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Michelle Browne - 03/05/2024
Has your business grown past the point of you being the sole employee? Are you overwhelmed by the choices of payroll software available to you? Maybe you're wondering why you might need a payroll solution or when?
Payroll software is an application, usually cloud-based, that is used to manage, organize and automate employee payments. The software is responsible for tracking all payments and maintaining payment records. When properly configured payroll software should help maintain compliance with tax laws and other financial regulations, as well as reduce costs to your business.
At Browne Bookkeeping Services we offer payroll services and consulting for our clients; as such we've regularly used our clients top three choices for payroll software, as well as reviewed others on the market. Below you will find details for the top three payroll software's that our clients regularly choose for their businesses, as well as advantages and disadvantages of each; ADP Payroll, Gusto Payroll and QuickBooks Payroll.
At our office we generally refer to ADP as the gold standard of payroll software's, especially for small business. With a proven track record of ease of use, excellent customer service, affordability and added value features, ADP is our preferred payroll service provider when it matches our clients exact needs.
Key Features of ADP Payroll:
Full Suite of Payroll, Compliance and HR Services
24/7 Live Support
Dedicated Client Onboarding Support
Mobile App
Integrations to popular accounting software, ERPs and other HR systems
Same Day ACH
What are the advantages of ADP Payroll?
The largest advantage we see for clients, including ourselves, that use ADP Payroll is the reliable customer service and excellent payroll tax law and regulation compliance offered by ADP, including any IRS inquiries handled by ADP for you. ADP offers a full suite of payroll, compliance and HR services, allowing for your business to find a custom fit for what you need currently and what you might need in the future. Employees and contractors of your business are also likely to appreciate the user friendly interface and early availability of W2 and 1099s directly within their ADP Workforce log in.
What are the disadvantages of ADP Payroll?
We like to be entirely honest and transparent with you and ensure we're giving you a well rounded picture of services we recommend. One disadvantage to ADP Payroll is that for some very small businesses the cost might be prohibitive as you are just starting out, it might be a solution that your business aims to scale to as you grow verse your first jumping off point into payroll management software.
As a leader in the cloud based accounting software sphere, QuickBooks also offers QuickBooks Payroll as part of their software suite. With varying levels of features; you should easily be able to find a solution that fits your business needs. QuickBooks is in the middle of the pack for cost across payroll platforms, which can be great for those looking for an affordable but all in one package of accounting and payroll software.
Key Features of QuickBooks Payroll:
Full Service Payroll, including automatex taxes and forms
1099 E-File & Pay
Next or Same Day Direct Deposit, depending on service level
Time Tracking available
What are the advantages of QuickBooks Payroll?
The biggest selling feature for QuickBooks Payroll is that it is conveniently fully integrated into the QuickBooks Online suite, which allows for easy reconciliation of payroll at month end. Another added value feature, for those seeking it, is Time, QuickBooks employee time tracking software built in and integrated with QuickBooks Payroll. QuickBooks Time Elite offers Geofencing which is great for those who need timely reminders for employees to clock in and clock out of job sites.
What are the disadvantages of QuickBooks Payroll?
There are two main disadvantages that we see for those utilizing the QuickBooks Payroll solution. First, QuickBooks Payroll does not offer compliance liability with the IRS, if questions arise they will be directed at you verse the payroll software acting as a buffer (except with the highest level of service). QuickBooks also does not offer dedicate new client onboarding support, however if this the option that works best for our clients we fill this gap and help with the onboarding process.
Gusto Payroll is a newer entry into the cloud based payroll software market, but newer doesn't stop them from being a major contender. Gusto offers a full suite of payroll, time tracking and HR services. They can be a great solution for very small businesses and are scaleable for medium to large businesses as well.
Key Features of Gusto Payroll:
Full Suite of Payroll, Time Tracking and HR Services
1099 and W2 filings
Next or Same Day Direct Deposit, depending on service level
Time Tracking available
Integrations with leading accounting software
What are the advantages of Gusto Payroll?
The biggest advantage Gusto Payroll has is its affordability. For very small businesses, with minimal payroll needs, Gusto is a great basic option that can meet those needs!
What are the disadvantages of Gusto Payroll?
The reporting available from Gusto is not as robust as other payroll software, which can make month end payroll reconciliations a bit trickier. There are features within Gusto that are only available within the added services levels that are available as standard within other payroll software, which leaves Gusto at a disadvantage in that area.
So, Which Payroll Software is Right for Your Business?
If you've read through the advantages and disadvantages of our clients top three most chosen payroll software and are still unsure which is right for your business, we are here to help! Whatever decision you make, whether one of the three above or an entirely different payroll system, you are setting your business up for success as you continue to grow.
Images sourced from: Payroll Stock photos by Vecteezy
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