The Best Payroll Software for 2024: Top 10 Compared

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Using the best payroll software in 2024 ensures that employees are paid correctly and on time regardless of location, timezone, or currency. Top solutions offer automated tax calculations, direct deposits, time tracking, and compliance management, making it easy to streamline your payroll process.

With countless offers on the market, I’ve reviewed the best payroll providers to help you find a payroll solution that suits your business size and needs.

The Best Payroll Software 2024

The Best Payroll Software for 2024 Reviewed

My review analyzes each payroll solution by exploring its features, pricing, and customer support. Using this information, I evaluate each software’s pros, cons, and best use cases.

1. Papaya Global – Best for Integrated Payroll Processing

Papaya Global Logo

 

Free Trial Free demo
Price From Starting from $25/month
Mobile Compatibility Yes
Countries available +160
Why We Picked It

The comprehensive features on Papaya’s platform allow you to manage every aspect of the payroll process, from recording hours to verifying payment. It offers an integrated payroll processing system that enables businesses to pay employees in over 160 countries. The platform supports 12 currencies with competitive foreign exchange rates and low fees.

With time tracking and employee portal features being included on the base plan there is no need to add additional tools to streamline essential payroll and workforce management tasks.

Features
  • Extensive global coverage: Payroll, HR, and compliance are covered in over 160 countries through its network of local in-country experts and partners.
  • Comprehensive services: End-to-end support covering payroll, hiring, onboarding, benefits, tax filing, expense management, and more for a distributed global workforce.
  • Expert compliance assistance: Besides software, Papaya provides local labor law experts to ensure compliance with each country’s regulations.
Pricing Plans

Papaya bases the price of its Payroll Plus product on your workforce size and the number of legal entities.

Papaya Global Plans Monthly Employees
Grow Global Starts at $25/month 101-500
Scale Global Starts at $20/month 501-1000
Enterprise Global Starts at $15/month Over 1000
  • Grow Global – Payment disbursement and liability coverage for up to 500 employees over 4 entities.
  • Scale Global – The same as Grow but for up to 1000 employees and 10 entities.
  • Enterprise Global – The same again, but for unlimited employees and entities.

Every plan gives you access to the employee self-service portal and Papaya Global mobile app.

While Papaya Global offers robust global payroll software and PEO services, potential drawbacks include a quote-based pricing model with additional fees, limited free trial options, and implementation requirements that might involve upfront contractual commitments.

Who's It Best For?

Papaya is best for multinational businesses wanting an integrated payroll solution that supports multiple currencies and offers robust features for global payroll and workforce management.

Read our full Papaya Global Review

Pros pros

  • Sliding scale pricing based on size
  • Dedicated plan for contractors
  • Coverage for over 160 countries

Cons cons

  • Setup fee
  • Limited third-party integrations

 

2. Deel – Best for Global Payroll

Deel logo

 

Free Trial Free 30-minute demo
Price From Starting from $49/month
Mobile Compatibility No
Countries available +150
Why We Picked It

Deel not only serves over 150 countries worldwide but provides a range of payment methods, frequencies, and types. That means you can pay employees and contractors in a way that suits them.

Thanks to automation tools, you can bulk-pay employees or contractors around the globe in a few clicks. This platform handles everything associated with international payroll — local compliance, tax deductions, and filings — while you sit back and relax.

Additionally, there is support for all the major finance apps like Revolut and Wise and the option to transfer pay in cryptocurrency.

Features
  • Fully managed global payroll solution: Everything from onboarding, document collection, payroll calculations, payroll taxes and filing, compliance with local regulations, and payslip issuing is handled by Deel, eliminating the need for an in-house payroll team.
  • Full-service payroll data and processes: Your global payroll data is consolidated into one system, making it easy to review reports, spot discrepancies, and manage multi-currency payments.
  • Expertise in international compliance: Deel ensures your company complies with global and local payroll laws across over 100 countries.
  • Automated processes: Tax filing and onboarding/offboarding are automated, saving time on administrative tasks.
Pricing Plans
 

Like many alternatives, Deel has modular modular pricing for all its features. The following plans allow you to handle payments and taxes:

Deel Plans Monthly
Contractors Starts at $49/month
Global Payroll Custom
EOR Starts at $599/month
  • Contractors – Ability to hire and pay international contractors compliantly.
  • Global payroll – A full-service payroll plan, including automation, reporting, and compliance management.
  • EOR – A set-up where you outsource HR, payroll, and benefits to Deel.

All plans give you access to Deel’s free HR module with automation tools, org charts, and document management.

Who's It Best For?

If you have a distributed global team, Deel is perfect for you. The payroll features let you manage payroll for different countries and banking systems with ease.

Read our full Deel Review

Pros pros

  • Global payroll services
  • Free HR module
  • A range of Slack integrations
  • Advanced reporting tools
  • Immigration and visa services
  • Support for multiple payment types

Cons cons

  • Mobile app unavailable
  • Limited time tracking tools
  • No performance management

 

3. Rippling – Best for US and Canada-Based Payroll

Rippling logo

 

Free Trial Free demo
Price From Starting from $8/month
Mobile Compatibility Yes
Countries available 50+ countries
Why We Picked It

Rippling is specially designed to handle the complex and ever-changing North American tax laws. It can ensure compliance with federal, state, and local legislation. The payroll software solution provides support with filing taxes and filling out tax forms for both state and federal taxes.

Additionally, you have the option to add its finance tools so you can more easily factor payroll data into strategy.

Features
  • Modular, customizable platform: Select the specific HR modules/features you need, such as full-service payroll, benefits, performance management, etc. You only pay for what you use.
  • Global workforce management: It supports global payroll in over 90 countries, local benefits packages, and Employer of Record (EOR) services for compliantly hiring international contractors/employees.
  • Automated workflows: Rippling automates core HR processes like hiring, onboarding, time tracking, and document management through smart workflow builders.
  • Integrated HR tools: All HR tools, from applicant tracking to LMS, surveys, and analytics, are unified in one platform instead of disparate systems.
Pricing Plans

As Rippling has custom pricing, you must contact them for a quote. Here are the payment modules available:

  • US and Global Full Service Payroll – The option to manage payroll in over 50 countries worldwide.
  • Global EOR – Assistance with international hiring and payroll.
  • PEO – A solution that allows you to outsource your US payroll and benefits administration management.

Aside from payroll, Rippling has a range of other HR, IT, and finance modules. It’s worth noting that benefits administration is standalone and not included in the plans above.

Rippling’s integration ecosystem, though extensive, is not as wide as platforms and accounting software like Workday or BambooHR. Therefore, businesses heavily invested in niche HR/workforce software may find integration gaps and want to consider other payroll systems.

Who's It Best For?

Rippling is one of the best HR payroll software for US-based companies with divisions in other North American countries. The tax compliance management helps avoid penalties at their main location while helping them run payroll for foreign teams.

Read our full Rippling Review

Pros pros

  • Flexible modular pricing
  • Option to add other HR, IT, and finance products
  • Over 500 integrations
  • Very customizable

Cons cons

  • No upfront pricing
  • Too complex for small businesses
  • Costlier than some alternatives

 

4. Remofirst – Best for Remote Companies

Remofirst Logo

 

Free Trial Free demo
Price From Starting from $25/month
Mobile Compatibility No
Countries available +180
Why We Picked It

With its extensive coverage and affordable pricing, Remofirst enables you to hire from anywhere in the world. The ease of use means that it’s easy to onboard and implement across your company too.

The payroll solution stands out for its simplified payroll processing and compliance solutions, lifting the burden of managing international employment complexities and providing cost-effective, transparent pricing in contrast to traditional agencies. Its global reach facilitates access to a diverse talent pool across regions.

Features
  • Employer of record (EoR): Remofirst is the legal employer for your international workforce, handling onboarding, payroll, taxes, and compliance. This eliminates the need for local entity set-up, saving significant time and resources.
  • Global reach: Automate employee payroll in 180+ countries, one of the highest numbers of supported countries in a payroll platform.
  • Cost-effective: Transparent pricing and payroll processing with no hidden fees, making it a budget-friendly option compared to traditional staffing agencies.
  • Fast & easy onboarding: Onboard international employees in a single day with minimal paperwork compared to complex and time-consuming local procedures.
Pricing Plans

You can find two main plans on Remofirst with a fixed monthly rate:

Remofirst Plans Monthly
EOR Starts at $199/month
Contractors $25/month
  • EOR – A combination of HR, payroll, and hiring features as part of the third-party service.
  • Contractors – Onboarding and payments for international freelancers.

Remofirst gives you the option to add equipment provisioning and visa services. The price is based on your requirements.

Who's It Best For?

Remofirst is best suited for remote teams as you can pay employees in 180+ countries using locally compliant contracts.

Read our full Remofirst Review

Pros pros

  • Extensive global coverage
  • Competitive pricing
  • No setup fee
  • Generous discounts
  • Intuitive interface

Cons cons

  • Limited HRIS features
  • Lacks integrations

 

5. Paycor – Best for Automating Manual Payroll Tasks

Paycor Logo

 

Free Trial Free demo
Price From Custom
Mobile Compatibility Yes
Countries available US only
Why We Picked It

Many companies turn to Paycor for its powerful automation tools, which reduce the time and effort required to process payroll. These tools include wage and tax calculations, payment scheduling, and reporting.

Paycor’s key strength is its ability to handle multiple HR functions within a single platform, including payroll, benefits administration, onboarding, talent management, and compliance support. This comprehensive approach makes this full-service payroll solution an excellent choice for businesses that want to streamline their HR processes and have access to a wide range of tools without investing in separate systems.

Features
  • Comprehensive HR functions: This full-service payroll solution handles multiple HR functions within a single platform.
  • Inclusive features: The platform encompasses payroll, benefits administration, onboarding, talent management, and compliance support.
  • Streamlined processes: Paycor is an excellent full-service payroll software choice for businesses aiming to streamline their HR processes.
  • Access to diverse tools: Users benefit from a wide range of tools without needing separate systems.
  • Financial wellness: Give employees access to resources like goal tracking and budget setting via the app.
Pricing Plans

Paycor requires you to contact them for a quote. However, they have published their four payroll plans online.

  • Basic – Tools to pay and file taxes for employees compliantly.
  • Core – Everything in Basic plus hiring and onboarding tools.
  • Essential – The addition of employee engagement and development features.
  • Complete – Access to advanced analytics and development tools.

You can add time tracking, benefits, and recruitment tools to any of the plans. There’s often a discount for signing up like 50% off for six months.

Who's It Best For?

Paycor offers fantastic payroll software services for companies looking to scale. The impressive automation tools mean staff can spend less time on manual tasks and allocate resources more effectively.

Read our full Paycor Review

Pros pros

  • Unlimited payroll runs
  • Employee enablement tools
  • Flexible modular pricing
  • On-demand pay

Cons cons

  • No upfront payroll software pricing
  • Setup fee

 

6. Paychex – Best For Streamlining Payroll

Paychex Logo

 

Free Trial Free demo
Price From Custom
Mobile Compatibility Yes
Countries available US only
Why We Picked It

I chose Paychex as the best software for streamlining payroll processes because it offers a highly dependable service with a reputation for compliance. Its intuitive dashboard shows you current and future pay periods, so you’re always up-to-date. Also, with Paychex’s automatic tax administration, tax season will be a breeze as the payroll system calculates, pays, and files your taxes for you.

Features
  • Mobile App: Its mobile app allows you to manage tasks like running payroll, updating information, and approving PTO with the Paychex Flex app.
  • Automatic Tax Administration: Paychex offers access to Taxpay, its automatic tax administration service, which calculates, pays, and files taxes on your behalf. This helps reduce errors and compliance mistakes.
  • Employee Self-Service: This feature allows employees to access certain HR functionalities, such as enrolling in benefits and adjusting personal information. With time-tracking, employees can also clock in touchlessly via the app.
Pricing Plans

All of the plans and modules on Paychex have custom pricing. There are three payroll bundles, such as Select, Pro, and Enterprise, aimed at different business types.

Plan Select Pro Enterprise
1 Month Custom Custom Custom
  • Select: This plan suits small businesses and provides features like direct deposit pay solutions like card, credit, and on-site check printing.
  • Pro: This plan offers more workforce management features like unemployment and workers’ comp services. You also get a general ledger to quickly transfer payroll data to accounting software to create customizable and flexible reports and improve your business operations.
  • Enterprise: Besides the features above, you can access performance and document management. You can also access the payroll preview, which helps you reduce payroll discrepancies and costly corrections.

Paychex Flex does not offer a free plan or trial.

    Who's It Best For?

    Paychex Flex is suitable for businesses looking to simplify and streamline payroll processing. The platform offers direct support, compliance, and automation to make payroll easy to manage.

    Read our full Paychex Review

    Pros pros

    • Wide range of integrations
    • Extensive HRIS features
    • Multiple payroll schedules
    • Dedicated 24/7 support
    • Intuitive interface

    Cons cons

    • No upfront pricing
    • Limited features in the basic plan
    • Complex features that may overwhelm a beginner

     

    7. Bambee – Best for Dedicated Expert Guidance

    Bambee logo

     

    Free Trial No
    Price From Starting from $99/month
    Mobile Compatibility No
    Countries available US only
    Why We Picked It

    Bambee stands out for its dedicated personalized support with all your HR and payroll management. The payroll service offers affordable guided payroll where federal, state, and local taxes are automatically handled and allows for multiple pay rates. 

    Having a dedicated HR manager means you will stay up-to-date with the latest labor laws and receive support should you have any employee issues.

    Features
    • HR Policy Management: Create and enforce payroll policies across your business. Bambee also handles every HR task to free managers up to attend to business strategies.
    • Dedicated HR Manager: Bambee provides a dedicated HR manager to guide your HR processes, policies, and compliance issues.
    • Training: Right from onboarding to navigating labor laws, Bambee helps you clarify all questions about labor regulation compliance. You can also show your employees how to comply with tax and employment laws.
    Pricing Plans

    Bambee has five paid plans based on your number of employees. If you exceed the upper limit, you can get custom pricing and choose the features you need.

    Pricing Plan 1 Month Set-up Fee
    No employees yet $99/month $0
    1-4 Employees $299/month $500
    5-19 Employees $399/month $500
    20-49 Employees $499/month $1,500
    50-70 Employees $1299/month $2,000
    • No employees yet—This is a budget-friendly plan that’s designed to establish businesses and help them create a compliant hiring policy. With this plan, you’ll have access to the Bambee HR software, a select number of policies, and fundamental customer support.
    • 1- 4 Employees: This is suitable for small businesses with 1 to 4 employees seeking tools to manage HR processes. Its features are similar to the previous plan but cater to more employees. Here, you have a $500 one-off setup fee, and you can gain access to six policies and a dedicated HR manager.
    • 5 – 19 Employees: This plan manages up to 19 employees. Its features are similar to the previous plans, but you get up to four policies, and the set-up fee is still $500.
    • 20 – 49 Employees: The main difference is that you get access to eight custom HR policies, but the price jumps by $100/month compared to the previous pricing tier, and the set-up fee is now $1,500. That makes the 20-49 employee tier quite expensive.
    • 50 – 70 Employees: This plan suits businesses needing dedicated HR assistance to manage their operations. Its one-time set-up fee is $2,000, and offers 12 custom HR policies.

            Each plan has a one-time setup cost except the ‘no employees yet’. The total depends on how many users you need to onboard. Also, there’s no free plan or trial.

            Who's It Best For?

            Bambee is suitable for small businesses with up to 70 or more employees who require dedicated payroll support thanks to the platform’s guided payroll service. Bambee can handle up to 500 employees.

            Read our full Bambee Review

            Pros pros

            • Policy management features
            • Personalized HR support
            • Choice of support options
            • Automated staff training

            Cons cons

            • Setup fee for most plans
            • Limited features and integrations
            • Not suitable for large businesses

             

            8. TriNet – Best for Compensation Benchmarking

            TriNet Logo

             

            Free Trial Free demo
            Price From Starting from $10/month
            Mobile Compatibility Yes
            Countries available US only
            Why We Picked It

            TriNet has some unique offerings that businesses of all sizes will appreciate. I love the compensation benchmarketing that helps businesses attract top talents worldwide and feel confident about their job offers.

            The platform also gives you access to a comprehensive benefits marketplace that complies with US, ACA, and ERISA regulations.

            Features
            • Compensation Benchmarking: With this feature, you can gain insights into the salaries you should pay employees based on role, location, and credentials. Its compensation management also allows you to access real-time salary comparisons.
            • Benefits: Trinet synchronizes payroll with benefits inside the platform to manage data and payments more efficiently.
            • Data Analytics: With its advanced payroll features, you can configure data into easily understood graphs and get actionable insights.
            Pricing Plans

            Although TriNet has three monthly plans, payroll is only included in the top tier. You can add it to the lower-cost plans for $6 per employee per month.

            Plan Monthly Cost Yearly Cost
            Essentials $10/month $96/year
            Growth $20/month $192/year
            Zen $33/month $324/year
            • Essentials: This plan caters to small businesses, offering resource management and employee productivity tools. Its features include automated onboarding, employee management, time-off scheduling, an analytics dashboard, integrations, and a mobile app.
            • Growth: This plan offers advanced features for small- and mid-scale businesses looking to expand, including configurable people analytics, compensation management, and performance management.
            • Zen: This plan is for businesses that need a complete HR feature with payroll and employee management. Its features include all the features from the Essentials and Growth plans plus employee engagement surveys, a people hub, and permanently included payroll.

            TriNet offers add-ons for more feature customization. You can add benefits administration for $5 per employee monthly and consultancy services for $8/employee/month.

            There is no free plan or trial, but users can book a demo. Also, TriNet offers a 20% discount on its annual plan for a limited time.

            Who's It Best For?

            TriNet is best for companies focusing on salary and benefits to attract top workers. Organizations needing a full HR platform with payroll functionality can benefit from TriNet as it ensures you’re offering the proper pay and perks.

            Read our full TriNet Review

            Pros pros

            • Low starting cost
            • Generous discounts for annual commitments
            • No per employee charge in Zen plan
            • Provides companies with salary/compensation benchmark report

            Cons cons

            • Payroll is not included in all plans
            • Long setup times
            • Limited customer support options

             

            9. ADP Workforce Now – Best for Scaling Businesses

            ADP Logo

             

            Free Trial Free demo
            Price From Custom pricing
            Mobile Compatibility Yes
            Countries available US only
            Why We Picked It

            ADP Workforce Now’s automation, notification, and reporting tools make it easy to streamline payroll and expand the process to include more workers. Advanced permissions mean you can create complex permissions as you create new departments and levels within your company. I love its modular pricing and integrations, which let you add tools when needed.

            Features
            • Advanced Dashboard: Customize and receive notifications of potential compliance issues. It also includes an employee self-service dashboard, which allows them to access pay stubs and more online or on the mobile app.
            • Tax Management: ADP Workforce Now helps you maintain tax compliance as you pay employees confidently. It helps you accurately deduct and file Federal, State, and Local taxes.
            • Industry-Specific Payroll Solutions: Get industry-specific payroll solutions for industries such as restaurants, manufacturing, hospitality, healthcare, construction, and more.
            Pricing Plans

            ADP Workforce Now has custom pricing based on your business size and requirements. They have three plans which all include payroll and tax filing:

            • Select – A range of features including HR, onboarding, document management, and employee engagement.
            • Plus – Everything in the Select plan and benefits administration.
            • Premium – Access to workforce management tools like scheduling, time tracking, and TO management.

            There’s a range of additional modules concerning employee management and development. You can add them all to any plan.

            Who's It Best For?

            Growing US businesses can benefit from ADP Workforce Now’s scalable payroll solution. You can onboard new employees without exponentially increasing your costs or burdening the finance team.

            Pros pros

            • Comprehensive basic plan
            • All payroll features included in every tier
            • Flexible modular plans
            • Wide range of integrations
            • Customizable features

            Cons cons

            • No upfront pricing
            • Steep learning curve for beginners

             

            10. Gusto – Best for US Business Tax Compliance

            Gusto logo

             

            Best For Manager and employee self-service features
            Free Trial 3 months free trial
            Price From $40/month + $6/month per person
            Mobile Compatibility Yes
            Countries available 120+
            Why We Picked It

            Gusto is a comprehensive platform for US businesses that need help with payroll, employee benefits, and other HR tasks. Its payroll system is easy and fast, allowing businesses to set their employee payments on autopilot. It also ensures accurate record keeping of Employee I-9s, W-2s, and contractor 1099s online.

            Features
            • Workers’ Compensation: Gusto provides benefits and compensation to protect your team and business in unexpected situations like accidents, illness, or injury. Through Next Insurance, Gusto offers US businesses customized benefits for their team.
            • Financial Tools: The wallet function helps employees track, save, and access their money. Employees can also build healthy spending habits using the budget tools that come with the wallet.
            • Unlimited & Advanced Payroll: Flexible and unlimited payroll functionality, like flexible payment schedules, reimbursements, paperless paychecks, multiple pay schedules, next-day direct deposit, and multiple states.
            Pricing Plans

            Gusto has three main pricing plans to support businesses. See the table below for the full list.

            Plan Simple Plus Premium
            One month $40/month + $6/person $80/month + $12/person $135/month + $16.50/person
            • Simple Plan: This offers streamlined automatic payroll, benefits integration, employee self-service, basic hiring tools, and more—all essential for single-state operations.
            • Plus Plan: This builds on the Simple plan with advanced features like multi-state payroll, comprehensive HR tools, time tracking, and performance reviews, all ideal for growing businesses.
            • Premium: Gusto’s Premium plan offers more features like compliance alerts, access to certified HR experts, health insurance broker integration and more. It’s suitable for businesses with advanced payroll needs.

            While Gusto doesn’t offer a forever free plan, it offers a three-month free trial, providing opportunities to explore the system.

            Who's It Best For?

            Gusto is suitable for growing businesses in the US that need payroll software to manage employee payments in other states and ensure tax compliance.

            Pros pros

            • Offers fast payroll processing
            • Integration with business tools like Clover and QuickBooks
            • Offers multi-state payroll for US businesses
            • Provides employee financial benefits

            Cons cons

            • There’s no free plan
            • Priority support is not available on the basic plan
            • Limited reporting customization
            • Lack of automated workflow

             

            The Best Payroll Management Software Compared

            Provider Best For Starting Price Free Trial Countries Served Reporting? Top Feature
            Papaya Global Integrated payroll processing $25/month per independent contractor Demo 160+ Yes Seamless foreign payroll transactions
            Deel Global payroll $49 per month/contractor Free version available 150+ Yes Foreign incorporation assistance
            Rippling USA and Canada-based payroll $8 per month/employee No 100+ Yes Extensive third-party integration
            Paycor Automating manual payroll tasks On request Demo 199+ Yes Automatic payroll processing
            Remofirst Remote teams $25/month per independent contractor Free version available 180+ Yes Multi-country payroll support
            Paychex Flex Streamlining payroll processes Custom Free demo 140+ Yes Intuitive mobile app
            Bambee Expert payroll guidance $99 per month + a $500 setup fee No 1 (US) Yes Personalized support
            Trinet Compensation benchmarking $10/month Demo 180 Yes Assisted payroll setup
            ADP Workforce Now Business scaling On request Demo 100+ Yes Automated onboarding and payroll processing
            Insperity Non-US-based companies with US operations On request Demo 1 (US) Yes Compliance assistance
            Justworks Customer service $59 base fee per month/employee Demo 30+ Yes Payroll and benefits administration
            Patriot Software Custom reporting 17 base fee + $4 per month/employee Demo 1 (US) Yes A built-in accounting tool
            OnPay Affordability $40 base fee + $6 per month/employee Demo 75+ Yes Powerful customized reporting
            Eddy Onboarding $50 base fee + $6 per month/user Demo 1 (US) Yes Automated tax fillings
            Gusto Business tax $40 base fee + $6 per month/user 3 month free trial 120+ Yes Payroll reports
            PrimePay Ease of use On request Demo 1 (US) Yes Extensive customization
            Natural HR Employee tracking On request Demo 150+ Yes Extensive payroll analytics and reporting
            Push Restaurants $6 per month/employee Demo 1 (US) Yes One-click payroll
            NetSuite SuitePeople Very large organizations On request Demo 1 (US) Yes Tax compliance automation
            BambooHR User-friendliness On request Demo 190+ Yes Advanced time-tracking tools
            Remote Remote companies $50 per month/employee Demo 30+ Yes Global Payroll
            Factorial Document management $62 per month/user Demo 60+ Yes Centralized payslips and data
            Oyster HR Fast-growing companies $29 per month/contractor Demo 180+ Yes Swift Onboarding
            Humi Customized records and reporting $8 per month/user Demo 1 (Canada) Yes Detailed payroll reporting
            Methodology

            How We Review and Test Accounting Products

            To provide our readers with accurate and well-informed recommendations, we test the most popular accounting products on the market to find the best options for you. Our methodology consists of the following criteria:

            • Features: We examine the features of each accounting software to determine what capabilities are offered- such as creating, editing, and deleting transactions.
            • Compliance: We evaluate accounting software based on whether it offers local compliance when it comes to payroll, taxes, documentation, and more.
            • Bank Reconciliation: We test the reconciliation process to ensure transactions match bank statements accurately.
            • Multi-Currency Support: We verify the accuracy of currency conversions and transactions in multi-currency environments.
            • User Experience: We get hands-on with each product and act as a new user, testing each platform to gain understanding if the platform is easy to use or not.
            • Reporting and Documentation: We verify the accuracy of financial reports generated by the software such as balance sheets and income statements.
            • Integrations: We evaluate the integrations of each piece of software to determine how well it fits in with other key pieces in a business’s software stack, and whether its functionality can be expanded as required.
            • Audit Trails: We ensure the software maintains comprehensive audit trails for tracking changes made to financial data.

            What is Payroll Software?

            Payroll software is a cloud-based or on-premises solution that manages the task of paying salaries and wages to employees. The payroll systems calculate amounts, deduct taxes, and run payroll at scheduled intervals. Some platforms allow unlimited pay runs, while others have a set pay period. The best payroll software providers ensure compliance with local and international laws.

            Used properly, these tools will make running payroll a breeze and remove the need for manual data entry, therefore helping businesses of all sizes reduce costs.

            How Does Payroll Software Work?

            Running payroll is complex and involves many backend calculations and compliance assurances. Most payroll software is a combination of different tools and processes. Either you input employee data or the system collects it from other platforms. Then, it automatically calculates wages and taxes based on your location.

            Manual Payroll Solutions:

            To calculate payroll manually, you will need to track the time worked by each employee and calculate the related payroll tax, like employee benefits or other tax withholdings. Lastly, you must pay employees manually and note down when and how they were paid.

            Automated Payroll Solutions:

            If you’re using one of the best payroll software solutions, the tool will calculate the labor cost (with multiple pay rates if required) and tax deductions. Many systems also have an employee self-service payroll app where the employees can receive their pay stubs (that only need approval from your finance team to process). You can also improve business processes with customizable payroll reports and centralized tax documents and feel relief knowing you have a dedicated customer success manager on hand if needed.

            To learn more about the process, read our article on how to do payroll.

            Trends in Payroll Software for 2024

            As technology advances, HR and payroll software continue to evolve. Here are the top 5 trends in payroll software in 2024.

            • AI and Automation: AI integration is becoming an essential part of payroll software as it helps automate complex data processing to ensure accurate calculation quickly.
            • Data Security: Cyber attacks continue to increase as devices advance in operation and interaction with the internet. As a result, payroll software is implementing high-end cybersecurity measures such as two-factor authentication, industry-standard encryption, and blockchain technology.
            • Remote Work: Work flexibility has influenced payroll software to support global payment functions. Many payroll software like ADP Workforce Now can handle multiple currency payment options using different payment methods.
            • Payment Flexibility: Many payroll software have adapted multiple payment options into their system to support the growing needs of users with unique requirements.
            • Employee Wellness: There is a growing need to support employees’ wellness, and many payroll software are implementing employee benefits and compensation into their systems.

            Benefits of Payroll Processing Software

            Using payroll processing software can bring you numerous benefits, including:

            1. Time savings: The automation takes care of lengthy administration processes in seconds.
            2. Accuracy: Software can calculate the amounts with less risk of errors than humans.
            3. Lower costs: Payroll software can reduce the amount you spend on labor and penalties arising from compliance issues.
            4. Data security: Often platforms provide secure storage and encryption that’s compliant with international laws.
            5. Higher team morale: Employees are happier when they get paid promptly and without mistakes.

            Top Payroll Software Features to Look For

            Payroll software can have a variety of features, but the following are the most essential:

            Automatic calculationsTax deductionsDirect depositSelf-service portalReportingIntegrations

            As this is one of the most time-consuming and error-prone tasks, the software should handle it for you.

            Payroll software should withhold the right taxes from wages and send them to the relevant authorities. If you’re international, it should be able to differentiate between different systems.

            Top payroll software handles the payments for you. If you have a global team, it should support your staff’s local currencies.

            If employees can log in to edit and review their details, that means less work for you. They can also have more peace of mind over their wages and flag issues quickly.

            You should be able to generate payroll reports for accounting, finance, and compliance purposes.

            Your payroll processing software should integrate with your accounting software so you can keep accurate track of payroll history when it’s time to file taxes.

            Other Considerations for Choosing Payroll Software

            Apart from features, cost, and usability also take into consideration the following when you’re selecting your payroll system to make sure the software can meet your exact needs.

            • Size of your business – The main factor that will influence your choice. You might run a startup now with only a handful of employees, choosing your first payroll system, but how many employees are you planning on having in one, two, or five years from now? The solution you choose should be able to scale with your business.
            • How often employees are paid  – Do you pay your employees weekly or monthly? Do you work with contractors who need to be paid per invoice? Are you employing full-time and part-time staff? Perhaps you have a mix of all three factors? The payroll provider you select must be suitable to the number of payroll runs you do, the type of employee you have, and support in contractor payments.
            • Where employees are based – Not all payroll providers can handle multiple currencies or be compliant to use outside of the United States. The expectations on international payroll software compared to software handling a single state are different, and you need to ensure your chosen provider is suitable for your needs.
            • How to handle payroll taxes – Some payroll services handle taxes, others don’t. Before you sign up, you have to decide if you want your software to handle employee payroll taxes and what it offers in terms of compliance and cost for end-of-year tax calculations.

            How Much Does Payroll Software Cost?

            Payroll software costs can vary widely depending on the included features and size of your business. Basic payroll services often start at around $10-$20 per month, while more extensive solutions range from $100 to several hundred dollars monthly.

            The main factors that affect pricing are number of employees, frequency of payroll runs, and advanced functionality such as tax filing, direct deposit, and integration with other HR systems.

            Plan Type Basic Standard Premium Enterprise
            Average Cost $10-$20 $30-$100 $100-$300 $300+
            Features Payroll processing, direct deposit, support Tax filing, employee self-service, reports Advanced analytics, HR integration, support Customization, dedicated support, compliance
            Best Suited For Small businesses, startups Medium-sized businesses Large businesses, enterprises Large enterprises, complex needs

            Free vs Paid Payroll Software

            There are many excellent free payroll platforms available for businesses on a limited budget. However, they’re best for very small teams with basic operations. Most companies need a paid version to get all the features they need and reap the benefits.

            How to Choose the Best Payroll Software

            When deciding between top payroll providers, several key factors can help you make a final choice.

            PricingFeaturesScalabilityEase of useCustomer supportIntegrations

            Consider whether you can access all the features you need within your budget. Most payroll platforms charge per employee so calculate how much you can expect to spend on average. Check to see whether any features or services come with additional fees.

            Ensure you can get the essential payroll tools for your location and business size. For example, large multinational companies are likely to need localized compliance support. Look at other plans to check that you’ll be able to add other features as you grow and change.

            Analyze the pricing plans to see how your costs may change and increase as you upgrade. Ideally, you should continue to receive the same value as you rise through the tiers. Make sure the platform can handle the number of employees you expect to hire in the coming years.

            The software should require minimal setup and training so you can start using it immediately. It should also fit around your team’s daily workflow. Look for software with a clean interface and plenty of access options.

            Look at the service options for your location and timezone. The provider should offer different types of support and contact methods. At a minimum, there should be a knowledge base and 9 to 5 phone, chat, and email services.

            As you use other software, you need to connect them to your payroll platform. Otherwise, you won’t be able to share data across the tools and perform tasks efficiently. Payroll software should integrate with a selection of HR, workforce management, and accounting apps.

            FAQs

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            What HR features should payroll software have?

            How to use payroll software?

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            Which software is best for payroll?

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            John Iwuozor
            Tech Writer
            John Iwuozor
            Tech Writer

            John Iwuozor is a writer at Techopedia with over three years of experience and expertise covering topics on HR, business software, IT security, and finance for small and medium-sized businesses. His work has been featured on reputable platforms like Forbes Advisor and EsecurityPlanet. Leveraging his background in mathematics and data analysis, he specializes in delivering original and high-quality content with a keen eye for detail and accuracy.