As a small business owner in Denver, CO, one of the most important tasks you have to undertake is paying your employees. Payroll can start as a relatively manageable task when you have only a handful of employees, but it gets more complex and requires more time as your staff grows alongside your business. It can also be frustrating for new business owners to get into the rhythm of paying employees for the first time.
The key reason many Denver-based small business owners use a payroll software is to ensure that payroll taxes are withheld properly, tax forms are filled out accurately, and employees can access their payment information with ease. Not only that, but software for small business payroll allows employees to be paid by direct deposit, it helps them track personal information & make changes, and in many cases, it integrates with accounting software or your chosen accounting and bookkeeping specialist for easier tracking of business expenses.
As such, we’ve compiled a list of the best payroll service solutions for small businesses to use in 2023 and onward. These payroll systems for small businesses are designed to help small business owners cut down the time required to accomplish the following tasks:
- Have employees complete payroll forms (I-9 and W-4 for employees; W-9 for contractors)
- Set up employees as hourly or salaried
- Decide on pay frequency (weekly, biweekly, semi-monthly, or monthly)
- Track employee hours and benefits
- Withhold taxes and make tax payments
- Issue W-2s and 1099s at the end of each year
In summary, here’s our top picks (in no particular order) for small business payroll software:
- Paychex Flex
- Deluxe
- OnPay
- Intuit Quickbooks Payroll
- Gusto
- Justworks
- Paycor
- RUN Powered by ADP
Let’s break down the pros and cons of each of these payroll systems for small businesses. From whether they offer a payroll app for small businesses to the ideal organization size for each payroll software, we’ve got you covered for your next payroll service solution.
Paychex Flex
Paychex Flex is a payroll solution designed for both small businesses and larger enterprises. The biggest perk to using this payroll software is its emphasis on simplicity. With 24×7 customer service and a simplified payroll system, it’ll be easy for newcomers to pick up this software for small business payroll. Also, it’s a great low-cost option for small businesses newer to the world of payroll management software.
Keep in mind this payroll software carries additional fees for payroll tax filing, W-2 filing, and 1099 filing. So you’d have to either pay more or utilize another option for employee benefit administration.
Paychex Flex base pricing: $39/month plus $5 per employee per month.
Deluxe
Not only is Deluxe a solid option for small business payroll management, but it’s also got plenty of additional services that make it a great pick for small businesses who want to invest in marketing and business development their organization. Deluxe uniquely offers the option to use its HR features in conjunction with your existing payroll provider. This means you could integrate capabilities like benefits administration and paid time off (PTO) tracking without disrupting your existing payroll service.
As with any payroll platform, there are still drawbacks to consider. Their options for contractor payments are more difficult to set up compared to some other payroll service solutions. In addition, their HR, marketing, and business development features come at an additional cost on top of their base pricing.
Deluxe base pricing: $45 per month plus $7 per employee per month.
OnPay
OnPay is a payroll software that focuses on integrating your payroll with your HR to make running your small business payroll service solutions simpler. They’re clear and transparent with their pricing, and they offer automated payroll tax filing.
Of their cons, we noted that OnPay’s plans for small business owners aren’t as flexible as other payroll apps for small businesses. So, make sure to select OnPay if you think their payroll software exactly suits what you need; they also don’t offer a free trial.
OnPay base pricing: $40/month plus $6 per employee per month.
Intuit QuickBooks Payroll
QuickBooks Payroll, much like their other Intuit products, was designed to help small business owners manage their payroll tasks efficiently. QuickBooks Payroll offers an easy onboarding process, so you can be up and running quickly. The application offers unlimited payroll runs, direct deposit capability, and tax reporting and remittance in all of its plans. Additionally, their have an employee portal for both desktop and mobile that allows your employees to easily access payroll and HR information.
Of the cons, QuickBooks Payroll doesn’t include several key features in their base pricing. So tax filing and employee benefit management are going to cost an additional monthly fee. In addition, their pricing is difficult to locate through their site. Their prices differ widely depending on which services you bundle.
QuickBooks Payroll base pricing: $37.50 per month plus $5 per employee per month.
Gusto
Gusto was built with small business payroll solutions in mind. Their payroll app for small businesses automatically files payroll taxes and can work alongside their other HR and employee benefit products to build out your small business requirements further. They also have an automated payroll feature called AutoPilot™ which is designed to make your payroll tasks work seamlessly in the background.
The cons of Gusto are the following: the additional fees they charge per employee can get costly as you scale up. They also don’t currently offer invoicing or accounts receivable features and they can’t service payments sent outside the United States.
Gusto base pricing: $40/month plus $6 per employee per month.
Justworks
Justworks is a payroll software that’s built for a remote, contractor, salaried, in-office, and everything in between type of small business environment. The company engages your small business in what’s called a “co-employment relationship.” In short, it means Justworks takes on some legal liability as an employer for your small business. In exchange, you hand over control of some things like the employee handbook and workplace policies.
This unique model doesn’t come without its challenges. The nature of your relationship with Justworks reduces your control over key HR policies. It’s also more costly than some other payroll software solutions. Also, benefit administration is not included in their base pricing.
Justworks base pricing: $45 per month for up to 25 employees.
Paycor
Paycor is a full-service HR platform designed to automate employee management from recruiting to termination. It has an employee portal and employees can access pay stubs, documents, time-off requests, performance evaluations, and employee development from both desktop and their phones. You can add on benefits administration for an extra fee and let employees manage and enroll in benefits through the self-service portal, as well.
In terms of downsides, perhaps the largest is the cost of Paycor. This payroll software is designed with larger organizations in mind, so it might not be ideal for small businesses looking to begin their journey with payroll service solutions. Also, the employee portal can be cumbersome to navigate on desktop as opposed to using the app on their mobile devices.
Paycor base pricing: $99 per month plus $5 per employee per month.
RUN Powered by ADP
RUN Powered by ADP functions as a customizable payroll solution for a small business owner looking to scale up their payroll software alongside their business. They offer a variety of plans from basic payroll services all the way up to entire payroll and HR integrations. The more advanced packages manage employee benefits and they offer 3 months of payroll solutions for free to current ADP customers.
There do exist some key cons to be aware of with RUN Powered by ADP. Namely, this payroll solution charges additional fees for tax form filing and their base service does not include employee benefit management. Additionally, you’d need to use a different payroll solution for paying contract employees. So if your organization tends to employ freelancers, this may not be the payroll app for you.
RUN Powered by ADP base pricing: $79/month plus $4 per salary or hourly employee per month.
Have Questions About Managing the Payroll of Your Denver-Based Small Business?
We know that payroll management is just one small part of your job as a small business owner. At 4Corner Business Services, we’re here to help you propel your business along a growth plan toward success. In addition to bookkeeping for small and large businesses, 4Corner offers payroll help, support in choosing and using accounting software, professional tax services, and valuable financial advice to guide decision making. We help businesses both large and small implement proven growth strategies so you can turn our small business consulting services into revenue successes.
We’ll take the guesswork out of payroll management so you can focus on your business. If you have any questions, feel free to contact us at 4Corner Business Services. You can set up a meeting with Phil Zavala, founder of 4Corner, to get you on the right track.
