The process of payroll can be complicated and confusing, but a payroll service or software can make it much simpler. You can do payroll in-house by a dedicated IT or HR department, you can outsource it to a payroll service provider, or you can use a payroll software.

Payroll software is software that simplifies and automates the process of paying a business’s employees. Payroll software will compute employee benefits and deductions, calculate and fill employment taxes, produce pay slips, process, and deposit payment directly to the employee’s bank account, print checks, produce reports, and void payments if needed.

But what is the best payroll service for you? I’m going to make this very simple for you, by giving one recommendation and one alternative based on the size of your business. Of course, large businesses already have their favourite software, so we will just skip this part for now.

Small Business: Gusto

Gusto is a cloud-based platform that combines payroll, benefits administration, HR and Compliance features in a single package. It’s designed for small businesses to help them manage their HR needs and more. Today, Gusto is used by over 40,000 businesses thanks to its very well-designed interface and excellent features – that include payroll features. Gusto offers a free trial and their pricing start at $39/mo. Basic fee plus $6/mo. Per person.

Alternative: Intuit Payroll

Intuit Payroll was designed to provide a scalable payroll package that is easy to integrate with QuickBooks accounting software for more functionality. Intuit Payroll can handle the processes of collection and reporting of all payroll-related taxes. The service offers a handful of helpful tools for business and it is available in several plans that vary in included services, features, and price.

Med-Sized Business: Xero

Xero’s accounting platform can handle invoicing, inventory, bills management, project tracking, and bank connections and reconciliation. Over half a million businesses and sole accountants are using Xero today thanks to its great features that include online payment, business performance dashboard, sales tax calculation, multi-currency support, financial reporting, mobile apps, and more. However, it should be noted that Xero’s payroll feature is only available for UK, US and Australian businesses, and comes as part of the more full-featured plans. For each package, UK users can add up to 5 payroll employees for free for 6 months (£5/mo thereafter), plus £1/mo for each additional person, to a maximum of 200.

Alternative: ADP Workforce Now

ADP Workforce Now is a cloud-based HR application that is designed for small and medium-sized businesses to help them streamline and automate their core HR responsibilities. Businesses can manage employee payroll, benefits, holidays, and time and attendance from a single dashboard. They can also generate insightful reports from this same dashboard. For a more detailed look into ADP, you can check out this ADP Vs Paychex VS Paylocity Comparison.

If you still haven’t settled on a payroll service, I recommend you take more time to read about the benefits and pricing of Payroll Software.