Top 10: Online Payroll software

Updated: August 01, 2023

Online payroll software is a digital tool that automates and streamlines the process of managing payroll for businesses. This software simplifies the complexities of payroll calculations, tax deductions, and employee payments, making it an efficient and accurate solution for payroll management. Online payroll software typically offers features such as time and attendance tracking, direct deposit options, and tax compliance management, ensuring that employees are paid accurately and on time while complying with legal requirements. With cloud-based accessibility, employers and HR teams can access payroll data and reports from anywhere with an internet connection, enabling remote management and reducing administrative burden. Online payroll software benefits businesses of all sizes, saving time, reducing errors, and improving payroll efficiency, ultimately contributing to better employee satisfaction and streamlined payroll operations. Some of the most popular online payroll software options are listed below.

See also: Top 10 Talent Management Systems

2023. Wingspan raises $14M for its all-in-one payroll platform for contractors

Wingspan, a payroll platform designed for contractors, has secured $14 million in funding. While numerous payroll platforms tailored for contractors already exist, such as Gusto, Deel, and Payable, as well as those offered by established payroll providers like Square, Wingspan offers a unique all-in-one platform that integrates payroll, benefits, and onboarding for freelancers. By consolidating multiple categories of tools commonly utilized by mid-market businesses, Wingspan offers onboarding and management tools that enable companies to invite contractors via email, conduct background checks, and make same-day payments. Contractors can also independently add their bank account details, W-9 forms, and any necessary e-signed documents.

2022. banks $27M for its new approach to providing workers comp and payroll for hourly wage workers, an app designed to track working hours, automate payroll, and calculate workers' compensation insurance, has secured approximately $27 million in funding. While is not the sole startup addressing this market, it is actively addressing the fundamental challenges of organizing and compensating hourly workers. Other companies that have also received funding in this space include Homebase, a team management app; Fountain, a platform for sourcing and hiring hourly workers; Shiftsmart, a platform for connecting shift workers with employers; Wagestream, a comprehensive financial app for waged workers; When I Work, a shift scheduling management solution, among many others.

2021. Payroll automation startup Pento raises $15.6M

Danish payroll automation startup, Pento, has secured $15.6 million in funding. The company proudly serves a diverse range of 700 companies, including notable tech firms such as Pleo and Cuvva, prominent hospitality brands like Honest Burgers, as well as recognized retail and e-commerce brands such as Lacoste and Beauty Pie. Pento offers a cloud-based solution that replaces traditional spreadsheets, providing users with real-time calculations, enhanced transparency, and comprehensive online and telephone support. While Payfit is a prominent player in the same market, having raised over $208.4 million, it offers a broader range of services, potentially leaving it more vulnerable in terms of focus and specialization.

2021. Figure raises $7.5M to help startup employees better understand their compensation

Figure, the data-driven platform that aims to assist companies in structuring their compensation plans and transparently communicating them to candidates, has successfully secured $7.5 million in seed funding. Figure's objective is to enhance workflows and transparency regarding pay, especially in terms of equity. Another core aspiration of Figure is to contribute to the creation of a more equitable and balanced decision-making process concerning pay and equity, ultimately reducing the prevalence of inequality. Significantly, Figure strives to eliminate certain biases associated with these decisions by systematizing the entire process.

2021. PayFit raises $107 million for its payroll and HR platform

The French startup PayFit has successfully secured a $107 million series D funding round for its payroll and HR software-as-a-service platform. This platform allows users to conveniently handle their payroll tasks through a web browser and automate various processes. For example, users can set up automated payslip generation, export payroll data to their accounting software, and receive a comprehensive list of payments required for pensions, health insurance, and other related expenses.

2020. Finch raises $3.5M to build out its HR and payroll-focused API business

Finch, a promising startup dedicated to liberating HR and payroll data, has successfully raised $3.5 million in funding. Finch provides customers with seamless access to payroll and HR data through its robust API. The company offers a free version of its product, targeting developers, as well as a paid version with flexible pricing options, including pay-as-you-go or a SaaS-like subscription model. Finch's value proposition extends to three key areas: financial software, lending and insurance sectors, and the rapidly growing HR and benefits software market. By operating in these domains, Finch aims to empower businesses and enhance their operations by facilitating efficient data integration and analysis.

2020. Everee raises a $10M Series A to scale its worker-friendly payroll software service

Everee, a SaaS startup specializing in payroll management, has recently announced the successful closure of a $10 million Series A funding round. Everee offers a unique approach to payroll by providing more flexible payout options. Instead of the traditional bi-weekly payments, the service allows workers to choose from payout frequencies such as twice-weekly, every two weeks, or monthly, through its lower-cost service. Additionally, their higher-priced service enables workers to cash out their earnings on a daily or weekly basis. Apart from payroll management, Everee offers standard features expected from a payroll service, including onboarding and timecard management. The pricing structure, starting at $15 per worker per month for the cheaper service (with reduced rates for more employees), aligns closely with the competition, according to the company.

2019. Payroll software for small business Gusto raised $200M

SMB payroll startup Gusto has successfully raised $200M in Series D funding. This significant investment will be utilized to expand both the company's product line and team. While Gusto primarily focuses on payroll services, it aims to diversify its offerings by introducing two additional products in the future. One area of development revolves around fintech features, such as Flexible Pay. This innovative product enables employees to receive their unpaid wages in advance, with the ultimate aim of reducing their reliance on high-interest payday lenders. The second product category pertains to healthcare, with Gusto aiming to assist SMBs in providing insurance benefits to their employees. Over the past year, Gusto has achieved an impressive milestone by surpassing 100,000 customers. Considering that there are approximately six million small businesses operating in the United States, this demonstrates Gusto's significant market presence and potential impact.

2019. Zoho released payroll software Zoho Payroll

Zoho has introduced a new cloud service called Zoho Payroll with the aim of simplifying payroll management on a location-by-location basis. Currently, it is catering to the payroll requirements of businesses in California and Texas in the United States, and has plans to expand to other states in the near future. Zoho Payroll offers a convenient solution for processing payroll efficiently and ensuring timely payment to employees. It enables the generation of accurate gross-to-net pay-slips, providing a detailed breakdown of earnings, taxes, allowances, and deductions. The service provides flexibility in choosing your payroll schedule, allowing for custom one-time or recurring deductions, the option to share password-protected payslips, and the ability to pause pay runs for employees on unpaid leaves. Zoho Payroll offers a comprehensive range of features at an affordable price of ₹50 per employee per month, billed annually, with a minimum requirement of 20 employees. Additionally, a mobile app for employees is available free of charge on both iOS and Android platforms.

2018. ADP acquired workforce management service WorkMarket

Payroll provider ADP has acquired WorkMarket, a startup specializing in workforce management software designed for a diverse range of employees and contractors. The software aims to provide a unified interface for efficiently managing an extended workforce, encompassing various workers with different employment statuses, such as contractors, freelancers, and full-time employees. WorkMarket offers comprehensive features including payment systems, extended employee network management, and a marketplace for assembling a workforce that complements a company's operations beyond the scope of traditional full-time employees. This acquisition empowers ADP to offer enterprises an expanded suite of workforce products, strengthening its position as a leading provider of payroll solutions.

2015. Zenefits launched own payroll platform

Cloud-based HR service, Zenefits, has introduced its own payroll system following its disconnection from paycheck services giant ADP earlier this year. While Zenefits initially partnered with ZenPayroll, the latter rebranded to Gusto in September and released a set of free HR services that closely resembled Zenefits' offerings. The newly launched Zenefits payroll system operates in two modes. The first is a free, fully automated service that seamlessly integrates automatic payments with employee deduction updates for health, retirement, and other benefits. Additionally, there is a pro mode available for users who prefer more control over the backend. Zenefits Payroll Pro starts at $25 per month, with an additional $4 per employee per month on an annual contract. Furthermore, the new system offers integration with QuickBooks and Xero, enabling smooth connectivity and data synchronization.

2015. ZenPayroll rebrands as Gusto and takes on Zenefits

Payroll startup ZenPayroll, which now goes by the name Gusto, has broadened its range of services from solely payroll to include additional benefits like health insurance and workers' compensation. This development has sparked a rivalry with Zenefits, a cloud HR benefits company that previously collaborated with Gusto to offer payroll services to its clients. The partnership between Zenefits and Gusto proved crucial earlier this year when ADP, a major player in the payroll industry, terminated its access for Zenefits' small business customers. Zenefits turned to Gusto (previously ZenPayroll) to handle their payroll processing needs. Interestingly, Zenefits is also planning to introduce its own payroll service, mirroring Gusto's offerings. This turn of events has transformed the partnership between these cloud-based startups into a competition, as both aim to provide comprehensive payroll and benefits services on a unified platform.

2015. Square launched payroll service for small businesses

Mobile payment startup Square has introduced Square Payroll, a software solution designed to assist businesses in managing payroll, tracking taxes, and handling other expenses related to both hourly and salaried employees. The pricing for this product is set at $20 per month, with an additional charge of $5 per employee. Square aims to position itself as a relatively straightforward and uncomplicated option within the payroll software market, at least for the time being. The software includes features such as timecard management, tax management, and the capability to handle payments for both hourly and salaried workers, all bundled together at a single price. Square Payroll enters a competitive landscape, facing established players like Intuit's QuickBooks, ADP, Paychex, and others. While some competitors like Wave Accounting offer similar features, they may not provide the complete range of services offered by Square Payroll. For instance, Wave Accounting does not handle tax payments or tax filings, only estimated tax liabilities. Additionally, Wave Accounting offers lower pricing, with two base tiers starting at $10 and $15 plus an additional $4 per employee.

2015. Payroll giant ADP cut off Zenefits small business clients

Corporate payroll company ADP has implemented a restriction that prevents small business clients who use the ADP RUN payroll system from sharing data with Zenefits. This decision was made due to concerns about Zenefits' data security practices, as they were found to be extracting sensitive information, including unmasked Social Security numbers and employee banking details, in a manner that does not align with ADP's data security standards. Zenefits expressed their dissatisfaction with ADP's actions, highlighting that this change was sudden and unexpected for their clients. Zenefits offers human resources (HR) services to small and medium businesses and collaborates with various third-party partners, such as ADP, to facilitate tasks like payroll processing and insurance provision.

2015. Cloud-based payroll service ZenPayroll scores $60 Million

Cloud-based payroll processing startup, ZenPayroll, has successfully concluded a Series B funding round, raising $60 million with Google Capital as the lead investor. ZenPayroll primarily targets the small business market, providing an alternative to manual payment and direct deposit processing. Its user-friendly, cloud-based interface offers convenience and efficiency, enabling ZenPayroll to compete with established industry leaders such as Paychex and ADP. While Paychex and ADP have transitioned to the cloud in recent years, allowing their existing customer bases to manage payroll online and via mobile platforms, ZenPayroll's recent funding round empowers it to target larger businesses currently serviced by Paychex and ADP.

2015. Xero launched cloud payroll service in US

Cloud accounting startup Xero has unveiled a new product that expands its reach into the back-office realm by offering cloud-based payroll and tax software. Known as Xero Payroll, this solution specifically caters to the needs of over 5 million small businesses in the United States with less than 20 employees. Payroll management can often pose a significant financial burden for these employers, costing between $200 and $500 per month when outsourced to third-party providers. Apart from the outsourcing expenses, there is also the risk of human errors and potential penalties due to incomplete or inaccurate information. Xero Payroll aims to address these challenges by providing small and medium-sized businesses (SMBs) with a cloud-based platform similar to its accounting software. This platform enables seamless employee payment processing and facilitates the electronic filing of state and federal payroll taxes.

2013. Xero Launches New Features and Plans for a Payroll Solution

Xero, the cloud-based accounting solution designed for small businesses, has introduced a range of new features. One of the notable additions is Xero Touch, an updated version of its mobile app for Apple's iOS7. With Xero Touch, users can conveniently perform various tasks directly from their smartphones, such as checking bank transactions, creating invoices, and communicating with their accountant. Additionally, Xero has introduced Xero Files, a user-friendly drag and drop application. This feature enables users to easily upload and attach files such as invoices, expense receipts, contracts, and more, making them readily accessible and organized within the system. Furthermore, Xero Purchase Orders now allows businesses to create purchase orders in a similar manner to how they can generate invoices in Xero. The pricing for Xero's services starts at $19 per month for small businesses, which may vary depending on the volume of invoices and payments processed.