Payroll & Time Tracking Software: Top Picks for Small Businesses

Managing payroll and tracking employee time are crucial tasks for any small business. Doing them efficiently and accurately can save time, reduce errors, and ensure compliance with labor laws. Choosing the right payroll and time tracking software can be a game-changer. This article explores some of the top picks for small businesses, focusing on features, pricing, and ease of use.

Why is Payroll & Time Tracking Software Important for Small Businesses?

Manual payroll processing and time tracking can be incredibly time-consuming and prone to errors. Using software automates these processes, leading to several key benefits:

Accuracy: Minimizes errors in calculations and tax withholdings, reducing the risk of penalties.
Efficiency: Automates tasks like calculating hours worked, generating paychecks, and filing taxes, freeing up time for other business activities.
Compliance: Helps businesses stay compliant with federal, state, and local labor laws.
Cost Savings: Reduces administrative costs associated with manual processes and potential penalties for errors.
Employee Satisfaction: Ensures timely and accurate payments, boosting employee morale and retention.
Data-Driven Insights: Provides valuable data on labor costs, employee productivity, and overtime expenses.

Key Features to Look For in Payroll & Time Tracking Software

When selecting payroll and time tracking software, consider the following essential features:

Payroll Processing: Automates payroll calculations, generates paychecks, and manages direct deposit.
Tax Filing: Handles federal, state, and local tax filings, including W-2 and 1099 forms.
Time Tracking: Allows employees to track their work hours, breaks, and time off.
Employee Self-Service: Enables employees to access their pay stubs, W-2 forms, and time-off balances online.
Reporting & Analytics: Provides reports on payroll expenses, labor costs, and employee productivity.
Integration: Integrates with other business software, such as accounting and HR systems.
Mobile Accessibility: Allows employees to track time and access payroll information from mobile devices.
Compliance Management: Helps businesses stay compliant with labor laws and regulations.
Customer Support: Offers reliable customer support to assist with any issues or questions.
Ease of Use: Has a user-friendly interface that is easy to navigate and understand.

Top Payroll & Time Tracking Software Picks for Small Businesses

Here's a look at some of the top payroll and time tracking software options available for small businesses:

1. Gusto

Gusto is a popular payroll and HR platform designed specifically for small businesses. It offers a user-friendly interface and comprehensive features, making it a great choice for businesses looking for an all-in-one solution.

Key Features of Gusto:

Full-Service Payroll: Automates payroll calculations, tax filings, and payments.
Time Tracking: Integrates seamlessly with Gusto Payroll to track employee hours.
Benefits Administration: Offers health insurance, 401(k), and other employee benefits.
HR Features: Includes onboarding, performance reviews, and employee surveys.
Employee Self-Service: Allows employees to access pay stubs, W-2 forms, and other HR information.

Pricing:

Gusto offers several pricing plans, starting with a basic plan that includes payroll processing and employee self-service. More advanced plans include additional features such as benefits administration and HR tools. Exact pricing can be found on their website.

Pros:

User-friendly interface.
Comprehensive features.
Excellent customer support.

Cons:

Can be more expensive than some other options.
Limited customization options.

2. QuickBooks Payroll

QuickBooks Payroll integrates seamlessly with QuickBooks Online, making it a convenient choice for businesses already using QuickBooks for accounting. It offers a range of payroll options, from basic to full-service.

Key Features of QuickBooks Payroll:

Payroll Processing: Automates payroll calculations, tax filings, and payments.
Time Tracking: Integrates with QuickBooks Time (formerly TSheets) for accurate time tracking.
Benefits Administration: Offers health insurance and other employee benefits through third-party partners.
Reporting & Analytics: Provides detailed reports on payroll expenses and labor costs.
Direct Deposit: Allows employees to be paid electronically.

Pricing:

QuickBooks Payroll offers several pricing plans, ranging from basic payroll processing to full-service payroll with HR support. Pricing depends on the number of employees and the features included. Check the QuickBooks website for the latest pricing information.

Pros:

Seamless integration with QuickBooks Online.
Wide range of features.
Scalable pricing plans.

Cons:

Can be complex to set up.
Customer support can be inconsistent.

3. Paychex

Paychex is a well-established payroll and HR provider that offers a range of services for businesses of all sizes. Their Flex platform is designed specifically for small businesses and offers a comprehensive suite of payroll, HR, and benefits solutions.

Key Features of Paychex Flex:

Payroll Processing: Automates payroll calculations, tax filings, and payments.
Time & Attendance: Tracks employee hours, manages time-off requests, and generates time sheets.
HR Services: Offers HR consulting, employee handbooks, and compliance assistance.
Benefits Administration: Provides access to health insurance, retirement plans, and other employee benefits.
Reporting & Analytics: Offers detailed reports on payroll, HR, and benefits data.

Pricing:

Paychex pricing is customized based on the specific needs of each business. Contact Paychex directly for a quote.

Pros:

Comprehensive suite of payroll and HR services.
Scalable solutions for businesses of all sizes.
Experienced customer support team.

Cons:

Can be more expensive than some other options.
Pricing is not transparent.

4. Rippling

Rippling is a modern HR platform that combines payroll, HR, and IT management into a single system. It's a good choice for businesses that want to streamline their HR processes and automate tasks across multiple departments.

Key Features of Rippling:

Payroll Processing: Automates payroll calculations, tax filings, and payments.
Time Tracking: Integrates with Rippling's time and attendance module.
HR Management: Includes onboarding, employee records, and performance management.
IT Management: Manages employee devices, software licenses, and security.
Automation: Automates tasks such as onboarding, offboarding, and role changes.

Pricing:

Rippling uses a per-employee, per-month pricing model. The cost depends on the modules and features selected. Contact Rippling for a detailed quote.

Pros:

Comprehensive HR and IT management in one platform.
Powerful automation capabilities.
Modern and user-friendly interface.

Cons:

Can be expensive for small businesses with limited budgets.
May be overkill for businesses that don't need all of its features.

5. OnPay

OnPay is designed specifically for small to medium-sized businesses, OnPay offers a comprehensive and affordable solution for payroll, HR, and time tracking. Its straightforward pricing and user-friendly interface make it a popular choice for businesses looking for simplicity and value.

Key Features of OnPay:

Full-Service Payroll: Automates payroll calculations, tax filings (federal, state, and local), and payments.
Unlimited Payroll Runs: Run payroll as often as you need without extra fees.
Time Tracking: Built-in time tracking or integrates with popular time tracking apps.
HR Tools: Includes offer letters, onboarding checklists, and employee document storage.
Multi-State Payroll: Easily manage employees in multiple states.
Employee Self-Service: Employees can access their pay stubs, W-2s, and time-off balances.

Pricing:

OnPay offers transparent and straightforward pricing. They have a base fee plus a per-employee, per-month fee. All features are included in the price; there are no add-ons.

Pros:

Transparent and affordable pricing.
User-friendly interface.
Excellent customer support.
Includes all features in one plan.

Cons:

Fewer advanced HR features compared to some competitors.
May not be suitable for very large enterprises.

6. Clockify

Clockify stands out as a completely free time tracking software suitable for businesses of all sizes. While it doesn't offer payroll processing directly, its robust time tracking capabilities and integration options make it a valuable tool for managing employee hours and preparing data for payroll.

Key Features of Clockify:

Unlimited Users and Projects: Track time for unlimited users and projects without any restrictions.
Detailed Time Tracking: Track time by project, task, and client.
Timesheet Management: Manage and approve employee timesheets.
Reporting: Generate detailed reports on employee time and project costs.
Integrations: Integrates with popular project management and accounting software, including QuickBooks and Xero (through Zapier).

Pricing:

Clockify is completely free. They offer optional paid plans for additional features like branding, advanced reporting and support but the core time tracking functionality remains free forever.

Pros:

Completely free.
Unlimited users and projects.
Detailed time tracking and reporting.
Integrates with other software.

Cons:

Does not offer payroll processing directly.
Lacks some of the advanced HR features of paid software.

7. TimeCamp

TimeCamp combines time tracking with project management and billing functionalities, making it an excellent choice for businesses that need to track time for projects and bill clients accordingly. It offers a range of features to help businesses manage their time and resources effectively.

Key Features of TimeCamp:

Automated Time Tracking: Automatically track time based on keywords and activities.
Project Management: Manage projects, tasks, and deadlines.
Billing and Invoicing: Generate invoices based on tracked time.
Reporting: Create detailed reports on project costs, employee time, and profitability.
Integrations: Integrates with popular project management, accounting, and CRM software.

Pricing:

TimeCamp offers several pricing plans, including a free plan for basic time tracking. Paid plans offer additional features such as project management, billing, and integrations. Prices vary based on the number of users and features needed.

Pros:

Combines time tracking, project management, and billing.
Automated time tracking.
Detailed reporting and analytics.

Cons:

Can be complex to set up and use.
May be overkill for businesses that only need basic time tracking.

8. Toggl Track

Toggl Track is a simple and intuitive time tracking tool that is perfect for freelancers, small teams, and businesses that need to track time for various projects and tasks. Its user-friendly interface and mobile apps make it easy to track time on the go.

Key Features of Toggl Track:

Simple Time Tracking: Track time with a single click.
Project Tracking: Track time by project, task, and client.
Reporting: Generate reports on employee time and project costs.
Team Management: Manage team members and track their time.
Integrations: Integrates with popular project management and productivity tools.

Pricing:

Toggl Track offers a free plan for basic time tracking. Paid plans offer additional features such as detailed reporting, team management, and integrations. Prices vary based on the number of users and features needed.

Pros:

Simple and intuitive interface.
Easy to track time on the go.
Integrates with other software.

Cons:

Lacks some of the advanced features of more comprehensive time tracking software.
Does not offer payroll processing directly.

9. BambooHR

While primarily an HR platform, BambooHR integrates seamlessly with several payroll solutions, providing a comprehensive HR and payroll management system. It's suitable for small to medium-sized businesses that need to manage both HR functions and payroll in one place.

Key Features of BambooHR:

HR Management: Manages employee data, onboarding, performance reviews, and time-off requests.
Payroll Integration: Integrates with popular payroll providers like Gusto, Paychex, and ADP.
Time Tracking: Tracks employee time and attendance.
Reporting: Generates reports on HR and payroll data.
Employee Self-Service: Employees can access their HR and payroll information.

Pricing:

BambooHR's pricing is customized based on the size of the company and the features needed. Contact BambooHR directly for a quote.

Pros:

Comprehensive HR management.
Seamless payroll integration.
User-friendly interface.

Cons:

Requires integration with a separate payroll provider.
Can be more expensive than some standalone payroll solutions.

10. ADP Run

ADP Run is a payroll and HR solution specifically designed for small businesses. Backed by the reputation of ADP, a leader in the payroll industry, it offers a reliable and scalable solution with various service levels to meet diverse business needs.

Key Features of ADP Run:

Payroll Processing: Automates payroll calculations, tax filings, and payments.
Time Tracking: Integrates with ADP's time and attendance solutions.
HR Support: Offers HR resources and support.
Benefits Administration: Provides access to health insurance, retirement plans, and other employee benefits.
Mobile App: Allows employees and employers to access payroll and HR information from mobile devices.

Pricing:

ADP Run's pricing is customized based on the number of employees and the services selected. Contact ADP directly for a quote.

Pros:

Reliable and scalable solution.
Backed by the reputation of ADP.
Comprehensive payroll and HR services.

Cons:

Can be more expensive than some other options.
Pricing is not always transparent.

Factors to Consider When Choosing Payroll & Time Tracking Software

Choosing the right payroll and time tracking software requires careful consideration of your business needs and budget. Here are some key factors to keep in mind:

Business Size: Consider the number of employees and whether the software can scale as your business grows.
Industry: Some industries have specific payroll and time tracking requirements. Choose software that is tailored to your industry.
Budget: Compare the pricing plans of different software options and choose one that fits your budget.
Features: Identify the essential features you need and choose software that offers those features.
Integration: Ensure the software integrates with your existing accounting and HR systems.
Ease of Use: Choose software that is user-friendly and easy to navigate.
Customer Support: Look for software with reliable customer support in case you encounter any issues.
Security: Ensure the software has robust security measures to protect your sensitive payroll and employee data.
Compliance: Verify that the software is compliant with all relevant federal, state, and local labor laws.
Reviews and Ratings: Read reviews and ratings from other users to get an idea of the software's pros and cons.

Tips for Implementing Payroll & Time Tracking Software

Once you've chosen the right software, follow these tips to ensure a smooth implementation:

Plan Ahead: Develop a detailed implementation plan that includes timelines, responsibilities, and training.
Data Migration: Carefully migrate your existing payroll and time tracking data to the new software.
Employee Training: Provide comprehensive training to employees on how to use the new software.
Testing: Thoroughly test the software to ensure it is working correctly before going live.
Go Live: Implement the software gradually, starting with a pilot group of employees.
Monitor and Support: Monitor the software's performance and provide ongoing support to employees.
Stay Updated: Keep the software updated with the latest patches and upgrades.
Document Procedures: Document all payroll and time tracking procedures to ensure consistency and compliance.
Regularly Review: Periodically review your payroll and time tracking processes to identify areas for improvement.
Seek Expert Advice: Consult with a payroll or HR professional if you need assistance with implementation or compliance.

The Future of Payroll & Time Tracking Software

Payroll and time tracking software is constantly evolving to meet the changing needs of businesses. Some of the trends shaping the future of this technology include:

AI and Automation: AI and automation are being used to streamline payroll processes, reduce errors, and provide more personalized employee experiences.
Cloud-Based Solutions: Cloud-based solutions are becoming increasingly popular due to their accessibility, scalability, and security.
Mobile Accessibility: Mobile apps are making it easier for employees to track time, access pay stubs, and manage their HR information on the go.
Integration with Other Systems: Payroll and time tracking software is increasingly being integrated with other business systems, such as accounting, HR, and project management.
Focus on Employee Experience: Software is being designed to improve the employee experience by providing self-service tools, personalized communications, and benefits options.
Enhanced Security: As cyber threats become more sophisticated, payroll and time tracking software is incorporating enhanced security measures to protect sensitive data.
Real-Time Analytics: Real-time analytics are providing businesses with valuable insights into labor costs, employee productivity, and compliance.
Globalization: Payroll software is becoming more global, with support for multiple currencies, languages, and tax regulations.
Blockchain Technology: Blockchain technology is being explored as a way to improve the security and transparency of payroll transactions.
Emphasis on Compliance: Payroll and time tracking software is being designed to help businesses stay compliant with ever-changing labor laws and regulations.

Conclusion

Choosing the right payroll and time tracking software is a critical decision for any small business. The options discussed in this article, including Gusto, QuickBooks Payroll, Paychex, Rippling, OnPay, Clockify, TimeCamp, Toggl Track, BambooHR, and ADP Run, each offer a unique set of features and benefits. By carefully considering your business size, industry, budget, and specific needs, you can select a solution that streamlines your payroll processes, ensures compliance, and saves you valuable time and resources. Investing in the right software can lead to improved accuracy, increased efficiency, and happier employees, ultimately contributing to the success of your small business.