The Best Online Payroll Services of 2024

The best online payroll services automate the payroll process, freeing your time to focus on core business activities. Yet comparing payroll software prices and features is challenging. To help you decide, we identified the top payroll providers. Our assessment compared costs, tools, usability and customer service. Use this guide to find the right payroll solution for your company.

An online payroll service provides businesses with the software and tools to run payroll on their own. With the software, you enter each employee and then some additional details, including their salary or hourly wage, their benefit deductions, and where they live, among others. With all of this completed, the service automatically calculates each employee’s paycheck each pay period. Additionally, it withholds and, in some cases, pays your local, state and federal payroll taxes. The service also provides detailed reporting that lets you know how much you spend on payroll each month.

Rippling

Workflow automation reduces task switching, allowing HR professionals to focus on high-level duties. The best payroll services automate tax filing and payroll processing, but none offer extensive integrations and prebuilt automation formulas like Rippling. Its no-code workflow builder can update your accounting software and assign tasks to pay employees a referral bonus or retroactive pay raise. Rippling Unity starts at $35 per month, and Rippling Payroll has an $8-per-employee fee.

JustWorks

Outsourcing payroll and some HR services to a professional employer organization (PEO) can help your company save on benefits and payroll expenses. Justworks is an affordable solution with robust online payroll services, employment practices liability insurance and accounting software integrations..

Justworks’ pricing starts at $59 per employee per month, which is more expensive than standard payroll software solutions. However, as your PEO, Justworks becomes your co-employer and provides access to a 24/7 customer service team via Slack, phone, email, chat and text.

TriNet

Entering time card data into a payroll system is time-intensive and error-prone. TriNet Zenefits solves this problem with native time-tracking tools for on-site, remote and field workers. Built-in scheduling and compliance features help companies comply with overtime regulations and notify employees of new shifts. Since everything syncs to Zenefits’ payroll service, it’s our top choice for payroll software with built-in time tracking.

Price-wise, Zenefits is reasonable. The base package starts at $10 per employee per month, or $8 with annual billing, plus an additional $6 per person for payroll services.

TriNet Zenefits syncs to the Zenefits HR platform. (Source: TriNet)

Papaya

Global payroll is challenging for small and midsize businesses, but Papaya Global makes hiring employees and contractors in more than 160 countries convenient. It supports over 100 payout currencies and offers international employee benefits plans. Papaya Global leverages AI technology to audit payroll to ensure accuracy and compliance.

Papaya Global payroll pricing starts at $3 per person per month to add international payments to your current payroll service, whereas full-service payroll costs $12 per person per month.

Heartland

Not all online payroll services respond quickly when issues arise. However, Heartland Payroll provides on-demand access to professionals who can answer your questions about payroll tax preparation and labor laws. Its HR Support Center includes the Ease and Employee Navigator, simplifying new-hire reporting and benefits-related payroll deductions. With a full-service payroll solution and vast HR resources, small businesses can prevent manual data entry errors and stay updated on the latest regulations.

Patriot

A small team does not always need a full-service payroll system, and we appreciate that Patriot Software offers a manual tax filing solution. With this option, a small business can save over $200 annually on monthly fees. Patriot Software still provides unlimited payroll runs for all pay frequencies and supports 1099 and W-2 workers. Alternatively, you can upgrade to its full-service payroll solution, which costs less than most competitors.

Patriot Software’s pricing is $17 per month, plus $4 per employee for self-service tax filing.

Paychex

Large organizations with diverse workforces and multiple locations can use Paychex Flex to serve employees and contractors better while streamlining back-office workflows. It offers direct deposit alternatives and employee self-service options. The payroll software integrates with over 250 third-party applications and supports custom integrations through its API Developer Center.

Paychex Flex Essentials pricing starts at $39 per month, plus a $5-per-employee fee, and scales to Paychex Flex Enterprise.

Paychex offers both HR and payroll solutions. (Source: Paychex)

While the costs of payroll solutions differ by company, most payroll providers use a similar cost structure. There is typically a base fee and a per-employee charge. Our best picks levy base fees of $17 to more than $100 monthly and per-employee fees of $4 to $12 monthly.

Many payroll services charge monthly fees or offer discounts for annual billing, and these subscriptions include unlimited pay runs. However, some providers apply a fee each time you run payroll.

Likewise, payroll companies may have a single plan or tiered pricing model. The cheapest payroll packages may include payroll processing only, whereas full-service subscriptions provide payroll tax filing and payment services. Additionally, some providers charge add-on fees for year-end tax forms, system implementation and integrations.

A few providers, including QuickBooks, offer bundle deals that include both accounting software and payroll software for a reduced price. Always inquire about sales, discounts and introductory offers.

Payroll Implementation Costs

Most payroll services offer free setup and implementation. The process may be fully online and self-guided or require hands-on support from payroll specialists. Payroll companies often migrate your payroll and employee data from your current service to your new provider. But some may charge a one-time fee for setup or migration.

Even if a provider does not charge fees, you can expect to pay for your employees to be onboarded and trained. Depending on the payroll software’s complexity, these expenses can add up.

Before you sign up with a payroll service provider, ask the company these questions to get the best deal possible:

• Does it offer price reductions for long-term contracts?
• Would it be willing to match the price of one of its cheaper competitors?
• Does it provide volume-based discounts for larger companies?
• Are there fees for 1099 and W-2 form generation?
• Does it cost more for general ledger or accounting integrations?

It is essential to review the agreement thoroughly before you sign anything. Ensure the contract includes everything you have agreed to and doesn’t have any built-in price increases after a certain period.

Also, ask about the process for canceling service. For example, find out if there are any costs associated with payroll service termination and how much notice you need to give.

Online Payroll Free Trial

Some payroll providers offer first-time customers a 30-day free trial, allowing you to run payroll at least once to determine how you like the service. In addition, many payroll services don’t require long-term commitments, so if you test it out for a few months and decide the program doesn’t fit your needs, you can easily cancel it and find a better match elsewhere.

Online payroll software encompasses a lot of services. These are some of the most valuable features and tools these programs offer.

Payroll Processing

Full-service payroll systems calculate worker pay based on the entered wage rates and hours worked. It deducts employee benefits contributions and payroll taxes. Some software has an auto-pay option for salaried workers, so you only need to approve payroll each pay period. Depending on your payroll service, it may allow unlimited payroll runs and one or more pay schedules.

Payroll Tax

One big plus of using an online payroll service is that it handles your business’s payroll tax responsibilities. Based on each paycheck, the software can withhold the required employee taxes. The payroll company then fills out and files the quarterly payroll tax reports and pays the appropriate local, state and federal agencies.

At the end of the year, the software generates the W-2 and 1099 tax forms for your workers. Many payroll companies offer an error-free guarantee. If the company makes a mistake on your taxes, your payroll provider will correct the oversight and pay any fines or interest incurred.

Payroll software helps you generate tax forms. (Source: Intuit)

Automation

Payroll software is increasingly employing new artificial intelligence (AI) technology. AI automates routine payroll tasks such as data entry, time tracking and calculations. This reduces the chances of human errors and ensures accuracy in payroll processing.

New-Hire Reporting

When hiring a new employee, you must report that information to the state. Online payroll services can complete those forms for your small business and send them to the proper state agencies. Information on the forms includes the employee’s name, address and Social Security number, as well as the employer’s name, address and federal employer identification number.

Employee Payment Options

Payroll companies offer multiple ways to pay your employees. The most common methods are direct deposit and paper checks. With direct deposit, an employee provides their bank account information, and the payroll software automatically deposits the paycheck into their account on payday.

Another option is paper checks. You can print them yourself, or some payroll providers offer check-stuffing services, meaning they print the checks, put them in envelopes and deliver them to your office.

Payroll cards are another alternative to direct deposit. Employees don’t need a bank account. Instead, they have prepaid debit cards and paycheck funds go onto the card. Also, a handful of payroll services provide on-demand wages. In these cases, workers can request payment before a scheduled pay cycle.

Employee and Contractor Types

Payroll software supports hourly and salaried employees, vendor payments and 1099 contractors, including consultants and freelancers. Systems may let you select individual pay rates (even during the same shift), calculate tip credits, assign bonuses and reimburse expenses.

Payroll Reports

Online payroll software can provide various reporting tools that give businesses insight into their company and employees. The types of payroll reports that some services offer include payroll registers, contribution reports and payroll tax reports. Advanced data visualization features can break down workforce costs and benchmark compensation rates.

Third-Party Integrations

Many online payroll software platforms integrate with programs that businesses already use. These include accounting software, time and attendance systems, and HR tools. These integrations allow the programs to connect seamlessly. Data is automatically shared and transferred between them, saving you the time you’d otherwise spend entering the same information in multiple places.

Employee Self-Service

The best online payroll services give each employee a login to access the software. The employee portal lets them review pay stubs, access their year-end tax forms and check their time-off balances. Depending on your payroll program, workers may be able to enroll in benefits plans and request shift coverage from co-workers.

PTO Management

Many payroll services include management for your employees’ paid time off. This may mean simply tracking PTO accruals or allowing employees to request time off and managers to approve or deny it. Like other features, these updates can sync automatically to your payroll software.

HR Features and Tools

Some payroll companies include HR services in their platforms. Customizable offer letters and onboarding tools, like e-signatures, are popular features. Plans may also provide employee handbook wizards, document templates and HR resource libraries.

Customer Service

Online payroll companies typically offer support during weekday business hours, although a few provide 24-hour coverage or emergency weekend hours. Some assign a dedicated support specialist, eliminating the need to go through a call center.

While email, phone and live chat are the most common methods, certain providers offer customer service through text messaging or Slack. In addition, most online payroll services have extensive resources on their website, such as how-to guides, FAQs and videos.

Mobile Access

Some payroll services provide mobile access to their software. Options may include mobile-friendly websites that open on smartphone browsers or dedicated iOS and Android apps. These apps let staff view digital pay stubs and annual tax forms. Others serve as time-tracking tools with scheduling or PTO management capabilities.

Many payroll providers offer mobile apps. (Source: ADP)

Benefits Administration

Many payroll companies allow businesses to manage employee benefits through their payroll software. Benefits administration services may include health and dental insurance, retirement plans, pre-tax savings accounts, and workers’ compensation. Also, several payroll service providers can integrate with your current broker.

Outsourcing payroll processing and tax filing is a big step for big or small businesses. Owners should consider several factors and assess potential online payroll services thoroughly. [For a deeper dive into this subject, see our guide: How to Choose Payroll Software.]

1. Evaluate Your Current Payroll Process

Think about how you process payroll now and look over the results of your last payroll audit. What aspects of running payroll do you want to improve? Business owners often wish to save time while preventing tax and payroll errors. The ability to offer employee self-service options, direct deposit, and payroll cards and benefits may also appeal to you.

2. Identify Your Business Needs

To assess payroll service providers, you must understand which features and resources will benefit your company the most. For instance, small businesses with fewer than 50 employees face fewer labor and tax regulations than larger companies but may want help complying with paycheck recordkeeping laws. Also, consider the experience levels of your HR staff and what types of tools would help them fulfill their roles.

Think about the following questions:

• How many employees and contractors do you have?
• Do you need to process payroll in multiple states or foreign countries?
• Will you pay out bonuses, commissions or expense reimbursements?
• Which third-party software applications need to integrate with your payroll software?
• Do you want HR support, resources or features?
• Should your system include benefits management and administration?
• Are you in a niche industry with specific payroll requirements?

3. Compare Various Payroll Software Solutions

Make a list of payroll service providers and your criteria. Read professional reviews involving user testing to get an idea of the pros and cons of deploying and using various tools. Also, check out user reviews and software ratings. Look for patterns of complaints or positive points.

Don’t hesitate to reach out to your professional network. Often, other business leaders readily share insights and recommendations. Track your findings in a spreadsheet or project management platform.

4. Obtain Demos and Free Trials

Once you’ve narrowed your list, contact the best online payroll services to request demonstrations, quotes and free trials. Involve staff members who will use the software, and encourage them to ask questions. Remember to call or message customer service and interact with various representatives to get a feel for how the company handles support tickets.

The advantages of paperless payroll are vast. Replacing spreadsheets and manual data entry can free your time to focus on core business tasks and improve HR workflows. Moreover, many payroll services include additional features for enhancing onboarding and hiring processes.

Reduce Payroll and Tax Filing Errors

Automatic payroll calculations and tax payments decrease the chances of human mistakes. Plus, several top-rated payroll solutions offer tax penalty protection or allow employees to preview paychecks before employers run payroll.

Improve Employee Experiences

Mobile apps, self-service portals and employee benefits can increase staff satisfaction, resulting in lower turnover and higher engagement. Workers appreciate flexible payment options like direct deposit and payroll cards.

Increase Productivity

Payroll software calculates the wages, deductions and withholdings, meaning less manual work. General ledger and time-tracking integrations eliminate the need to enter the same data more than once. In addition, many systems include new-hire reporting services, year-end tax filing and other tools to streamline HR and payroll processes.

Support Key Business Goals

Technology tools should help your company meet objectives, like improving your bottom line or hiring well-qualified job candidates. Payroll platforms can reduce costs while allowing your staff to streamline hiring and onboarding experiences. With a benefits administration service, you reach goals for attracting and retaining employees.

Manage a global workforce

In an era of remote work and globalization, many employers are seeking to hire workers overseas. Payroll software helps you stay in compliance with laws and regulations around the world, which ensures you don’t run into trouble with local governments. Some payroll software companies also provide employer of record services.

Payroll outsourcing is expected to grow at over 6 percent per year until at least 2033, according to a Fact.MR study. The increased demand stems from the desire to standardize processes and leverage technology to automate workflows. As companies face staffing challenges, employee self-service options offer a way to improve experiences and provide greater transparency.

Here are a few key payroll software trends that we will be watching this year.

• Financial access: We’ve seen more employee payroll features focusing on digital wallets with financial wellness tools. While these perks don’t cost an employer extra, they can improve worker engagement and financial access.
• Cloud computing: Payroll software’s scalability and easy access contribute to its widespread adoption. With most businesses comfortable using cloud-based tools, transitioning to an online payroll service is a natural next step.
• Artificial intelligence: Advancements in artificial intelligence (AI) and machine learning (ML) also assist with reporting and compliance. AI and ML can reduce payroll discrepancies, detect fraud and increase accuracy overall.
• Remote work: The hiring of remote workers and independent contractors remains high, increasing the need for multistate payroll solutions and a clear understanding of regulations across state lines. As more regions contemplate the differences between W-2 and 1099 workers, employers must classify team members correctly to avoid hefty fines.

Payroll providers may offer employer of record (EOR) or professional employer organization (PEO) services to facilitate global hiring and payroll processing. In both cases, the EOR or PEO handles regulatory compliance concerns.

Payroll taxes will remain unchanged at the federal level in 2024. The maximum FICA tax will increase from $9,932 to $10,453. Other states are changing their payroll taxes, minimum wage and paid leave requirements. Noncompliance can cost business owners significant time and money. Payroll software can help you keep track of these requirements and alert you to any instances of noncompliance.