Payroll for Small Business - Overview of Gusto, SurePayroll, OnPay, Wave || payroll software review

Hello, I'm attorney Elizabeth Potts Weinstein. Today, we're diving into the top five payroll companies to help you choose the best one for your small business. Whether you’re hiring your first employee or managing a team of up to five, this guide is for you. Smaller businesses often have different needs and budgets compared to larger companies, so finding the right payroll provider is crucial.

Understanding Payroll Companies for Small Businesses

Managing payroll involves numerous compliance requirements, including various government filings. Handling these tasks yourself can be complex and error-prone, which is why outsourcing to a payroll provider is highly recommended. Even as a lawyer, I found DIY payroll challenging and costly due to mistakes. Modern payroll services, especially those catering to smaller businesses, offer affordable solutions that simplify these processes.

Top 5 Payroll Providers for Small Businesses

1. Gusto

   • Pricing: Simple plan at $40/month + $6 per employee.
   • Features: Includes W-2s, 1099s, support, basic onboarding, health insurance brokering, and more. Premium features like PTO management and performance reviews are available at higher tiers.
   • Pros: User-friendly, comprehensive support, and additional services like workers' comp insurance.
   • Cons: Recent price increases and essential features like PTO tracking require the Plus plan, doubling the cost.

2. ADP

   • Overview: A well-established player in the payroll industry, known for its comprehensive solutions.
   • Pricing: Custom quotes only; no upfront pricing available.
   • Features: Extensive payroll and HR services, but requires contacting for a quote.
   • Pros: Robust features suitable for larger small businesses.
   • Cons: Lack of transparency in pricing and the need for personalized quotes can be a hassle for very small businesses.

3. SurePayroll (by Paychex)

   • Pricing: Full-service payroll at $29.99/month + $5 per employee.
   • Features: Two-day direct deposit, tax filings, multi-state payroll, and 401(k) options.
   • Pros: Competitive pricing, comprehensive tax filing services.
   • Cons: Limited information without entering personal details for a quote.

4. OnPay

   • Pricing: $40/month + $6 per employee.
   • Features: Unlimited monthly pay runs, automatic tax payments and filings, PTO management, employee self-service, and multi-state payroll without extra fees.
   • Pros: No additional fees for multi-state payroll, inclusive of PTO tracking, user-friendly.
   • Cons: Newer company, less established reputation compared to older providers.

5. Wave

   • Pricing: $40/month + $6 per employee, but only available in 14 states for full tax services.
   • Features: Direct deposit, tax filings (in certain states), and integration with their free accounting and invoicing software.
   • Pros: Affordable for businesses within supported states, seamless integration with other Wave products.
   • Cons: Limited availability for tax services, requiring self-service in most states.

Conclusion

Choosing the right payroll provider depends on your specific needs, including the number of employees, state-specific tax requirements, and additional HR services. For most small businesses, Gusto remains a solid choice due to its comprehensive features and ease of use. However, if you have employees in multiple states, OnPay could be more cost-effective. SurePayroll offers a competitively priced alternative, and Wave is a viable option if you’re in one of their fully supported states.