Business Management

The Pros and Cons of the Most Popular Payroll Softwares

Last updated on April 26, 2021

Jacques Famy Jr

Small businesses and large corporations alike have to use payroll software to keep track of their employee pay and tax forms. Utilizing payroll software is a streamlined way to ensure payroll is administered correctly and on time, as well as an excellent way to keep track of taxes. Most payroll software will automatically calculate deductions, such as state and federal taxes, retirement contributions, and insurance. They also allow businesses to offer their employees a direct deposit option and can be integrated with external payroll vendors. Your company is probably already using or will need business accounting software; payroll software is just as essential. The following are the most popular payroll software options that we will dive into further below:

  • Gusto
  • Xero
  • QuickBooks Payroll
  • Onpay
  • Paycor
  • Toast

Popular Payroll Softwares

Whether you are a small business or a startup, having the right payroll software is a critical decision that will help your business run smoothly. It would be hard to operate without payroll software when you have employees who expect to be paid on time and need to keep track of your payroll for tax purposes. Using one of these popular payroll softwares will help you as a small business owner. Each of these services has its own pros and cons, so you’ll need to weigh the different options to see which one is the best fit for your company. Some of the payroll software features that you can take advantage of include:

  • Calculating employee pay
  • Direct deposit check processing
  • Printing checks for employees without direct deposit
  • Automatically calculating deductions for withholdings
  • Modifying and revising employee salaries
  • Running payroll balance and calculation reports
  • Creating tax forms
  • Maintaining payroll history for all employees
  • Administering benefit plans

Gusto

Gusto seems to be the most popular option for small business owners. The interface is easy to use, whether you are the boss or the employee, and the “autopilot” abilities mean that you don’t have to worry about payroll. Gusto offers great hiring and onboarding tools as well, which is a nice benefit for small businesses that are expanding every day. Some users have noted issues when connecting with Quickbooks, which is something to look out for if you decide to go with Gusto.

Xero

Xero is one of the best platforms for handling finances all around. It is a usable and friendly payroll platform that can help small businesses close any accounting gaps. If you do not have a bookkeeper on your team, Xero has certified advisors available to those who use their software. The interface may not be as simple or intuitive as other payroll options out there, but the prices are affordable, and they have high ratings.

QuickBooks Payroll

Another popular payroll software for small businesses is the QuickBooks Payroll module which works within QuickBooks Online. One obvious con of this platform is that you have to already have QuickBooks to use it. The interface is very intuitive and has a wide range of features to help with payroll and tax compliance. The payroll software has same-day direct deposit capabilities, which is nice. Another significant advantage of QuickBooks Payroll is that you can actually file and pay your taxes right on the platform. If you are doing taxes for the first time as a startup or small business, this feature is super helpful.

Onpay

Onpay is another popular payroll software with a large number of functions and applications. It is catered to small and medium-sized businesses who are looking for payroll software that can help with tax filing, payment procedures, payroll data, and benefits insurance. The pricing for Onpay is competitive, and the platform can manage unlimited monthly payroll. It also has the ability to adapt to the different requirements for W-2 and 1099, making it an excellent choice for businesses with both full-time and contract employees. The only con might be that the more people you add, the more you pay, but that is common among most payroll software.

Paycor

Paycor has been operating since 2005 and has helped thousands of users. They offer robust payroll solutions, including everything from onboarding and tax compliance to payroll and reporting. Their interface is intuitive, making it easy for any business owner to use. All of your payroll, taxes, and HR processes can be housed under one roof with Paycor. The one downside to Paycor is that there are no simple starting rates. They want everything to be personalized, so you’ll have to inquire about a private quote before you get started.

Toast

Toast Payroll is the best payroll software for restaurants, bars, and other businesses operating in the food service industry. Toast can help managers with their labor and payroll processes, meaning your business can run smoothly without worrying about finances or missing essential details on timesheets. Toast also ensures compliance with government regulations, taking away any worries about running your restaurant correctly. Another advantage of Toast Payroll is that it syncs information between payroll and POS (point of sales) to maintain accurate data. The only con of using Toast is that it is focused on restaurants and may not be suitable for other types of businesses.

Choosing the Best Payroll Platform

Separating personal and business finances is an essential part of being a business owner. By using one of these popular payroll software options, you can ensure that your employees are getting paid in a timely manner and that you’re prepared for when tax season rolls around. Small business owners won’t have to worry about meticulously tracking finances when they have the software to do it for them. Plus, many of these payroll platforms offer assistance from experts, meaning you’re never alone in the payroll process. Choosing the best payroll software for your company will depend on the size of your business and what features are most important to you. All of these options offer excellent services that will help you manage payroll and tax compliance, so it’s a win-win situation for everyone involved.

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