What Payroll Company Is The Best?

The Milestone Team January 23, 2023
What payroll company is best?

There are many excellent payroll service companies in the marketplace. They all offer different pros and cons, and the best payroll software for your company can vary depending on a few factors. Let’s dive into a few good options. 

What Is The Best Payroll Company? 

The best payroll software company is Rippling. Rippling combines robust technology with great customer service and many integrations. The employee experience is best-in-class for usability. Requesting PTO, finding pay stubs and deductions, and filing documentation are easy with Rippling’s platform. Not only is Rippling our pick for best payroll company, it consistently ranks as the highest performing payroll system on 3rd party review websites such as Capterra and G2. 

Rippling’s main downside could be its price. The higher-end features come at a more expensive cost of $8 per person per month. We believe this extra cost is typically worth it, but Rippling is not for every business. For some small businesses, other, more affordable options may be better suited. 

What Are The Largest Payroll Companies? 

The biggest payroll company in the world is ADP. ADP product lines serve over 1 million businesses globally. The other largest payroll companies include Paycom, Paylocity, Paychex, and Gusto. Gusto is our second highest recommended payroll software. They may be the best payroll software for small businesses. Their pricing is lower, which helps cash flow, but they have powerful technology to make payroll easier. They also have great HR add-ons to their software. Gusto is especially useful for companies that are located in one state. This optimizes the prices. While the other major players have a wider range of company sizes, Gusto is specifically more popular among small businesses.

What Are The Best Online Payroll Services? 

For small business owners asking, “Can I do payroll online?” The answer is yes, in fact, it is best practice to do payroll online. The payroll software industry is growing and evolving because it lifts a lot of the administrative burden. Again, we recommend Rippling as the best online payroll service. Not only does it lift the administrative burden, but setting it up is simple. 

What Payroll Service Do Companies Use?

Companies typically use one or two payroll services. Almost every company uses a payroll software service to help with automation and data storage. Then, they also use either a PEO or a payroll processing service. 

A PEO is usually a service provided by the payroll software company. They assume co-employment of your employees. The PEO will then handle payroll, benefits, and other administrative or HR related tasks. A payroll processing company is a third party outsourcing company, which dedicates one of their team members to take over your payroll operations. This person is consistent and can provide advice on how to handle specific payroll challenges. 

How Much Should a Payroll Service Cost? 

Payroll software services should cost around $5-$8 per person per month (PEPM), plus a base fee. Most companies will fall in this range per employee per month. Payroll processing services are also structured with PEPM pricing. They should range between $15-$25 PEPM, depending on the complexity of payroll and the payroll cadence. 

What Is The Cheapest Payroll Service? 

The cheapest payroll service is a free software such as Payroll4Free. This software can do very basic functions of processing payroll and even direct deposit. This software, however, is not best practice in business. There are other cheap payroll software services such as Patriot Payroll or Gusto. Patriot Payroll has one of the lowest PEPM rates for payroll companies on the market. They offer competitive services and functionality. However, their add-ons and ease of use are not as high-quality as competitors. Gusto is the cheapest software that is built to scale. Their service offerings rival most top companies at a lower rate. They charge just $6 PEPM plus a $40/month base fee. This pricing is favorable for small businesses looking to grow quickly.

How Milestone Can Help With Your Payroll Needs 

We have a heart for entrepreneurship at Milestone. We are a team of entrepreneurs who understand the stress of running a company. Our mission is to make a difference for the entrepreneurs we know are making a difference everyday. That’s why we built a business with strong back office service offerings at a competitive price. We know back office services like payroll can take time away from the parts of business you love. Our team can help. Contact us today to talk about your company’s needs.

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