Payroll is an important function in a business, as employees need to get paid for their work. However, manual payroll is tedious, time-consuming and prone to inaccuracy. That’s where payroll software solutions come in.
Payroll Market Trends
Payroll software includes many benefits in addition to saving time and expense, such as increased compliance with labor laws and the IRS, fewer worries with employee personal information getting into the wrong hands and better accuracy of employee’s paychecks.
There are many payroll solutions on the market. Some solutions are dedicated but can integrate with Human Resource Management Systems (HRMS), time clocks or other software, while others are a module within the HRMS. There are also solutions targeted specifically for small businesses, while others are intended for all company sizes.
The payroll software market includes many long-time vendors, such as ADP, BenefitMall and CheckMark Payroll, to name a few. However, in recent years, new software vendors, trends and features have entered the market.
One such trend is the rise of hybrid payroll solutions, where vendors offer a blended approach of payroll outsourcing and payroll software. This is an advantage for companies, especially small businesses that want to retain control over their payroll data, but don’t want the hassle of running payroll and withholding taxes. This trend is expected to rise over the next few years – according to IHSTechnology, it’s expected to grow to $5.25 billion.
Payroll software has also debuted new features, including cloud-based deployment, mobile functionality, direct deposit and self-service functionality where employees can view their own pay history, benefits and other information.
Top 5 Emerging Vendors
However, there are other new vendors that have come into the market and are poised to offer features and benefits both in 2017 and beyond.
Here are five of them:
Date Founded: April 2016
Location: Paris, France
What’s Unique: Payfit is a French payroll software solution that debuted in April 2016. Unlike other French payroll vendors that use on-premise software, Payfit is a Software-as-a-Service (SaaS) company, where customers pay a monthly subscription. Payfit includes many payroll features, such as automatic processing, tax withholding and employee self-service. Employees can view their paychecks and request time off. Payfit provides data import for companies with more than 20 employees. They also provide dedicated payroll specialists who can answer complex payroll or tax questions. Users can contact customer support via email, chat or phone.
2. Square Payroll
Date Founded: June 2015
Location: San Francisco, CA
What’s Unique: Square is a commerce provider designed to help buyers and sellers engage in commerce easily. They provide solutions, such as point-of-sale systems, employee management and analytics, to name a few. Its payroll solution, Square Payroll, is targeted to small businesses in retail and other service-based industries. Users can run payroll in just a few minutes by importing employees’ hours from the integrated Square time-tracking app. Square handles all taxes, including withholdings, payments and filings. Employees can also view their paychecks, set up their direct deposit preference and fill out a W4 form. Other features include time off tracking, workers’ compensation and automatic overtime calculation. Square Payroll costs $20 a month plus $5 per employee. Square Payroll is currently only available in 12 states, but plans to expand to all 50 in the future.
Date Founded: 2012
Location: Kitchener, Ontario, Canada
What’s Unique: Wagepoint is another payroll software provider that’s targeted to small businesses. It includes payroll features, such as calculations; deductions; federal, state and local taxes; wage reports; and new hire reporting. Wagepoint also handles contractor payments, as well as 1099, W2 and W3 forms. It integrates with accounting and time-tracking software, such as Xero, Quickbooks and SwipeClock. There is a 30-day free trial and pricing starts at a $20 base price plus $2 per employee per pay period.
Date Founded: 2010 (Payroll function launched in 2012)
Location: Toronto, Ontario, Canada
What’s Unique: Wave is a cloud-based solution that provides accounting, invoicing and payroll functions in one solution. Although it’s targeted to companies with less than 10 employees, Wave can also be used by larger companies. Its payroll solution is available as a monthly subscription. The base price is $15 plus $4 per employee for companies with 10 employees or less and $2 per employee for companies with 11 employees or more. Wave’s payroll features include an employee self-service portal; direct deposit and check printing; year-end filing; payroll reminders; and free email, phone and chat support.
Date Founded: 2015
Location: Brooklyn, NY
What’s Unique: FingerCheck is a time and attendance solution that launched FingerCheck360 in late 2015. FingerCheck360 is a workforce management solution that combines both time tracking and payroll in one platform. The data of employees’ time worked automatically is transferred to payroll and the solution alerts the payroll processor of any missing or inaccurate information. The payroll processor can enter in additional payroll criteria such as bonuses, deductions or commissions, and payroll is then automatically processed. Both check printing and direct deposit is supported. Employees can receive notifications directly from FingerCheck that their direct deposit has been made. FingerCheck also offers businesses the option to pay employees via pay cards. Additional HR features is standard within FingerCheck360, such as onboarding, applicant tracking and workers’ compensation. FingerCheck360 is priced per month at a $35 base price plus $6 per employee.