5 Payroll Automation Software Solutions for Small Businesses

Payroll is at the heart of every organisation, ensuring employees receive their compensation on time. However, managing payroll is as complex as it is essential, especially during periods of growth. Implementing the right payroll automation software for your organisation’s type and size can streamline the entire process, saving you time, money, and headaches. This article explores five payroll software solutions suitable for all scaling businesses.

What Are Payroll Software Companies?

Payroll software companies specialise in creating solutions that automate part or all of the payroll process. These software tools simplify wage calculation, manage tax deductions, generate payslips, and ensure compliance with local labour laws and company policies. With payroll automation software, you’ll never have to worry about the correct amount for wages or tax payments. The features can vary from company to company, with some being more suited for large-scale businesses and others for smaller enterprises.

5 Best Payroll Software Solutions to Try

Here are five payroll software solutions from which all scaling businesses can benefit:

Xpence

From the UAE market, Xpence offers comprehensive expense management solutions for small and medium-sized enterprises (SMEs) in the Gulf countries. Xpence provides the ability to manage all company expenses with real-time spending reports. Its auto-categorisation capabilities save business owners valuable time when tallying expenses at the end of the month. Xpence offers rich insights into where your money is going and areas you can cut back on.

Unique Features:

Real-time auto-categorisation of payments
Deep spending insights
Ever-expanding integration ecosystem to support all vendors

Pros:

Budget-friendly for all business sizes
User-friendly interface
Time-saving features

Cons:

Currently available only in the UAE and Bahrain

QuickBooks Payroll

QuickBooks offers a payroll solution tailored for small businesses that integrate with existing accounting processes. The Payroll Essentials plan lets you track employee time and billable hours, calculate and file taxes, and automate payments. It also offers multi-currency support and a user-friendly mobile app. However, not all features are available in every country, so review before selecting a plan.

Unique Features:

Payroll calculations and tax filing
Employee self-service utilities
Employee benefits tracking

Pros:

Budget-friendly
Maximises tax deductions
Easy integration with QuickBooks accounting

Cons:

Unsuitable for businesses operating in multiple territories
Partial coverage of UAE payroll compliance

Gusto

Gusto is an all-in-one HR platform for small and medium-sized enterprises. It offers full-service payroll, benefits management, time and attendance records, hiring and onboarding support, and advanced insights and reporting. Gusto also supports international contractors with payments to over 80 countries. It integrates with popular accounting platforms like QuickBooks Online, Xero, and Clover.

Unique Features:

All-in-one integrated HR platform
Advanced support for international contractors and remote teams
Employee-friendly mobile app

Pros:

Supports payments to over 80 countries
Custom-tailored solutions for each business by type, size, and industry
Seamless integration with various popular accounting software

Cons:

Learning curve for new users
Limited features on the mobile app

Square Payroll

Square Payroll is a user-friendly payroll solution that integrates seamlessly with Square’s financial tools and mobile payment services. It’s ideal for small businesses and startups, offering a free basic plan and automated payroll features like tax filing, compliance with regulations, employee self-service options, and mobile access. Its standout feature is integration with Square’s point-of-sale system, which calculates wages based on hours worked and paid time off for employees.

Unique Features:

Automated tax filing and payroll management
Employee self-service utilities
Integration with Square POS

Pros:

User-friendly interface
Budget-friendly
Employee-friendly
Scalable

Cons:

Limited features for larger businesses
Incomplete coverage of region-specific payroll compliances

OnPay

OnPay is a cloud-based payroll solution for small to medium businesses that automates billing, tax compliance, and employee benefits like paid leave and health insurance. The platform also offers HR administration tools and smart incorporation of tips and commissions. Overall, OnPay can be a compelling choice for small businesses seeking an automated HR management solution.

Unique Features:

Comprehensive Payroll and HR management features
Employee-friendly
Advanced capabilities for calculating tips and commissions

Pros:

Advanced tax compliance support
User-friendly interface
Integration with popular accounting software

Cons:

Pricing may be high for small businesses
HR executives may require some training to use it

Final Thoughts

Businesses need happy and healthy employees. And happy and healthy employees need fair compensation, timely payments, tax support, benefits, simplified paperwork, and time off when they’ve earned it. An unreliable payroll system can hamper staff morale, leading to unforeseen turnovers and increased recruitment costs. Automating the payroll process is a solution that benefits all parties, including the employees. Not only does it save the time and manpower required to calculate each employee’s pay and benefits, but it also reduces the possibility of costly errors.