7 Best Payroll Services for Small Businesses of 2024

Despite the improvements in payroll technology, 34% of businesses still rely on spreadsheets for payroll management—an outdated practice that often proves inefficient and insecure. The risks associated with these manual processes, such as errors and data breaches, can have significant consequences for small businesses.

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As businesses focus on streamlining operations and enhancing security, many are turning to dedicated payroll services. According to the National Small Business Association’s 2018 Small Business Taxation Survey, 45% of small businesses already use payroll services.

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With different payroll services available for small businesses, choosing the right service can be a daunting task.

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To help small businesses make the right choice, we've compiled a list of the 7 best payroll services for 2024.

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#1 OnPay: Best for Ease of Use and Affordability

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OnPay is a cloud-based payroll service popular among small businesses for its simplicity, flexibility, and robust functionality. The platform offers a comprehensive suite of payroll and HR tools to streamline the payroll process. This feature makes it an ideal choice for small businesses that want an affordable and reliable payroll service.

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Features

• Automated Tax Filing: OnPay automatically calculates and files federal, state, and local payroll taxes, ensuring compliance and reducing the risk of costly errors.
• Employee Self-Service: Employees can easily access pay stubs, tax forms, and personal information through the self-service portal.
• Multiple Payment Options: OnPay supports various payment methods, including direct deposit, debit card, and printed checks.
• HR Tools: The platform offers basic HR functionalities, such as onboarding checklists, document storage, and benefits management, all integrated into the payroll system.
• Time Tracking Integration: Seamlessly integrates with popular time-tracking software like TSheets and Deputy, simplifying payroll processing for businesses with hourly employees.

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Why We Picked It

We selected OnPay as one of the best payroll services for small businesses because of its affordability and comprehensive features.

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Unlike many competitors, OnPay offers an all-in-one solution with payroll, HR, and benefits administration features, all at a competitive price point. Its user-friendly interface and strong customer support further enhance its appeal, making it a top choice for small business owners.

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Who It’s For

OnPay is ideal for small businesses that require a cost-effective payroll service with the added benefit of integrated HR tools. It's suitable for businesses with a mix of salaried and hourly employees, thanks to its excellent time-tracking integrations.

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Companies that are growing and may need more advanced HR features in the future will also find OnPay to be a scalable solution.

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Pros

• Offers a competitive price with no hidden fees.
• Simple, intuitive interface suitable for users with little to no payroll experience.
• Includes essential payroll, tax filing, and HR features in one platform.
• Provides responsive and knowledgeable support.

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Cons

• Fewer customization options compared to some larger payroll services.
• Lacks a dedicated mobile app, which might be a drawback for business owners who manage payroll on the go.

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#2 Gusto: Best for Integrating Payroll, Benefits, and HR Services

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Gusto is a payroll service designed to simplify the complexities of managing payroll for small businesses.

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Founded in 2012, Gusto has become one of the most trusted names in the industry, providing comprehensive payroll, benefits, and human resource management solutions.

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With an intuitive platform that’s easy to navigate, Gusto offers a user-friendly experience, making it ideal for business owners who are not payroll experts.

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Features

• Full-Service Payroll: Gusto handles payroll processing, tax filing, and direct deposits, ensuring employees are paid accurately and on time.
• Employee Benefits: Gusto offers a range of employee benefits, including health insurance, 401(k) plans, and workers' compensation.
• HR Tools: The platform includes tools for onboarding, PTO tracking, and employee self-service, helping businesses manage their workforce effectively.
• Time Tracking: Gusto provides integrated time-tracking tools, allowing businesses to accurately track hours worked and streamline payroll processing.
• Compliance Assistance: The platform updates with the latest federal, state, and local tax laws to ensure your business remains compliant.

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Why We Picked It

We chose Gusto for its comprehensive features for small businesses. Its all-in-one platform offers more than just payroll processing, allowing small business owners to manage their payroll, benefits, and HR needs in one place.

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In addition, Gusto's ease of use, combined with its robust feature set, makes it a standout option for businesses that want an all-encompassing solution.

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Who It’s For

Gusto is ideal for small to medium-sized businesses that need an easy-to-use payroll service with integrated HR and benefits management tools. It's suitable for companies looking to offer employee benefits and need help navigating the complexities of compliance and payroll tax filing.

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Pros

• Gusto's platform is intuitive and easy to navigate, making payroll management accessible even for those without payroll experience.
• Combines payroll, benefits, and HR tools, reducing the need for multiple platforms.
• Gusto is known for its excellent customer service, offering support through various channels, including live chat, phone, and email.
• Gusto’s pricing is clear and straightforward, with no hidden fees.

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Cons

• While Gusto offers many features, it may lack some customization options that larger businesses require.
• Some of Gusto’s more advanced features, like HR tools and benefits administration, are only available in higher-tier plans, which may be cost-prohibitive for small businesses.

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#3 Intuit Quickbooks: Best for All-in-One Solution to Manage Both Payroll and Accounting Tasks

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Intuit QuickBooks is a widely recognized name in the accounting and financial management space. It offers a comprehensive payroll service that integrates seamlessly with its accounting software.

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Designed with small businesses in mind, QuickBooks Payroll simplifies the payroll process by automating time-consuming tasks, such as tax calculations and filings. QuickBooks Payroll ensures tasks like paying employees (by direct deposit or check) and providing benefits are done accurately and on time.

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Features

• Full-Service Payroll: Automatically calculates and files federal and state payroll taxes.
• Direct Deposit: Pay your employees via direct deposit at no additional cost.
• Employee Self-Service: Employees can access their pay stubs, W-2s, and personal information online.
• Same-Day Deposit: Available with QuickBooks Payroll Premium, this feature ensures employees get paid faster.
• Time Tracking Integration: Integrates with QuickBooks Time (formerly TSheets) to streamline time tracking and payroll.

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Why We Picked It

We picked Intuit QuickBooks for its seamless integration with QuickBooks accounting software, making it an excellent choice for small businesses already using the platform.

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Its robust features, such as full-service payroll and automated tax filings, combined with its ease of use, make it a unique option for businesses interested in simplifying their payroll processes.

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Who It’s For

Intuit QuickBooks Payroll is suitable for small businesses that already use QuickBooks for accounting and want to add payroll services without switching platforms.

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It's also ideal for business owners who prioritize ease of use and automation, as the platform takes care of many payroll tasks with minimal manual input.

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Pros

• Seamless integration with QuickBooks accounting software
• Automated tax calculations and filings
• Same-day direct deposit for quick employee payments
• Easy-to-use interface with minimal learning curve
• Comprehensive benefits management

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Cons

• Higher cost compared to some standalone payroll services
• Some features, like same-day deposit, are only available in higher-tier plans
• Limited customer service availability outside of business hours

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#4 Rippling: Best for Handling Multiple Aspects of Employee Management

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Rippling is an all-in-one HR and payroll platform that seamlessly integrates various business operations into a single, user-friendly interface.

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Founded in 2016, Rippling is known for its innovative approach to automating and streamlining employee management tasks. The platform is designed to cater to small and medium-sized businesses.

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Apart from payroll, it also offers benefits administration, time tracking, and even IT management services. The platform’s flexibility and scalability make it a powerful solution for businesses that want to simplify their operations.

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Features

• Automated Payroll Processing: Rippling automates payroll calculations, tax filings, and compliance checks, ensuring accurate and timely payments.
• Employee Benefits Administration: Manage health insurance, 401(k) plans, and other benefits seamlessly through the platform.
• Time and Attendance Tracking: Easily track employee hours, manage time-off requests, and sync data with payroll.
• Onboarding and Offboarding: Automate the onboarding process for new hires and offboarding for departing employees, saving time and reducing errors.
• Custom Reporting: Generate detailed reports tailored to your business needs, covering payroll, HR, and compliance data.

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Why We Picked It

We chose Rippling for its unique ability to unify payroll, HR, and IT management into a single platform. This integration allows small businesses to manage their entire workforce lifecycle more efficiently, reducing the need for multiple disparate systems.

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Rippling’s customizable and scalable approach means it can grow with your business, making it an ideal long-term solution.

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Who It’s For

Rippling is ideal for small to medium-sized businesses that require a versatile and integrated platform to manage payroll, HR, and IT operations. It’s suitable for businesses that anticipate growth and need a solution that can scale with their needs.

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Companies that want to automate and streamline their employee management processes while maintaining control over various aspects of their operations will find Rippling useful.

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Pros

• Comprehensive all-in-one platform that covers payroll, HR, and IT.
• Highly customizable and scalable, fitting a wide range of business needs.
• Automated and integrated processes reduce manual work and errors.
• Offers IT management features, which is rare among payroll services.
• Intuitive user interface that’s easy to navigate.

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Cons

• Higher cost compared to some competitors, especially for businesses that don’t need all features.
• Learning curve for users unfamiliar with integrated platforms.
• Customer support can be slow to respond during peak times.

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#5 Paychex: Best for Its Versatility and Scalability

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Paychex is a comprehensive payroll and HR solution designed to meet the needs of small to mid-sized businesses.

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Founded in 1971, Paychex has established itself as a leader in the payroll industry, offering different services including payroll processing, tax administration, benefits management, and human resources support.

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With decades of experience and a robust platform, Paychex is trusted by thousands of businesses across the U.S. to manage their payroll and HR needs efficiently.

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Features

• Payroll Processing: Paychex offers automated payroll processing, including direct deposit, check printing, and payroll tax calculations.
• Tax Administration: Handles federal, state, and local payroll taxes, including filing and payment, ensuring compliance with ever-changing regulations.
• Employee Benefits Management: Integrated benefits management for health insurance, retirement plans, and more, allowing businesses to manage payroll and benefits in one place.
• Time and Attendance Tracking: Tools to track employee hours, manage PTO, and ensure accurate payroll calculations.
• HR Solutions: Offers a comprehensive suite of HR services, including employee onboarding, compliance support, and performance management.

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Why We Picked It

We chose Paychex for its extensive features that go beyond payroll processing. Its robust HR integration, combined with flexible payroll options, makes it a standout choice for small businesses looking for an all-in-one solution.

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In addition, Paychex’s decades of industry experience and commitment to customer support ensure that businesses can rely on it for day-to-day operations and long-term growth.

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Who It’s For

Paychex is a great choice for small to mid-sized businesses that are growing and need a scalable payroll and HR solution. It's beneficial for companies that want to streamline their payroll and HR processes with a single provider.

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Businesses in industries with complex payroll needs, such as those with hourly employees, multiple locations, or varying tax obligations, will find Paychex’s offerings valuable.

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Pros

• Comprehensive payroll and HR services in one platform
• Scalable solution suitable for growing businesses
• Strong customer support with access to HR experts
• Mobile app for easy access to payroll and HR information

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Cons

• Pricing can be higher than some competitors, especially for smaller businesses
• The user interface can be overwhelming for those new to payroll software
• Some features may require additional fees, making it less cost-effective for small businesses

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#5 ADP Run: Best for Small Businesses with Plans for Expansion

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ADP Run is a cloud-based payroll service designed to streamline payroll processing for small businesses.

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Backed by the extensive experience and resources of ADP, a leader in the human capital management (HCM) industry, ADP Run offers a user-friendly interface that makes managing payroll simple and efficient.

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With its robust compliance tools and seamless integration with other ADP services, it’s a reliable choice for businesses that want to handle payroll.

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Features

• Automated Payroll Processing: ADP Run automates payroll calculations, tax filings, and direct deposits, reducing the administrative burden on your HR team.
• Compliance Management: The platform offers tools to help ensure your business stays compliant with federal, state, and local payroll regulations, including automatic updates to tax codes.
• Employee Self-Service Portal: Employees can access their pay stubs, tax forms, and other payroll information online, reducing HR inquiries.
• Time and Attendance Tracking: ADP Run integrates with time-tracking systems, allowing for accurate payroll calculations based on hours worked.
• Benefits Administration: The platform supports benefits management, including health insurance, retirement plans, and more.

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Why We Picked It

We picked ADP Run for its comprehensive suite of features not limited to basic payroll processing.

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Its ability to handle complex payroll needs, along with its extensive compliance tools, makes it a unique option for small businesses that require more than just simple payroll management. ADP’s long-standing reputation in the HCM industry also makes the service reliable.

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Who It’s For

ADP Run is designed for small businesses interested in a scalable payroll solution with robust compliance features. It’s well-suited for businesses that anticipate growth and need a platform that can handle increasing payroll complexity as they expand.

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In addition, businesses in highly regulated industries, such as healthcare or finance, will benefit from ADP Run’s strong compliance tools.

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Pros

• Can grow with your business, accommodating increasing payroll needs.
• Helps ensure compliance with payroll regulations across all levels of government.
• Reduces HR workload by allowing employees to access their payroll information.
• Seamlessly integrates with other ADP products and popular accounting software.

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Cons

• ADP Run can be more expensive than other payroll services, especially for small businesses on a tight budget.
• While feature-rich, the platform may have a steeper learning curve for those unfamiliar with payroll software.
• Some users have reported inconsistent customer support experiences, particularly with issue resolution times.

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#6 Justworks: Best for Offering Full-Service HR Solution

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Justworks is a comprehensive payroll service that doubles as a Professional Employer Organization (PEO). Established to simplify the complex processes of payroll and HR, Justworks provides a robust platform that handles everything from payroll processing to benefits administration.

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It is designed to help small businesses manage compliance, taxes, and employee benefits with ease, all while staying focused on growth.

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Features

• Full-Service Payroll: Automated payroll processing, including direct deposit, tax filings, and W-2 preparation.
• Benefits Administration: Access to large-group health insurance plans, retirement savings plans, and other employee benefits typically only available to larger companies.
• Compliance Support: Helps ensure your business complies with federal, state, and local regulations, including labor laws and tax requirements.
• HR Tools: Includes features like onboarding, time tracking, and employee self-service.

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Why We Picked It

We chose Justworks for its unique combination of payroll and PEO services, which offers small businesses a comprehensive solution that goes beyond payroll processing.

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The platform’s ability to simplify HR management and provide access to large-company benefits is a significant advantage for small businesses. Justworks stands out for its commitment to compliance and support, making it a valuable resource for companies that need a reliable partner in managing their payroll and HR needs.

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Who It’s For

Justworks is perfect for small businesses that want to streamline their payroll and HR operations while providing competitive employee benefits. It’s ideal for companies that are growing and need a scalable solution that can handle both payroll and HR tasks as they expand.

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Businesses that prioritize compliance and wish to offload the complexities of HR administration to an expert provider will find Justworks particularly useful.

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Pros

• Comprehensive PEO services that go beyond payroll.
• Access to high-quality employee benefits.
• Strong compliance support.
• 24/7 customer service.

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Cons

• Can be more expensive than basic payroll services.
• The PEO model may not be suitable for small businesses with simple needs.
• Limited customization options for businesses that prefer more tailored solutions.

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#7 Paycor: Best for Offering Scalable Solutions for Managing Payroll, Benefits, and HR Functions

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Paycor is a payroll and HR software solution for small to mid-sized businesses. With a strong emphasis on user experience and integrated functionality, Paycor offers a robust suite of tools designed to streamline payroll processing, enhance HR management, and improve overall operational efficiency.

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Its user-friendly interface and advanced features make it a versatile choice for businesses looking to optimize their payroll and HR functions.

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Features

• Payroll Processing: Automated payroll calculations, direct deposit, and tax filing services to ensure accurate and timely payroll management.
• HR Management: Comprehensive HR tools including employee self-service, time and attendance tracking, and performance management.
• Compliance: Features to help businesses comply with federal and state regulations, including tax compliance and reporting.
• Reporting and Analytics: Detailed payroll and HR reports that provide valuable insights into labor costs and employee performance.
• Integration: Seamless integration with other business systems, such as accounting software and benefits providers, to streamline operations.

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Why We Picked It

We chose Paycor for its robust functionality and ease of use. Its comprehensive payroll and HR features cater to the diverse needs of small to mid-sized businesses, making it a versatile solution.

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The platform's commitment to compliance and integration capabilities further enhances its value, offering businesses a reliable tool for managing their payroll and HR processes effectively.

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Who It’s For

Paycor is ideal for small to mid-sized businesses that require a comprehensive payroll and HR solution. It is suitable for companies looking for an intuitive platform that can handle complex payroll scenarios while providing additional HR functionality.

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Pros

• Easy to navigate, reducing the learning curve for new users.
• Offers a wide range of payroll and HR tools in one platform.
• Responsive support team to assist with any issues or questions.
• Seamlessly integrates with other business systems for streamlined operations.

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Cons

• May be more expensive compared to some other payroll solutions, particularly for smaller businesses.
• Some features may be more suited to mid-sized businesses, potentially making the platform seem overly complex for very small businesses.
• Limited customization options for reports and certain HR functionalities compared to some competitors.

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Wrapping Up

The right payroll service is important for the smooth operation of any small business. With so many options available in 2024, you have the tools to streamline your payroll processes, ensure compliance, and enhance overall efficiency.

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Each of the services discussed in this article offers unique features tailored to different business needs, from automated tax calculations to user-friendly interfaces and comprehensive support.

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By selecting a payroll service that aligns with your needs, you can free up valuable time and resources, thereby allowing you to focus on what matters most- growing your business and serving your customers.

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Which payroll service would best support your business needs in 2024, and why? Share your thoughts and experiences with us!

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FAQs

What is the best payroll service for small businesses?

The best payroll service for small businesses depends on your specific needs and budget. However, based on consensus and features, some popular options include Gusto, Paychex Flex, ADP RUN, Intuit QuickBooks Payroll, and OnPay.

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How do I choose a new payroll provider?

Here are tips to help you choose a new payroll provider:

• Assess Your Needs
• Research and compare your options
• Consider cost
• Ask Questions
• Request demos or trials
• Consider long-term partnership

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Who should use a payroll service?

Any business, regardless of size or industry, can benefit from a payroll service. Some examples include small businesses, startups, large corporations, non-profit organizations, freelancers, and contractors.