focus on adaptability, it has become a popular choice for companies looking for a comprehensive HR software solution.
Key Features
- Customizable visual reporting dashboards.
- User access management.
- Intuitive self-service online portal.
- Automated payroll entry processing.
Pricing
Paylocity's plans are customized for each company. Their core HR solution operates on a per-employee, per-month basis. Talent management, benefits administration, and other modules are available separately.
Pros
- Available in over 100 countries.
- On-demand payment option.
- Community for engagement.
Cons
- Contractor payments are not supported.
- Basic candidate matching.
14. Justworks
This platform is designed to simplify payroll management for business owners who are already juggling multiple functions. With its user-friendly design and robust features that cater to increasing operational complexity, Justworks streamlines essential administrative tasks, making financial management hassle-free.
Key Features
- Seamless direct deposits.
- Automated tax filing.
- Real-time payroll reporting dashboard.
- Customizable pay settings.
Pricing
Justworks has four pricing plans. The Payroll plan costs $8 per employee per month, the PEO Basic plan costs $79 per employee per month, and the PEO Plus plan costs $109 per employee per month. For international hiring, the EOR plan is available for $599 per user per month.
Pros
- Affordable payroll processing with core HR tools.
- Multistate payroll and contractor payments supported.
- International contractor payment and EOR services.
Cons
- No app for mobile access.
- Advanced time tracking is available as an add-on.
15. Wave Payroll
Wave Payroll is a practical option for growing businesses that need integrated payroll and accounting tools. Although there is a cost for payroll features, the accounting and invoicing tools are free and sync seamlessly. This tool offers a user-friendly, unified platform that accommodates diverse state-specific payroll service needs.
Key Features
- Self-service employee benefits manager.
- Intuitive manual payroll input or data import.
- Pre-tax deductions and expense reimbursements.
- Customizable reports and visual dashboards for payroll costs.
Pricing
Wave Payroll charges a flat $35 per month, plus $6 per active user. This includes features such as automated tax payments, direct deposit, and year-end forms.
Pros
- Integration with Wave accounting software.
- Built-in calculation of federal, state, and local payroll taxes.
- Direct deposits for timely employee payments.
Cons
- Limited availability outside the US and Canada.
- Only manual handling of tax filing for multiple states.
Conclusion
In this article, we explored 15 automated payroll software solutions tailored to meet the unique needs of growing businesses. Most options provide essential payroll functions, such as employee payments, tax calculations and filings, and pay stub generation. Additionally, some software solutions offer integrated features for time-tracking and accounting. While the features vary from basic to advanced, it's crucial to pick a solution that aligns with your expectations. Be sure to consider your compliance requirements, the number of users, and the necessary integrations before making a choice.
