Managing payroll involves accurately calculating compensation, managing benefits, and deducting taxes – a complex process that grows more challenging as your business expands. However, the right payroll software can automate and simplify these tasks for small business owners.
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In fact, automation can reduce payroll processing costs by 80%.
However, given the financial constraints and limited personnel that most small businesses face, it’s crucial to implement an affordable, easy-to-use payroll solution. In this blog post, we will highlight the 15 top payroll software options that are designed specifically for small business needs in 2024. Let’s get started.
What Is Small Business Payroll Software, and Why Is It Essential?
Payroll software for small businesses is a specialized tool designed to streamline compensation aspects like salary, wages, bonuses, and deductions. Essential features simplify core payroll tasks that were previously manual and error-prone.
When selecting payroll software for your small business, prioritize solutions that not only meet your current needs but also scale with your business growth. Additionally, ensure the chosen software is compliant with the latest tax regulations and labor laws. This proactive approach will not only streamline your payroll processes today but also save you from potential headaches as your business expands.
Key advantages of payroll software for small business include:
- Minimizing mistakes that can happen with manual calculations
- Drastically reducing the time spent on calculations, data entry, and compliance
- Enabling employee self-service access for pay stubs, tax docs, and more
- Automatically handling tax calculations and compliance with regulations
- Providing analytics into labor costs, tax liabilities, and other metrics
How Does Payroll Software Benefit Small Businesses?
The benefits of payroll software for small businesses extend far beyond mere automation, influencing the very core of operations. Let’s explore how the best payroll software for small businesses becomes the catalyst for success.
1. Precision and Accuracy
Payroll software brings an unparalleled level of accuracy to payroll calculations. By automating complex financial computations, the likelihood of errors diminishes significantly, ensuring that employees are compensated correctly and compliance requirements are met with precision.
2. Time Savings
Small business owners often wear multiple hats, juggling several responsibilities. A payroll system for small businesses frees valuable time that you would otherwise spend on manual calculations and paperwork. This newfound time can be redirected toward strategic decision-making and activities that foster business growth.
3. Improved Compliance
Staying abreast of ever-changing tax regulations and compliance standards can be overwhelming. The best payroll service for small businesses takes on this challenge by automatically updating its functionalities to align with the latest legal requirements. This not only ensures compliance but also shields businesses from non-compliance issues.
4. Employee Empowerment
Modern payroll solutions often come equipped with self-service features, providing employees with direct access to their financial information. From pay stubs to tax documents, this transparency fosters a sense of empowerment and reduces the administrative burden on HR teams.
5. Cost-Effective Operations
While the initial investment in payroll software may seem like an expense, the long-term cost savings outweigh the costs. The reduction in manual errors, compliance fines, and the need for additional personnel translates into a leaner, more cost-effective operation for small businesses. Additionally, exploring short-term investment options can help offset the initial expenses, making the transition to payroll software even more financially feasible.
6. Strategic Decision Support
Robust reporting tools integrated into payroll software offer invaluable insights into labor costs, tax liabilities, and financial trends. Armed with this data, small business owners can make informed decisions that steer their companies toward sustained success.
7. Adaptability and Scalability
As small businesses evolve, so do their payroll needs. The best payroll service for small businesses is designed to adapt and scale seamlessly, accommodating changes in the workforce, benefit structures, and compliance requirements. This ensures that the tool remains a steadfast ally on the journey of business growth.
You May Also Read: How to Choose the Best Payroll Software for Small Business
15 Top Payroll Software for Small Businesses in 2024
Now that you know what payroll software is and why you need one, let’s look at the best payroll software for small businesses. We’ve curated this list based on features, pricing, and customer reviews.
| Software Name | Free Trail Period | Pricing |
|---|---|---|
| 3 months for Roll by ADP | Contact the company | |
| 14 days | Silver: ₹18,000 + GST | |
| 14 days | Foundation: ₹6,999 / month | |
| 14 days | Request the company for a customized quote | |
| 15 days | Silver: ₹12,600 | |
| 14 days | Base: ₹2,500 per month | |
| 14 days | Essential: ₹3495/month | |
| 14 days | Standard: ₹40 per Employee per Month | |
| 14 days | Contact the company for a quote | |
| 15 days | Standard: ₹53,700/month | |
| 7 days | Contact the company for pricing | |
| 14 days | Elite: ₹5499 | |
| 14 days | Contact the company for a quote | |
| 30 days | Contact the company for a quote | |
| 14 days | Contact the company for pricing |
1. ADP Payroll
ADP payroll on cloud solution is designed to handle the complexities of all types of business. Once the solution is customized to your business requirements, you can process payroll and the associated compliances, such as TDS, PF, and ESI deductions, with a single click. ADP has been in the payroll business for the last 60 years, with 80% of Fortune 500 companies using their solutions.
Features
- Direct deposit
- General ledger interface
- New-hire reporting
- W-2s and 1099s
- Payroll delivery
- Multi-jurisdiction payroll
- Employee discounts
- Time and Attendance
- Background checks
Pricing
Contact the company for a customized quote.
- ADP Payroll ensures seamless tax compliance, automatically updating to reflect the latest changes in tax regulations.
- It scales effortlessly to accommodate evolving workforce needs and intricate payroll processes.
- It offers robust reporting tools, providing insights into labor costs and enabling data-driven decision-making.
- ADP Payroll offers integrated workforce management, streamlining the entire employee lifecycle.
- Achieving optimal customization with ADP Payroll may require a learning curve.
- The abundance of features in ADP Payroll might be overwhelming for businesses with simpler payroll needs.
- Some users have reported longer-than-desired response times from ADP’s customer support.
2. Tally.ERP 9
Tally.ERP 9 is a comprehensive payroll software for small businesses with necessary payroll compliances built into it. It provides the facility from simple pay-slip generation up to complex allied processes, which include salary revision, loans and advances, and ad-hoc payments. It also manages the salary of the employees according to statutory norms and processes.
Features
- Generate cash/cheque deposit slips
- Manage purchase and sales vouchers
- File GST returns
- Claim Input Tax Credit
- Balance sheet
- Profit and loss statement
- Budgets and controls
Pricing
- Silver: ₹18,000 + GST
- Gold: ₹54,000 + GST
- Tally.ERP 9 offers an easy-to-use interface for efficient management.
- The software offers comprehensive compliance features, keeping businesses up-to-date with tax regulations and legal requirements.
- Tally.ERP 9 facilitates seamless integration with other accounting modules, ensuring a holistic approach to financial management.
- You can easily customize the tool to meet specific payroll and reporting needs.
- Tally has a high learning curve and requires training to use it efficiently.
- The absence of robust employee self-service features could be a drawback.
- Integrating Tally.ERP 9 with your existing systems is a hassle.
3. Keka
Keka is a modern Payroll and HR software that is quickly gaining popularity for its simplicity and usability. With an intuitive UI and innovative functionality, Keka is quite easy to adopt for organizations of all sizes. Payroll functionality is quite extensive, with all statutory compliance functionality available at the click of a button. The Keka support team is a great asset, and they are quite passionate about helping their customers.
Features
- Attendance management
- One-click payroll processing
- Loans and expense management
- Appraisal tracking
- Robust timesheet management
- Document storage and generation
- Standard access roles
- Dashboard and analytics
Pricing
- Foundation: ₹6,999 / month
- Strength: ₹9,999 / month
- Growth: ₹13,999 / month
- Keka boasts a user-friendly interface that makes payroll management easy for users with varying levels of expertise.
- The platform’s advanced compliance features ensure adherence to tax regulations.
- Keka stands out with robust employee self-service capabilities.
- Keka adapts seamlessly to evolving business needs and complex payroll processes.
- Some users may experience a learning curve during the initial setup, requiring time for proficiency.
- The relatively higher cost might pose a challenge for smaller enterprises.
- Customer support response time requires improvement.
4. Paysquare
Paysquare is one of the most comprehensive payroll software for small businesses having all modern features. Paysquare looks after the entire payroll management right from consolidating HR, finance, processing of payroll and managing statutory filings.
Features
- CTC structuring
- HR documentation
- Employee onboarding
- Proactive compliance and consulting
- Integrated payroll services with leave management
- End-to-end bookkeeping and accounting
- Comprehensive payroll reporting
Pricing
Request the company for a customized quote.
- Paysquare excels in seamless payroll processing, ensuring timely and accurate payments.
- The platform’s reporting capabilities offer detailed insights for informed financial decision-making.
- Its swift adaptability to evolving payroll and HR requirements is a game-changer.
- Paysquare’s intuitive design promotes efficiency in navigating and managing payroll tasks.
- Some users report limitations in customization options for specific payroll nuances.
- Integration options are not as robust as other tools in this list.
- It has a higher learning curve, requiring companies to spend time training employees.
5. MARG ERP 9+ Payroll Software
Marg Payroll software is fully equipped to manage the entire system of employee payroll management, employee compliance management, etc. It is simple, easy to use, and can be fully customized according to the requirements of the user. It is the most comprehensive payroll software for small businesses.
Features
- Time and attendance management
- Employee document management
- Leave policy management
- Salary structure management
- Bank master, payment master
- Detailed reporting
- Advance and loan master
- Arrears and increment payment
- Bonus payment
Pricing
- Silver: ₹12,600
- Gold: ₹25,200
- MARG ERP 9+ Payroll Software automates compliance with statutory regulations, reducing the risk of legal issues.
- Users can generate tailored reports to get detailed insights into payroll data for better decision-making.
- The software streamlines leave tracking, making it easier for HR to manage employee absences.
- It offers an intuitive self-service portal for employees to access and update personal information.
- Users may encounter difficulties integrating MARG ERP 9+ Payroll Software with other existing systems or third-party applications.
- The software may have a steeper learning curve for new users due to a complex user interface.
- Ongoing maintenance costs could be a concern, with potential expenses for updates, patches, and support contracts.
6. HRM Thread
HRM Thread is one of the best payroll software for small businesses, offering both on-premise and cloud solutions. It looks after all the requirements related to the management of employee payroll. Moreover, it is versatile, user-friendly, and generates all the outputs and statutory reports required in a payroll application.
Features
- Leave and attendance management
- Loans and advance management
- Payroll processing
- Salary reports
- Bank transfer
- Reimbursement management
- Arrears calculation
- Professional tax
- Online TDS declaration
Pricing
- Base: ₹2,500 per month
- Standard: ₹4,000 per month
- Enterprise: ₹5,000 per month
- Ultimate: ₹6,000 per month
- It efficiently integrates with talent management tools, enhancing recruitment and performance processes.
- It has employee engagement tools, such as surveys, for improved satisfaction.
- HRM Thread facilitates skill development tracking, aiding in identifying training needs.
- Its advanced analytics offer valuable insights into workforce trends and performance metrics.
- The implementation process is quite complex and requires technical expertise.
- There are limitations in customizing certain HR processes.
- Optimal functionality is dependent on consistent internet connectivity.
7. Greythr
greytHR allows you to run payroll and manage employee compensation effortlessly. This payroll and HR management software is used by 500 companies and is used daily by around 500,000 users. It can be operated from anywhere due to the web support that is offered, and it helps the company integrate its payroll processes so that they do not have to waste time on payroll calculations.
Features
- Management of employee details database
- Leave and attendance management
- Administrative management
- Complete information and calculation of payrolls
- Employee self-onboarding
- Advanced analytics and reporting
- Access and user management
- Business expense claim management
Pricing
- Starter: ₹0/month
- Essential: ₹3495/month
- Growth: ₹5495/month
- Enterprise: ₹7495/month
- greytHR ensures organizations adhere to tax regulations and statutory requirements.
- It offers robust employee self-service features, reducing administrative burden.
- Its customizable reporting and analytics enable businesses to derive valuable insights.
- Initial setup and integration require technical expertise.
- The pricing structure may be relatively high for small businesses with limited budgets.
8. Zoho Payroll
Zoho Payroll streamlines payroll processing for small companies so you can focus on running your business, not chasing compliance. Its easy-to-use software automates complex pay calculations, schedules, local payroll taxes, and filings while providing customized wage rules for flexibility. Zoho’s expert support and affordable pricing mean even small teams can manage payroll efficiently.
Features
- Automatic payroll calculation
- Automatic payslip generation
- Online salary payments through bank integrations
- Compliance – Income Tax, EPF, ESI, State Wise PT, LWF
- Automatic TDS worksheet
- Pre-defined salary components
- Payslip templates
- Salary Revision and Arrears
- LOP and LOP Reversal
- Employee self-service portal
Pricing
- Free: ₹0 up to 10 employees
- Standard: ₹40 per Employee per Month
- Professional: ₹60 per Employee per Month
- The self-service portal allows employees to access their pay information, tax documents, and more with ease.
- Global payroll features make it possible to manage an international workforce across continents with consistent processes.
- Analytics dashboards provide at-a-glance insights into payroll spending, overtime, leaves taken, and other data.
- Phone, email, and chat support, as well as an extensive help center, enable access to assistance when needed.
- Managing employee reimbursements involves relatively manual processes compared to automated solutions.
- The recruitment and applicant tracking capabilities are not as strong as dedicated ATS tools.
- Onboarding requires entering employee information individually rather than bulk uploading details.
9. HRStop
HRStop is a tailored software solution designed to provide added value for startups and small to medium-sized enterprises. Its advantages include cloud support for accessibility from anywhere and affordability with no additional hardware, hosting, maintenance, or licensing costs. The platform is user-friendly, requiring no extra technical expertise, and support is readily available through phone, email, and online conferencing.
Features
- Employee self-service
- Assets and expense management
- Pay structures
- Tax components
- Detailed payroll reports
- Full & final settlement
- Auto mail payslips
- Salary statement for bank
Pricing
Contact the company for a quote.
- HRStop has a user-friendly interface for easy navigation by employees and administrators.
- It provides insightful reports and analytics for data-driven decision-making.
- It is affordable with excellent customer support.
- Limited reporting capabilities may restrict the depth of analysis.
- Integrating third-party applications can be challenging.
- Users report frequent downtime and low customization capabilities.
10. Saral PayPack
Saral PayPack is a comprehensive payroll and HR management tool designed to streamline and automate various aspects of the payroll process. With user-friendly features, it facilitates efficient salary computation, tax calculations, and compliance with statutory regulations. Saral PayPack is known for its scalability, making it suitable for businesses of various sizes.
Features
- Payroll management
- Leave and attendance
- Statutory management
- Reimbursement management
- Payslip generation
- Full and final settlement
Pricing
- Standard: ₹53,700/month
- Corporate: ₹1,15,800/month
- Premium: Contact the company
- Efficient HR module, employee attendance, and leave management.
- Simple and effective for monthly salary computation with auto-attendance integration.
- Employee self-service portal offers seamless leave management.
- It has limited customization in reports and payroll.
- The GUI could be simplified for a better user experience.
- Its backup function is challenging to understand.
11. Accupay
Accupay provides cutting-edge payroll management and HR solutions tailored for modern businesses. Equipped with powerful technology and driven by forward-thinking leaders in people management strategies, the company is reinventing traditional payroll to create exceptional employee experiences.
Features
- Leave and attendance record
- Employee’s personal information database
- Knowledge management
- Salary history
- Promotion and demotion history
- E-delivery of payroll reports
- Timekeeping options
Pricing
Contact the company for pricing.
- Accupay provides an end-to-end unified platform that handles payroll, benefits, compliance, and other HR processes.
- The high degree of customizability allows tailoring payroll rules, calculations, and workflows required for your unique workforce needs.
- Accupay’s expert team assists with compensation planning, cost optimization, and more.
- Its self-service mobile access empowers employees to manage their information in one click.
- Last-minute configuration changes can be highly dependent on Accupay’s customer support team availability and response times.
- Multi-country payroll administration requires the use of Accupay’s more expensive global capabilities package, posing challenges for low-budget organizations.
- Access for administrators lacks a user-friendly visual interface.
12. RazorpayX Payroll
Razorpay is one of the best payroll software for small businesses. Its 360-degree payroll management solution lets you calculate and transfer accurate salaries automatically. You can also manage freelancer payments by deducting TDS and challans on the self-service dashboard.
Features
- Payroll calculation
- Payslip generation
- Direct salary payment
- One-time payments
- Salary adjustments
- Compliance management
- Advanced Payroll
- Expense management
Pricing
- Prime: ₹2499
- Elite: ₹5499
- Enterprise: Contact the company
- It integrates with 25+ HRMS systems, allowing you to create an automated workflow.
- With Razorpay, you can automate tax filing and payments for TDS, PF, PT, and ESIC.
- It allows you to manage the entire employee lifecycle with a CTC calculator and offer letter generators.
- Employees can download Form-16s and payslips from the dashboard.
- Their customer service is not as responsive.
- It doesn’t allow you to capture the location when a remote employee logs in.
- Integrations are quite limited compared to other tools.
13. Webpay
Webpay boosts the productivity of small and medium-sized businesses by generating and maintaining employee details and payroll progression. This payroll software for small businesses manages to keep a record of attendance, calculate salaries, generate payslips, and also create PF, ESI, and Tax reports.
Features
- Asset management
- Employee self-service
- Leave management
- Loan management
- Increment details
- Arrears calculation
- Bonus calculation
- Statutory reports
Pricing
Contact the company for a quote.
- It streamlines payroll processing with easy salary disbursals directly to employee bank accounts.
- Webpay automates tax calculations, form 16, and other compliance procedures, saving time.
- It offers seamless ESIC, PF, and LWF payment handling as per regulations.
- It has built-in reports for salary registers, Form 16, and more needed by HR teams.
- It has a steep learning curve for first-time users to understand all modules and features.
- It is a rigid and less customizable system that lacks flexibility for specific business needs.
14. PayEdge
PayEdge is a completely integrated software that is user-friendly, easy to use, and malleable. Day-to-day processes like leave management and setting up your payroll calculating formula are taken care of.
Features
- Attendance management
- HR & Payroll
- Payroll Management
- Performance Management
- Leave Management
- Arrears Calculation
- PF/ESIC Calculation
Pricing
Contact the company for a quote.
- PayEdge automates attendance, leave, payroll, and other HR processes, improving efficiency.
- It offers easy integration with existing HRMS and accounting software via APIs.
- It has customizable dashboards providing insights into labor costs and productivity.
- PayEdge offers robust access controls and an audit trail facility for enhanced security.
- PayEdge has a complex pricing structure and expensive subscription plans.
- Users face frequent minor software bugs requiring troubleshooting.
- It has a steep learning curve for administrators and employees during onboarding.
You May Also Read: Automated Payroll vs. Manual Payroll System
15. Pact Payroll
The stand-alone or integrated Pact Payroll can handle the simplest to the most complex payroll HR tasks. It helps in managing budgets meritoriously by allowing organizations to manage diverse payment requirements in line with the enterprise’s regulations.
Features
- Comprehensive employee master
- Wages protection system (WPS)
- Leave and vacation management
- Statutory compliance
- Loan management
- Appraisal tracking
- Income tax (if applicable)
- End-of-service calculations
- Earnings, deductions, leaves & loans
Pricing
Contact the company for pricing.
- It allows you to automate pay runs to enable accurate salary payouts directly to employee bank accounts.
- Pact offers seamless regulatory compliance for taxes, PF, ESI and other payroll statutory.
- It has intuitive dashboards, providing real-time insights into payroll spending.
- Pact has a robust mobile app for on-the-go accessibility.
- It lacks native integration with other HR tools.
- Pact’s support team responsiveness has scope for improvement.
- It has a steep learning curve, especially for first-time users.
Conclusion
The era of manual payroll calculations is rapidly fading. Intelligent automation holds the key to unlocking higher accuracy, time savings, and improved compliance. However, with so many payroll software for small businesses, choosing the right payroll software for small businesses can be overwhelming. Therefore, you must reflect deeply on what unique payroll needs your growing venture faces and choose software accordingly.
Payroll software automates employee benefits administration and deductions. It allows users to set up predefined rules for benefits packages and deductions. It ensures accurate and timely processing of payroll with these elements.
Yes, small business payroll software often includes features for tax calculations and filings. It automates the calculation of taxes based on applicable laws and regulations, streamlining the process for small businesses.
Payroll software can integrate seamlessly with accounting and other business systems. This integration ensures that financial data is synchronized across various platforms, reducing manual data entry and errors.
Yes, employees can access their payroll information through the software. Payroll software typically provides a self-service portal where employees can view details like pay stubs, tax information, and other relevant payroll data.
Payroll software employs robust security measures to protect sensitive payroll data. This includes encryption protocols, secure login credentials, and compliance with data protection regulations to safeguard the confidentiality and integrity of payroll information.
Rohit Rajpal is an accomplished writer and data enthusiast passionate about unraveling the intricacies of information and data. With a deep understanding of the subject matter, Rohit strives to simplify complex concepts and make them accessible to readers. Rohit’s expertise in the field and his knack for clear and concise communication make his blog an invaluable resource for those seeking clarity in the data-driven world.
