managing payroll for small business

Most of the features in the more expensive plans are available as an add-on option, with pricing available directly from Paychex Flex. You’ll also pay more if you add additional features, such as Time and Attendance, HR, and Employee Benefits Administration. No separate mobile app is needed, as the application is designed to work on any platform and the application easily pays both employees and contractors, producing both W-2s and 1099s at year-end. Featuring easy system navigation, OnPay offers industry-specific features for restaurants and other businesses that need to account for employee tips. Square Payroll’s contractor-only plan skips the typical monthly base fee.

managing payroll for small business

Paychex: Best for Solopreneurs & Startups That Need Payroll & Small Business Incorporation Services

Since many small businesses start out using QuickBooks for accounting, adding payroll is usually the logical next step. Plus, it offers a contractor payment plan that’s more affordable ($15 monthly for up to 20 workers) than Square Payroll and Gusto (monthly fees of $6 per contractor and $35 + $6 per worker, respectively). Many online payroll services include features that help you administer benefits in the same platform, as well as integrations for accounting software. Many offer workers the option to get a payment card, so they can receive money before payday and use the card directly to make purchases.

managing payroll for small business

Odoo: Good for an all-in-one business management app

ADP mobile solutions give employees access to their payroll information and benefits, no matter where they are. Employees can complete a variety of tasks, such as view their pay stubs, manage their time and attendance, and enter time-off requests. ADP helps companies manage payroll taxes by automating deductions from employee wages and making sure the right amount of money is delivered to the government, based on the latest payroll tax rules and regulations. Rippling’s automations make it well-equipped to handle robust needs, like paying global employees, creating workflows that send notifications and help manage administrative tasks, categorizing data and more. Payroll and benefits-only services are also eligible for the offer of 50% off for the first three months.

How To Manage Payroll

In addition, they can track their vacation days and request time off using the mobile app. Finally, as an added perk, employees can use the app to access TriNet-offered discounts on technology, groceries and other products. TriNet’s standout features include automated tax and filing support, unlimited payroll runs, a mobile app and time and attendance tracking.

Manage and pay your team with confidence

For example, if an employee contributes $100 per pay period to their health insurance premium, you would deduct $100 from their gross pay. Ensuring you have accurate and complete information will help you avoid payroll errors and ensure your team gets paid on time, every time. You’ll also need their bank account information if you’re offering direct deposit. Don’t forget to document their salary or hourly wage, as well as any additional compensation like bonuses or commissions. Learning how to do payroll for a small business is undeniably one of the most important things for a small business owner to master.

Patriot streamlines payroll management, record keeping, and reporting and it integrates smoothly into most accounting software setups. Payroll management is a system for processing employee paychecks (salaries, bonuses, deductions), complying with labor laws, and maintaining adequate documentation. In 2022, the IRS levied nearly $15 billion in civil penalties for non-compliance with employment taxes—most of which can be easily avoided with efficient management processes. That’s why it’s important that businesses learn how to manage payroll effectively, as it directly affects their financial health. The payroll services we selected for this ranking offer benefits administration and HR tools.

The application also completes all required tax forms, but does not handle filing or tax remittance. Step through the following simple questions to begin to determine what the best payroll software is for you and your business needs. At, our research is meant to offer general product and service recommendations. We don’t guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services. If you’re interested, we have a list of the best free payroll templates you can use to calculate payroll by hand.

If you’re looking to save money, Patriot Software’s $17 self-service plan might be the best payroll solution for you. Before you commit to a payroll plan, thoroughly assess your own needs and make sure they mesh with your preferred plan. To find the best small business payroll solutions for this article, we looked at our payroll-related buyer’s guides and compiled a list of providers that often appear in those lists.

If one or two payroll processors are having problems processing payroll in a timely manner, consider reallocating their payroll duties. You should document this change of duties and create or update your written payroll policies so the new process is communicated clearly. While processing payroll is part of a human resource (HR) professional’s training, their expertise is more focused on recruitment and employee records management. They offer real-time data access, automatic updates, and secure data storage. With limited HR and payroll staff, payroll processing can become a challenge.

Payroll4Free doesn’t cost anything for employers with up to 25 employees, and it remains modestly priced at $12.50 when you add more. If employees raise concern about or have difficulties complying with payroll policies, then it’s time to review your policies (and documentation) for accuracy and clarity. Employees must understand their role in the payroll process to complete tasks like time sheet submission or timecard use properly and on time. Communicate the benefits of direct deposit to your employees—it’s convenient, they get their pay faster, and it’s more secure.

The IRS says to store payroll records for at least four years from the date when the taxes are due or from the date that you made the payment―whichever is later. This means that you need to keep time cards, spreadsheets and copies of checks and deposits for this period of time should an audit or a discrepancy arise. Employees must be sent a Form W-2 by January 31 of the year following their paid wages.

  1. Its PEO plans also include a wide range of features—from automated direct deposits and off-cycle payments to online employee onboarding and HR consulting.
  2. The best accounting software makes it easy to keep a detailed financial record so that you’re ready come tax season.
  3. Most accounting software goes beyond these tasks with additional built-in modules for invoicing and billing as well as inventory management, among other functions.
  4. Regular check-ins and performance reviews can provide opportunities for feedback and improvement.

Tax nexus issues may arise due to remote employees working in different states, leading to potential tax implications for your small business. Remote work offers significant benefits to small businesses by improving employee morale and productivity through increased job satisfaction and work-life balance. Embracing remote work can lead to substantial cost savings for small businesses.

The TriNet mobile app offers convenient features for both employers and their employees. Employers and permissioned personnel can view employee profiles, hire and termination data, benefits and payroll information and access reporting. They can also search a knowledge base for answers to their questions or open a support case or live chat session to access TriNet customer support.

It can also lower your risk of making payroll mistakes, making your payroll department more reliable. Whether your company is big, small or somewhere in between, ADP’s payroll software has you covered. Offers a comprehensive suite of HR tools such as a proactive HR support team, employer/employee training, business advice, and legal assistance from Upnetic Legal Services®2. Adds powerful capabilities on top of payroll, such as garnishment payment service, SUI management, background checks, and job posting through ZipRecruiter®1.

An employee self-service option is also available, and SurePayroll also integrates with a wide variety of third-party applications. The Fair Labor Standards Act (FLSA) requires that you hold onto employee payroll records for at least three years. Refer to the FLSA fact sheet for a list of the 14 required payroll records. Let’s say you own a small hardware store, where employee Christina free estimate templates for word and excel worked 45 hours last week. Additionally, if you offer employee benefits, you will need to give each new hire paperwork that describes the terms and conditions of those benefits and, in some cases, request that they sign. Automated systems can also be affected by data entry errors like incorrectly recording a new employee’s tax status (married vs single) or entering old pay rates.