The 6 Best Payroll Software Services For 1-Employee Businesses In 2023
- Posted on April 6, 2023
Managing payroll can be daunting for small business owners, particularly for one-employee businesses. Running a one-employee business means you are not just responsible for your business growth but are also faced with handling payroll operations, such as tax calculations, invoicing, record-keeping and more. Managing all these factors can be stressful and distracting. Fortunately, there are payroll software and services that can automate these payroll operations and save one-employee businesses from payroll complexities. Here is a review of the best one-employee payroll solutions to help you make the right choice for your company. Jump to: Here is a comparison chart of the best one-employee business payroll software solutions in 2023. This chart compares some key features of payroll software for one-employee businesses and a summary of what to expect in their pricing plans. ADP is a payroll services provider that offers a customizable and scalable payroll solution for different scales of business. ADP’s one-employee payroll solution provides enough flexibility within its payroll system, allowing you to pay for only the services you need, thereby lowering the cost of the service. With ADP payroll software, one-employee business owners can choose either the payroll processing service or managed services option. With the ADP payroll processing service option, ADP hosts the processing platform while you manage data entry and validate data output. On the other hand, you can opt for the managed services option, where ADP manages the entire payroll process for you. Regardless of the option you select, ADP ensures you stay compliant with IRS and other regulations while receiving quarterly and annual reports. ADP offers the following pricing categories: You will need to get a price quote from the ADP sales team to get a specific price for each category. Gusto’s payroll solution helps one-employee businesses navigate payroll complexities, including compliance, audits, regulatory changes, invoicing and handling sensitive payroll data. With Gusto, pricing tiers are clearly stated, allowing you to know how much each plan is worth. In addition, Gusto payroll allows you to run unlimited payroll and offers 24/7 support that addresses complaints and questions promptly. Gusto also allows for scalability, making it easier for one-employee businesses to onboard, pay and insure more employees without reworking their entire business structure. Gusto offers a contractor-only plan at $35 per month plus $6 per month per contractor. Other available plans include: It’s important to note that many of these plans are offered with discounts on a regular basis. Paychex is an all-in-one payroll, HR and benefits platform designed for different levels of business. For one-employee businesses, Paychex offers a payroll package known as Paychex Flex. With Paychex Flex, one-employee business owners can access automated and manual payroll services online from desktop or mobile with the option to work with a dedicated payroll specialist. Included in Paychex payroll technology are multiple payment options such as direct deposit, same-day ACH and real-time payments. In addition, customers can utilize Paychex Voice Assist, allowing them to use voice prompts to handle such activities as payroll reviews, approvals, submissions and updates. Paychex Flex operates with a three-tier pricing model: QuickBooks is another popular one-business payroll solution with features to help one-employee business owners automate payroll processes. The platform is designed to help you streamline your tax and financial information to get your payroll processes up and running. With QuickBooks Payroll, one-employee businesses can stay compliant as the platform collects all necessary information from bank account details, tax ID numbers, IRS filings and W-2s. Also built into QuickBooks are over fifteen customizable payroll reports, which enable users to view bank transactions and payroll tax deductions in real-time. The pricing plans available for one-employee businesses using QuickBooks Payroll are: It’s important to note that many of these plans are offered with discounts on a regular basis. Paylocity is another payroll tool that provides one-employee businesses with a comprehensive and easy-to-use solution for managing payroll. With Paylocity, you can automate your payroll processes and ensure accuracy and compliance with various state and federal regulations. The tool also offers features such as direct deposit, tax filing and year-end reporting, making it a valuable resource for businesses looking to streamline their payroll operations. In addition, the software is designed to be intuitive and user-friendly, with customizable dashboards and reports that provide you with insights into your payroll operations. Pricing information is only available upon request from the sales team. Square Payroll is a payroll solution designed to assist small businesses in managing their payroll operations online. Square Payroll software can handle payroll needs such as automatic payroll and tax filing across federal, state and local tax jurisdictions. The software operates a flexible payment model that enables users to pay with manual paychecks, direct deposit or the Square Cash application. Payments can also be scheduled weekly, biweekly or bimonthly. In addition, Square Payroll is compatible and integrates with a range of other payment processing and accounting software, such as Square POS and QuickBooks. Square Payroll offers two pricing plans: When choosing payroll software for a one-employee business, these are essential features to consider in your selection process. Although one-employee business owners operate independently and determine how to offer their products and services, this does not write off the organization’s chances of expansion. As a result, business owners should consider that they might need to scale their business in the future and choose a payroll solution that promises scalability. Scalability, in this sense, could be the ability of a payroll platform to incorporate and accommodate the growing needs of your business, which could come in the form of expanding your client network to different parts of the globe where you have to different tax laws. Automated payroll makes it easy to set your payroll on autopilot. Running a one-employee business where you are responsible for different aspects of business growth and the risks involved can be tasking. Having a payroll solution where all you need to do is set up the software to handle payroll even when you are not looking is a feature your preferred payroll solution should have. The ability to use any tool without encountering many difficulties is critical to how successful you will be while using the tool. The same goes for payroll software and services for one-employee businesses. Consider a solution with an easy-to-navigate interface, straightforward installation, explicable reports, flexible integration and abundant resources on how to use the software. Payroll involves the movement of funds, invoicing, tax details and other forms of personally identifiable information. With data breaches on the rise, cybercriminals are often attracted to such information and look for vulnerabilities to exploit. Therefore, it’s important to consider if the payroll software you want meets industry security standards. Customization is an essential feature of modern payroll tools. A payroll solution with customization features will allow you to customize various features and modules, such as reports and setup processes. As a one-employee business owner, you’re likely more interested in having things run as easily as possible. Having a software solution you can customize to your standard is one way to achieve that. For instance, your payroll report might come with extensive information you consider irrelevant and distracting. However, with customization, you can tailor this report to fit your needs. Choosing the best one-employee payroll software for your business requires careful consideration. Here are some tips on how you can make the right choice. Payroll software features vary widely depending on the vendor and package you choose. Some software packages offer basic features for calculating taxes, generating pay stubs and making direct deposits, while others offer more advanced features like vacation and sick time tracking, employee benefits management and tax filings. Determine which features are essential for your one-employee business and choose a payroll service that meets those needs. Payroll taxes can be complex, and as a one-employee business owner, you may not be familiar with all the tax laws and regulations that apply to your business. You want to choose payroll software that automatically calculates and deducts payroll taxes and ensures all taxes are filed correctly and on time. Check if the software offers features such as automatic tax calculation, tax form generation and reminders for tax deadlines. If you are already using accounting or bookkeeping software, it is essential to choose a payroll solution that integrates with your existing solution. Integrations help you avoid manual data entry and reduce the risk of errors. Price is a significant factor when choosing payroll software. As a small business owner, you need to ensure that the software fits your budget. Look for payroll software that offers affordable pricing with no hidden fees or charges. Determine whether the software you want offers a free trial period and, during the trial period, evaluate whether software features justify the cost. For instance, ADP offers a three-month free trial, which should be enough time for you to determine whether this tool suits your business. Even with user-friendly software, you may need assistance or have questions or concerns about the software. Therefore, choosing payroll software with excellent customer support is crucial. Check if the software offers multiple support channels like phone, email, chat or a knowledge base. From there, choose a software vendor that provides responsive, knowledgeable and helpful customer service. Our selection process for the best payroll software for one-employee businesses involved comparing the most popular options and assessing key features that are unique to each. We narrowed our choices to the best six solutions based on criteria such as payroll automation, tax filing, ease of use, customization parameters and reporting capabilities. We considered these features as critical aspects for every payroll software for one-employee businesses to have. Thus, these criteria informed our decisions as we conducted a thorough review of each payroll solution, highlighting their notable features, advantages and disadvantages. Read next: The best payroll software for nonprofits in 2023 ADP: Best overall
Gusto: Best for scalability
Paychex: Best for tax handling
QuickBooks: Best for customizable payroll reports
Paylocity: Best for easy setup
Square Payroll: Best for payment flexibility
Top one-employee payroll software comparison table
Advanced reporting Automated payroll Free trial Mobile app for payroll Pricing ADP Yes Yes Yes, for three months Yes Information available upon request Gusto Yes Yes No Yes Starting at $35 plus $6 per person per month (Contractor Only plan) Paychex Yes Yes No Yes Starting at $39 plus $5 per user per month QuickBooks Yes Yes No Yes Starting at $45 plus $5 per employee per month Paylocity Yes Yes No Yes Information available upon request Square Payroll No Yes No Yes Starting at $5 per month per person paid (Contractor Only plan) ADP: Best overall
Features
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Pricing
Gusto: Best for scalability
Features
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Pricing
Paychex: Best for tax handling
Features
Pros
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Pricing
QuickBooks: Best for customizable payroll reports
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Pricing
Paylocity: Best for easy setup
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Square Payroll: Best for payment flexibility
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Key features of one-employee payroll software
Scalability
Automation
User-friendly
Security
Customization
How do I choose the best one-employee payroll software for my business?
Consider the features
Check for compliance
Consider integrations
Look for affordable pricing
Consider customer support
Methodology
ADP: Best overall Gusto: Best for scalability Paychex: Best for tax handling QuickBooks: Best for customizable payroll reports Paylocity: Best for easy setup Square Payroll: Best for payment flexibility Managing payroll can be daunting for small business owners, particularly for one-employee businesses. Running a one-employee business means you are not just responsible for your business…