The best cloud-based payroll software should help organizations with three main business problems, which are:
- Paying employees (usually through direct deposit or check)
- Withholding taxes from employees and preparing and filing W-2s
- Sending a copy of the W-2 to employees
Now, there are many platforms out there that can help your business solve these problems. Each of these has its own strengths and weaknesses, and knowing them can help you choose the right one. Additionally, most software go beyond these three problems and offer other features that may significantly improve the whole payroll process, so knowing them will help you complement other functions of your business too.
In this guide, we help you understand the best cloud-based payroll solutions, their strengths, weaknesses, features, pricing, and more.
Software | Features | Pricing |
Gusto | Automated Tax Filings, Payroll Approvals, Workforce Cost Reports | 4 plans · starting from $49/month + $6/person |
Rippling | Access Control, Pay Types, Payroll Sync | 2 core plans (Core, Pro) · starting from $8/month |
Patriot Payroll | Multiple Pay Rates, Electronic W-2s, All Pay Frequencies | 2 plans · starting from $17/month (+ $4/worker) |
Paychex (Paychex Flex) | Flexible Pay Options, Garnishment Payment, Expense Management | 3 plans (Flex Select, Flex Pro, Flex Enterprise) · custom pricing |
Paylocity | Payroll Review Tools, Payroll Readiness Dashboard, Tax Geolocation | Multiple module-based plans · custom pricing |
ADP (Workforce Now) | Online Reporting, Payroll Delivery, Job Costing | 7 plans total (4 small-business plans + 3 mid/large plans) · custom pricing |
QuickBooks Payroll | Tax Automation, Workforce App, Team Benefits | 4 plans · starting from $19/month + a 30-day free trial |
1. Gusto
Best For: Small to medium-sized businesses looking for better payroll and benefits.
Gusto HR software is an all-in-one solution that offers tools for benefits administration, payroll, time and attendance, hiring, onboarding, and more. With its ‘Instant Pay’ feature, you can hold on to your cash until the very last minute while still ensuring your employees get paid on time. It also lets you pay contractors with ease in more than 120 countries, making it a good choice if you need to hire global talent for different projects.
Moreover, the platform offers extensive benefits options and integrates directly with popular brokers, making it easy for you to provide the best benefits to your employees and make deductions seamless.
Key Features
Pros And Cons
Pros | Cons |
Relieves users of worry by handling tax filings and compliance Saves a lot of time by automating wage calculations Reduces back and forth by enabling employees to view their pay stubs, benefits, and time off requests | Reporting features might feel limited to some users Doesn’t offer a feature to search transactions by keywords |
Pricing
The vendor offers four pricing plans:
- Simple - $49/month + $6/month/person
- Plus - $80/month + $12/month/person
- Premium - $180/month + $22/month/person
- Solo - $49/month + $6/month/person
Disclaimer: The pricing is subject to change.
2. Rippling
Best For: Payroll comparison and global payroll.
Rippling HR is a comprehensive platform that offers solutions for both payroll and Human Capital Management (HCM). Its payroll features include a ‘Pay Run Comparison’ that lets you compare the current pay run with previous runs, helping you view changes and identify any mistakes.
Moreover, the platform offers global payroll capabilities. Rippling handles all local taxes and legal requirements to ensure that no matter where you are paying your employees, your company is always compliant with local laws.
Key Features
Pros And Cons
Pros | Cons |
Integrates multiple functions like HR, payroll, benefits, and IT Instantly syncs employee data across the platform, reducing the chances of errors The automation features for updating benefits and onboarding employees save a lot of time | Offers no tool for creating invoices Updates are sometimes rolled out without prior notice |
Pricing
The vendor offers the two core plans, named Core and Pro. While all the plans come with custom pricing, the starting price is $8/month.
Disclaimer: The pricing is subject to change.
3. Patriot Payroll
Best For: Businesses looking for a simple solution for accounting and payroll.
Patriot Payroll is an accounting and payroll software that also offers tools for time tracking and employee attendance. You can access it online using a number of devices, including mobile, desktop, or tablet. Employees also get a mobile app that they can use to access their payroll information, view paychecks, and edit federal tax withholding.
Due to its simplicity, you can process payroll by just adding employee hours, having the system automatically do the calculations, and paying employees by printing checks or through direct debits.
Key Features:
Pros And Cons
Pros | Cons |
Direct deposit and automatic tax filing make it easy for HR to manage processes Handles local, federal, and state payroll taxes, ensuring businesses stay compliant with regulations Enables users to create a range of reports, helping them make better decisions | Doesn’t integrate with some of the time tracking apps in the market Setting up the software initially can be a bit difficult |
Pricing
The vendor offers two pricing plans for its payroll module. Here are the details:
- Basic Payroll - $17/month, plus $4/worker
- Full Service Payroll - $37/month, plus $5/worker
Disclaimer: The pricing is subject to change.
4. Paychex
Best For: Medium to large-sized businesses wanting a simple solution for payroll.
Paychex Flex is another comprehensive payroll platform designed to help mid-to-large-sized businesses streamline their payroll and HR tasks. You can create detailed reports, including pay journals and cash requirements, allowing you to better plan your company’s finances and make better decisions.
Its automatic tax administration service calculates, pays, and files taxes on your business’s behalf, freeing up your resources and saving time. Overall, it’s a simple, reliable solution for growing businesses.
Key Features
Pros And Cons
Pros | Cons |
It’s easy to create reports once the payroll has been processed Enables users to manage onboarding, tax filing, and time tracking with ease Users can use it online without needing to download any application | Time and attendance features need improvement Navigating between some sections is a bit difficult |
Pricing
The vendor offers three plans for its payroll module with custom pricing. These plans include Paychex Flex Select, Paychex Flex Pro, and Paychex Flex Enterprise.
Disclaimer: The pricing is subject to change.
5. Paylocity
Best For: Ensuring global payroll compliance
Paylocity HR & Payroll is a cloud-based platform that offers solutions for scheduling, payroll, time tracking, benefits, and more. It offers a multitude of features, including expense management, on-demand payment, and tax services.
What makes it unique from the rest of the options on this list is how it supports global payroll. With its ‘Global Expansion’ service, you can have your business registered anywhere in the world while ensuring you meet all the compliance regulations.
Moreover, by getting the ‘Global Consulting Services’, you can get assistance on company formation, expansion, and retraction, making it a good choice for you if your business operates globally.
Key Features
Pros And Cons
Pros | Cons |
Easily scales with an organization’s growing needs HR, payroll, and time modules work really well together when fully implemented Simplifies the whole employment process, including applicant tracking, hiring, and management | Some modules are not very customizable Changes for some sections need to be made in multiple places, manually |
Pricing
The vendor offers custom pricing for the following plans based on business requirements.
- Payroll
- Talent
- Employee Experience Platform
- Time & Labor
- Benefits Admin
- Human Resources
Disclaimer: The pricing is subject to change.
6. ADP
Best For: Businesses looking for advanced payroll capabilities coupled with global payroll.
ADP Workforce Now is popular and one of the most comprehensive platforms on our list. It offers separate plans for businesses of all sizes. It automatically deducts and files local, state, and federal payroll taxes, ensuring businesses don’t get any hefty fines. You can set up recurring payroll to ensure employees get paid on time every time. Plus, the software also comes with an AI-enabled error flagging system that identifies errors in payroll and helps businesses avoid mistakes.
Moreover, ADP also helps businesses pay their employees globally. It has compliance experts in more than 140 countries, ensuring businesses pay their employees compliantly around the world.
Key Features
Pros And Cons
Pros | Cons |
It lets employees view and download pay slips using the mobile application The dashboard shows all the actions someone needs to take on a day Helps manage everything in the same place, from time punches to onboarding | The timecard sometimes shows the wrong pay periods Doesn’t provide information on how much travel allowance someone gets per year |
Pricing
The vendor offers four pricing plans for small businesses and three plans for medium-to-large-sized organizations. All plans come at custom pricing tailored to your business requirements. Here are the plan details:
For Small Businesses
- Essential Payroll
- Enhanced Payroll
- Complete Payroll & HR+
- HR Pro Payroll & HR
For Medium-to-Large Sized Businesses
- Select
- Plus
- Premium
Disclaimer: The pricing is subject to change.
7. QuickBooks
Best For: Businesses using QuickBooks for accounting.
QuickBooks is primarily an accounting and bookkeeping tool that also offers solutions for payroll. It allows you to create scheduled payrolls to ensure your employees get paid on time at the end of every payroll cycle. Team members can also access their information directly from the app, including W-2s and pay stubs.
It makes a good option for your business if you are already using QuickBooks for your accounting, as the payroll module will integrate seamlessly with the accounting one, saving you a lot of time.
Key Features
Pros And Cons
Pros | Cons |
Integrates seamlessly with QuickBooks accounting, eliminating the need to use another app Initial setup is easy, and users get tons of options for customizations Reports are detailed and easy to access | There aren’t many options to make payments to employees Configuring webhook responses can be made easy |
Pricing
The vendor offers the four pricing plans, along with a 30-day free trial. The plans include:
- Simple Start - $19/month
- Essentials - $28/month
- Plus - $40/month
- Advanced - $76/month
Disclaimer: The pricing is subject to change.
In the end, the software you choose comes down to your business size, requirements, and areas you operate in. Before starting to shortlist software, you should have a detailed discussion with your team members to ensure you are searching for a solution for real problems. Once you have identified the problems and consulted with all the stakeholders, shortlist some software that you think might be the best fit for your needs.
We highly recommend you read resources on those options, watch demos, or even try them if they offer a free trial. This will help you test the software in your workflows before you make the final purchase.