What is the Best Payroll Option for Small Businesses?

If you’re a small business owner, then you know how important it is to keep your finances in order. But when it comes to accounting, sometimes it can feel like there are just too many headaches. Between tracking expenses and preparing tax returns, it can be tough to stay on top of everything, as you seemingly need to be a CPA to understand and take advantage of all the tax breaks that come along with owning your own business. So that begs the question, what is the best payroll option for small businesses these days?

Another common struggle for small business owners and entrepreneurs alike is payroll. It can be time-consuming to set up, requires a lot of technical knowledge, and is often just as confusing for your employees. With the enormous amount of time and effort that already comes with managing your business on a day-to-day basis, keeping track of your employee payroll often takes a backseat.

Luckily, there are online payroll solutions and accounting software that can help make the process much easier. If you’re feeling overwhelmed with managing small business finances, check out some of these tools and see how they can help streamline the process for you.

What is the Most Popular Online Payroll Software?

There are a lot of options to compare when selecting an online payroll system that can handle your specific needs. With so many different types of software to choose from, it can be difficult to know which one is the best for your company.

Some of the popular choices include:

• ADP
• Gusto
• Square Payroll
• PayChex
• Quickbooks Payroll
• Paylocity

Clearly, there are many different online payroll software options to select from. So, which one is the most popular? According to a study by Capterra, the most popular online payroll software is Gusto. 

Let’s compare Gusto to some of their competitors and see if they really deserve the title.

Gusto vs Paychex

When choosing between Gusto and Paychex, there are many things to consider. Both companies have similar services but also have notable differences.

For example, Gusto is a bit more upfront with pricing tiers, while Paychex requires custom quotes beyond their Go plan. Gusto also offers employees lifetime access to their portal for viewing pay stubs & W-2s as long as an email is connected.

Though both have great services, Paychex provides hands-on customer support through the onboarding process and maintains a payroll system that is widely considered one of the best in the industry.

While both have user-friendly interfaces, Gusto’s payroll setup is a bit easier to complete versus Paychex.

Gusto vs Quickbooks Payroll

Quickbooks has been around for quite some time and is easily the most well-known payroll software. Although their system has tremendous amounts of accounting and reporting options, is it really the most efficient option for small business owners?

If you’re already using Quickbooks accounting software, their payroll option integrates seamlessly, which makes it an obvious first choice. Plus they offer a mobile app which many employees appreciate as it adds convenience and intuitiveness to the process.

Another convenient feature of QB Payroll is its next-day direct deposit option. This means you’ll always have a little more time to process payroll than with other software.

With Gusto, they offer a variety of payroll scheduling options. But just as long as you run payroll at least two days in advance, you shouldn’t ever have an issue.

Gusto vs ADP

Does your business require extensive features? Then ADP might be the better choice for you, considering their wide functionality range. 

Though Gusto is a more tech-driven company, there is no denying the attempt that ADP is making to improve its usability. They’ve made their dashboard a bit sleeker and also provide easy-to-follow payroll instructions.

The pricing structure for ADP is a bit more rigid. You will have to upgrade services to their “Workforce Now” plan when your company exceeds 49 employees.

Changing services could be difficult for small businesses. It can also cause additional headaches if this interrupts any other programs your company relies on. So for these reasons, we feel that ADP might be a better fit for companies that are midsize or larger (50+ employees).

Now, if you’re a small business with big plans, Gusto also allows you to scale as you grow. Something to consider based on future goals.

A Closer Look at Gusto

Gusto takes care of all that by providing an easy way to get started and taking care of your payroll taxes so you don’t have to. With Gusto you can enjoy peace of mind knowing that your tax obligations are taken care of so you can focus on what matters most – running your company.

We’ll break down each aspect of your small business that Gusto can help with:

• Payroll – Automated payroll options that ensure your staff gets paid on time and accurately.
• Employee Benefits – Give your employees peace of mind knowing they are covered.
• HR Experts – Get the best HR advice and feel in control of the future of your company. 
• Time Tracking – Effortlessly track your employee’s time to stay focused on the work.
• Compliance Help – Stay compliant with IRS regulations and be confident in your tax return filing. 

Along with that, you’ll find reasons why Gusto is a powerful all-in-one HR platform that provides businesses with the tools to grow, empower their teams and compete on an international level. Let’s get into why we think Gusto is arguably the best payroll option for small businesses.

Full-Service Payroll

When considering the best payroll option for small businesses, there are a lot of options. And managing your business payroll can be a hassle. But with Gusto, that becomes much easier as you can pay yourself, your employees, and set up benefits in minutes – all with no hidden fees. 

And they have an expert support team that is always here to help you out, easily reachable via phone, chat, or email. They also keep you updated on all the latest payroll regulations so you can stay compliant and keep your business from risk or IRS audits.

Here are four reasons why the Gusto payroll feature is often better than using an online payroll service, or software like ADP or Paychex.

1) Simplicity

With Gusto, you can pay yourself, your employees, and set up benefits for any of them in just a few minutes. Plus you only need to enter data once so it’s automatically updated everywhere. This platform makes running payroll a breeze!

2) Affordability

Gusto charges a very reasonable flat-rate monthly fee, along with a fee for each payroll employee when payroll is run. Thankfully, with Gusto you never have to worry about hidden fees or surprise charges. And you can sign up in just a few minutes with a no-obligation free trial.

3) Relationship building

Gusto has a “people before machines” approach. That means you get one-on-one support from real people who are dedicated to your success. They’re available to answer any questions you may have and help you through every step of the payroll process.

4) Compliance

Gusto is always up-to-date with the latest payroll regulations so you can be confident that your tax obligations are always taken care of. They also offer comprehensive employee onboarding so you can be sure your company is in compliance with all state and federal laws.

5) Contractors

Did you hire someone to perform a service or maybe build a new website for your business? Gusto can help manage all of your contractor work and ensure they receive the proper W-9 forms and your company files a 1099 form at the end of the year.

Employee Health Benefits

Gusto makes it easy for businesses of all sizes to offer quality employee health benefits. With a wide variety of plan options, automatic enrollment, and comprehensive reporting, Gusto takes the hassle out of providing health insurance. Plus, their affordable rates make it easy to keep your employees happy and healthy.

Here are four reasons why Gusto has some of the best small business employee benefits management.

1) Affordable Plans for all Businesses

Gusto has affordable plans to fit any budget, whether you have one employee or fifty. They also provide benefits that are typically only available through large companies, but at no extra cost or overhead.

2) Flexible Plan Types

Not everyone needs the same benefits. That’s why Gusto offers a variety of plan types, including HMOs, PPOs, and HSAs. You can also choose from a variety of providers to find the best option for your company.

3) Automatic Enrollment

It’s not always easy to get employees to sign up for benefits. Gusto takes care of that by automatically enrolling employees in the plan of your choice. They can always choose to opt out, but most employees are happy to have the coverage without having to do anything extra.

4) Comprehensive Reporting

Gusto provides detailed reports on employee health benefits so you can see how your company is doing and make changes as needed. You can also access these reports anytime, from anywhere.

Can Directly Access Certified HR Experts

Gusto provides access to certified HR experts, so you can avoid compliance mishaps and get hassle-free human resources to support your needs. Plus, with expert advice when you need it, you can focus on your business and be ready for anything that gets thrown at you.

Here are four reasons why having direct access to human resources support through Gusto can turn your HR nightmare into a well-oiled machine.

1) Easy Onboarding

Getting employees set up with benefits, payroll, and time tracking is easier than ever. They handle all the administrative work so you can get your team up and running in no time.

2) Prevent Compliance Issues

Gusto is always up-to-date on local and federal regulations so your business is always in compliance. They also offer comprehensive employee onboarding so you can be sure your company is in compliance with all state and federal laws.

3) Hassle-Free HR

Managing employee files, tracking absences, and dealing with workplace disputes can be a lot of work. Gusto takes care of all that for you so you can focus on your business.

4) On-Demand Expert Advice

Need help figuring out how to handle a difficult situation? Gusto Mentors are available to guide startups through their most demanding challenges. Their team of certified HR experts is available 24/7 to answer any questions you may have and help you through every step of the process.

Conveniently Manage Time Tracking, PTO, Holiday Pay, Workforce Cost, and More!

Get more peace of mind with built-in time tracking tools. Track everything in one place and get rid of complicated spreadsheets that just make things worse. With only one password to remember, automating the most tedious tasks is easy so you can focus on what really matters: Your team’s wages; see ya later (spreadsheet), automatically calculate employee paychecks too without having any worries about compliance details – just store wage records automatically or sync from payroll when necessary.

Here are four reasons why being able to manage time tracking, PTO, holiday pay, workforce cost and more through Gusto can easily automate your business.

1) Have Everything in One Place

Gusto manages everything in one place. No more logging into multiple systems to get the information you need about your employees. With Gusto, you have all their information at your fingertips whenever you need it.

2) Save Time with Automatic Calculations

Gusto takes care of tedious calculations so you don’t have to. They allow you automatically calculate time tracking information and holiday pay whenever needed.

3) Get Rid of Spreadsheets

No more spreadsheets! Track everything in one place and simplify your workflow with Gusto’s easy-to-use features. This also cuts down on the chance of manual error through automation.

4) Peace of Mind Knowing You’re Compliant

Gusto is always up-to-date on local, state, and federal regulations so your business is always in compliance. They also help you comply with any new regulations when they come out. Gusto makes it easy for independent contractors to manage their tax withholding and health benefits options through a simple online dashboard.

Compliance Help so You Never Have to Worry

With Gusto, you rarely have to worry about compliance issues, as they’ll keep you up to date on tax laws and regulations, and remind you when you need to sign or submit tax forms. 

Plus, they’re registered in all 50 states for your convenience. Auto-calculations make sure your numbers are always accurate, so you can focus on what really matters: running your business. 

Here are four reasons that using Gusto to stay up to date on tax laws and regulations can save you time.

1) Avoid Compliance Mishaps

Gusto stays up-to-date on local, state, and federal regulations so your business is always in compliance. Plus, with support from the Gusto team whenever you need help staying compliant, your business can be ready for whatever happens next.

2) Simplify Your Workflow

No more having to track down information from multiple sources. Gusto consolidates all employee information into one place so you can easily find what you need.

3) Automate Tedious Tasks

Gusto handles tedious calculations for you, so you can focus on your business. They also automate time tracking and holiday pay, so you can save time and get back to what you’re good at.

4) Get Expert Advice When You Need It

Gusto’s team of certified HR experts is available 24/7 to answer any questions you may have and help you through every step of the process. Quickly figure out payroll, benefits management, tax filing, and more. No more compliance worries – with Gusto, everything is always up to date.

5) Mobile Employee Time Tracking Tools

Have someone working outside the office or on the go? With the employee time tracking tool, Gusto provides a mobile-optimized version of their platform to perform most functions – which includes clocking in and out.

Why Choose Gusto Over the Competition?

As a small business owner, entrepreneur, or startup founder – it’s easy to feel overwhelmed with all of the responsibilities and tasks you need to take care of. But what is the best payroll option for small businesses?

Just remember that Gusto can help by providing an all-in-one platform that automates time-consuming processes like payroll and human resources so you have more time for what matters most in your company.

More than their competitors, they understand you don’t have time for complicated software or frustrating customer service reps. Especially ones who don’t appreciate what you do or how much money is at stake if something goes wrong.

Best Payroll Option for Small Businesses

With Gusto, everything just works because they built their product from scratch specifically for small to midsize businesses like yours and designed it around the way people actually work in real life today (not some idealized version of yesterday). 

And since many of their team started as entrepreneurs themselves, they simply get it! They know exactly how important this moment is in your journey and are committed to being there with answers – even after hours and weekends.

They offer affordable pricing plans starting at just $39 per month (an additional $6 per payroll employee) plus the option to customize your plan based on your needs. Considering the comparably higher pricing tiers of ADP or Quickbooks Payroll, Gusto will make financial sense for most small business owners.

Sign up for Gusto today and say goodbye to the headaches of payroll, HR, health benefits, and more.