Recruitment agencies navigate complex payroll challenges with every placement. Each temporary or contract worker introduces unique pay rates, schedules, and billing requirements. Payroll errors can result in significant financial losses and damage an agency’s reputation.
A shocking 53% of companies have faced payroll noncompliance penalties in the past five years. Moreover, about one-third of employers make payroll mistakes annually.
However, payroll software for recruitment agencies streamlines processes, boosts accuracy, and ensures compliance. The right payroll software helps build trust with clients and candidates while safeguarding the agency’s integrity and financial health.
Let’s explore what payroll software is and look at the top solutions.

When choosing payroll software for your recruitment agency, prioritize scalability and integration with your existing systems. Look for solutions that handle diverse employment types and offer robust compliance features. Don't just consider cost but also factor in time savings, error reduction, and the quality of customer support.
What Is Payroll Software?
Payroll software is a specialized tool that allows businesses to manage and automate the entire process of compensating employees. It calculates wages, deducts taxes and other withholdings, and ensures timely payments. These systems often include features for automatic tax calculations and automated benefits administration to simplify the payroll process.
It is worth noting that payroll software for recruitment agencies offers features beyond basic payroll processing. It integrates seamlessly with time tracking, expense management, and client billing systems. This helps streamline payroll processes, enhance accuracy, and maintain compliance across various employment types and jurisdictions.
Our selection of these Payroll Software for Recruitment Agencies is based on thorough research and analysis. We have listed these softwares based on usability and satisfaction score that include features, ease of use, customer support, ratings, and number of reviews from SoftwareSuggest. Our goal is to help businesses select the right softwares that can help them optimize their business processes.
Top 10 Payroll Software for Recruitment Agencies
We have shortlisted the top ten payroll management software based on features, user reviews, pricing, ease of use, and scalability. However, the best payroll software for you depends on your specific needs and budget. So, compare these tools and see which fits your requirements.
- Paycor HCM - Best for Mid-sized to large recruitment agencies
- QuickBooks - Best for Small to medium-sized recruitment agencies
- Gusto - Best for Small to medium-sized recruitment agencies
- Paychex - Best for Recruitment agencies of all sizes
- ADP RUN - Best for Medium to large recruitment agencies
- BambooHR - Best for Small to medium-sized recruitment agencies
- OnPay - Best for Small to medium-sized recruitment agencies
- Rippling - Best for Medium to large recruitment agencies
- Justworks - Best for Small to medium-sized recruitment agencies
- Wave Payroll - Best for Small recruitment agencies and startups
1. Paycor HCM

Paycor HCM
Paycor HCM is a comprehensive payroll software for recruitment agencies. It effectively handles complex pay structures common in staffing firms. One of the biggest advantages of Paycor is its robust reporting capabilities that allow agencies to gain deep insights into their payroll management. It also helps manage both internal staff and placed candidates efficiently.
Best For: Mid-sized to large recruitment agencies with complex payroll needs and a desire for detailed reporting.
Features
- Payroll and tax service
- Wage garnishments
- Pay options
- Off-cycle pay runs
- Check stuffing
- Online check stub
Pricing
Contact the company for a custom quote.
- Paycor’s robust reporting capabilities provide deep insights into labor costs and payroll trends.
- The software’s automated tax calculation system ensures accurate and timely tax payments.
- Paycor’s employee self-service portal reduces administrative workload for HR teams.
- The platform can be overly complex for smaller businesses with simple payroll needs.
- Users report frequent issues with customer service responsiveness and problem resolution.
Checkout Popular Comparison: Compare Keka vs Paycor
2. QuickBooks

QuickBooks
QuickBooks is one of the best recruitment agency payroll software. It’s even more beneficial for those already using its accounting features. Its key strength is the seamless integration between payroll and financial management. This integration is crucial for staffing firms that manage multiple client billings. QuickBooks also excels in tax compliance and automatically updates tax tables and files federal and state payroll taxes.
Best For: Small to medium-sized recruitment agencies already using QuickBooks for accounting.
Features
- Full-service payroll
- 1099 e-file and pay
- Next-day direct deposit
- Employee portal
- 401(k) plans
- Track income and expenses
Pricing
- Payroll Core + Simple Start: $42.50/month
- Payroll Core + Essentials: $57.50/month
- Payroll Premium + Plus: $92/month
- QuickBooks Payroll allows easy addition or deletion of payroll deductions at the last minute.
- The software offers automated time tracking with customizable job shifts.
- It provides a wide range of financial reports useful for business management.
- The mobile app requires location services to be on, which some users find intrusive.
- QuickBooks Payroll’s report details sometimes lack in-depth information.
Discover Popular Comparison: Compare QuickBooks Online vs Invoicera
3. Gusto

Gusto
Gusto is a user-friendly yet powerful payroll software for staffing companies. It effectively addresses the unique needs of agencies working with contractors and temporary staff. Gusto’s automated onboarding process saves significant time for recruitment firms with high employee turnover. Its clear pricing model and easy scalability appeal to small and medium-sized agencies that aim to streamline their payroll processes.
Best For: Small to medium-sized recruitment agencies looking for user-friendly, scalable payroll software.
Features
- Full-service single-state payroll
- Employee profiles and self-service
- Payroll and time-off reports
- Next-day direct deposit
- PTO management and policies
- Expenses and reimbursements
Pricing
- Simple: $40/month
- Plus: $60/month
- Premium: $135/month
- Gusto’s mobile app allows easy access to paystubs, time-off requests, and company information.
- The software offers a self-service portal for employees to access their pay information.
- Gusto provides a range of free promotions and benefits for small businesses.
- Some users find the initial setup process confusing and difficult to navigate.
- Users report occasional delays in signing on to clock in through the app.
Review Popular Comparison: Compare Gusto vs Harvest
4. Paychex

Paychex
Paychex is a versatile payroll software for recruitment agencies that cater to businesses of all sizes, from startups to large enterprises. It offers a range of solutions that grow with your agency. For instance, it provides continued assistance to agencies dealing with complex employment regulations. These additional services help them navigate complex employment regulations. Furthermore, its mobile app allows recruiters to manage payroll remotely, which is essential in the dynamic staffing industry.
Best For: Recruitment agencies of all sizes, particularly those dealing with complex employment regulations or requiring mobile payroll management.
Features
- Payroll tax administration (1099s and W-2s)
- Flexible employee pay options
- Garnishment payment options
- General ledger service
- Fast payment options
- Expense management
Pricing
Contact the company for a quote.
- Paychex automates complex wage calculations, including overtime and shift differentials.
- Paychex offers real-time payroll tax calculations to ensure accuracy and compliance.
- The platform provides customizable pay stubs to match company branding and information needs.
- The platform’s multi-state tax filing feature can be complex for businesses new to operating in multiple states.
- Paychex users note that setting up custom deductions can be time-consuming.
Checkout Popular Comparison: Compare Paychex vs Payroo Payroll
5. ADP RUN

ADP Run
ADP RUN is a comprehensive recruitment agency payroll software that focuses on automation and compliance. It excels in handling multi-state payroll, which is particularly useful for agencies with a wide geographic reach. ADP RUN offers strong integration capabilities with various applicant tracking systems to streamline the transition from recruitment to payroll. The software also provides detailed analytics that helps agencies optimize their payroll processes and labor costs.
Best For: Medium to large recruitment agencies operating across multiple states and requiring robust compliance.
Features
- General ledger interface
- Direct deposit
- New-hire reporting
- Tax filing
- Multi-jurisdiction payroll
- State Unemployment Insurance (SUI) management
Pricing
Contact the company for personalized pricing.
- ADP RUN offers seamless integration with time and attendance systems for accurate payroll processing.
- The platform provides automatic wage garnishment calculations and payments.
- ADP RUN features a robust tax filing service that covers federal, state, and local taxes.
- ADP RUN users find the process of setting up new pay codes to be complex.
- Users report occasional delays in reflecting on last-minute payroll changes.
Discover Popular Comparison: Compare ADP vs Paylocity Payroll
6. BambooHR

BambooHR
BambooHR is an all-in-one payroll software for staffing companies that prioritizes user experience. It offers a user-friendly portal for candidates to view their payment details. The platform integrates payroll processing, employee benefits, and performance evaluations into one comprehensive system. This integrated approach to human capital management is particularly beneficial for agencies aiming to improve their talent retention strategies.
Best For: Small to medium-sized recruitment agencies seeking an all-in-one HR and payroll solution.
Features
- Direct deposit
- Flexible pay schedules
- Federal & state tax filing
- Single source of data
- Specialized support team
Pricing
Contact the company for a personalized quote.
- BambooHR offers an employee self-service portal for accessing pay stubs and tax documents.
- The platform provides customizable approval workflows for payroll processing.
- BambooHR features automatic calculation of PTO accruals and integrates with payroll.
- BambooHR users report limitations in handling complex commission structures.
- The platform’s payroll tax filing services are not available in all states.
Checkout Popular Comparison: Compare BambooHR vs ADP
7. OnPay

OnPay
OnPay is a flexible payroll software for staffing companies that caters to various industries, including recruitment. It excels in managing complex pay structures and multi-state tax compliance. OnPay offers unlimited payroll runs at no extra cost, which is beneficial for agencies with frequent pay cycles. The software also provides robust reporting tools that help agencies track labor costs and payroll expenses efficiently.
Best For: Small to medium-sized recruitment agencies with complex pay structures or multi-state operations.
Features
- Unlimited pay runs and schedules
- Federal, state, and local tax filings
- Direct deposit payroll
- 401(k) retirement
- Employee self-service
- Custom reporting
Pricing
- Essentials: $6/month/employee + $40/month base fee
- The platform provides a custom payroll report designer for unique business needs.
- OnPay supports multiple pay schedules within a single company account.
- The software allows easy management of wage-based tax credits like WOTC.
- OnPay’s time clock feature lacks geofencing capabilities for remote workers.
- It struggles with managing complex bonus structures.
Review Popular Comparison: Compare Gusto vs OnPay
8. Rippling

Rippling
Rippling is an advanced payroll software for recruitment agencies that integrates HR, IT, and payroll management into a single platform. It automates many aspects of employee onboarding and offboarding, which is particularly useful for agencies with high turnover rates. Besides, Rippling’s extensive integration capabilities allow for seamless data flow across different business systems.
Best For: Medium to large recruitment agencies looking for an integrated platform that combines payroll, HR, and IT management.
Features
- W-2, W-4, 1099, and new hire filings
- Garnishments management
- Multiple pay rates
- Multiple approvers
- Retroactive pay
Pricing
Contact the company for a custom quote.
- Rippling offers automatic payroll based on real-time workforce changes.
- The platform provides built-in salary benchmarking tools for pay equity analysis.
- Rippling supports complex pay rules for union contracts and collective bargaining agreements.
- Rippling’s payroll preview feature doesn’t show detailed tax calculations.
- The platform’s handling of mid-pay-period compensation changes can be cumbersome.
Checkout Popular Comparison: Compare Paycor vs Rippling
9. Justworks
Justworks is a comprehensive payroll software for recruitment agencies that combines payroll processing with HR management and compliance support. The software streamlines the management of diverse workforce types, from permanent staff to temporary workers. Its comprehensive reporting tools offer valuable insights into workforce expenses and payroll patterns.
Best For: Small to medium-sized recruitment agencies looking for a comprehensive platform that combines payroll, HR, and compliance support.
Features
- Multiple pay rates
- Custom pay schedules
- Contractor payments
- Off-cycle payments
- Employer payroll tax filings
- Payroll reporting
Pricing
- Payroll: $8/month/person + $50/month base fee
- The platform provides automatic new hire reporting to relevant state agencies.
- Justworks features a robust system for managing and paying contractors alongside employees.
- The software includes built-in time tracking that directly integrates with payroll processing.
- Justworks has limitations in terms of customizing payroll deductions for unique situations.
- The platform’s support for international payroll is limited compared to domestic options.
Review Popular Comparison: Compare Gusto vs Justworks
10. Wave Payroll
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Wave Payroll
Wave Payroll is a cost-effective staffing agency payroll software suited for small businesses and startups. It integrates seamlessly with Wave’s free accounting software and provides a unified financial management system. Wave Payroll also offers direct deposit options and handles tax filings, making it an efficient choice for agencies with straightforward payroll processes.
Best For: Small recruitment agencies and startups with straightforward payroll needs and limited budgets.
Features
- Automatic payroll journal entries
- Tax payments and filings
- Self-service pay stubs and tax forms
- Direct deposit
- Detailed payroll reports
- Track leave time and accruals
Pricing
- Tax Service States: $6/month/employee + $40/month base fee
- Self Service States: $6/month/employee + $20/month base fee
- The platform offers a simple payroll tax calculator for quick estimations.
- Wave Payroll provides year-end T4 slip generation for Canadian businesses.
- The software allows easy voiding and correction of paychecks after running payroll.
- The platform’s customer support can be slow to respond during peak times.
- Wave Payroll’s reporting capabilities are somewhat basic compared to more robust payroll solutions.
Checkout Popular Comparison: Compare Wave Payroll vs Payroo Payroll
Benefits of Recruitment Agencies Payroll Software
The key benefits of payroll software for recruitment agencies include improved accuracy, better flexibility, time and cost savings, and enhanced scalability. Let’s explore these advantages in detail.
1. Improved Accuracy
Recruitment payroll software significantly reduces the risk of human error in calculations and data entry. It automatically computes complex pay structures, tax deductions, and benefits, ensuring that every paycheck is precise. This is crucial for recruitment agencies dealing with various pay rates and employment types as it helps maintain trust with both candidates and clients.
2. Time and Cost Savings
By automating time-consuming tasks, payroll software frees up valuable resources. By automating complex calculations and data input, the software significantly reduces time spent on payroll tasks. This not only cuts costs but also allows agencies to focus more on their primary functions, such as talent acquisition and nurturing client relationships.
3. Enhanced Flexibility
Payroll software offers recruitment agencies the flexibility to manage diverse payment schedules and employment types. Whether dealing with full-time employees, contractors, or temporary staff, these systems can accommodate various pay cycles and compensation structures. This is essential in the dynamic staffing industry, where payment terms can vary significantly between placements.
4. Scalability
As you expand your staffing agency, your payroll requirements will likely become increasingly intricate. Fortunately, many modern payroll software solutions are designed with scalability in mind, adapting to the needs of growing businesses. This means you can add new users, expand to new countries, and meet compliance requirements with ease.
Feature of Staffing Agency Payroll Software
When selecting payroll software for your staffing agency, look for automated payroll processing, time and attendance integration, compliance management, benefits administration, and customizable reporting. Let’s understand these payroll management features in detail.
1. Automated Payroll Processing
The software should offer automatic calculation of wages, taxes, and deductions. It must support complex pay structures, including multiple pay rates for various job assignments, overtime calculations, and contractor payments. Additionally, look for features like bulk payment processing and the ability to handle both regular and off-cycle payrolls.
2. Time and Attendance Integration
Look for payroll software that integrates seamlessly with time and attendance systems. This should allow you to automatically import timesheet data, support various time-tracking methods (e.g., clock-in/out, project-based), and offer real-time synchronization between time tracking and payroll modules.
3. Compliance Management
The software should include built-in compliance tools with regularly updated tax tables for multiple jurisdictions. Look for features like automatic tax form generation (W-2s, 1099s), support for multi-state tax calculations, and the ability to track and manage various labor law requirements.
Suggested Read: Payroll Compliance: Common Mistakes & Best Practices
4. Customizable Reporting and Analytics
Look for software that offers a diverse selection of built-in reports and tools for creating tailored reports. Key features to look for include intuitive report builders, options for scheduling automatic report generation, and tools for creating visual representations of data through charts and graphs.
5. Streamlined Benefits Administration
If you offer benefits, the software should include features for managing various benefit types (health insurance, retirement plans, etc.). Look for capabilities such as automated eligibility tracking, self-service portals for employee benefit selection, and integration with major benefits providers.
Don’t Miss to Read: How to Choose the Best Payroll Software for Small Business?
Conclusion
Selecting the right payroll services is crucial for recruitment agencies to streamline operations, ensure accuracy, and maintain compliance in their complex and intricate process. The top solutions in the market offer features like automated processing, time and attendance integration, compliance management, customizable reporting, and benefits administration.
These solutions are versatile, catering to recruitment agencies of all sizes, from emerging startups to established enterprises. However, it’s crucial to thoroughly assess each option to ensure the chosen software meets your agency’s specific requirements.
Payroll software helps recruitment agencies manage temporary and contract workers by offering flexible pay rate configurations, automated time tracking integration, and easy onboarding/offboarding processes. It can handle multiple pay schedules, calculate varying tax withholdings, and generate accurate reports for client billing.
Yes, many advanced payroll software solutions support international workers and multi-currency management. These features typically include multi-country tax compliance, currency conversion capabilities, and the ability to process payments in various currencies. This functionality allows recruitment agencies to efficiently manage global workforces and handle international placements while ensuring compliance with local regulations.

Khyati Sagar is a seasoned HR and payroll expert with over a decade of experience in the field. She has worked with businesses of all sizes, from small startups to large corporations, helping them optimize their HR and payroll processes. As a passionate advocate for technology-driven solutions, she is always on the lookout for the latest advancements in HR and payroll software. When she’s not working, you can find her hiking or playing basketball with her friends and family.

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