Justworks also manages compliance by filing 1099s and W-2s on your behalf and withholding payroll taxes for you. For startups that rely on multiple HR tools, Rippling can integrate with tools your payroll system depends on. It has more than 500 available integrations, including popular accounting software like Intuit Quickbooks and Netsuite. But Rippling is much more than just payroll software; it’s built off a single source of truth that unifies HR, IT, and Finance in a single platform. Square Payroll is ideal for startups in retail, food, or service industries.
Many tools also offer extra features like onboarding, offboarding, and even employer of record services for global teams. ADP is one of the largest and longest-running HR and payroll companies in the world. It offers a basic payroll platform specifically aimed toward startups and small businesses — ADP Run. In this guide, we’ll walk through the best HR software for startups and small businesses. We’ll cover what HR software is, must-have features, from payroll for startups to benefits administration for small businesses.
Best payroll software for startups
Sequoia is a robust payroll platform, with a variety of features – from next-day direct deposit to automation benefits to tax filing capabilities – to really help streamline the entire payroll process. Additionally, it’s an ideal option for startups that are already using QuickBooks payroll for other accounting tasks, as it integrates seamlessly with that platform. It’s available in various pricing tiers so your startup can select the option that works best for it.
And while you are exploring payroll services for startups, consider solutions like Wise Business. With Wise business, you can send payments to employees and contractors in 140+ countries while saving money on fees. All the payroll services in our rankings calculate and file your business’s payroll taxes, and many pay the taxes automatically.
- Incorrectly classifying employees as independent contractors (or vice versa) could result in unexpected fees and benefits expenses for your business.
- That means onboarding new employees requires a lot of manual work, which is inefficient and time-consuming for growing startups.
- Contractor-only startups often benefit from software like Gusto (contractor plan) or Square Payroll, which streamline 1099 payments and tax forms without requiring a full payroll subscription.
- They also take care of calculating and filing your payroll taxes, helping you stay compliant with federal, state, and local tax laws.
- It’s perfect for startups that need an easy solution to handle pay runs and payroll tax calculations.
Best for Payment and Expense Management Integrations
You’ll be able to work out pretty quickly if it’s right for your team or not. Once you have that list, you’ll have a much clearer picture of what kind of HR software will work best for you. Focus on the features that matter most to your current stage of growth. The key to picking the right HR software for your small business or startup is knowing what you need.
How to set up payroll for startups
- It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services.
- So, as you set up payroll for your own company, keep these tips in mind to avoid future problems.
- Often we have to jump in and fast track registrations to keep payroll from getting blocked.
- Plane (formerly Pilot) is one of the best software for payroll for startups paying international contractors.
- Miss a payday or underpay an employee, and it could cause a morale issue.
The platform requires you to manually input a lot of payroll data and other information for each employee. We had a full-time payroll clerk that handled all payroll, insurance, etc. When she left, it was determined that we needed to have this work absorbed.
Payroll Services
The main reason why startups need payroll software from the start is that your small team won’t have the time to handle payroll manually. It can be more cost-effective to have someone else do your payroll for you, especially if you’re a startup or a small business. You’ll save on salary as well as what it would cost to set up your own systems. Before you decide to outsource, consider such factors as how complex your payroll needs are, your growth timeline, and whether or not compliance is a requirement for your business.
Every business bears responsibility for complying with federal, state and local laws related to employee compensation and following other payroll compliance best practices. The OnDemand Pay feature is free for employers, but workers may be charged a small fee, depending on the terms of the bank issuing the credit card. The funds on the card can be accessed through an ATM or used for in-person or online purchases.
Gusto has a mechanism where you can pay a $100 monthly fee and you get your R&D credit in real-time, meaning that a piece of it comes with each pay period. Rippling can handle the R&D credit by sending you a refund check, but does not have the automated real-time feature. Justworks, like Rippling, will send the full amount of the R&D credit claimed on payroll software for startups your return once the IRS processes it. For startups already using QuickBooks for accounting, QuickBooks Payroll integrates seamlessly.
Best HR Platforms for Small Businesses to Solve Real HR Challenges
Effective customer support is essential, particularly for startups new to payroll management. Choose a payroll service that offers accessible support channels, such as live chat, phone assistance, or a knowledge base. Quick and reliable support ensures smooth payroll operations and timely resolution of any issues. For startups looking to bundle HR, benefits, and payroll, Zenefits streamlines everything into a single dashboard. It automates tax filings, provides employee self-service options, and integrates well with time tracking and scheduling. Zenefits is best for startups that want HR and payroll tightly linked, reducing the friction of using separate tools.
Best Payroll Software Solutions for Startups in 2025
QuickBooks Payroll is most often used by tech companies like VOSTROM, with employees, so again, it’s probably best for smaller startups and local businesses. BambooHR gives startups the structure they need as they grow beyond spreadsheets. Whether you’re bringing on your 5th or 50th hire, BambooHR centralizes employee data, streamlines onboarding, and manages PTO and reviews with elegance. You’ll free your mind for other important founder tasks, such as product development, growing your business, or fundraising, while knowing that your startup payroll is in good hands. If you plan to manage payroll for your startup alone, be ready to face different problems. You can make mistakes in calculations, have issues with compliance or even miss deadlines for tax fillings and get fines or have unhappy, complaining employees.
Between calculating taxes, tracking hours, managing benefits, and ensuring compliance with ever-changing regulations, payroll management can quickly become a full-time job in itself. If you’re a startup that’s already using QuickBooks accounting software, Quickbooks Online Payroll might be the ideal option for you. All plans, whether you choose Core, Premium, or Elite, include full-service payroll (includes automated taxes and forms), auto payroll, health benefits for your team, 401(k) plans, and 1099 e-file & pay. Gusto, which used to be ZenPayroll, was founded in 2011 and is widely known for being an affordable payroll and benefits management software for startups and other small businesses.
Our pick as the most affordable payroll service for small business is Square Payroll, which packs plenty of high-end features into its single plan priced at $35 a month plus $6 per employee a month. These include unlimited payroll runs, multistate payroll, payroll automation and next-day direct deposit. Another affordable option is Wave Payroll, which costs $40 a month plus $6 per person a month and integrates seamlessly with the company’s free and low-cost accounting software. The rise in remote employment gives SMBs an expanded pool of potential candidates for their open positions.
