Small Business Payroll Software

Ultimately, the cost of payroll software for small businesses varies, and the amount inevitably depends on which modules and services you need and how many employees you have.

Unlike other providers, Paylocity charges per employee per month, not per payroll run, so there are no surprise fees for running payroll more often. And you don’t have to worry about upgrade costs or tiered pricing thresholds as you scale! 

Learn more about our pricing structure or request a payroll software demo to explore your options and learn more about payroll solutions for small businesses.

Yes — Paylocity can process payroll for both hourly and salaried employees, offering flexible time tracking, AI-driven scheduling, and seamless integration between time and payroll systems. 

Hourly staff benefit from multiple clock-in options (mobile, kiosk, biometric, geofencing) and compliance-friendly scheduling, while salaried employees enjoy streamlined pay processing and PTO tracking. 

Small businesses can make big waves in their employees' lives and the surrounding community. You need a payroll processing solution that does the heavy lifting for you.  

Our small business payroll options eliminate administrative burdens, minimize risks, and engage employees. Paylocity also comes bundled with a comprehensive suite of HR solutions tailored to small business, further freeing you up to focus on what matters. 

Any business that has employees is liable for payroll taxes. It depends on the state where you operate your business, but payroll taxes typically include the following:

• FICA (Medicare and Social Security taxes) 
• Federal, state, and local income taxes 
• Unemployment insurance taxes 
• Disability insurance taxes 

Paylocity’s small business payroll program can assist with preparing, reviewing, and filing taxes, as well as ensuring your organization stays compliant with current tax laws.

Many small businesses spend countless hours poring over spreadsheets. But manual payroll can yield inaccuracies and costly payroll errors — not to mention employee satisfaction plummeting when their paycheck is bungled.

Opting for a small business payroll program can transform your payroll process, saving you time. How does this sound:

• Automation eliminates redundancies and reduces errors 
• Streamlined payroll improves efficiency and frees up time 
• Integrations simplify compliance with DOL standards, tax rates, and records retention laws 
• Enhanced access to meaningful data leads to informed decisions 
• Buttoned-up payroll leaves room for business growth 

There are many payroll options available for small businesses. Knowing what to look for can be challenging, and choosing based on price alone can be tempting.  

Instead, look for the following full-service payroll features to ensure your solution works for your small business and avoids false starts.

• Integrated time tracking that eliminates manual entry 
• Direct deposit offers convenience for employees and HR 
• Compensation management keeps your organization agile while preserving your bottom line 
• Customizable payroll reports provide real-time insights into critical metrics 
• Automated tax filing, built-in tax tables, and W-2 generation streamline compliance 
• Self-service empowers employees to access and update data 
• Expense management makes tracking receipts and reimbursements easier for you and your employees 

It’s important to find all-inclusive payroll software for small businesses. Otherwise, you can incur additional costs when your HR and payroll solution is spread across multiple systems. Keep it simple and in one system.

Additionally, an all-inclusive payroll system is primed to grow with you, offering a full range of capabilities that can evolve with your organization. If you’re not ready for compensation management today, it will be there tomorrow.

Because your needs are unique, you need a provider that seamlessly fits your organization’s operations. Keep the following in mind as you vet potential payroll companies.

• Find a small business payroll provider known for customer service. When you have questions, you should know who to call and trust that you’ll get an answer. Look for a payroll vendor that will provide a dedicated support team, so you know you’re getting the answers you need quickly. 
• Look for a vendor offering concierge service and customizable support during onboarding. Onboarding needs to happen in the background while your business continues to function. 

A payroll company with your best interests in mind understands you need a solution that plugs into your organization with minimal effort.

• Seek a payroll partner that can be with you every step of your business journey. Your business changes with your goals and your growth. Steer clear of providers that set you up and then disappear. Instead, find a provider that checks in, listens, and makes adjustments based on your feedback. A quality payroll provider is also committed to growth. 

It may be the case that you already have a payroll provider and need to switch to one that works better for your small business. There are many reasons to switch payroll providers, including changes in your budget, technology needs, or satisfaction with your current provider. Fortunately, it’s simple to switch payroll companies.

1. Before you terminate an existing relationship, schedule a payroll software demo  with potential providers to ensure you’ve identified the ideal solution to move you forward. 
2. Request a proposal from your chosen provider that outlines the modules you're interested in and caters to your small business needs. 
3. If you need buy-in from stakeholders, build a business case to outline your options and what your organization stands to gain. 
4. Review your contract to understand your responsibilities and possible penalties you might incur when transitioning. 
5. Provide notice and request reports of important information from your current vendor, such as employee data, pay stubs, and payroll register reports. 
6. Coordinate tax filings with both providers — identify who will be handling the filings. It’s better to switch mid-year, end of year, or end of quarter. 
7. Inform employees and key stakeholders about the impending change. Provide training, if necessary. 
8. Go live with your new small business payroll software and carefully review the payroll journal the first time you do it to pinpoint and amend any discrepancies.