Top Human Resource Payroll Software & Systems 2019

Human resource (HR) payroll software helps employers pay their workers, remit taxes, and manage the employer-employee relationship from the dates of hire to retire. The best providers are versatile and simplify human resource management. We evaluated services based on their cost and features. The top six cost up to $19,600 annually for 40 employees.

Top Human Resource Payroll Software

How We Evaluated Human Resource Payroll Software

To determine the best human resource payroll software, we confirmed that each provider offers basic payroll and HR services like paycheck and tax processing and providing onboarding support. Cost was a top factor, although we did consider that many companies needing HR support have bigger budgets and more employees than those with only payroll needs.

We also gave a higher rank to top payroll software services with more robust HR features. Today’s employee experience is viewed much differently than it was 20 years ago, and we considered the need for more modern features, such as social media and communication tools in the workplace, electronic processes, tools to assist in learning and development.

Based on the needs and wants of the reader, the criteria we used to evaluate the best include:

• Cost: Some premium, more personalized services have setup costs, and typically, you’ll have to pay for payroll―unlimited payroll runs vs cost per employee vs cost per pay run―and human resource services separately. Many providers have at least some add-on HR services that cost extra as well like garnishment services.
• Ease of use: Human resource and payroll software should have a simple, user-friendly interface. The dashboard should be visually appealing and uncluttered. Some services provide how-to manuals to make using the software easier. Others provide certified specialists and representatives who will help you with any issues.
• Payroll processing: Most services will pay your employees using direct deposit, and some offer delivery of live checks, albeit at an extra charge, while others require you to print checks yourself. They typically debit funds two to four days prior to payday.
• Tax & HR compliance: The best services and software help employers avoid breaking labor laws by offering guidance on how to hire, terminate, and manage existing employees. They also track your tax responsibilities and deadlines to minimize the potential for penalties.
• Applicant tracking: Top HR packages include tools employers can use to track job applicants throughout the hiring process. Some even partner with job boards to help you find new candidates.
• Benefits: Employee benefits usually include health insurance, health savings accounts, college savings accounts, commuter benefits, and so on.
• Performance & learning management: Performance management tools give managers tools to motivate their employees with positive feedback and performance reviews. Learning and development features make it easy to create customizable training courses and allow users to deliver instruction live, through video, and even offer quizzes.

Based on the criteria above, we believe that Namely is the best human resource payroll service. It’s approximately $35 per employee, per month, for companies with 40 employees and allows an unlimited number of payroll runs. It files taxes, provides numerous performance management tools, offers benefits, and has many features to boost employee engagement.

Namely: Best Overall Human Resource Payroll Software

Namely is a cost-effective human resource and payroll software service you can use to pay your employees and manage the human resource process. The software is user-friendly and encourages employees to connect and work toward goals. It pays all taxes and employees via electronic transfer. Benefits are accessible, both traditional (insurance) and nontraditional (pet insurance).

Namely’s Pricing

Pricing isn’t available via the website, so we had to call in to speak with a specialist. He quoted us a price of $35 per employee for 40 employees, which is $16,800 a year. The service offers a “Managed Services” plan that adds an additional $30 per employee per month for companies that want HR, payroll, and benefits administration handled for them vs being self-managed. There is also a $2,800 implementation fee.

The total annual cost for 40 employees (under our quotes) is $19,600, and benefits, HR, payroll, performance, and onboarding are all included. The representative did not provide us with a separate breakdown for each product, so your cost could be lower if you don’t need all of these services.

Namely’s Features

Namely is a modern company that provides an all-in-one HR platform. Users receive full-service payroll, paperless onboarding, goal and performance management, and an employee database that includes a picture and profile to help everyone improve communication. It’s more advanced than other services offering unlimited payroll (Gusto) and uses social media to keep the company connected.

Namely’s Ease of Use

The interface is very colorful and easy to read. You can customize it with your own images and graphics to create a more personal experience. The software is user-friendly and was designed to make processes like running payroll easy as it can be completed in three steps. If you have questions, there’s an Employee Service Center that’s available to help resolve any issues.

The dashboard is personalized for the user, addressing him or her by name

Namely’s Payroll Processing

With Namely, you can run an unlimited number of pay runs at no extra charge, unlike Paychex. You can set payroll to run automatically, but you will have to log in each pay period to approve it. The service will pay your employees via direct deposit as a complimentary service, or you can opt to have your employees paid with paper checks for an extra charge. Payroll funds are withdrawn from your bank account three days before processing is complete.

Namely’s Tax & HR Compliance

Tax and HR compliance services are offered. The system will calculate and file all local, state, and federal taxes on time under the full-payroll service. Year-end tax reporting (W-2 forms) is also included. If your business expands to a new state in the future, the service will assist you with the tax registration process.

It also provides guidance on complying with anti-discrimination laws (Equal Employment Opportunity and Vets-4212). Affordable Care Act reporting is also available for companies with more than 50 full-time equivalent employees.

Namely’s Employee Benefits

All employers who sign up for employee benefits receive a senior benefits specialist who helps determine which benefits they should offer based on their company’s financial capabilities. The specialist also helps figure out how to structure said benefits. There’s health insurance, flexible spending and health savings accounts, commuter, and employee wellness benefits.

Namely also offers nontraditional benefits that companies like Paycor and Gusto do not. You can sign up to offer telehealth, or on-demand care and prescriptions, through a mobile app and offer pet and theft insurance.

Namely’s Talent Management

There’s a performance management module that allows managers to enter and track goals for each employee. Once you define competencies within the system, they will be pushed directly into the performance module.

You can set up automated review cycles that will allow you to collect answers from managers, employees, and peers easily. This keeps everyone engaged in their own performance and the performance of their peers. You can configure templates and performance reviews in a way that fits your business and allow an unlimited number of employee reviews.

What Namely Is Missing

Namely is missing a native applicant tracker. It seamlessly integrates with numerous applicant trackers but doesn’t have one in-house. The representative we spoke with recommended Jazz HR or Greenhouse for customers who need to track their applicants. The service also doesn’t allow you to run background checks.

What Users Think About Namely

Many Namely user reviews mentioned the service’s good customer service. They appreciate that Namely incorporates customer feedback into product updates. There were some negative comments about the software not being scalable for large companies.

Where to Find Namely

Namely is a human resource and payroll software for companies that want to take their HR approach to the next level and run unlimited payrolls. You can help manage employee goals using performance reviews in addition to offering a range of benefits from prescription insurance to pet insurance. Sign up for a free demo today.

Visit Namely

Paycor: Best for Utilizing Tax Credits & Paying On-demand

Paycor is an online payroll and human resource platform that helps employers save money by streamlining the hiring process—integrated tax credit screening for eligible new hires—while giving employees more access to their money. The service is best for companies needing advanced HR (beyond just onboarding) and payroll services.

Paycor’s Pricing

To get pricing, you’ll have to call and request a quote. The pricing plans are customizable as with many HR and payroll software products. We requested a quote for a 40-employee company that runs payroll biweekly. The total annual cost was $18,000. Of that, payroll consists of $5,519, and $12,000 pertains to HR features like applicant tracking, onboarding, and learning and development. There’s a one-time implementation fee is $4,145, which is more expensive than Namely’s $2,800 fee.

Paycor’s Features

Paycor provides a set of services that you can structure to fit your business’ needs. You have access to basic features like direct deposit, new hire support, and payroll tax management in addition to more unique options, such as paying employees with paycards and posting open positions to job boards.

Paycor’s Ease of Use

The interface is intuitive and easy to navigate. You can personalize the dashboard only to display the features that you need. Some tutorials will help guide you when you’re learning the software.

You can use the menu on the left-hand side to find your way through the system.

If you have additional questions as you begin to use the service, you can speak with a representative from 8 a.m. to 8 p.m. Eastern time Monday through Friday. You’ll be able to speak with representatives who specialize in each product for which you’re interested.

Paycor’s Payroll Processing

Paycor has full-service payroll processing. You can pay employees via direct deposit. You can also opt to enroll in one of Paycor’s pay card programs, which is a good idea for restaurants and other companies that have low-wage employees. Paycor partners with a company called Daily Pay that allows employees to withdraw their paychecks when needed as opposed to waiting until the end of the pay period.

Direct deposit processing time is two days, which means the service will withdraw required payroll funds from your bank account within 48 hours before payday. You’ll need to log into the software before the end of each pay period so you can review and approve the pay run. It’s easy to make changes if you need to use the pay grid.

Paycor’s Tax & HR Compliance

The service pays all of your payroll taxes federal, state, and local, similar to Gusto, so you avoid penalties. There are also tax experts on staff to help answer any compliance questions. To maintain compliance with HR laws, Paycor has a complete knowledge base of HR resources, including forms, templates, quick guides, and alerts. The service also allows you to create your own handbook and provides applicant tracking, contrary to Paycom.

The applicant tracking module tracks time-to-hire and lead sources in addition to automatically storing reasons that a candidate was not selected. This is a good tool to help protect your company from lawsuits for hiring discrimination.

Paycor’s Employee Benefits

Unlike Paycom, Paycor offers employee benefits. Your employees can sign up for health insurance and 401(k) retirement plans and manage them through the software. If your company is small, with 10 to 15 employees, you should consider utilizing the many benefits integrations that are available as it may be cheaper. Paycor will allow you to integrate outside benefit plans with its system and manage it within your account.

Paycor’s Hiring & Onboarding

Paycor provides good tools to help employers manage the hiring process. The process is completed primarily online, and all documents like the I-9 and W-4 can be completed electronically. You can even opt to share electronic policies and handbooks online prior to the employees’ first day of work.

Embedded within the onboarding screen is a link to a survey pertaining to the Work Opportunity Tax Credit (WOTC) screening. Unlike Paychex, which requires you to sign into a new system, Paycor has an optional link that employees can click on to complete the survey. Savings can be up to $9,600 per employee per year, depending on whether they’re in a protected group like veterans. Once credits are secured, you’ll have to pay Paycor 15% of the total.

Paycor’s Learning & Development

You can build and publish professional courses to train your new and existing employees. Administrators can organize different training programs by teams or individual employees. Tracking your employees’ progress is easy. You can even schedule live, instructor-led training sessions if the concepts you’re teaching are more advanced.

What Paycor Is Missing

Paycor is missing weekend customer support. While companies like Gusto are open for at least a few hours on the weekend, Paycor customer support is only available on Monday through Friday.

What Users Think About Paycor

Many Paycor user reviews were positive. They like that the different modules―HR, payroll, applicant tracking, and so on―are all in sync. There were some complaints about poor customer service. Also, some users were dissatisfied with the available reporting features. Sometimes, the canned reports don’t provide the information users are looking for and, in those cases, they need to have the tools to create their own.

Where to Find Paycor

If you need an all-in-one human resource and payroll software, consider Paycor. It helps you stay compliant while trying to save you money with its seamless screening for hiring-related tax credits. It also offers numerous ways for you to pay your employees, using direct deposits or paycards, and even on-demand, such as once a day, twice per week, or as needed.

Visit Paycor

Zenefits: Best for Companies in Heavily Regulated Industries

Zenefits is a human resource information system (HRIS) that focuses on delivering top-notch compliance support so that your company doesn’t break any laws tax-wise or HR-wise. It offers numerous additional solutions, including payroll and benefits. The software is best for companies in heavily regulated industries like restaurants and construction.

Zenefits’ Pricing

Zenefits’ pricing starts with a $40 monthly base fee and a variable cost of $6 (standard plan) or $12 (advanced plan) per employee each month. You’ll also pay an extra $2 per check for each contractor or vendor payment.

You can pay $45 per month for the standard plan or $49 per month for the advanced plan if you have one employee and opt for an annual contract instead of monthly. The total annual cost for 40 employees is $16,800 if including payroll and HR advising and performance management features.

Zenefits’ Pricing Plans and Features

There are additional features that you can opt to include in your subscription that will integrate into the main Zenefits platform.

Zenefits’ Additional Features

Zenefits’ Ease of Use

Zenefits’ setup usually takes approximately two weeks to complete after an agreement is signed. This is longer than the setup process for Gusto, which can be finalized on the same day, but there are additional requirements. You’ll need to sign up for either the Quick Start Implementation or the Guided Implementation.

Both implementation plans give you access to the service’s Education Services’ courses, but with the Guided Implementation, you’ll be assigned an implementation manager who assists you with setting up all of your apps. This option is for companies with more than 25 employees and can take four weeks vs the two weeks you’d spend under the Quick Start Implementation plan. There’s also a Help Center you can query once you get started for quick answers to common questions.

Zenefits’ Payroll Processing

Payroll processing in the Zenefits’ app is similar to other payroll systems. You’ll either enter work hours for hourly employees manually, or they will be imported automatically via the optional time and attendance system. Unlike with Paycom, you can set up automatic pay runs, which means that direct deposit will need to be funded four days before payday―compared to the two-day standard with Paycor. You’ll need to apply for two-day processing if you’d like to upgrade.

Zenefits debits payroll funds from your bank account in two transactions. One transaction is for the employees’ wages paid by direct deposit, and the other transaction is for the payroll taxes.

Zenefits’ HR Compliance

Zenefits’ calculates, withholds, and pays your payroll taxes so that you comply with federal and state tax laws. It also offers a ton of HR compliance tools to help you stay abreast of labor laws affecting your business. The Zenefits’ HR Library is a knowledge base you can use to find answers to a variety of questions, from hiring and leave to termination laws. Responses are specific to the state you’re inquiring about.

There’s also a tool called the Intelligent Deadline Tracker. This keeps you informed of all of your federal compliance deadlines and requirements for benefits, payroll, and HR. You can set up custom reminders for deadlines that are specific to your business and sync all of them to your calendar. When you have outstanding compliance tasks, Zenefits will display them on the dashboard so that you’re always aware.

If you have more complex questions, Zenefits provides three add-on advising options, payroll, human resources, and a combination of the two. This is great if your industry is subject to numerous levels of legislation, such as federal, state, and local requirements.

Zenefits’ Employee Benefits

With Zenefits, you can offer a host of employee benefits, including insurance―medical, dental, life, and so on―commuter, and flexible spending accounts. Everything can be managed within the app, and Zenefits handles the withholding and remitting of employee deductions to cover the benefits’ premiums.

Zenefits’ Hiring and Onboarding

All new hires can self-onboard by completing their new hire forms online, including starting the I-9 process, completing their W-4 forms, and enrolling in benefits. All of the data syncs with the Zenefits platform automatically. You can customize and view offer letters and handbooks without ever having to manage paper documents.

Once your job applicants become new hires, you’ll be able to see information about them in the Zenefits’ platform

Zenefits’ Performance Management

Zenefits has a robust performance management system that allows you to manage and administer employee goals, reviews, and much more. The system is mobile-friendly, meaning managers and employees can complete the performance review process from anywhere. This is helpful for companies like those in the construction industry that have workers who spend most of their time in the field vs in the office.

You can pair Zenefits’ HR expertise with the performance management tool to help you design a performance management program that boosts productivity. You can even personalize the review questions to reflect the unique aspects of your business and its workers.

What Zenefits Is Missing

Unlike Gusto, which gives you onboarding and payroll features under one plan, Zenefits sells payroll services as an add-on. Also, the standard direct deposit processing time is four days vs Paycor’s two-day period.

What Users Think About Zenefits

The Zenefits’ user reviews we found were mixed and seemed to change over time. Many of the recent ones are positive and mention the all-in-one HR solution as a benefit. There seems to have been an improvement in customer service as there were more complaints prior to 2019. Some users also like the interface and believe it’s easy to use.

Where to Find Zenefits

If you need an HRIS system with advanced features that helps you comply with payroll and HR laws, consider Zenefits. There are several HR advising options you can add on to your plan, and an online knowledge base that all users with the HR service can access. You can download the Zenefits’ app from a mobile device to see how the HR and payroll features work in the demo. Call for a free consultation today.

Visit Zenefits

Paycom: Best for Saving Money With Payroll Processing

Paycom is a cloud-based HR and payroll software system that helps employers simplify the payroll process by offering direct deposit and paper check options. Live checks are issued directly from a Paycom bank account and tracked to prevent double payments. In addition, all payroll charges for the period are debited in one transaction.

Paycom’s Pricing

Pricing is not available on the website, so you’ll need to call and request a quote, which is similar to our other recommended software except for Gusto. It’s based on the number of employees you have, how often you run payroll, and the products you want to use.

We were quoted $134.20 per pay period for 40 employees receiving paychecks on a biweekly schedule. Year-end filing costs extra, and there’s a one-time setup fee of $1,288. This equates to $3,489 annually but only includes payroll processing, reporting, workers’ comp tracking. The talent acquisition product includes HR features like onboarding and learning and development, and we weren’t able to retrieve cost data for those features.

Paycom’s Features

Paycom offers numerous payroll and HR features, but payroll is its primary function. Direct deposit is complimentary, and Paycor reconciles all payments to ensure accuracy. There are some HR compliance features to help employers avoid penalties, an applicant tracking system, and benefits administration support.

Paycom’s Ease of Use

To set up your account with Paycom, you’ll work with a dedicated account specialist who’ll assist you throughout the process. There’s a pay data grid you’ll use to input payroll data like hours worked. It’s less visually appealing than software like Gusto but is simple to navigate. If you have additional questions as you begin to use the service, you can speak with a dedicated payroll specialist from 8 a.m. to 5 p.m. Central time Monday through Friday.

You can enter employees’ hours worked in the pay grid

Paycom’s Payroll Processing

Paycom allows you to choose your own pay periods, set up different user accounts―payroll managers versus time and attendance managers―and distribute paychecks via direct deposit and paper checks. Paper checks are processed directly from Paycom’s account, and the service reconciles them each month so that you always know which ones have not yet been cashed.

If a paper check isn’t cashed in 180 days, Paycom will notify and refund you. This saves you from having to keep track of outstanding checks each month and the risk of inadvertently reissuing a check that hasn’t yet been canceled. Paycom withdraws funds within 24 hours of payday vs Gusto’s standard four-day process, and funds are debited in one transaction rather than the two transactions in the Zenefits payroll funding process.

Paycom’s Tax & HR Compliance

Like the other payroll products we’ve discussed, Paycom takes complete liability for payroll taxes and forms. All federal, state, and local taxes will be calculated and filed accordingly. As for HR compliance, there’s Family Medical Leave Act (FMLA) tracking to help you keep up with employees’ use of FMLA-allotted time. The service will also keep you informed on the legal requirements you must adhere to regarding issues like employee classification, pay schedules, and so on.

Paycom’s Hiring & Onboarding

Paycom’s onboarding process is paperless. New hires can complete all forms (W-4 and I-9) and benefits enrollment before their first day of work. You can offer introductory training courses and employee handbooks to make their first 90 days more successful. Paycom also partners with a company to run background checks on new hires and for existing employees, if needed. You can create pre-adverse and adverse action letters based on your company’s policy.

Similar to with Paycor, Paycom offers WOTC tax screening. However, according to the rep we spoke with, the fee is 20% of any tax credits found versus Paycor’s 15%. The software gives you the ability to see if an applicant could potentially qualify based upon demographics or geography they choose to enter.

Paycom’s Learning & Development

You can purchase Paycom’s Learning System to customize training for your employees. It will allow you to build quizzes to test comprehension and view completion rates to track development. You can then integrate the results into performance reviews. All courses are interactive, and there are prebuilt courses you can choose from—discrimination, ethics, cybersecurity, and so on.

What Paycom Is Missing

Paycom doesn’t offer benefits, only benefits administration. This means you’ll need to sign up for insurance, 401(k) plans, and so forth through another provider. Paycom will withhold the premiums from employee paychecks and deposit them into your company’s bank account, but you will have to make the payments. There’s also no support for building handbooks or HR advising. Zenefits provides more capabilities in those areas.

What Users Think About Paycom

The Paycom user reviews we read were generally positive. Both employers and employers seem to find the software useful. Employees like that it’s easy to log hours and download payroll documents, and many employers appreciate having payroll and HR features under one umbrella. There were some complaints that mobile functionality is not of good quality and can be difficult to navigate.

Where to Find Paycom

If you require a human resource and payroll software that saves you time and money when processing payroll, consider Paycom. It debits all payroll funds from your bank account in a single payment each period and reconciles your paper checks using its own account so that you don’t have to. Call for a free quote today.

Visit Paycom

Paychex: Best for Growing Companies Needing Customized Plans

Paychex is a customizable human resource payroll software service you can use to mix-and-match services as needed. Customer support is available 24/7, and you have numerous pay options—direct deposit, check, or paycard. You can add insurance, HR support services, and many other a la carte features to your payroll product.

Paychex’s Pricing

You have to call and request a quote because pricing plans are not shown on the website. Paychex is a premium customizable service, so expect to pay more as you add additional products.

We were quoted $339 per pay period―under a biweekly pay schedule―for a 40-person company. Annual charges were quoted at $413 for quarterly and year-end tax reporting, and there’s a one-time implementation fee of $1,100.

The total annual cost is $9,240. However, the representative didn’t include any learning and development, benefits, or performance management features included in the quote as there are with our quotes for Paycor and Namely. To get an estimate for benefits and workers’ compensation, you’ll need to provide much more specific information about your company and work with a benefits specialist, such as providing an employee census.

Paychex’s Features

With Paychex, you’ll have access to all of the basic payroll features like payroll processing, direct deposits, and tax filing. You’ll also be able to use its applicant tracking services, hiring tax credit services, and a wealth of onboarding features.

Paychex’s Ease of Use

Paychex will assign you a dedicated representative who will be able to answer any of your questions regarding setup or use of the service. Because the software is so robust, implementation can take longer (weeks) than a simpler software like Gusto.

The good news is that the service offers 24/7 support, meaning you will always be able to reach a live person when you’re having issues. The interface is intuitive, and there’s training available to help you become familiar with the software.

Paychex’s Payroll Processing

You can automate payroll with Paychex and even let representatives do payroll for you if you choose the professional employer organization (PEO) option. Unlike Namely or Paycor, you can sign up for same-day direct deposits, so your payroll funds stay in your bank account until payday. Paying with paycards is also an option, which is especially helpful if you employ a large number of workers without bank accounts. Paychex will also deliver checks to your employees for an additional fee.

The payroll data entry system in Paychex has rows and columns you can follow to figure out where to enter each piece of information

Paychex’s Tax & HR Compliance

Paychex guarantees your payroll taxes will be filed correctly and on time, and there are specialists on staff to ensure your company is compliant with changing tax laws. You can use the Online HR Library to see easily digestible steps, guidelines, checklists, and forms regarding common HR topics quickly. You should expect to see information about termination, healthcare reform, safety regulations, and so forth.

Unlike Paycom, Paychex helps you build your own handbook. Your policies will be reviewed legally to ensure they meet regulations for your city and state, and you can distribute them online.

Paychex’s Benefits

Paychex has certified insurance brokers in-house so that you can provide health, dental, vision, and other insurance to all of your employees. You can also sign up to offer retirement benefits, and there’s an entire department that will assist you with purchasing workers’ compensation. All payroll deductions and payments are automated, so you don’t have to withhold or submit them.

Paychex’s Hiring Process & Applicant Tracking

Paychex’s onboarding system is automatic and paperless. There’s a job applicant self-service feature that enables job seekers to submit applications anytime through their phones, Facebook apps, or computers. There are numerous a la carte features employers can use to enhance the hiring process like background checks―bankruptcy, criminal, and Social Security verification―and drug testing―breath alcohol, rapid drug tests, hair and urine tests.

Similar to Paycor, Paychex screens for WOTC tax credits and charges a 15% to 18% fee for any credits that they can secure for your company. It also standardizes the hiring processes by integrating interview scheduling and job opening requisitions into the app. You can leave notes regarding candidates you choose or don’t choose) to hire and create reports to help you evaluate trends like turnover or time-to-fill new positions.

Paychex’s Learning & Development

Paychex has learning and development options you can use to ensure your employees get started on the right track. You can offer instructor-led training courses and customize individual training plans. You can also upload and create videos and quizzes.

What Paychex Is Missing

Paychex is a big company and thus has different departments for its services. The person you speak to about payroll won’t be the person who can assist with benefits, and workers’ compensation is handled in a separate department. Unlike with Gusto, which doesn’t charge a startup fee, there’s a one-time implementation fee with Paychex, which can drive up your first-year costs.

Also, the WOTC credit screening is handled in a different system than where onboarding is completed. This means applicants could forget to complete the survey, which lowers the chances of the company capturing the savings, unlike with Paycor, which has the link to the WOTC tax credit survey embedded in the onboarding paperwork.

What Users Think About Paychex

We found numerous Paychex user reviews, and many users had positive feedback to give overall. They like that the service is robust and comprehensive because it includes any service they might need. There were some complaints that the software can be overwhelming to use in the beginning and that they had issues with the customer service team answering the phone.

Where to Find Paychex

If you are a growing company and have a variety of payroll and HR needs, consider Paychex. You can begin with a starter package and add as many a la carte features as you need when the time is right. Customer support is 24/7, and you’ll have access to a dedicated account specialist. Call for a free quote today.

Visit Paychex

Gusto: Best for Small Businesses Saving Money

Gusto is a payroll software system with basic human resource support. It’s affordable, starting at $279 monthly for 40 employees, and you can process unlimited payroll runs. Onboarding is paperless, and you have access to numerous other HR features like an employee directory, HR experts, and an HR resource center.

Gusto Pricing & Features

Gusto is affordable for small business owners, starting at $45 per month for one employee. Annual costs for 40 employees can be as low as $3,348 if you forgo the HR expertise, using only the onboarding, benefits, and payroll features.

Here is a list of Gusto’s pricing plans and associated costs and features.

Gusto’s Pricing Plans

Gusto’s Ease of Use

Gusto’s service is very easy to use, and you can be set up completely in less than 24 hours. Once you sign up for the service, a representative will reach out to you to see if you need additional assistance or have questions—for instance, regarding importing prior period payroll information so that your annual records can be complete. The dashboard is user-friendly as menu placement is on the left-hand side of the display and is easy to follow.

Gusto’s menu appears on the left-hand side of the dashboard, making it intuitive to use

Gusto’s Payroll Processing

Gusto has an automated payroll feature for employers that want their payrolls to run on autopilot. If you have hourly employees whose hours change each pay period, you’ll need to log in, make changes, and approve before payday. You can pay your employees via direct deposit or check. However, you must process and distribute them. Direct deposit processing time is four days, but you can apply for two-day processing, compared to Paychex’s same-day processing option.

Gusto’s Tax & HR Compliance

Gusto pays all federal, state, and local taxes and will cover any penalties that arise from its error. It has a team of experts who stay abreast of changing tax legislation, so your company is always in compliance.

If you’re willing to upgrade your pricing plan to Concierge, you will have access to certified HR professionals and an HR resource center. In the HR resource center, you’ll be able to find answers easily to common questions about HR compliance. It always houses templates and guides that you can use to help you build your employee handbook.

Gusto’s Benefits

Gusto provides benefits options for which you can sign up to offer your employees. There’s health insurance, retirement plans, dental insurance, commuter benefits, and more. After employees complete their online enrollment, premiums are deducted automatically from their paychecks and transferred to the corresponding provider’s bank account.

Gusto’s Hiring Process

With Gusto, you can create and send customized offer letters to job applicants through email. They can sign all new hire paperwork, including direct deposit authorizations, W-4 forms, employee handbooks, and so forth online—no paperwork is required. You can also send messages through the app to welcome new employees to the team.

What Gusto Is Missing

Gusto’s HR services are limited beyond onboarding and access to HR expertise. There are no applicant tracking, learning, and development, or performance management systems. If you need to pay any employees with paper checks, you will have to process them yourself. Unlike Paychex, Gusto doesn’t print and mail live checks. Also, benefits are only available in 24 states. If you’d like to know if Gusto offer benefits in your state, see the map below:

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What Users Think About Gusto

The Gusto user reviews we found were generally positive, with only some negatives. Most complaints were regarding the length of time it took for issues to be resolved. There were comments about the software not being flexible enough to handle large companies. Many users like that Gusto’s software is easy to navigate, affordable, and gives them access to features like insurance, 401(k), and software integrations that they can’t afford with larger providers.

Where to Find Gusto

If you have a small business with fewer than 100 employees and need help with payroll and basic HR, consider Gusto. It’s the cheapest human resource payroll software on our list and will give you a good starter HR package while upholding quality standards to keep your business compliant with laws and regulations. Sign up for a free demo today.

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Bottom Line

Human resource payroll software helps companies process their payroll while helping to manage the people aspect of the business. It’s generally costlier than simple payroll software, and features like HR compliance and performance management are usually purchased separately. Pricing ranges from $3,500 a year to $20,000 annually for 40 employees.

Our recommendation for the top human resource payroll software is Namely. It exceeds the basics in HR features while offering quality payroll services. You can set employee goals within the system and set up performance reviews. In addition, it keeps employees connected using social media. It also has an employee directory that houses everyone’s profile and picture. It allows unlimited payrolls, and Namely files all payroll taxes. Watch a demo today.

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