Find the best Online Payroll Software

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Rippling

Rippling gives businesses one place to run HR, IT, and Finance. It brings together all of the workforce systems that are normally scattered across a company, like payroll, expenses, benefits, and computers. So for the first time e...Read more about Rippling

4.9 (3034 reviews)

192 recommendations

Asure Payroll & Tax Management

Asure’s end-to-end Payroll, HR, and Time and Attendance solutions were developed specifically for small to mid-sized businesses. With the modern Asure platform, remain compliant, support your employees, and free up time to focus o...Read more about Asure Payroll & Tax Management

4.5 (49 reviews)

178 recommendations

Paycom

Paycom offers user-friendly HR and employee-driven payroll technology to enhance the employee life cycle, in a single software. Paycom drives efficiencies, increases data integrity and gives employees power over their HR informat...Read more about Paycom

4.4 (868 reviews)

124 recommendations

isolved

isolved is the most-trusted HCM technology leader, providing the best combination of software and services to meet the needs of today’s People Heroes – HR, payroll, and benefits professionals. From talent acquisition to workforce ...Read more about isolved

3.9 (504 reviews)

115 recommendations

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Paycor

Paycor empowers leaders to build winning teams. Paycor’s human capital management (HCM) platform modernizes every aspect of people management, from recruiting, onboarding and payroll to career development and retention, but what r...Read more about Paycor

4.4 (2766 reviews)

78 recommendations

Dayforce HCM

Dayforce makes work life better. Everything we do as a global leader in HCM technology is focused on improving work for thousands of customers and millions of employees around the world. Our single, global people platform for HR, ...Read more about Dayforce HCM

4.3 (951 reviews)

38 recommendations

Paylocity

Paylocity is a cloud-based human capital management (HCM) platform that provides human resources and payroll management tools to help businesses manage core HR functions. Key features include payroll processing, benefits administr...Read more about Paylocity

4.3 (825 reviews)

25 recommendations

Netchex

What is Netchex? Netchex is a cloud-based human resource (HR) and payroll management solution designed for businesses of all sizes. Key features include recruiting and onboarding management, performance management, payroll managem...Read more about Netchex

4.5 (152 reviews)

16 recommendations

Patriot Payroll

Basic Payroll: $17/month + $4 per employee or contractor. You run payroll and handle your tax filings. Full Service Payroll: $37/month + $4 per employee or contractor. You run payroll, but let us handle the payroll tax filings. ...Read more about Patriot Payroll

4.8 (3370 reviews)

14 recommendations

Viventium Software

Viventium Software is a cloud-based payroll and human resources (HR) solution built for the post-acute care industry. Key features include payroll, HR, talent acquisition, ACA tracking, business intelligence, time and attendance, ...Read more about Viventium Software

4.6 (73 reviews)

7 recommendations

CSP

Collaboration Software Partners (CSP) is a global HCM provider with a focus on implementation and support that caters to any sized organization above 100 employees. CSP has several office locations across the US and is headquarter...Read more about CSP

No reviews yet

7 recommendations

Papaya Global

Papaya Global is a SaaS fintech company providing global payroll technology and the only one with an embedded payments platform designed for the workforce needs of global enterprises. Papaya's comprehensive technology, known as ...Read more about Papaya Global

4.5 (29 reviews)

4 recommendations

Triton HR

Triton HR's cloud-based, HR solution for small to midsize companies, integrates payroll services, employee benefits, and essential HR applications into a cloud-based single single sign on system. Tailored to fit a broad spectrum o...Read more about Triton HR

No reviews yet

4 recommendations

ADP Workforce Now

ADP Workforce Solution is suited for businesses with more than 50 employees looking to streamline HR processes. ADP Workforce Now includes capabilities such as payroll processing and tax filing, performance management, compensatio...Read more about ADP Workforce Now

Gusto

Gusto is a modern, online human resource platform that helps any small business owner take care of all hr tasks. Gusto offers HR tools and HR services to help with managing employee onboarding, running payroll, administrating heal...Read more about Gusto

Paychex Flex

Paychex Flex is a human capital management solution that's designed using web-based modular technology and a dedicated service center to help meet the HR needs of employers of any size and industry. With a single login, users can ...Read more about Paychex Flex

Wave

Online accounting software that provides features including invoicing, billing, payment tracking, payroll management, finance management, credit card processing, and receipt scanning. Wave Accounting is designed to help businesses...Read more about Wave

Hubstaff

Whether businesses are starting up a new team or looking for a better way to manage employees, Hubstaff has everything required to run teams confidently. With the innovative and robust time tracking and task management solution, e...Read more about Hubstaff

NetSuite

With an integrated system that includes ERP, financials, commerce, inventory management, HR, PSA, supply chain management, CRM and more – NetSuite enables fast-growing businesses across all industries to work more effectively by a...Read more about NetSuite

UKG Ready

Designed for small businesses where everyone wears multiple hats, UKG Ready® is the all-in-one HR solution that guides and empowers your people to make their day-to-day easier. From HR and payroll to talent and time, we’re the par...Read more about UKG Ready

Buyers Guide

Last Updated: November 07, 2023

What Is Online Payroll Software?

Online payroll software is a web-based payroll application that provides features such as compensation management, tax filing, and time and attendance tracking. Users can access these features via web-enabled devices (e.g., computer, tablet, smartphone). The software is hosted and managed by the vendor.

Online, or “cloud-based,” payroll software refers to systems hosted in the cloud, on the software vendor’s servers. Unlike with on-premise deployments, which require users to install software on their own computers and servers, online software lets users log in from anywhere.

There are many online payroll solutions out there. Some are sold as stand-alone payroll applications, while others are included as part of broader human resources (HR) software suites. Big vendors, such as ADP, offer multiple cloud payroll systems with different levels of functionality. No matter which vendor you choose, there are some capabilities common to most online payroll systems, which we’ll explore next.

(If you're not sold on the cloud-based deployment model and would prefer to evaluate all payroll systems, both cloud-based and on-premise, check out our general payroll software guide.)

As high-speed Internet and mobile access become more common, online payroll software’s popularity is on the rise.

If you're in the market for a new system, this guide will help you choose the right one for your business. We’ll cover:

What Is Online Payroll Software?

Common Applications of Online Payroll Software

What Type of Buyer Are You?

Benefits and Potential Issues

Market Trends to Understand

Common Applications of Online Payroll Software

These systems often come with some or all of the following core capabilities:

Compensation management

Found in all payroll software; automates payroll processing. Users assign pay rates to employees, then enter employee hours manually or import them from a Web-based time and attendance application. The system automatically calculates wages and generates paychecks. May include direct deposit options, bonuses, commissions, overtime and tips.

Time and attendance

Allows employees to clock in and out within the system, and administrators to track employee attendance.

Tax filing

Available in more robust systems. Automatically prepares, files and pays state and federal taxes. Alternatively, provides tax calculations and/or documents for users to prepare and file manually.

Accounting integration

Some systems package payroll processing and general accounting together. Alternatively, some systems simply offer integration with users’ existing online accounting software.

What Type of Buyer Are You?

Online payroll software buyers can choose from options with a range of functionality: from basic compensation management systems all the way up to complete HR suites. The system that’s right for you will depend on your payroll, accounting and HR requirements:

Basic payroll needs. Some vendors offer entry-level online payroll packages that include capabilities only for compensation management and time and attendance. Businesses looking to fulfill basic payroll needs might choose one of these, such as Wagepoint or Payroll by Wave.

Payroll and accounting software. These solutions combine payroll processing and accounting. Systems such as XERO include payroll processing and general ledger accounting in one product. Others, such as QuickBooks Full Service Payroll, integrate with full accounting platforms. Relatedly, some vendors offer payroll solutions designed specifically for accountants.

Complete HR suites. As mentioned, many online payroll systems come as part of an HR suite. These suites include functionality for personnel tracking, applicant tracking, benefits administration, talent management, scheduling and more in addition to payroll. Businesses looking for a complete solution can check out software such as Paychex Flex and Kronos Workforce Central’s Web-based option.

Benefits and Potential Issues

There are many benefits of choosing online payroll software over software deployed on-premise. Some of these perks include:

Security. With cloud-based deployments, businesses don’t have to worry about on-premise crashes, thefts or other crises. Online software vendors have their own secure servers and security policies to help prevent hacking and data loss (which are often more robust than those of individual businesses).

Automatic updates. Cloud payroll software vendors often update their products to reflect things like changing tax laws. Because online payroll software can update automatically, users no longer have to buy new software each year.

Lower upfront costs. Since cloud payroll solutions are typically priced on a subscription basis, users don’t have to pay a large installation fee up front, like they do with perpetual licenses (which are common for on-premise systems). Instead, they pay a more manageable fee either per month or per year.

Though online payroll software solutions have lower initial costs, the recurring costs eventually add up. However, since on-premise software often requires users to purchase updates, over time, costs for the two types of system tend to even out.

Market Trends to Understand

Here are a few trends to be aware of as you search for new software in this market:

Mobile accessibility. More and more businesses want their payroll software to be accessible from any device. Cloud-based software has made it possible for vendors to offer mobile apps, so users can log in from their smartphones and tablets.

Many vendors also offer mobile employee portals. With these portals, employees can access their timesheets, salary information and more while on the go.

Cloud-based solutions for larger enterprises. In the past, cloud solutions were marketed only to small and midsize businesses. Now, more and more vendors are offering robust online payroll systems for larger enterprises.

Systems targeting larger businesses often include a wider range of capabilities, such as HR applications or accounting integration.