What Is the Best Payroll Software for a Small Business With 10 Employees?

Managing payroll for 10 employees involves more than cutting checks. You’re tracking hours, calculating overtime, filing small business payroll taxes, handling direct deposits, and managing time off-all while running your business. The best payroll software should handle these tasks without adding unnecessary costs or complexity.

For a small business with 10 employees, the best payroll software depends on whether you prioritize affordability, automated tax filing, employee benefits, or built-in time tracking. Friday is a strong choice for businesses looking to manage payroll, employee hours, and PTO within one platform. Other options, including Gusto, QuickBooks Payroll, OnPay, and ADP RUN, may be better suited to businesses with different needs.

What Is the Best Payroll Software for a Business With 10 Employees?

There is no single best payroll software for every 10-person business. The right choice depends on whether you need integrated time tracking, deep benefits administration, tight accounting integration, or broad HR services. Here’s how five leading solutions line up for small businesses at this size:

1. Friday App – Best for integrated payroll and employee time tracking
2. Gusto – Best for businesses prioritizing employee benefits and HR
3. QuickBooks Payroll – Best for businesses already using QuickBooks
4. OnPay – Best for straightforward, affordable payroll with HR support
5. ADP RUN – Best for growing teams needing broader payroll and HR services

Real-world needs should guide your final choice. A business with mostly hourly staff needs reliable time tracking integrated into payroll. A company expanding to multiple states needs multi-state payroll support. A team heavily using QuickBooks wants seamless integration with their accounting software. And a business offering health insurance needs strong benefits management.

Here’s a useful comparison to consider: if you’re using a payroll-only plan at $109 per month and adding a separate time-tracking app at $50 to $80 per month, your real cost is $159 to $189 per month-potentially close to or exceeding Friday’s $179 all-in price, but with two separate systems to manage.

The rest of this article dives deeper into Friday and then compares it in detail with Gusto, QuickBooks Payroll, OnPay, and ADP RUN.

Why Friday App Is a Strong Choice for Small Businesses With 10 Employees

Friday is payroll software for small businesses built for owners with roughly 1 to 100 employees, which puts a 10-person team squarely in its core range. It combines payroll, time tracking, PTO, a kiosk app, mobile apps, and built-in team messaging in one platform. Instead of juggling separate tools, business owners handle payroll processing, payroll taxes, direct deposit, and pay stubs using the same hours employees log through the time clock-reducing errors and manual work.

Friday offers a 14-day free trial, no setup or transfer fees, free migration, and no contract or cancellation fee, making it easy for a 10-person team to test it before switching from another payroll provider.

Payroll and Time Tracking in One Platform

Combining time tracking and payroll in one system is especially valuable for a 10-employee team. There are fewer imports, less manual entry, and more accurate overtime calculations when hours flow directly into payroll runs.

Friday’s built-in employee time tracking lets employees clock in and out from a computer, the mobile app, or a tablet-based time kiosk with facial recognition and PIN sign-in. In the mobile app, geofencing time tracking requires employees to be within a set radius of an approved job site to clock in, and IP address restrictions can limit clock-ins to an approved network. Payroll software should integrate time tracking and attendance processes, and Friday does this natively rather than relying on third-party connectors.

Job and customer tracking lets owners tag hours to specific projects or clients. This is useful for contractors, home service businesses, and agencies that need to see how labor costs connect to revenue.

Because the time data lives in the same system as payroll, approved hours flow directly into payroll runs without spreadsheets or CSV exports. Employers set a weekly overtime threshold (40 hours by default), can add a daily threshold where state rules require one, and choose how lunch and breaks count. Friday then calculates regular and overtime hours under the rules you set.

Here’s what that might look like in practice: a 10-person café where six baristas and two cooks clock in on a tablet kiosk each shift. The manager reviews timesheets at the end of the week, then runs payroll in a few clicks. No re-entering hours, no spreadsheet formulas, no third-party imports.

Automated Payroll and Tax Filing

Friday’s payroll plans include unlimited payroll runs, tax filing and compliance, and W-2s and 1099s at no extra charge. The software supports all 50 states; paying employees in more than one state requires the Small Biz Pro plan. Automated tax calculation and filing should be included in payroll management systems, and Friday checks that box.

Key automated payroll features include:

• Automatic gross-to-net calculations
• Withholding of federal, state, and local payroll taxes
• Free direct deposit, plus printable checks and autopay
• Digital pay stubs employees can view and download through self-service on web or mobile

Tax filings, W-2s, and 1099s are all included with no year-end fees, which reduces the risk of late penalties for small business owners who don’t have a dedicated bookkeeper.

Employee self-onboarding lets workers enter their personal details and tax forms online, improving data accuracy and reducing admin work. Friday handles hourly wages and salaries in the same system, and supports other pay types such as commissions.

Readers should confirm which states and specific tax scenarios apply to their business by checking Friday’s plans and pricing or contacting the Friday team directly.

Simple, Transparent Pricing

As of October 2026, Friday’s Startup plan costs $59 per month base plus $12 per employee per month. For 10 employees, the math is straightforward:

$59 + (10 × $12) = $179 per month, or $2,148 per year.

The Startup plan includes:

• All Just Time features: real-time time tracking, mobile app, time-tracking kiosk, geofencing, IP restrictions, job and customer tracking, PTO requests, and exportable reports
• Unlimited payrolls
• Tax filing and compliance
• W-2s and 1099s included
• Direct deposits and printable checks
• Autopay and multiple bank accounts
• Employee self-onboarding and login
• QuickBooks integrations
• No setup or transfer fees

If your 10 employees work in more than one state, or you want PTO accrual policies, next-day payroll (subject to bank approval), multiple pay schedules, roles and permissions, or advanced job costing, the Small Biz Pro plan costs $99 per month base plus $16 per employee: $99 + (10 × $16) = $259 per month, or $3,108 per year.

A 10-employee business should look at total cost of ownership-not just base fees. If you’re currently paying one vendor for basic payroll and another for time tracking, Friday’s all-in-one pricing may be competitive even if the per-employee fee looks similar on paper.

Compare Friday’s current payroll pricing for your team size to see what’s included.

Designed for Small Business Owners

Friday is built for business owners and office managers who don’t have payroll specialists on staff and want software that’s quick to learn. You can sign up and run payroll in about 15 minutes without talking to sales. A small business with 10 employees should prioritize straightforward payroll processing without enterprise complexities, and Friday is designed with that principle in mind.

Usability highlights include:

• Self-serve signup with no required sales call, plus a support team you can call or chat with
• A payroll mobile app for running payroll and approving timesheets and time off on the go
• Employee self-service for viewing pay stubs, updating details, and requesting PTO via mobile
• Mobile apps and kiosk available in Spanish
• Automatic sync of completed payrolls to QuickBooks Online as journal entries, reducing manual journal entries

Friday is rated 5.0 on G2 and 4.2 on Trustpilot. Employee self-service portals enhance user experience and efficiency, which is especially valuable when there’s no HR department to field routine questions.

See how Friday simplifies payroll and time tracking for your small business with a 14-day free trial.

How Much Does Payroll Software Cost for 10 Employees?

Among the plans compared here, payroll software for 10 employees costs roughly $109 to $259 per month, depending on whether it includes automated tax filing, time tracking, multi-state payroll, and HR tools. Basic payroll-only plans for a 10-person business can run $50 to $150 monthly, but costs climb once you add time tracking, multi-state filing, or benefits. For a deeper breakdown, see how much payroll costs per employee.

Common pricing structures follow a base subscription plus per-employee monthly fee. Additional charges may apply for benefits administration, multistate payroll, advanced reporting, or same-day direct deposits.

Beyond these five, other payroll options exist at different price points. Patriot Software starts at $17 plus $4 per person per month, making it one of the cheapest entry points. TimeTrex charges $5 per person with a $50 minimum. Square Payroll costs $35 plus $6 per contractor per month. Deel’s pricing starts at $29 per employee per month and is designed primarily for international payroll. Payroll software options should vary depending on business needs, budget, and employee type.

Here’s a useful comparison to consider: if you’re using a payroll-only plan at $109 per month and adding a separate time-tracking app at $50 to $80 per month, your real cost is $159 to $189 per month-close to or above Friday’s $179 Startup price, but with two separate systems to manage. If you only need time tracking and already have a payroll provider, Friday’s Just Time plan is $9 per user per month with no base fee, or $90 per month for 10 employees.

Watch for hidden fees such as year-end filing charges, implementation fees, or extra costs for support upgrades. Always verify pricing directly on vendor sites before making a decision. Our guide to what it costs to run payroll covers the fees that don’t show up on pricing pages.

What Features Should Payroll Software Have for a 10-Person Business?

For a 10-employee small business, the right payroll software should cover core payroll features, payroll tax compliance, time tracking (especially for hourly employees), and basic PTO tools-without being overly complex. Friday covers many of these in a single platform, while other providers split them across separate modules or paid add-ons.

The goal is reducing manual admin: every feature should either save time, prevent errors, or help keep the business compliant with payroll regulations.

Automated Payroll Processing

Automated payroll processing means the software calculates wages, deductions, and net pay based on saved employee profiles and approved hours-so you don’t redo formulas each pay period. It also reduces administrative workload for small businesses, freeing up hours that would otherwise go to spreadsheets.

Look for: recurring payroll on multiple pay schedules, automatic overtime calculations, templates for bonuses and reimbursements, and support for both W-2 employees and 1099 contractors. Payroll software should support multiple pay schedules for flexibility, especially if some staff are weekly and others biweekly. In Friday, multiple pay schedules are part of the Small Biz Pro plan.

For a 10-person team, automated payroll processing allows payroll to be run in minutes instead of hours, especially when combined with time tracking as Friday does. If you’re still building your process, start with how to do payroll for a small business.

Payroll Tax Filing

Payroll taxes include federal income tax, Social Security, Medicare, applicable state and local withholdings, plus employer contributions like unemployment insurance. A good payroll system should ensure compliance with federal, state, and local payroll taxes to avoid penalties.

The best payroll software for small businesses will calculate, withhold, and submit these taxes automatically, and handle required forms and filing deadlines. For small businesses with around 10 employees, payroll software should automate tax filings-quarterly and year-end alike.

Friday includes tax filing and compliance on every payroll plan, along with W-2 and 1099 forms, and supports all 50 states (multi-state payroll requires Small Biz Pro). Justworks automates payroll tax filings across multiple states and alerts users about changes in federal or state regulations. ADP offers automatic compliance updates covering all 50 US states. Deel provides automated compliance updates for 150 countries, which is more relevant if you manage global payroll or pay international contractors.

Employee Time Tracking

When some or all of your 10 employees are hourly or work variable schedules, built-in time tracking is critical. Without it, you risk underpaying or overpaying staff-both of which create problems.

Useful capabilities include: clock in and out via mobile or kiosk, geofencing, manager approval workflows, overtime rules, and direct sync of hours into payroll. Friday’s integrated time tracking and PTO features handle this natively, including rounding, automatic clock-out, and lunch and break tracking, while providers like Gusto (Simple plan) or ADP RUN require a separate time-tracking app or paid add-on.

Direct Deposit

Payroll software for small businesses should provide direct deposit for small business payroll and flexible pay options. Direct deposit is a standard feature in most payroll software, letting employees receive funds automatically in their bank accounts on payday. Some providers also offer paper checks, pay cards, or same-day deposit options (often at an extra cost), which may matter in industries where not all workers have bank accounts.

Standard timelines vary-some plans offer next-day funding, others take two to four business days. Friday includes free direct deposit and printable checks on its payroll plans, with next-day payroll available on Small Biz Pro, subject to bank approval. For a 10-person business, faster funding means smoother cash flow management.

PTO and Employee Management

Even with just 10 employees, tracking vacation, sick leave, and other PTO in spreadsheets quickly becomes error-prone. Built-in PTO management lets employees request time off, managers approve or deny, and balances update automatically-with data flowing directly into payroll.

Basic employee records (job role, pay rate, hire date, tax forms) stored in the system support consistent pay and reporting. Friday includes PTO requests on every plan and adds PTO accrual policies, roles and permissions, and digital Form I-9s on Small Biz Pro, so managing employees doesn’t require a separate HR platform at this scale.

Integration With Accounting Software

Small businesses often rely on accounting tools like QuickBooks or Xero, so payroll software should sync payroll expenses, taxes, and liabilities automatically into the general ledger. Payroll software should seamlessly integrate with existing accounting tools to reduce double-entry.

QuickBooks Payroll integrates with over 800 business applications. ADP integrates with over 150 applications for payroll management. Gusto integrates with over 100 apps including accounting software. Deel offers 68 integrations for payroll and HR functionalities. OnPay integrates with select accounting and time-tracking tools.

Friday is payroll software compatible with QuickBooks: completed payrolls auto-sync to QuickBooks Online as journal entries, with wages, employer taxes, deductions, and contributions mapped to accounts. QuickBooks Desktop users export payroll from Friday and import it each pay period. Friday’s other payroll integrations include Human Interest 401(k), Coverdash business insurance, SmartPay workers’ compensation wage reporting, Zapier, Make, and a self-serve Partner API with webhooks.

The benefit: fewer manual journal entries, cleaner financial reports, and easier tax preparation at year-end.

Is Friday Better Than Gusto, ADP, or QuickBooks for a 10-Employee Business?

“Better” depends on your priorities. Friday is strong for integrated time tracking and simple payroll operations. Gusto excels at benefits administration. ADP offers broad HR services. And QuickBooks Payroll is convenient for QuickBooks-centric firms. Each comparison below focuses on features, pricing, and use cases that can be verified through vendor sites.

Friday vs. Gusto

Friday is generally better suited for 10-employee businesses that prioritize integrated time tracking, straightforward payroll runs, and PTO management without a heavy HR layer. Gusto charges $49 plus $6 per person for payroll services on its Simple plan ($109/month for 10), but that plan doesn’t include time tracking or multi-state payroll. Upgrading to Gusto Plus brings the cost to $200 per month for 10 employees. For a single-state team, Friday’s Startup plan includes time tracking at $179 per month; for multi-state teams, Friday’s Small Biz Pro runs $259 per month.

Gusto shines when you want robust benefits administration-health insurance, 401(k), HSA/FSA-and a wide ecosystem of integrations. If benefits aren’t a current priority, Gusto’s premium may not deliver enough extra value. See our full Gusto vs. Friday comparison for more detail.

• Choose Friday if your top need is payroll + time tracking in one tool at a predictable price.
• Choose Gusto if benefits management and expanded HR tools are central to your business.

Friday vs. ADP RUN

Friday offers transparent, listed pricing and an app-based experience designed for simplicity. ADP RUN is a scalable payroll and HR solution with many add-ons, but its pricing is quote-based and often higher once extras are factored in. It offers payroll services for businesses with over 50 employees as well, making it a platform you could grow into-but that breadth comes with complexity.

ADP RUN may be preferable if you anticipate fast growth, multi-state operations, or want extensive benefits administration and expense management from one large provider. may be preferable if you anticipate fast growth, multi-state operations, or want extensive benefits administration and expense management from one large provider. For a 10-person business focused on speed and simplicity, Friday’s all-in-one approach and self-serve trial are often a better fit.

Friday vs. QuickBooks Payroll

If your 10-employee business already uses QuickBooks for accounting, QuickBooks Payroll provides tight integration inside the Intuit ecosystem. QuickBooks Payroll costs $50 plus $6.50 per person at its base tier, and the bundled plans with QuickBooks Online accounting run approximately $153 per month for 10 employees.

Friday integrates with QuickBooks Online and Desktop but adds built-in time tracking and PTO tools tailored to hourly workers. A business that lives entirely inside QuickBooks and is comfortable adding separate time-tracking tools may favor QuickBooks Payroll. Those wanting payroll and time tracking unified in a simple interface-without managing multiple subscriptions-may favor Friday. Our QuickBooks Payroll vs. Friday breakdown walks through the differences.

Compare the total monthly cost of your current QuickBooks setup plus add-ons against Friday’s single subscription price.

What Types of Small Businesses Benefit Most From Friday?

Friday is particularly well-suited to US-based small businesses with 10 or so employees, especially when some or all staff are hourly or work shifts. These businesses often lack dedicated HR or payroll staff, making Friday’s self-serve setup and automated payroll processing especially useful.

Industries and examples:

• Restaurants and cafés: restaurant payroll for tipped servers, hourly kitchen staff, and salaried managers in the same run, with reported tip totals added to each pay line before approval. See also payroll for small cafés.
• Contractors and home services (plumbing, lawn care, cleaning): job-based hours, mobile clock-ins at different customer locations, geofencing
• Retail stores: part-time staff with variable schedules and simple PTO tracking. Learn more about retail payroll.
• Salons and spas: salon payroll with hourly and commission pay types, and employee self-service for pay stubs
• Local service businesses: multiple mobile teams, customer-level time tracking

Consider a 10-person lawn care company where crews work at different job sites each day. Without integrated time tracking, the owner collects paper timesheets every Friday, re-enters hours into a payroll spreadsheet, and manually calculates overtime. With Friday, each crew member clocks in on the mobile app at the job site (verified by geofencing), the owner approves hours with a few taps, and payroll runs with accurate data-no re-entry required.

How to Choose the Right Payroll Software for Your Small Business

Choosing the right payroll provider is about matching software capabilities to how your 10-person team actually works-not chasing the most features. Choosing payroll software should consider affordability and scalability for benefits in the future, but don’t pay for enterprise tools you won’t use today.

Here’s a practical checklist:

1. Calculate complete monthly and annual costs. Include base fees, per-employee charges, and add-ons for time tracking, benefits management, or multi-state filing. Patriot Software starts at $17 plus $4 per person, while more comprehensive plans like Gusto Plus ($200/month) or Friday Small Biz Pro ($259/month) cost more for 10 employees.
2. Map out hourly vs. salaried employees. If most staff are hourly, built-in time tracking should be a priority.
3. Count your states. If anyone works in a second state, confirm which plan covers multi-state payroll before comparing prices.
4. List must-have integrations. Do you need your payroll solution to sync with QuickBooks, Xero, a 401(k) provider, or a POS system?
5. Evaluate ease of onboarding. How long does payroll setup take? Can employees self-onboard?
6. Review customer support availability. Check whether the provider offers phone and chat support during your business hours.
7. Test before committing. Take advantage of free trials or demos-including Friday’s 14-day trial-to run at least one mock payroll before making a final decision.

A payroll solution that feels simple and reliable to the owner is often the best choice, even if it’s not the most feature-rich on paper. For a broader look at the field, see our overview of payroll providers for small businesses.

Sample 10-Employee Payroll Workflow With Friday

Here’s what a realistic end-to-end payroll workflow looks like for a 10-person business using Friday.

Setup phase:

• Add company information and connect bank accounts (instant through Plaid, or 1–3 business days with micro-deposit verification)
• Invite employees and have them self-onboard (entering personal details, tax forms, and direct deposit information)
• Configure pay schedules, pay rates, overtime rules, and state tax settings
• Sign up and run your first payroll in about 15 minutes, with support available if you need help

During a typical pay period:

• Employees clock in and out using the Friday mobile app, a computer, or the kiosk
• Hours are tagged to jobs, customers, or departments as needed
• PTO requests are submitted and approved within the system
• Managers review and approve timesheets before payroll closes

Running payroll:

• The owner or admin initiates payroll
• Friday pulls approved hours and calculates gross pay, deductions, federal taxes, state payroll taxes, and net pay
• Tips, bonuses, or reimbursements can be added to an employee’s pay line before approval
• A review screen shows gross pay, taxes, and net pay for the full payroll
• Once confirmed, Friday processes direct deposits or printable checks and generates pay stubs

After payroll:

• Friday handles payroll tax filings
• Pay summaries, labor cost breakdowns, and tax reports are available for bookkeeping
• Completed payrolls sync automatically to QuickBooks Online, or export for QuickBooks Desktop
• Employees can access pay stubs through self-service at any time

The entire process-from approving timesheets to running payroll-typically takes minutes, not hours.

Common Mistakes Small Businesses Make When Choosing Payroll Software

Many 10-employee businesses choose payroll tools quickly and later regret issues like hidden fees, missing features, or clunky workarounds. Here are the most common mistakes:

• Focusing only on the base price. A low base fee means little if time tracking, multi-state tax filing, or benefits administration cost extra. Patriot charges $12 for each additional state tax filing, for example-a cost that adds up fast. Check exactly which plan tier covers multi-state payroll with any provider, Friday included.
• Underestimating the value of time tracking. Paying hourly staff without reliable tracking leads to errors, overpayments, and disputes. OnPay is best for multistate payroll management but time tracking is a paid add-on. Justworks handles payroll taxes across multiple states at no extra cost, but may be more than a 10-person team needs.
• Picking enterprise-level software. Tools designed for 50+ employees come with steep learning curves and complex payroll features your team won’t use.
• Not verifying tax handling. Who is responsible if taxes are filed incorrectly? Not every payroll service offers penalty protection.
• Skipping the trial. Running a test payroll reveals issues no sales demo will show-from confusing interfaces to slow customer support.

Friday’s transparent pricing and 14-day free trial help small business owners avoid several of these pitfalls before committing.

Security, Compliance, and Employee Trust in Payroll Software

Payroll software holds sensitive employee data-Social Security numbers, bank accounts, salaries. Small businesses must consider security and compliance practices alongside features and price.

Key security factors to evaluate:

• Encryption in transit and at rest
• Third-party audits or certifications (such as SOC 2)
• Secure employee portals with role-based access controls
• Audit trails for payroll changes and approvals

Friday states that all data is encrypted in transit and at rest, that a web application firewall filters traffic, that it uses application health and performance monitoring, and that it regularly undergoes independent third-party audits and certifications. Ask any provider, Friday included, for current documentation of its specific certifications, as security practices evolve.

Beyond technology, choosing a reputable payroll provider and paying employees accurately and on time builds trust. In a close-knit 10-person team, even one payroll error or delayed payment can damage morale. Payroll software can automate tax calculations and compliance requirements, but the human side-reliable, on-time pay-matters just as much.

How We Compared Payroll Software Options for 10-Employee Businesses

This article uses a consistent methodology to compare Friday, Gusto, QuickBooks Payroll, OnPay, and ADP RUN for a typical 10-person small business.

Evaluation factors included:

• Total cost for 10 employees (base fee + per-employee charges + required add-ons)
• Automated tax filing availability and scope (federal, state, local taxes)
• Built-in vs. add-on time tracking
• Ease of use for non-experts running payroll without dedicated staff
• Employee self-service tools (pay stubs, PTO, onboarding)
• Benefits administration capabilities and health benefits support
• Integration options with accounting software and other business tools

Friday pricing and features were checked against Friday’s pricing page and help documentation in October 2026. Competitor pricing reflects publicly listed rates and estimates; confirm current figures on each vendor’s site before deciding. Deel supports payroll management in over 50 countries, making it relevant for businesses that need to manage global payroll, but it was not a primary focus of this comparison, which centers on US-based small businesses.

When Should a 10-Employee Business Upgrade or Switch Payroll Software?

Outgrowing a payroll system usually shows up as frequent errors, manual workarounds, or difficulty handling new pay types or states. Here are common triggers for switching:

• Adding more hourly staff who need reliable time tracking
• Expanding to another state with different payroll tax rules and state tax registration requirements
• Starting to offer employee benefits like health insurance or 401(k)
• Needing deeper customizable payroll reports and analytics
• Wanting to pay international contractors (Deel supports this across 50+ countries)

Plan payroll migrations around quarter or year boundaries when possible, and export year-to-date payroll data from the old provider before switching. Our guide on how to switch payroll providers covers the full checklist, and if you’re changing partway through the year, read switching payroll providers mid-year to keep tax records accurate and avoid filing gaps. Friday offers free migration with no setup or transfer fees.

Author and Review Information

Written by the Friday editorial team, specializing in small business payroll, time tracking, and tax compliance topics for business owners.

Last updated: October 26, 2026

For a broader overview of payroll software beyond the 10-employee focus, see Friday’s guide to payroll software for small businesses.

Frequently Asked Questions

These questions cover related issues that small business owners with 10 employees often ask but that weren’t fully addressed in earlier sections.

How hard is it to switch payroll software when you already have 10 employees?

Switching is manageable but requires planning. You’ll need to export prior payroll records, tax filings, and year-to-date earnings from your old provider and enter them into the new system. Friday offers free migration with no setup or transfer fees, and its support team can help transfer employee data. Switching just after a quarter or year-end generally simplifies tax reporting and reduces the risk of filing errors during the transition.

Do I need separate HR software if I use payroll software like Friday?

Most 10-employee businesses do not need a full HR suite. Payroll software that includes time tracking, PTO management, basic employee records, and employee self-service is typically enough for day-to-day operations. More advanced HR needs-like complex performance management, recruiting pipelines, or extensive benefits management-may justify adding dedicated HR tools as the company grows beyond 20–30 employees.

How often should a small business review its payroll setup?

Review your payroll settings at least once a year, or whenever you add employees in new states, begin offering benefits, or change pay structures. During your review, check pay rates, tax settings, PTO policies, and integration configurations. If you’re unsure about compliance with changing tax laws, involve an accountant or payroll expert.

Can payroll software help with contractor payments as well as employees?

Yes. Most modern payroll platforms, including Friday and several competitors, support paying both W-2 employees and 1099 contractors, often with separate workflows and year-end tax forms. In Friday, 1099 contractors can be added and paid on both payroll and non-payroll plans, and 1099s are included on payroll plans. Learn more about payroll software for independent contractors and how to pay 1099 contractors.

What happens if payroll software makes a mistake with payroll taxes?

Responsibilities vary by provider. Some offer error-detection tools and tax penalty protection, while others calculate and file taxes on the employer’s behalf without guarantees. OnPay, for example, offers a tax filing accuracy guarantee. Review each vendor’s tax filing and penalty policies carefully before committing, and keep in mind that maintaining accurate employee data-hours worked, pay rates, classifications-on your end is essential to avoiding payroll tax calculation errors regardless of which payroll service you use.

Pincus Schiff

Pincus Schiff is a payroll software specialist at Friday App, where he helps businesses simplify payroll, stay compliant, and automate their workflows. He writes about payroll best practices, compliance, and the latest in workforce technology.