In addition to the prices above, some payroll vendors may also charge a one-time set-up fee for complex software implementations.
If you only have a small number of employees, you can likely get started with a free or basic plan initially. However, there are several reasons why you may want to opt for a more advanced plan, including:
- Growth in Employee Numbers: As your company expands, your payroll processing needs will also increase. Advanced plans can handle higher volumes of payroll transactions and offer better tools for managing a larger workforce.
- Need for Additional Features: You may find you need more advanced payroll software that offers features like automated tax filings, direct deposit, benefits management, compliance tracking, and detailed financial reporting, which aren’t included in your current plan.
- Increased Complexity in Payroll Requirements: If your business has complex payroll requirements (e.g., new employees in multiple states or countries) you might need software with more sophisticated capabilities to handle varying tax laws, regulations, and multi-currency payments.
- Enhanced Customer Support: More comprehensive plans often come with better customer support, including dedicated support teams, quicker response times, and more personalized assistance, giving you additional peace of mind.
- Integration with Other Systems: If your current payroll software or plan doesn’t integrate seamlessly with the other systems your business uses (such as human resources management systems, accounting software, or time tracking tools), then it’s time to find a better fit.
Ultimately, it’s important to secure a plan that offers the features you need to serve your current needs and solve your challenges without exceeding your budget.
Payroll Software Frequently Asked Questions
Do you have general questions about how payroll software works or how to choose the right system for you? Take a look through these answers to frequently asked questions to get yourself oriented.
What is same-day payroll?
Same-day payroll lets employees access their earned wages the same day you process them, rather than waiting until the traditional payday. This feature is especially popular with hourly workers or contractors who value immediate payment for completed work. To implement this, your payroll platform must partner with banks or third-party providers that support instant transfers and allow you to run off-cycle payrolls quickly.
Same day payroll helpful for attracting talent in competitive markets as it provides financial flexibility for staff. Before using same-day payroll, check if there are extra processing fees and ensure your timesheet approvals and data entry can happen on tight deadlines.
This type of payroll set up is also known as pay-on-demand, on-demand pay, or real-time pay. It rose to popularity during the COVID-19 pandemic as millions of workers suddenly needed access to their earnings in order to cover their basic household expenses.
What’s the difference between cloud-based and on-premise payroll software?
Cloud-based payroll systems run online and don’t require you to install anything locally. This gives you and your team access from any device, supports automatic software updates, and offers vendor-managed data security. You pay a subscription, and there’s usually quicker setup.
On-premise software, installed on your own servers, lets you control updates and security yourself but can be costly and less flexible, since upgrades, backups, and support fall on your IT team. Most growing companies now choose cloud payroll because it scales easily, supports distributed teams, and minimizes downtime. However, on-premise payroll software may be a better fit for organizations with strict data control policies and large in-house IT teams (such as government agencies).
Tip: If your company runs on Macs, look for cloud-based payroll software compatible with macOS.
What data security features are included in payroll software?
Top-tier payroll solutions encrypt data both in transit and at rest, use multi-factor authentication (MFA), have granular role-based access control (RBAC) and permissions, and perform regular vulnerability scans. You’ll want audit logs to see who accessed or changed payroll details. Good vendors also comply with standards like GDPR, SOC 2, or ISO 27001.
For best results, review permissions on a regular schedule and require strong password policies. Ask your provider if they offer single sign-on (SSO) integration and how they handle security breaches or attempted logins from unknown IP addresses.
Payroll software houses a lot of personal identifying information (PII), including your employees’ names, addresses, contact information, social security or SIN numbers, and personal bank accounts so robust security features are essential.
What compliance monitoring features are built into payroll software?
Payroll software often includes automatic tax table updates, flagging of errors in wage or tax calculation, and alerts for approaching filing deadlines. Many platforms can identify missing employee data, track required documentation (like I-9s or W-4s), and help monitor overtime compliance. Some offer built-in checks for minimum wage, benefits eligibility, or automatically generate government reports (e.g., 941s, W-2s).
For HR professionals, these features reduce audit risks and make it easier to onboard employees or expand into new regions without missing compliance steps. They also work together to automate compliance requirements, saving you time and stress.
Can payroll software handle multiple currencies for global teams?
Yes, many payroll platforms now support multi-currency payroll, letting you pay employees and contractors in different countries in their local currency. The software should calculate currency conversions, track exchange rates, and handle differing local tax regulations automatically.
For example, you might pay a UK employee in GBP and a Canadian one in CAD, with the platform handling tax calculations and deadlines for each country. Be sure to check if the software covers all your target countries, and whether it can generate country-specific reports and filings.
Global payroll features are essential for businesses wanting to expand globally as they help companies ensure their payroll operations are compliant and efficient across various jurisdictions.
How can I ensure a smooth transition to new payroll software?
To transition smoothly, follow this process:
- Start with a clear timeline and map out your current payroll processes.
- Gather accurate employee and tax data and check for discrepancies before migration.
- Choose a payroll provider with strong onboarding and migration support, and request staff training workshops.
- Run parallel payrolls for at least a month to catch any issues without affecting pay.
- Assign an internal project lead and communicate with all stakeholders about the go-live date and changes to expect.
- Keep your legacy system active as a backup during your first cycles.
What are common payroll software implementation challenges?
Challenges include data migration errors, overlooked or misconfigured integrations, and resistance from staff used to old processes. It’s common for permissions to be set incorrectly, resulting in unauthorized access or missed payroll runs.
To avoid these issues, double-check imported data, run test payrolls, and invest in staff training. Get stakeholder buy-in early and create clear documentation on the new processes. Keep IT and HR involved throughout, and set up vendor support for go-live day and the first few payroll cycles.
How often should I update or audit payroll system permissions?
Review your payroll software permissions quarterly and immediately after staff changes, promotions, or departures. Removing old user accounts right away helps prevent accidental or malicious access.
For stricter oversight, enable alerts for suspicious activity, such as payroll edits outside normal hours. Include audits as part of routine compliance checks and when preparing for third-party audits. Restrict admin-level access to only those who absolutely need it—typically, just key HR or finance personnel.
What reporting capabilities should I expect from payroll software?
Modern payroll systems offer standard reports like pay registers, deductions, benefits tracking, and tax liability summaries. Look for custom reporting tools that let you filter by department, location, or pay type.
Robust payroll software should also provide dashboards for overtime, turnover, and labor cost analysis, helping you spot patterns and budgets more accurately.
Best Payroll Software: Comparison Chart
Best Payroll Software: Comparison Chart
This comparison chart summarizes pricing, trial, and demo details for my top payroll software selections to help you find the best software for your budget and business needs.The best solutions allow you to schedule regular exports to Excel, PDF, or even integrate reports with your BI tools—making payroll insights easy to share with leadership.
Tool
Best For
Trial Info
Price
What integrations are the most important for payroll software?
Key integrations for payroll software include your HRIS (for employee data sync), time and attendance tracking (to automate wage calculations), accounting software (for simplified reconciliation), and benefits management platforms. If your workflow involves expense reimbursement, shift scheduling, or compliance management, make sure those systems connect as well.
Good integrations eliminate double entry, reduce manual data errors, and improve audit trails. Here are several detailed examples, speaking from my own experience:
- HR Management Systems (HRIS/HRMS/HCM): If your payroll software is separate from your HR system, you’ll want to sync employee data like salary changes automatically so updates flow directly from HR to payroll without duplication.
- Time Tracking Tools: Seamless integration with timesheets is essential. Without it, you’ll spend hours manually reconciling hours worked before each payroll run—trust me, I’ve been there!
- Benefits Administration Software: Connect benefit deductions to payroll to reflect changes in real-time and avoid manual cross-checking. (I’ve also experienced a world without this integration, and wow, it was painful.)
- Expense Reporting Software: If your team files frequent reimbursements, this integration streamlines adding them to payroll, saving time and avoiding errors.
These integrations help eliminate repetitive tasks and reduce the risk of payroll errors caused by disconnected systems.
How do payroll systems support remote or hybrid teams?
Payroll platforms support remote or hybrid teams by offering cloud access for approvals, data entry, and reporting from any location. Employees can enter hours or update details via mobile apps or online portals, speeding up payroll cycles.
The software can account for varying tax jurisdictions based on employee addresses and sometimes automate location-based compliance. Integration with attendance apps helps accurately track in-office versus remote work, and some platforms offer geofencing or IP monitoring to further validate entries by remote staff.
What are PEO payroll services?
PEO payroll services are offered by Professional Employer Organizations (PEOs) that manage payroll processing, tax filings, and compliance for businesses by acting as a co-employer.
They handle employee wages, deductions, and benefits, reducing the administrative burden on businesses. This allows companies to focus on core activities while ensuring payroll accuracy and compliance with labor laws.
Additional Payroll Software Reviews
Want to check out our other reviews related to payroll software? Here are a few more:
- Automated Payroll Software
- Payroll Software for CAD Businesses
- Payroll Services for Small Businesses
- Free Payroll Software
- Payroll Software for Contractors
- Payroll Software for Construction
Modernize Your Payroll Process
There are plenty of payroll software options available, and each one is a bit different from the next. That’s why understanding the core functionality of these platforms equips you to pick the right one for your business needs.
Invest in advanced payroll software that satisfies all your business needs, including compensation and salary benchmarking features.
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