Written by
Jessica Dennis, Lead Writer
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Reviewed by
Kaiti Norton, Managing Editor
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Written by
Jessica Dennis, Lead Writer
Read more by Jessica →
Reviewed by
Kaiti Norton, Managing Editor
Read more HR content →
In this article...
Businesses use payroll software to manage, organize, and automate the employee payment and tax filing process. It eliminates time-consuming, payroll-related tasks for human resources (HR), reduces pay errors, and guarantees that employees receive payment on time.
Extensive payroll platforms allow organizations to monitor time and attendance, tax information, and pay structure. They can keep track of worked hours, calculate wages, deduct tax withholdings, and pay government employment taxes. Reliable payroll software solutions automatically update when tax laws change and alert employers when it’s time to file tax forms.
Aside from payroll processing and management, most payroll software solutions deliver direct deposit, expense management, employee self-service, compensation management, and reporting features. Payroll solutions may be a standalone system or integrated as part of a larger human capital management (HCM) system.
I reviewed 10 market-leading payroll software solutions and narrowed my list of recommendations to the best of the best:
Our Rating: 4.29/5
Our Rating: 4.03/5
Our Rating: 3.61/5
Our Rating: 3.56/5
Our Rating: 3.59/5
Several platforms that didn’t make my top five have features that might better fit your needs. Learn more about my runners-up: ADP Workforce Now, Deel, and Paychex.
Alternative for: Rippling
When to choose ADP Workforce Now: ADP Workforce Now is best for SMBs with complex payroll needs since it supports options like certified payroll, on-demand pay through its Wisely app, industry-specific pay cadences (like tip credits), and international payroll. ADP also offers PEO and human resources outsourcing (HRO) services if you’d like to offload most of your payroll processes.
Why it didn’t make the list: Navigating ADP Workforce Now is unintuitive, and processing payroll can take several steps to complete. ADP also does not offer automated payroll runs like Rippling, Gusto, or Paycor. Plus, you pay a processing fee for each payroll you run, making it an expensive option if you have multiple pay schedules.
Currently using ADP but want to switch? Check out Top 6 ADP Vendor Competitors & Alternatives for other options.
Our Rating: 4.03/5
Alternative for: Rippling and Gusto
When to choose Deel: Deel offers an EOR service or the ability to pay employees using your local entities in over 100 countries. Deel also offers global-friendly services such as assistance in obtaining U.S. visas, international background checks, and employee misclassification protection.
Why it didn’t make the list: Deel’s platform is minimalistic and does not offer much native support for HR processes outside payroll. For example, you have to integrate with Slack for features like employee communication, surveying, onboarding, and time off management.
Also, Deel only supports biweekly, semi-monthly, and monthly pay schedules for U.S. payroll, while direct deposit turnaround is five days. As a result, you may only want to use Deel for paying international teams and use an alternative for your U.S. payroll and HR management.
Our Rating: 3.48/5
Alternative for: Paycor
When to choose Paychex Flex: Paychex Flex, like Paycor, offers payroll plans to support small, midsize, and large companies. Besides a PEO, Paychex provides other services, like hiring, HR consulting, and business insurance, including workers’ compensation, general liability, and employment practices liability insurance (EPLI). Paychex helps you avoid shopping elsewhere for the services you need to support your business and employees.
Why it didn’t make the list: Although its small business Essentials plan starts at $35 per month plus $5 PEPM, many of its features require more manual processing than competitors — unless you sign up for its PEO. For example, the Essentials plan requires you to remember to pay payroll taxes from your account instead of Paychex handling it for you.
Our Rating: 3.25/5