The Very Best Payroll Software for Startups in 2024

Last Updated -
September 2, 2024 15:02
Written by -
Alec Chambers

Finding the right payroll software can be a game-changer for your startup.

But as a smaller business, the options can be overwhelming and the budget constrained, making the task feel daunting.

That's where tailored payroll software comes into play: these platforms are designed specifically to meet the unique needs of startups.

You don’t need to be an accounting expert or tech-savvy to get started—these applications simplify the entire process. With intuitive interfaces and automated features, staying on top of payroll has never been easier.

I spent a few weeks evaluating various payroll software options to find the ones that strike the best balance between functionality, ease of use, and affordability. Here are the top choices for startups in 2024.

Gusto - Efficient Payroll and HR Management for Startups

Gusto is a robust online platform tailored to assist growing businesses with payroll, HR, benefits, and other essential administrative tasks. Widely used across various sectors, Gusto offers comprehensive solutions to streamline employee management and business operations. Renowned for its excellent support and user-friendly interface, Gusto caters to firms of all sizes and complexities.

  • Payroll Management: Automated and multi-state payroll capabilities ensure swift and compliant payment processing.
  • HR Tools: Includes job and applicant tracking, custom onboarding checklists, and comprehensive time-tracking functions.
  • Benefits Administration: Health insurance administration without extra costs and support for other employee benefits like retirement plans.
  • Employee Onboarding and Management: Simplified employee self-onboarding and efficient management of employee details.
  • Customer Support: Offers a dedicated success liaison for Plus plan users and robust support resources available from Monday through Friday.
  • Integration and Compliance: Ensures compliance with payroll and tax regulations, and smooth integration with various business tools.

Benefits

  • Automated Payroll: Run payroll bi-weekly or monthly with minimal effort, reducing the time spent on payroll processing significantly. Support for running payroll in multiple states, which includes compliance with state-specific regulations.
  • HR Tools: Manage the hiring process with job postings, applicant tracking, custom onboarding checklists, and built-in time tracking features to ensure accurate payroll.
  • Benefits Administration: Gusto provides health insurance administration at no extra cost, including helping businesses find the right coverage and managing existing plans. Support for various benefits, including retirement plans and other employee benefits.
  • Employee Onboarding and Management: Employees can self-onboard to save time, while easy management of employee details, including tax information and other necessary data, helps streamline operations.
  • Dedicated Customer Support: Businesses on the Plus plan get a dedicated success liaison to meet complex needs, alongside access to support resources, including instant answers and customer support available Monday through Friday from 6AM – 6PM MST.
  • Compliance and Integration: Gusto ensures compliance with various payroll and tax regulations, reducing the risk of errors and penalties. It offers seamless integration with other business tools and systems to streamline operations.
  • Gusto Wallet: An associated app that helps employees manage their finances, including features like early pay, budgeting tools, and wage advances.
  • Awards and Recognition: Recognized as #1 Best Software for Small Business for 2024, Most Innovative Companies in HR for 2024, #1 HR Software for Startups of 2023, and #1 Payroll Software of 2024.

Simplified Pricing Info

The Simple Plan: $40 per month + $6 per month per person, ideal for new businesses and startups paying people in one state. This includes automated payroll, HR tools, and health insurance administration.

The Plus Plan: $60 per month + $9 per month per person (discounted from $80 per month + $12 per person), suitable for businesses running payroll in 2 or more states. This plan includes built-in time tracking, HR tools, and a dedicated success liaison.

The Premium Plan: Not explicitly listed on the page. This plan offers exclusive pricing for businesses with more complex needs and includes additional support and features. Contact Gusto directly for details.

Sign-up is free, allowing you to choose your plan and add company details during the setup process. You won't pay until you're ready to run payroll, and you can add various plans and add-ons as needed.

OnPay - Your Seamless Payroll, HR, and Benefits Management Solution

OnPay provides an all-encompassing payroll, HR, and benefits management platform tailor-made for small businesses and accountants. Known for its user-friendly interface and automated processes, OnPay helps streamline payroll tasks, reduce administrative burdens, and ensure accurate employee and contractor payments. Additionally, the platform supports comprehensive employee data management, facilitates time-off requests, and provides clock-in/clock-out functionalities through its mobile app.

OnPay stands out with its integrated benefits management, including health benefits, 401(k) plans, and workers’ compensation. The platform also seamlessly integrates with various accounting software, keeping financial records up to date. Compliance tools and document management features, such as electronic access to pay stubs and tax forms, further aid businesses in maintaining compliance and efficiency. Users enjoy a high level of customization and ease of use, with options like light and dark modes enhancing the user experience. OnPay offers transparent pricing without hidden fees, along with extensive setup assistance to ensure a smooth onboarding process. The mobile app extends core functionalities to mobile devices, allowing employees to view pay stubs, update personal information, and more.

Benefits:

  • Streamlines payroll, HR, and benefits management tasks.
  • Elevates efficiency and accuracy in managing employee and contractor payments.
  • Saves time on administrative tasks and compliance management.

Simplified Pricing Information

Transparent pricing with no surprise fees for easier budgeting of payroll and HR costs. Base Fee: OnPay has a base fee (exact amount not specified). Per Person Fee: Additional cost per person (exact amount not specified). Potential customers need to contact OnPay directly or request a quote through their website for exact pricing details. Assists with setting up the platform and importing employee information at no additional charge.

QuickBooks - Comprehensive Financial Management for Startups

QuickBooks accounting software delivers sophisticated accounting solutions specifically tailored to small businesses, covering a wide range of financial management needs such as bookkeeping, invoicing, expense monitoring, and payroll management. Its scalable plans are developed to streamline business finance management, with offerings like live expert assistance to facilitate setup and ongoing tasks.

QuickBooks offers key features including automated bookkeeping, income and expense tracking, and invoice management. Users can generate various types of reports to monitor sales, track taxes, and analyze financial plans or project profitability. The functionality of QuickBooks extends with its capability to collaborate and integrate with popular apps, offer on-the-go access through mobile apps, and customizable user access controls. It also provides full-service payroll functions and continuous support to its users.

Benefits for Startups

  • Streamlines financial management: Automates essential financial tasks to save time and reduce the risk of errors.
  • Enhances financial visibility: Provides comprehensive reports and analytics for better business decision-making.
  • Facilitates teamwork and efficiency: Integrates seamlessly with popular apps and offers multiple user access.
  • Ensures compliance and support: Manage payroll efficiently with automated tax payments and gain 24/7 support with premium plans.

Simplified Pricing Information

QuickBooks offers various pricing plans starting from $35 per month, with discounted rates for the first three months. Each plan provides different access to features, catering to varying business needs. Premium plans offer additional benefits such as access to advanced features like workflow automation.

Patriot Online Payroll - Streamlined Payroll and Accounting for SMBs

Patriot Online Payroll is a comprehensive payroll software designed specifically for small and medium-sized businesses (SMBs) in the United States. This tool simplifies payroll management with features like unlimited payroll runs, customizable deductions, PTO management, and direct deposit, making it easier for businesses to handle their payroll needs efficiently. Patriot Software offers an intuitive, user-friendly platform that allows businesses to manage both payroll and accounting seamlessly. With capabilities for unlimited invoicing, expense tracking, and detailed financial reporting, it supports comprehensive business financial management. Additionally, it facilitates the creation and electronic filing of essential forms such as 1099 and 1096, and offers multi-user access, including for accountants.

Benefits

  • Streamlines Payroll Management: Automates payroll processes, minimizing manual input.
  • Enhances Financial Reporting: Provides detailed profit and loss statements, balance sheets, and other key reports.
  • Automates Tax Filings: Handles federal, state, and local payroll tax filings and payments through the Full Service plan.

Simplified Pricing Info

Patriot Software operates on a month-to-month subscription model, offering businesses flexibility without long-term commitments. The pricing is competitive, noted to be "at least half the price" compared to other payroll solutions, and new users can benefit from a 6-month free trial. For precise pricing details, users are encouraged to visit the Patriot Software website or contact their customer support directly.

Rippling - The Ultimate Workforce Management Tool for Startups

Rippling is a comprehensive platform designed for integrating HR, IT, and finance functionalities, providing businesses with a unified workforce management system. This powerful tool automates administrative tasks, enhances security, manages global teams, and optimizes workflows through its diverse suite of features. These core features include Human Capital Management, IT Management, and Global Payroll. Among the offerings, you will find tools for HR management, time & attendance tracking, global payments, benefits administration, and device management. Rippling serves as an all-in-one solution for effective workforce management.

Benefits:

  • Streamlines workforce management processes.
  • Improves overall output quality through better human capital and IT system controls.
  • Saves time by automating administrative tasks and creating advanced workflows.

Simplified pricing info:

Rippling offers a cost-friendly option starting at $8 per user per month. Customization of plans is available based on specific business needs, and a free demo is provided to showcase the platform's features and functionalities.

For inquiries or custom quotes, businesses can reach out to Rippling's sales team. This ensures that each organization receives a tailored plan matching their requirements and budget.

Benefits of Using the Payroll Software for Startups

  • Efficiency and Time-Saving - Automated calculations and payroll processing save time. - Streamlined workflows reduce the need for manual data entry. - Quick generation of payslips and reports.
  • Accuracy - Reduces the risk of human error in calculations and compliance. - Ensures precise tax withholdings and deductions. - Consistently accurate payroll and tax filings.
  • Compliance Management - Keeps you updated with the latest tax laws and regulations. - Automates tax filing and end-of-year reporting. - Lessens the risk of non-compliance penalties.
  • Cost-Effective - Reduces the need for extensive accounting or HR teams. - Lower operational costs through automation and efficiency. - Potential savings on penalties and fines due to accurate compliance.
  • Employee Satisfaction - Timely and accurate payments boost employee morale. - Access to self-service portals for viewing payslips and managing personal information. - Simplified and transparent payroll processes.
  • Security - Ensures sensitive data, like employee information and pay details, is securely stored and accessed. - Regular updates and security protocols to protect against data breaches.
  • Scalability - Easy to scale as your startup grows and adds more employees. - Adaptable to the changing needs of a growing business.
  • Integration Capabilities - Seamlessly integrates with other business tools such as accounting software, HR systems, and time-tracking apps. - Centralized data management improves overall operational efficiency.
  • Customization - Tailor the software to fit your specific business needs and workflows. - Flexible options to create customized reports and dashboards.
  • Accessibility - Cloud-based solutions offer the flexibility to manage payroll from anywhere. - Mobile-friendly interfaces for on-the-go access.
  • Support and Training - Access to customer support for resolving issues quickly. - Training resources to ensure your team knows how to use the software effectively.

Frequently Asked Questions (FAQ)

1. What is payroll software?

Payroll software is a digital tool designed to manage, organize, and automate the process of paying employees. It handles various payroll tasks such as calculating wages, withholding taxes and other deductions, and ensuring payroll compliance with state and federal laws.

2. Why do startups need payroll software?

Startups need payroll software to streamline their payroll processes, reduce manual errors, save time, and ensure compliance with tax laws and regulations. Efficient payroll software can help startups focus on growth rather than getting bogged down with administrative tasks.

3. What should startups look for in payroll software?

When choosing payroll software, startups should look for features such as ease of use, scalability, automation capabilities, compliance management, integration with other business tools, support and customer service, and affordability.

4. How can payroll software help with compliance?

Payroll software helps with compliance by keeping up-to-date with changing tax laws and regulations, accurately calculating payroll taxes, and generating required compliance reports. This reduces the risk of non-compliance and potential fines.

5. Can payroll software integrate with other business tools?

Yes, most modern payroll software can integrate with other business tools such as accounting software, HR management systems, time tracking apps, and more. Integration helps streamline processes and improves overall business efficiency.

6. Is payroll software secure?

Reputable payroll software providers invest heavily in security measures to protect sensitive employee and company data. This includes encryption, secure servers, regular security audits, and compliance with data protection regulations.

7. How much does payroll software typically cost for startups?

The cost of payroll software varies widely depending on the features and the number of employees. Startups can expect to pay anywhere from $20 to $200 per month, with some providers offering scalable solutions that grow with the company.

8. Can payroll software handle both salaried and hourly employees?

Yes, payroll software is typically designed to handle both salaried and hourly employees. It can manage different pay schedules, track hours worked, and calculate pay accordingly.

9. What kind of customer support can startups expect from payroll software providers?

Customer support varies by provider, but many offer multiple channels such as phone, email, live chat, and online resources like tutorials and FAQs. Choosing a provider known for excellent customer service can be crucial for resolving any issues promptly.

10. How easy is it to switch to a different payroll software provider?

Switching payroll software providers can be straightforward but requires careful planning. Most providers offer data import features and onboarding assistance to make the transition smoother. It's important to ensure all employee data, historical payroll information, and compliance records are accurately transferred.

11. Can payroll software help with employee benefits management?

Many payroll software solutions offer features for managing employee benefits such as health insurance, retirement plans, and other perks. This includes deductions, contributions, and compliance with related regulations.

12. Is there a trial period available for most payroll software?

Many payroll software providers offer a trial period or a demo version so that startups can test the software's features and usability before committing. This can be a great way to determine if the software meets your specific needs.

13. How often do payroll software providers update their systems?

Reputable payroll software providers frequently update their systems to improve functionality, add new features, and ensure compliance with the latest tax laws and regulations. Regular updates also address security vulnerabilities and enhance user experience.

14. Can payroll software handle multi-state payroll?

Yes, many payroll software solutions are designed to handle multi-state payrolls, including compliance with different state laws and tax requirements. This is particularly useful for startups with employees in different locations.

15. What is the learning curve for new payroll software users?

The learning curve varies depending on the software’s complexity and the user’s experience. Generally, modern payroll software is designed to be user-friendly with intuitive interfaces. Providers often offer training sessions, tutorials, and support to help new users get up to speed quickly.

Written by Alec Chambers

Hi! I'm the creator behind ToolsForHumans. My journey, ignited by an obsession with ChatGPT after witnessing the practical applications of the tool, quickly expanded to include the launch of this site and a deep dive into more than 90 AI apps.

Over the past 8 months, I've been diligently crafting use cases and producing tutorial videos with the goal of demystifying AI and making it accessible to everyone. Alongside this, I've assembled specialized business toolkits, carefully selecting the best tools specifically tailored to various professions and industries.

Feel free to connect with me on LinkedIn, and if you're feeling particularly generous, giving our company page a follow. I'm always up for a chat!