Recall the last time you were paid late by a customer or client. Are you feeling annoyed, frustrated, stressed, or both? Perhaps you considered ending the relationship.
The same goes for your workforce. 65% of employees are dependent on their paychecks for survival. Even the smallest payroll errors can lead to your workers leaving for organizations that they feel are more organized.
These issues can be eliminated with the right payroll software for small businesses. This will save you time, effort, and money and reduce costs. However, there are many options, so how can you choose the best one for your company?
We’ll be comparing the top 5 payroll platforms for small and startup businesses so that you can choose which one is right for you.
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What’s payroll software?
- 5 essential payroll software features to search
- The best payroll software for small and startup businesses
- Top practices for setting up small-business payroll
- Ramp Streamline accounting and automate onboarding
What is payroll software?
- Many organizations use payroll software to manage and operate their payroll. It:
- This includes the time-consuming and tedious tasks
- Your business will be compliant with all federal, state, or local tax laws
This is particularly important for companies that have employees across the states. Every state has its own set of employment tax guidelines. If you don’t follow them, your company could face severe penalties and fines.
Some vendors offer more than basic payroll services. These vendors may also offer additional services, such as tax filing, HR support, and time tracking, for an additional fee.
Here are some benefits that payroll software can offer your organization.
Five important features of payroll software to be aware of
It is simple to use
New business owners find it difficult enough to manage payroll. Choose a simple, user-friendly software that is easy to use. Your team will likely use the software to access payment information and pay stubs and download tax documents. You’ll need an intuitive employee portal that is easy to navigate.
Review software, check YouTube videos, and use free demos or trials. Look for companies that provide extensive help articles and support for your team.
Automatically runs payroll
The right payroll automation platform will save you time and allow you to avoid hiring someone to run it. In addition, the software does most of the work, so you are less likely to make mistakes with someone’s paycheck.
Look out for full-service options that allow unlimited runs and avoid those that require you to initiate payroll manually.
Provides employee benefits
You can attract and keep top talent by offering great benefits. Payroll management software that includes benefits administration features makes it easy to invest in your employees without extra effort.
Choose a vendor that offers the benefits you and your employees want or integrates with third-party providers to achieve the same effect. Consider a vendor that will allow you to offer benefits such as health insurance or other employee benefits in the future, even if you aren’t ready yet.
Provides tax support to full-time, part-time, remote, contract, and contract workers
Additional income reporting requirements or companies with remote employees will require additional guidelines.
The best payroll software collects all this information and sends it promptly to the appropriate authorities. Find out what your industry and company require from a payroll software solution, and then choose the one that suits your needs best.
Integrates with your HR and finance stack
Payroll management software that isn’t compatible with other tools in your tech stack will slow down your team, increase the possibility of errors and prevent you from getting a true picture of your company’s health.
You want a seamless back-office experience for your company. Ensure that the tool you choose integrates with your existing finance automation or HR software.
Five best payroll softwares for small and startup businesses
With these features in mind, how do you begin your search?
Below are a few options for entrepreneurs and founders to consider. Each platform shines in its area, but all five platforms simplify payroll for busy business owners thanks to their ease of use, flexibility and abundance of features.