Choosing the right payroll software for your business is a decision to take seriously.

You’re essentially investing in the future of your company, and you want to be sure that you get it right. Buying a payroll service that doesn’t have what you need could result in payroll mistakes. That could cost your business a lot of money.

Selecting the right payroll service doesn’t need to be a stressful decision. You just need to follow these steps to find the right solution for your business.

Let’s get started!

Evaluate Business Needs

Your business has its own unique situation that requires a payroll provider to meet your needs. These are the top questions you want to ask yourself as you start the process.

  • How many people do you have on payroll?
  • Are they employees, contractors or both?
  • Do you offer benefits to your employees?
  • How many users will need to access your payroll services?
  • Will they need access from several locations or just one location?
  • Does your payroll manager understand the legal and regulatory requirements of payroll processing?
  • Do you have a budget in mind for payroll services?

Knowing these questions in advance will help you narrow down your options. You’ll get a much better sense of features that you’ll need from your payroll services.

Understand the Pricing Model for Payroll Systems

Software providers usually have a base cost for the software, and then there are additional costs. It will depend on the needs of your business and the features you require. There may also be costs for the number of users.

Some providers will charge you according to how many employees you have and how often you run payroll.

Key Payroll Software Features

Knowing what features you’ll need from your software solution is a big step. To take full advantage of the benefits of payroll services software, you want to choose a solution that has the features you need.

Online vs. Offline Payroll Software

As you’re evaluating payroll services, you’ll come across two options, offline and online payroll services. The main difference is convenience.

Online payroll systems let you access your system from anywhere at any time. Everything is hosted in the cloud, so you don’t have to invest in the infrastructure to set up and install the software.

Offline systems are installed directly on computers in your office. You’re responsible for the infrastructure and the maintenance of those computers to make sure that you can access the payroll information that you need.

Direct Deposit

Almost 82% of workers are paid through direct deposit. Most people expect to be paid via direct deposit because it’s more convenient for everyone.

Your payroll service should be able to handle direct deposit for your employees and contractors.


Not many people like taxes. The tax law is complex, and it can be easy to make a mistake. If the thought of the IRS stresses you out, you can choose a payroll provider that automatically takes care of tax payments for you.

If you’re a small business looking for payroll services, you can always start with a service that has what you need now and add-on features as your business grows.

Supplemental Wages

Does your business offer bonuses or pay employees commission or tips? These are considered supplemental wages and they’re taxed differently than regular wages. You’ll need a payroll software service that can handle supplemental wages.

Integrations with Other Systems

Do you have systems for timesheets, payroll, and human resources? You’ll need to ensure that your payroll system can easily integrate with your systems.

Will your software provider be able to integrate with the solution or do they offer their own solutions?

Easy to Use

Employees typically don’t like change. The last thing you want is to invest in software that employees don’t like to use because it’s not intuitive to use.

You want to invest in software that’s easy for employees to pick up and understand. The less training that’s required to use it, the more likely they are to adapt and use the software.

Customer Service and Support

Payroll services will offer a lot of the same features and will be similar in costs. The biggest differentiator in choosing a provider will be customer service.

You’re going to want to know what kind of training and support you have as you’re setting up the software.

Most importantly, you want to trust that if an issue arises, you’ll have someone that you can contact directly to solve it.

Take note of how you can contact providers. Do they have a phone number to call, online chat, or email? Try contacting them with questions to see how responsive they are.

Security Measures

One of the most important things to look at in a payroll system is security. Small businesses are the targets of hackers at alarming rates.

One breach in your systems could wreak havoc on your business. Your employees’ sensitive data could be compromised. That could lead to other issues like ID theft. They could also lose trust in your business.

You want to be certain that the payroll solution that you choose offers the highest levels of security.


How would you like to have easy access to payroll reports at your fingertips? That sure beats trying to figure out Excel spreadsheets. You’ll want to have a software solution that offers monthly, quarterly, and annual reporting so you can see exactly where your payroll is at.

Choose the Right Payroll Service for Your Business

There are a lot of options available for small business payroll services. Finding the right payroll software solutions starts with understanding your business needs.

You want to invest in a payroll solution that can accommodate your business needs now and grow with your business in the future.

As you’re looking for payroll services for your business, you’ll want to consider all of your options. Contact us today for a quote and let us help with your business needs.