The 5 Best Payroll Options for Small Businesses

Its far cheaper to pay for somebody to keep your payroll straight than it is to pay the IRS if you tangle it yourself.

Did you know that 1 in every 3 small business owners gets penalized by the IRS for payroll errors?

Those fees and fines add up. When you add on the extra time and energy of figuring out the complicated payroll system, it suddenly doesnt seem like a great place to cut costs. Thats why many small business owners choose to pay fora payroll serviceinstead. That way, you wont need to worry about legal mistakes, clerical errors, or wasted time.

Here are fiveof thebest payroll optionsfor small businesses:

Looking for the barebones when it comes to payroll services? Or do you want a fully-automated, everything-but-the-kitchen-sink payroll service instead? No matter where you fall on that spectrum,Intuit Payrollhas an option for you.

IntuitBasic, for $20/month plus $2 per employee/month, will run your payroll instantly and calculate your taxes (but wont go as far as filing those taxes for you). Their most popular package is calledEnhanced, $31.20/month, which adds tax form completion, filing, and payment on top of that. And finally, theirFull Serviceoption will run payroll entirely, transfer data from other payroll services, and guarantee its accuracy — for just $79/month.

So depending on how much time and energy inputting payroll takes for you, any of these plans could help out. And if youre in need of other human resources services, too, Intuit also offers workers compensation and compliance assistance. Theres a reason theyve been voted Americas 1 payroll service, after all.

Related:25 Payment Tools for Small Businesses, Freelancers and Startups

OnPaydoesnt have all the tools and add-ons that Intuit offers, but in exchange, it provides a simple pricing model with the straightforward payroll necessities that especiallysmallsmall businesses need.

For $47.95 per month, you get up to 10 employees worth of unlimited pay runs, tax filings and deposits in one state (with additional states running you extra), and check printing. Its an easy, quick, mobile-friendly system that doesnt require a steep learning curve.

If youre in need of a payroll service that can handle bigger businesses, OnPay could still managefor $1 per month for each extra employee, starting with your 11th. Plus, direct deposit functionality is an additional $8 per month.

Gusto, previously known as ZenPayroll, is an intuitive payroll service for any sort of small business.

Not only will Gusto automatically file your local, state, and federal taxes and integrate with your accounting software, itll also give your employees access to their information, paystubs, and W-2seven after theyve left your company. This means less data entry work for you, more convenience for them, and an easier time for everyone.

PC Magazine named Gusto itspayroll service of choicefor a reason: after its one-month free trial ends, Gusto costs only $39/month, plus $6 per month per employee. That includes benefits planning, direct deposit and check services, and more.

Related:8 Great Time-Tracking Apps for Freelancers

What does HR for Humans look like? Just askNamely: one of the biggest new human resources services around.

While it has an undisclosed price, Namely offers a full suite of payroll and HR tools to help you cut down on wasted time. It will automatically carry out benefits deductions, pay and file all of your payroll taxes, handle year-end reporting and time-tracking, ensure your small business is compliant with regulations, and give employees access to their paycheck histories.

In addition to payroll, Namely can help with a number ofemployee benefitslike health insurance, life and disability insurance, wellness programs, commuter benefits, and other less traditional plans as well. Plus, theyll also assist withhiring and management, from onboarding document signatures to performance reports.

If youre looking for a modern, comprehensive HR service, notjusta payroll tool, then Namely could be right for your small business.

Related:10 Online Invoicing Services forSmall-BusinessOwners

Like Intuit,Sagealso offers different payroll packages depending on how big your small business is. If 10 or fewer employees, Sage Payroll Essentials comes in at the low price of $49.95/month. (For comparison, Intuits Enhanced plan would run you around the same price with fewer features.)

When you outgrow that stage, though, Sage has you covered with its Full Payroll Service, which is priced according to the size of your business and how often you run payroll. The full service comes with a dedicated payroll agent, a check delivery service, unlimited deductions, custom report-building, and additional benefits administration.

Whichever package you need right now, Sage is sure to keep you around. They have the highest customer retention rate in the payroll services industry, after all.

Pick the payroll service that matches up with what your business needs,anddont be afraid to cancel if youve made a mistake and want something different. Also, it can be helpful to keep your ownpayroll recordsfor posterity or in case something goes wrong.

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The 5 Best Payroll Options for Small Businesses