Buyers Guide

Table of Contents

• What is Small Business Payroll Software?
• What are the common features of Small Business Payroll Software?
• What are the types of Small Business Payroll Software?
• What are the benefits of Small Business Payroll Software?
• How much does Small Business Payroll Software cost?
• Key considerations when choosing Small Business Payroll Software

What is Small Business Payroll Software?

Small Business Payroll Software refers to software applications designed specifically for processing payroll for small businesses and their employees. These software solutions typically include tools for calculating wages, withholding taxes, managing employee records, and generating pay stubs.

Common Features of Small Business Payroll Software

- Employee database for storing employee information like names, contact details, tax withholding rates, etc.

- Payroll processing for calculating wages based on pay rates, hours worked, etc.

- Tax calculation and withholding of federal, state, and other taxes from employee paychecks

- Integration with accounting software like QuickBooks for managing financial data

- Reporting features for generating payroll reports and analyzing payroll expenses

- Employee self-service portals for accessing digital pay stubs

Types of Small Business Payroll Software

There are generally two main types of small business payroll software:

1. Standalone Payroll Software: These are software programs dedicated solely to payroll processing, like Gusto Payroll. They allow businesses to calculate wages, withhold taxes, and generate digital pay stubs.

2. Integrated Payroll Features: Many accounting and financial software like QuickBooks also include integrated payroll features for calculating wages and withholding taxes from employee paychecks.

What are the benefits of Small Business Payroll Software?

The key benefits of using small business payroll software include:

- Automated calculation of wages, tax withholding, and deductions.

- Streamlined payroll processing and distribution of digital pay stubs.

- Integration with accounting software for financial tracking.

- Employee self-service access to digital payroll records.

How much does Small Business Payroll Software cost?

The cost of small business payroll software can vary significantly, from free up to $100 or more per month, depending on the specific software and its features. Some key pricing models include:

- Subscription-based pricing with a monthly fee, often around $10-20 per month for basic plans.

- Per-employee pricing, with a base fee plus an additional fee (e.g. $6) per employee.

- Integrated into other software like accounting tools, with pricing based on the primary software.

Key considerations when choosing Small Business Payroll Software

When evaluating small business payroll software options, some key considerations include:

- Pricing model (subscription, per-employee, or integrated pricing)

- Integration with existing software like accounting tools

- Employee self-service access and reporting features

- Ease of use and user-friendliness of the software interface