Top 3 Payroll Software: Comparison of OnPay, Deel and Gusto

Keeping payroll running smoothly is a vital responsibility for any business. It’s about ensuring your team is compensated fairly, benefits are managed, and tax obligations are met. The right payroll management software simplifies this complex process, helping you achieve business goals and offer valuable benefits.

In this guide, we’ll introduce three top-tier payroll solutions. OnPay is a user-friendly, comprehensive platform for small to medium-sized businesses. For global workforces, Deel excels in international hiring, payments, and compliance. Gusto provides robust automation and HR support for US-based businesses.

This article offers an in-depth look at these top 3 payroll software options, exploring how they handle payroll processing, taxes, benefits, and HR. Our aim is to provide the clear insights you need to make a confident choice for your business.

One of the most critical and often daunting tasks facing businesses, whether local or global, is maintaining precise control over payroll processes while ensuring absolute compliance with an ever-evolving landscape of regulations. Before you even hire new employees, for instance, understanding these requirements and potential challenges is paramount. Failing to do so can lead to stiff penalties, legal risks, and significant operational headaches.

This complexity is further compounded by new legislation, both domestically and internationally. It’s easy for businesses to fall behind on meeting new laws, inadvertently inviting unwanted attention from tax authorities. Despite these challenges, many businesses still rely on outdated methods; a 2023 survey revealed that 51% still used spreadsheets and 19% used manual/paper-based methods for payroll. This highlights a critical need for more robust solutions.

The good news is that capable technology can address these challenges. Modern payroll software constantly updates with the latest regulations, allowing you to focus on core business objectives. These systems offer compelling reasons to get a payroll software beyond mere calculation.

For instance, a robust payroll solution can seamlessly help with crucial employee benefits. In the US, this includes managing aspects like funding the 401(k) of your employees. Such offerings are just one of the many benefits that make dedicated payroll software essential for your company.

Beyond compliance and benefits, businesses are increasingly recognizing the strategic value of payroll data. Insights from this data are a major consideration for informing strategies such as cost management and commercial growth. Reviewing the best payroll management software can help you manage taxes and benefits accurately and on time, providing peace of mind and supporting your strategic goals.

Here’s an overview of the top 3 payroll management software.

1. OnPay

OnPay is an easy-to-use yet comprehensive payroll management software for small to medium-sized businesses. This cloud-based service streamlines payroll, automates tax filing, and integrates benefits like health insurance and 401(k) retirement plans. It ensures accuracy and compliance, making your management straightforward.

You’ll find OnPay both affordable and efficient, offering unlimited payroll runs for W-2 employees and 1099 contract workers each month. Flexible payment options, including checks or direct deposit, are also provided. OnPay expertly handles payroll taxes, calculating, withholding, paying, and filing all state and federal taxes for you. They offer an accuracy guarantee, taking responsibility for any errors. This commitment ensures you avoid inaccuracies and oversights.

OnPay

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With its clean, intuitive interface, OnPay delivers strong value. This cost-efficient solution bundles services based on your employee count, growing with your business. It’s an ideal partner for effective employee management and HR needs, with pricing starting at $40/month base pay and $6/month per employee, and a free trial available.

2. Deel

Deel is a leading global people platform, expertly designed to help companies compliantly hire, pay, and manage anyone, anywhere. It brings together global payroll, HR, and compliance into one powerful system. This allows businesses to manage their entire international workforce from a single, easy-to-use platform.

What truly sets Deel apart is its owned infrastructure in over 130 countries, unlike traditional providers relying on fragmented third-party networks. This means faster onboarding, more reliable payroll, and fewer compliance risks for contractors or employees. Deel simplifies every step of global workforce management, from localized contracts and tax filings to benefits, immigration, and expense tracking.

Deel

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Trusted by over 25,000 businesses, Deel combines automation, real-time visibility, and expert support to make international hiring seamless. It integrates smoothly with essential business tools like your accounting software, Slack, and BambooHR, syncing data and accelerating workflows. Deel offers various pricing plans, including Contractor Management at $49/contractor/month and Employer of Record (EOR) at $599/employee/month, with many other services available by quote or tiered pricing.

3. Gusto

Gusto is an online HR services tool designed to simplify the complex processes of payroll, benefits, and HR for modern US-based businesses. It offers a solid set of payroll features, coupled with an unusually well-designed user interface, and impressive innovation and automation functionalities. This makes it a highly intuitive platform for managing your team.

The platform excels at automating the calculation, payment, and submission of your company’s payroll taxes at all government levels. It ensures businesses can pay through bank deposit or check options, automate calculations, and handle year-end forms to avoid critical errors. When you need to integrate health benefits or other perks, Gusto provides an intuitive way to manage these, consulting with licensed advisors to tailor plans for your needs.

Gusto streamlines HR by consolidating all employee data, from emergency contacts to new hire documents, in one accessible place. This helps comply with standards like HIPAA and makes HR management more transparent. For a comprehensive look at whether this platform aligns with your specific needs, considering the pros and cons of Gusto can provide valuable insights.

Gusto offers scalable plans, with pricing starting at a $40 base fee plus $6 per person for its Simple Plan, which includes full-service payroll. Other plans like Complete and Concierge offer additional features at higher price points, with a free trial available after your first payroll run.

Comparison of Features

Payroll Processing

Gusto sports a clean, intuitive opening screen.

Payroll software is designed to make payroll easier and faster. Gusto, OnPay, and Sage 50cloud Payroll offer just that. With Gusto, you can automatically sync team hours. You can then go over hours and pay to make sure that everything is in order before sending everyone their pay.

OnPay also prides itself on its easy-to-use payroll platform. The system allows you to easily make direct deposits, checks, or prepaid cards as needed. You are also able to fully customize the payment experience as needed.

Lastly, Sage 50cloud Payroll is specially designed for small to medium-sized businesses. It covers basic payroll for all employees and helps calculate everything from multiple pay rates to time off accruals.

All three software guarantees accuracy and security when it comes to handling your payroll. So, anyone of these can be used by your business, depending on size.

Verdict: All three payroll software guarantee accurate calculations. Sage 50cloud Payroll is the best option for those working with smaller teams, and Gusto or OnPay for those with growing ones.

Tax Management

OnPay and Gusto calculate, pay, and file all payroll taxes for you. OnPay has tax information on all 50 states, making it an ideal payroll system for companies with branches across the country. Both platforms also provide all the necessary forms related to taxes, so you are always sure that everything is in order.

On the other hand, Sage 50cloud Payroll takes care of tax requirements, automating the processes while ensuring you are on the safe side of compliance.

Verdict: All three solutions offer automatic tax management for a more accurate tax calculation and easy filings for every employee. Sage 50cloud Payroll handles compliance well, which is crucial for businesses, essentially owning this round.

Benefits Administration

OnPay screen showing payroll deduction, 410k and 403b.

When it comes to benefits, Gusto is the leader. The software offers health, retirement, and even a 529 college savings plan. It allows employers to easily provide these benefits to their employees at no extra cost.

Meanwhile, OnPay allows employers to input their benefits like insurance, 401(k), and insurance integrations including life, vision, disability, and more. Sage 50cloud Payroll automatically calculates statutory sick, maternity and paternity pay among others.

Verdict: Gusto offers the best benefits administration among the three payroll software, though Sage 50cloud Payroll is not far behind for UK workers.

Human Resources Feature

Aside from basic payroll, taxes, and benefits, another feature some payroll software has is HR software.

Gusto’s Concierge Plan offers HR tools. With it, you can make sure that your company stays compliant with everything related to HR. A dedicated team of experts sends law alerts to your HR team to inform you of any rule changes. In this way, you stay compliant and avoid fines along the way.

OnPay offers an HR library and comprehensive tools for HR. These include E-Syncing, Online forms, compliance audits, and automated onboarding flows.

Sage 50cloud Payroll offers basic HR functionality, which should be enough for many of its target markets, the small and medium-sized businesses.

Verdict: OnPay already has HR software features integrated with their payroll plan. It is the best option for companies looking for a payroll and HR software in one.

Integration

You can easily integrate OnPay with QuickBooks and Xero, among other third-party applications.

All three payroll software offers integration with other applications. All of them are compatible with QuickBooks Online.

Sage 50cloud Payroll readily integrates with other Sage software solutions, prominent among which are Sage Payments, Sage NHS Pensions Module, Sage 50cloud Accounts among others. It also easily integrates with Microsoft Office applications.

Gusto and OnPay are compatible with many different types of software like Accounting, Time Tracking, HR & Compliance, and business tools.

OnPay is compatible with 401(k) software Guideline America’s Best 401k, and Veswell, as well as Small business lending partner Kabbage.

Verdict: If you’re already using other tools, OnPay offers the best integration options among the three. However, if you’re looking to use a single platform for your payroll, then Sage 50cloud Payroll is a better choice as it integrates seamlessly with other products from Sage.

Pricing

Sage 50cloud Payroll is priced at £19.50 or US $25.52 per month for up to 15 employees for the Standard plan and £66 or US $86.36 per month for up to 50 employees for the Professional plan. For a solution that basically covers all payroll needs, compliance and other modern features, Sage 50cloud Payroll pricing plans are easily affordable for small and medium-sized businesses.

OnPay, on the other hand, starts at $36 base fee and $4 per employee monthly. OnPay offers everything you need to run payroll and accounting. It also comes with special payroll features to accommodate all types of businesses like restaurants, churches, and non-profit organizations.

Lastly, Gusto has the most expensive plan and has three plans currently available: Core, Complete, and Concierge. Core is their most affordable plan starting at a $39 base fee and $6 per employee monthly. It offers a full-service payroll, self-service for employees, as well as health benefits and worker’s comp administration.

The Complete plan starts at a $39 base fee and $6 per employee monthly. It has everything Core offers with additional features. These features are employee offers and onboarding, time tracking, PTO policies, as well as an employee directory.

Concierge is the most expensive plan. It starts at a $149 base fee and $12 per employee monthly. It has all Core and Complete features, plus certified HR pros and an HR resource center.

Verdict: Sage 50cloud Payroll provides the most reasonable price range among the three. But the best value for your money goes to Gusto. It has everything you need to handle employees for enterprises of any size.

Finding the Best Payroll Management Software for Your Business

After reading about the top 3 payroll management software, you should now be able to decide which features you need for your business.

Sage 50cloud Payroll is best suited for small and medium-sized businesses. It’s loaded with all the modern payroll features, with auto-compliance features to boot. 

Gusto fits growing businesses the best. Small teams can start with the basic plan and scale to more advanced features over time as the team grows. Overall, Gusto provides greater flexibility to expand, whether you’re a startup or a mid-sized business.

Whichever payroll management software you choose for your business, it is sure to help boost productivity and save you time along the way.

As the leading application in this review, Gusto pretty much covers all your payroll needs. Better still, it comes with essential HR solutions that eliminate the need to invest in another application. If you want to check its comprehensive feature set, you can easily sign up for Gusto free trial here

By Daniel Epstein

Daniel Epstein is a senior financial research analyst at FinancesOnline and the architect behind our Fintech and ERP content division. His main areas of expertise are blockchain technologies, cryptocurrencies, and the use of biometrics in fintech solutions. His work has been frequently quoted by such publications as Forbes, USA Today, Entrepreneur, and LA Times. With more than 1,800 solutions scrutinized in the last 5 years spent on our team he always prioritized offering readers an unbiased perspective on modern financial technologies.