Payroll management software is a type of system that helps businesses and organizations handle a variety of payroll services, such as employee compensation management, payroll taxes, paid time off (PTO), year-end bonuses, employee benefits management and insurance management, hourly wages calculation, pay stubs as well as organizing employee pay records. There are some companies that outsource their payroll process to third-party firms, but for businesses that want to manage their payroll in-house, a good payroll management solution is necessary to help streamline the process.
Payroll solutions typically track a wide variety of data associated with employee compensation and they typically include benefits administration features. This means a standard payroll software will be equipped with tools and functions that related to wage calculation, i.e. pay type and frequency, withholdings, bonuses, garnishments, etc., as well as time-off policies, paid vacation and one-time or recurring benefits like moving expenses, retirement plans, health insurance, educational assistance, etc.
An average starting price of a fully featured payroll management software is anywhere between $15 and $25 per month plus $2 to $5 per employee. However, some vendors do not charge on a per-employee basis. In this scenario, their pricing model will be a fixed monthly rate of around $30 to $45 per month with packages categorized based on available features, services and customer support rather than the number of employees or users.
The best examples for both pricing models are Zoho Payroll and Xero. The former has a pricing model that costs $19 per month plus $3 per employee, while the latter adheres to a fixed pricing model of $22 per month for the Starter package. The difference is that Zoho Payroll provides all of its features and services out-of-the-box, while Xero Payroll’s Starter plan offers all the payroll and accounting essentials but some features are limited, which can only be unlocked or accessed upon upgrading to a higher-tier pricing plan.
Payroll management software, just like many other software solutions and online services in the market, come in many different shapes and sizes. Payroll systems can be as small or stripped down as a simple payroll calculation tool or as comprehensive and feature-rich as a complete HR management platform. Most vendors follow a per-employee-per-month pricing model, while other will charge a fixed rate plus an additional fee for every employee (for instance, they might charge $15 per month plus $10 per employee). Then there are those that charge for the software product alone, no extra fees.
Take for instance Gusto, a payroll management software that charges $39 per month plus $6/month per person for their entry-level plan. Compare that to Sage Business Cloud Payroll with its £7 per month plan for up to five employees. Then there’s Zoho Payroll, which only offers a single package for $19 per month plus $3 per employee. Each of these pricing models has its own advantages and disadvantages, depending on your business size, the complexity of your payroll process and other crucial employee compensation requirements.
For many organizations, payroll management is just a single component of their technology requirement. But, this isn’t always the case. There are a few different levels or types of payroll management software buyers and users. The following categories can help you figure out what type of payroll software you should look for or invest in.
Payroll management software for small businesses is typically offered as a simple standalone product or as the entry- to mid-level tier of a multi-tier subscription pricing model. In a subscription-based pricing model, for example, with more than one subscription plan or package, the low to mid-tier pricing plan is normally tailored for small to midsize businesses. The price range for this category of payroll software is between $20 and $40 per month with additional $3 to $6 per employee. There are vendors, however, that cater to all business sizes, offering a single yet scalable plan to their clients.
Payroll software products like Gusto’s Core package, the Paychex Flex Essentials plan or Xero Payroll’s Starter pack are all ideal for small business owners aiming to streamline their payroll management and processing capabilities. The aforementioned products and pricing plans provide the core essentials of payroll management with an affordable base price. Obviously, there are many other reasonably priced payroll management solutions out there in the market that are specifically tailored for small businesses and startups, which are 100% dedicated to payroll management and processing.
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Payroll management software for mid-market clients are usually in the intermediate or professional tier of a standard multi-tier subscription pricing model, depending on the vendor or service provider. If you have an option of multiple pricing plans, you might want to look at the next tier up from the basic or starter package offered by the vendor. These are the mid-tier plans that are usually tailored for midsize businesses and organizations. The price point for mid-market payroll systems will vary from $25 to $45 per month plus $4 to $8 for every employee, depending on the vendor and their pricing strategy.
Human resources professionals and teams at midsize organizations with more than 50 employees will benefit from a payroll software that can do more than just basic payroll processing. They need more than just basic payroll functions from their payroll management software. It is because of this reason that many mid-market payroll systems offer more than the core essentials of payroll management.
Mid-market payroll software will often come with other employee-centric features like time tracking tools and absence management tools, hiring and onboarding solutions, project tracking and workforce cost reporting, team management tools, as well as employee performance reviews and third-party app integration.
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Payroll Add-on
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Enterprise-grade payroll solutions are normally the highest-tier subscription offered by most vendors and service providers with subscription-based pricing models. This means enterprise payroll management software tend to be more expensive than most pricing plans and packages. The features and capabilities it offers, as well as the number of minimum required employees can have an impact on the overall pricing of the software solution.
Some vendors will offer their enterprise package with a starting price of around $45/month all the way to $150 plus $6 to $12/employee, depending on the pricing strategy. There are vendors that will not charge per employee, instead they will have a minimum employee requirement. When it comes to enterprise-grade software solutions, you will often find that many vendors will prefer to keep their pricing quote-based and customizable. This pricing strategy is typically used to ensure the cost remains as affordable as possible and that the plan is setup to fit the needs of the business.
Buyers of enterprise payroll management software are typically large businesses and organizations with a large workforce and complex payroll processing and management requirements. These buyers are looking to increase their capabilities and expand beyond the traditional payroll processing functions and into a more comprehensive employee compensation management solution.
This category of payroll software has the capacity to deliver more than your conventional human resources capabilities. They can provide an enterprise resource planning platform (ERP) that integrates full-service payroll management and processing.
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Payroll software systems are designed to automate the core processes of managing employee compensations, i.e. salaries, wages, bonuses, benefits and garnishments. Some payroll management solutions are also capable of tracking vacation accrual, sick leaves, paid time off (PTO) and employee insurance and other benefits. They are available as a standalone solution or as a part of a much larger software suite like human resources (HR) or accounting software.
Standalone payroll applications can vary in pricing from $18 to $24 per month plus $3 to $6 per employee, while fully integrated solutions have a steeper pricing due to the extended functionality and capabilities that they offer.
This is a core module that you’ll often find in a fully-featured payroll management system. The time tracking tool is typically built into the payroll software, allowing you to keep track of your employees’ time while they’re doing tasks or working on projects. This is a feature that is very useful for businesses that work with remote employees, freelance professionals and mobile workers as it gives them the ability to properly track work time and calculate their compensation more accurately. Some tools will also allow automatic payroll syncing to ensure accurate and transparent hourly wages for employees.
Paid time off or PTO management can be found as either as a standalone absence management solution or as another function that is generally integrated into a number of payroll management systems in the market. Some payroll systems provide this function natively, while others will offer it as an add-on for extra cost since not all companies will probably need it, especially solo traders, startups and small business owners with a relatively small workforce. This function allows users to create custom PTO policies for their organization as well as process PTO requests and approvals.
This is a function that may also be offered as an additional employee benefits management module or as a native feature in the vendor’s subscription packages, depending on their pricing strategy. This module can have a significant impact on the overall cost of the payroll software as it includes employee health insurance (medical, dental, vision, etc.), retirement plans and other financial benefits.
This module allows you to create custom insurance, retirement and benefits policies, as well as find third-party insurance providers to partner with. Expect payroll solutions with this feature to be more expensive than traditional payroll management software.
This is a function that is not always available with standard payroll management solutions. The vendor may offer it, but only as an optional add-on module. However, there are available products and software providers out there that carry this feature natively in their mid-market subscription plans.
Project tracking is an application that enables you to track employee and team projects, depending on the capabilities of the solution. Some tools are only designed to track employee projects, while others have the capacity to track single and multiple team projects. This function may be available natively in pricing plans ranging from $35 to $45 per month. So, you should look for it when evaluating payroll systems and subscription packages.
Workforce costing reports, on the other hand, is a reporting feature that enables employers, HR teams and project managers to generate detailed costing reports on employee salaries and wages, including the pay rates of freelance professionals and outsourced personnel. Some workforce cost reporting tools can support both hourly and salaried employees. This is ideal for businesses and organizations that employ different types of workers, those with fixed salaries, workers that get paid by the hour, on-site employees, remote employees, freelancers, etc.
There are few extra costs that you have to take into account when shopping for the right payroll management software for your business. If you’re opting for a cloud-based solution, the implementation, maintenance and customer support costs are often covered by the subscription pricing, regardless of the plan or tier level. The customer support may vary, however, depending on your subscription package.
When it comes to customer support, some vendors will only offer basic or email-based support for their lowest-tier pricing plan. The mid-tier will get email and live-chat or maybe phone support, while the highest pricing tier will get priority or dedicated customer support. Other software vendors and service providers, on the other hand, will offer full customer support on all channels (email, chat, phone) for all of their pricing plans. This is something that you need to carefully consider when choosing a vendor subscription package.
If you’re in the market for an on-premise solution, then you might have to think about the implementation and maintenance costs. Most on-premise software products follow a license-based pricing model. Some on-premise software vendors will include the training and customer support costs into a one-time licensing fee, although some licenses are perpetual while others are yearly or multi-year agreements. In certain cases, the implementation and maintenance costs will be shouldered by the business, rather than the provider.
This means that on top of the licensing fee, you will need to take into account the implementation and maintenance of the software. This option is generally geared towards larger enterprises with the resources and manpower to implement and maintain the software in house. The other functions, which add extra cost, you should consider are integration support for third-party systems, extra security and protection like single sign-on (SSO) and encryption, full GRC (governance, risk management & compliance) support, etc. While many software vendors will often include third-party integrations into the subscription pricing, there are those that do not. You may have to pay extra for access to API integration, which will enable you to integrate the solution with other systems in your current software stack.
When it comes to security and protection, most payroll management software products have some level of security built-in, although some vendors offer added security functions for their higher-tier packages only. All these can affect the total cost of the software and it’s something that you need to consider when going through different payroll systems in the market.
Paylocity has not provided their plans and pricing details to the general public. This is a common practice among many software vendors and online service providers. Interested parties must visit the Paylocity official website and request a demo in order to get a detailed and transparent proposal. This is in contrast to other online payroll services, which charge a monthly base price plus per-transaction fees. There is no free trial or free version of the software available.
Paylocity’s pricing model is quote-based to ensure a more customized package that suits the unique requirements of your business. The actual cost of the payroll software will depend on the size of your organization, the frequency of your payroll process and the number of modules or services your company needs. Paylocity caters to businesses of different sizes, from small companies and startups to large enterprises and multinational organizations. Their pricing model ensures businesses, regardless of their size or industry, are served well and provided with the best pricing plan possible.
A digital form is available in the Paylocity website, which you can fill in with your information when you’re ready to request a demo. The vendor will then return with a detailed, transparent proposal that you can approve or disapprove.
Gusto has four pricing plans available: Core, Complete, Concierge and Select. Gusto Core is priced at $39/month plus $6 per month/person. Gusto Complete has a starting price of $39/month plus $12 per month/person. The Concierge plan starts at $149/month plus $12 per month/person. The Select package has custom pricing. You need to contact the vendor’s sales team to request a custom quote based on your business size and payroll solutions requirements. Contractor-only pricing is also available for $6 per month/person.
The Core plan is best for any small business or startup that run payroll management processes with basic salaries, wages and pay schedules. This plan is ideal for employers that require a full service payroll system, including W-2s and 1099s. The Gusto Complete package is more suited for businesses that have complex hiring, team management and payroll requirements. It comes with next-day direct deposit, hiring & onboarding tools, as well as time tracking and paid-time-off (PTO) management, on top of all the basic payroll management functions.
The Concierge package is for medium-sized businesses with more sophisticated compliance, policy, payroll and HR requirements. The pricing plan comes with an HR resource center, compliance alert function, access to certified HR professionals and dedicated customer service. The Select package is ideal for fast-growing businesses and organizations that require premium payroll software solutions and dedicated customer support. This package has a minimum requirement of 25 employees. The contractor-only pricing is for contractor-only businesses that haven’t yet hired W-2 employees.
Sage Payroll offers two payroll management plans to serve the needs of their clients: Sage Business Cloud Payroll and Sage 50cloud Payroll. Sage Business Cloud Payroll has a starting price of £7 +VAT/month for up to five employees. The monthly subscription cost increases as more employees are added, which can go to a maximum of 100 employees for £102 +VAT/month. Sage 50cloud Payroll starts at £29 +VAT/month or £23.25 +VAT/month for the first six months for up to 15 employees. The annual billing cost for this module starts at £325.50 +VAT/month.
Sage Business Cloud Payroll is ideal for small and midsize businesses that want to take complete control of their pay run from anywhere at any time using a cloud-based payroll solution. This module is specifically designed to help businesses manage their pay run more securely and accurately, while maintaining their HMRC compliance. The module can support businesses and organizations with up to 100 employees.
Sage 50cloud Payroll, on the other hand, is the advanced desktop version of Sage Payroll. It is best suited for medium to large businesses with unique and more complex payroll requirements. In addition to payroll management, Sage 50cloud Payroll offers enhanced security, compliance and security.
Paychex Flex has three payroll package options: Paychex Flex Essentials, Paychex Flex Select and Paychex Flex Pro. The Essentials package has a starting price of $39/month plus $5/employee. The Select and Pro packages all have quote-based pricing and they are not provided publicly. This is a common practice among many software vendors and online service providers. Interested parties must visit the Paychex Flex website to request a custom quote. There is no free trial or free version of the software available.
All Paychex Flex plans are designed to accommodate the HR and payroll requirements of any business no matter its size. The Essential package is a great entry point to this Payroll management solution. It offers a few basic payroll services as well as tax filing services, regulatory compliance and basic HR software services such as access to human resources (HR) library and important business forms.
Paychex Flex Select, while it’s quote-based, is ideal for midsized businesses with more complex payroll needs. This package gives users access to a dedicated payroll specialist as well as additional employee pay options, such as check signing, paper checks and a check logo service. It also provides access to the Paychex Learning Management System, an e-learning solution designed to help employees focused, engaged and stay educated.
Paychex Flex Pro is for larger businesses with specialized and sophisticated payroll and HR management needs. In addition to all the features and capabilities in the lower-tier packages, Flex Pro comes with garnishment payment services, which can automatically deduct and/or remit garnished wages to the right agencies. It also supports accounting software integrations, including QuickBooks payroll integration, Xero and Sage Intacct. Flex Pro also provides assistance with managing unemployment insurance processes as well as HR tools for employee screening and onboarding.
Zoho Payroll has a very straightforward pricing model. You get the full package for just $19/month plus $3 for every employee per month. An annual billing option is available where you get two months off your total yearly subscription cost, which amounts to $190/month plus $30 for every employee per month. It’s not known what the minimum number of employees is for the US edition of Zoho Payroll. You have to contact the vendor directly for that information. The India edition, on the other hand, has a minimum requirement of 20 employees.
Zoho Payroll is designed to meet the payroll management requirements of businesses and organizations of all sizes. This is primarily why the software vendor offers affordable pricing in exchange for a comprehensive feature set that includes the core payroll functionalities such as automatic payroll calculation, time-off management, bonus payroll management, salary-based and hourly employee support with time clock and tracking, customized sick leave and vacation policies, as well as employee benefits management, including retirement and health insurance benefits.
In addition to the core payroll management features, Zoho Payroll’s single pricing plan also comes with an employee self-service portal with web and mobile app support, payroll administration capabilities with automatic tax filing reminders and role-based permissions, as well as accounting integration with Zoho Books.
Oracle does not provide their plans and pricing information to the general public. This is a common practice among many software vendors and online service providers. Interested parties must visit the Oracle official website, go to the human capital management (HCM) page and request a demo in order to get a detailed quote. Oracle’s payroll management solution is a module offered with Oracle HCM Cloud, an all-in-one human resources (HR) management system developed for the mid-market and enterprise-level multinational companies. There is no free trial or free version of the software available.
Oracle Payroll is a comprehensive payroll management service that is fully integrated with the Oracle Fusion Cloud Human Capital Management (HCM) platform. It is designed to deliver efficiency, better compliance and improved payroll processing across multiple countries and regions, regardless of the industry, the size of the organization or the type of workforce. Oracle Payroll is a highly configurable solution specifically developed to support HR, finance and other related operations.
The Oracle Payroll features are divided into three key categories: Oracle Payroll Core, Oracle Payroll Interface and Oracle Payroll Connect. The solution supports payroll processing in several countries, including the US, Canada, the United Kingdom, Saudi Arabia, Kuwait, United Arab Emirates, China and Mexico. It is also designed to facilitate local payroll taxes in each of the aforementioned countries and delivers payroll tax reports to comply with local and international regulatory standards.
Xero offers three premium plans for businesses in need of a robust online payroll management and recordkeeping solution that has the ability to integrate with third-party payroll applications for a more powerful payroll solution. Zero has the Starter plan priced at $22/month, the Standard plan that costs $35/month and the Premium package for $47/month. There are also three optional add-ons: Claim expenses starting from $4/month, Track projects from $7/month and Analytics Plus, which is free for the first three months then $7/month afterwards.
Xero Payroll’s Starter plan is ideal for new businesses, sole business owners and traders, as well as the self-employed. The package has 24/7 customer support and allows users to send quotes online and up to 20 invoices. This package is great for the self-employed and sole traders because it allows them to track up to five billers and schedule bill payments by batch. The Standard plan is perfect for fast-growing small businesses. It allows users to send unlimited online quotes and invoices to customers, as well as add their preferred their payment service. Unlimited bill tracking and payment scheduling is available.
The Xero Payroll Premium plan is best suited for more established businesses and organizations of all sizes. It offers everything an SMB and enterprise-level company could need for their online pay runs, accounting and payroll records management. Xero Payroll also supports clients with multiple companies with the option to setup a specific pricing plan for each operation.
Payroll management software is available in many different types and their pricing can vary, depending on the vendor, the pricing strategy, the built-in features offered, the number of employees, as well as the minimum requirements in terms of users or employees per month.
There is payroll management software pricing that has a fixed monthly rate that serves all business types and sizes and there are those that require an additional fee per employee, which is more suitable to solo traders, smaller businesses and startups that may have fewer employees. Finding the right software and pricing will depend entirely on your payroll management requirements.
