What Is The Most Popular Payroll Software?
Thankfully for small business owners, the days of signing and cutting checks are becoming more and more obsolete. The once manual chore of payroll services has now become a robust landscape of software providers that promise automation and ease of payroll management. This blog will address the different kinds of payroll software and notable companies that may be able to help your business simplify the payroll process.
What Are The Different Types Of Payroll Systems?
Payroll systems all perform the same basic functions.They help automate the delivery of pay to employees and allow for data storage about employees. Common functions also include work documentation storage, direct deposit, tax compliance and sometimes assistance with tax registrations. These systems are helpful for things like payroll deductions. There are four different types of payroll deductions: pre-tax, post-tax, voluntary, and mandatory. Payroll software allows businesses and employees to set these up, change, and calculate them much easier than manual payroll.
There are three different types of payroll softwares. A stand-alone payroll software, a PEO system, and an HRIS system. A stand-alone payroll software is a SaaS company such as Patriot Payroll. These systems have automations around functions related to payroll, but nothing more.
A PEO (Professional Employer Organization) system is actually an agreement with another business to share co-employment. Through this agreement, the PEO organization handles all HR administrative tasks from benefits to payroll. PEOs argue that employees benefit from group pooling, allowing for cheaper costs.
The third type of payroll system is HRIS. Most payroll software companies actually function more like an HRIS. Gusto, ADP, Rippling, and Paylocity all can be used as an HRIS. These not only help in the automation of payroll, but other ongoing HR tasks, such as employee data management, recruitment, etc.
What Payroll Company Do Most Businesses Use?
The most common and most used payroll company is ADP, closely followed by Paylocity. ADP’s one million customers across its different service lines make it the largest payroll company as well.
Gusto is an emerging contender, especially in the small business space, because of its robust platform and lower prices. There are over 40 different competitors in the payroll software industry. Almost every company uses a payroll software of some sort because of the time saving automation and compliance. This means there is a robust landscape for newer businesses as well as established ones. Even lesser known payroll systems such as SurePayroll have strong systems that can support small businesses.
Are There Free Payroll Softwares?
There are indeed a few free payroll software providers. Timetrex and Payroll4free are the two best free softwares on the market. Timetrex is better for employee time tracking. Payroll4free has the best extra functionality and potential add-ons. However, these companies offer extremely limited services and are not as secure as the paid platforms. Payroll can be a headache and compliance failure is one of the biggest revenue streams of the IRS. The extra cost is typically worth it, but it is all dependent on your business needs.
What Is The Best Payroll Software?
Our criteria for the best payroll software is on the technology itself and the reviews, not the price. Our pick for overall best payroll software is Rippling. Rippling’s ease of use, employee database, time-off management, benefits administration, integrations, customer support, mobility, and more are all high quality. Their system as a whole is strong, plus it can support HR, IT, and Finance as well. The ease of use for employees to fill out documentation, request PTO, find paystubs, or change their information is top tier. It is not the cheapest payroll software for small businesses, but it makes doing your own payroll as a small business owner much simpler. Rippling also continuously gets great feedback from its customers, ranking very high on third-party review websites.
How Milestone Can Help With Your Payroll Needs
At Milestone, we want to take the burden of payroll off your hands. Our team is your team. We have a dedicated team member for every client ready to tackle even the toughest payroll challenges. Contact us today to see how we can make payroll simple for your company.
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