Frequently Asked Questions

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What is online payroll?

Online payroll services allow a business to create employee paychecks using a standard web browser. There is no software to install; if you are able to surf the Internet, you can use an online payroll service. Despite the relative simplicity of a web-based interface, the leading online providers (listed below) offer rich capabilities such as handling a broad range of deductions (e.g. federal and state tax withholding, insurance premiums, retirement or spending accounts), multiple state witholding, or multiple company sites.

Why should I consider using an online payroll service?

Online payroll services require no upfront cost, allow paying month to month, and are generally less expensive than other payroll outsourcing services. There is no need to go through a messy software install, and little fear of a system crash or data loss (reputable online providers build highly reliable systems with robust backup procedures that exceed the level of care and energy most of us would spend on our own computers). Online payroll services also make it easier to share data with other people (such as colleagues, or your accountant) and allow collaboration in processing payroll. Finally, online payroll means anytime, anywhere access—as long as you have access to an Internet web browser, you can run payroll.

What are the major online payroll services?

The leading services are Intuit, PayCycle, and SurePayroll. Compare these providers and find which one is best for you at our Online Payroll Buyer’s Guide.

How much do online payroll services cost?

Online payroll can cost as little as $19.99/month, but most smaller businesses (under 20 employees) should plan on paying $50–100/month, with larger businesses paying in the low hundreds per month. Find out exactly how much the leading providers would charge your business by visiting our Online Payroll Buyer’s Guide.

What should I consider in choosing an online payroll service?

While the needs of each business differs, most companies considering online payroll will focus on price, ease of use, customer support, and ability to process state taxes relevant to its location(s) (each payroll service handles taxes only for specific states).

Can I start using online payroll services midyear?

Yes. However, if you have already paid employees this year, you will need to enter the prior payroll data so that the calculations are correct. Each of the services reviewed on this site will lead you through a questionnaire to collect the necessary information.