Gusto and Zenefits are online HR software that manage employee data, run payroll, and provide employer-sponsored benefits. Gusto is easier to use and includes payroll and contractor payments in its base price, whereas Zenefits provides payroll as an add-on. However, Zenefits’ HR options like performance management are helpful once you scale beyond your first 100…
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7 Best PEO Companies for Small Business
Professional employer organizations (PEO) bundle benefits and manage human resources (HR) operations like recruiting, onboarding, payroll, and training, which allows small business owners to outsource tedious management tasks. The best PEO companies have the buying power to negotiate affordable employee health insurance. They can reduce your workers’ compensation expense by pooling employees across multiple businesses….
Professional Employer Organization (PEO): Cost, Features & More
A Professional Employer Organization (PEO) is a co-employment alternative for small businesses that want to offer human resources (HR), payroll, and employee benefits – similar to what larger companies provide. PEOs charge based on headcount and can run from under a hundred a month per employee to tens of thousands of dollars a year. If…
How to Do Payroll in California in 5 Steps
Businesses in California with one or more employees need to do payroll in compliance with federal, state, and local laws – like paid sick leave and commuter benefits. Due to the potential to incur penalties and fines, the best way to do payroll in California is to outsource it using these five steps. is a…
7 Best Payroll Software for Accountants in 2019
The best payroll software for accountants integrates with existing accounting software to give bookkeepers and CPAs easy access to client accounts and allows them to manage multiple clients’ payroll processing through one login. The best software can cost your clients from $5-$45 per month plus fees in the range of $1-$6 per month per employee….
Semi-Monthly Pay: Definition & When to Offer [+Pros & Cons]
Semi-monthly pay is a payroll frequency that processes twice a month — typically on the 1st and 16th or the 15th and 30th of the month. This results in 24 payrolls a year (versus bi-weekly, which runs 26 payrolls annually). That may save you money if your payroll service charges you for each payroll run….
Variable Pay: Definition, How It Works, Benefits & Providers
Variable pay is a way to compensate employees based on job criteria beyond hours worked—like sales commissions. It can supplement an employee’s base salary (i.e., safety bonus) or form the basis of their pay entirely. However, variable pay requires effort to administer and should be set up to ensure you’re incentivizing the intended behavior. How…
How to Set Up Payroll Process in 8 Steps [+Free Checklist]
![How to Set Up Payroll Process in 8 Steps [+Free Checklist]](https://fitsmallbusiness.com/wp-content/uploads/2018/09/How-to-Set-Up-Payroll-Process-in-8-Steps-300x200.png)
Setting up your payroll process requires making some administrative decisions before you run your first payroll cycle. These eight steps for how to set up payroll include choosing a payroll provider, deciding what benefits to offer and choosing how and when to pay your employees. Calculating payroll incorrectly can cause strife in the workplace and…
Salary vs. Hourly — Which is Right for Your Small Business
A salaried employee is one that is paid a fixed rate at set intervals for a job whereas an hourly employee is paid by the hour for work performed. There are pros and cons to paying salary vs. hourly. We’ll discuss the benefits of each type of employee pay, such as ease of administration and…
W-2 vs W-4: What’s the Difference & When to Use Them
A W-4 is an IRS form that an employer uses to gather tax withholding information for an employee. A W-2 is a year-end tax document that’s required by the IRS and used to report an employee’s annual income and taxes. We’ll compare both in detail and walk you through when and how to use each…
6 Top Zenefits Competitors
provides an all-in-one HR and payroll solution at a reasonable price point of $5 to $14 per employee. You can onboard employees, keep track of benefits enrollment, manage time off requests, and do payroll in compliance with tax laws. However, it’s not the only game in town. In this article, we look at 6 Zenefits…
Compa Ratio: Definition, Formula, & Examples
Compa Ratio, short for comparison ratio, is a comparison of the salary you are paying your employees versus the market midpoint for similar positions at other companies. Compa ratio is a useful metric to have when setting salary levels or negotiating raises, and it helps you avoid losing talent to other companies. How To Calculate…