Gusto vs QuickBooks: Which is the Best Payroll Software? by Alice Flores May, 2023

Customers love how QuickBooks Online keeps their books of accounts for income and expenses. You’ll see how much money is leaving your account in the form of expenses and how much money is coming in as income. Depending on where you live in the world, QuickBooks has three or four subscription levels. You can simply choose the one that contains the feature you’ll be needing to manage your business and be done with it.

The software has been around since 1983 and continues to be one of the most popular accounting programs on the market. For the most part, though, QuickBooks Online Payroll is a good choice for business owners who want a supportive and easy-to-use payroll solution. However, while https://simple-accounting.org/ QuickBooks Payroll is one of the best payroll software for businesses, it isn’t the only option. If you’re shopping for a new payroll solution, we recommend reviewing the features and pricing for multiple payroll solutions to ensure you select the best option for your business.

Pros Of QuickBooks Desktop Payroll Solution

OnPay calculates, files and pays local tax obligations automatically. With QuickBooks Payroll, you can automate your employee payroll, get protection from tax penalties, have sales tax calculated for you, and offer same-day direct deposit. Also, you can incorporate important perks to offer your staff, like HR support, employee health benefits, and 401(k) plans. Be sure to pick the right Payroll plan for the version of QuickBooks you run. QuickBooks Online is the cloud-based small business accounting software that allows you to access the platform from anywhere and likely will offer the accounting features your small business needs.

• Users will need a subscription to the QuickBooks Online Payroll Premium tier to access time-tracking features.
• When users move from QuickBooks Desktop to Online, they have to give up a bit of control over their data.
• Pretty good savings, so no surprise QuickBooks Online for nonprofits reviews well on ye olde internet.
• All benefits processes are managed with the centralized online system, which shows instant quotes on plans and a fast three-step application process.
• If you need more users, you’ll have to upgrade to the next paid plan, which is the Essentials.

Small businesses might find all those features dizzying, inflexible, and more expensive than other small business options, such as Gusto or Square Payroll. As a digital marketing writer for Nav, Kat Cox works to provide answers to the questions small business owners have about how to set up, run, or fund their businesses. If these options aren’t a good fit for your business, use Nav to find the right business solutions for you.

QuickBooks Setup

Once they’ve set up an account and completed their records, employees can electronically access their pay stubs and W-2s. OnPay, for example, includes a company directory and conversation feature, as well as company files and forms. Setup is by far the most challenging and complex part of using any payroll system.

A QuickBooks expert guides you through the complete setup including connecting bank accounts and credit cards, setting up automations and learning best practices. QuickBooks Payroll enables you to track time, run payroll accurately, fill and submit forms, file https://simple-accounting.org/quickbooks-payroll-review-pros-and-cons/ and pay taxes in time and more to stay compliant. The rising cost of the monthly plans can dissuade many small companies and nonprofits, even with nonprofit pricing. To conclude, the limitations of QuickBooks Online can be potentially more costly over time.

QuickBooks online software pricing plans

For example, general contractors can create a Job by Vendor report to organize job costs by the vendor and see which vendors need to be paid. QuickBooks Online doesn’t offer these features, and there’s no support for inventory management. It is general accounting software, which explains the lack of such features.

• The price of your accounting software shouldn’t eat into your overhead budget too much.
• If you are a QuickBooks Payroll Elite user, you are eligible for tax penalty protection.
• The site’s Payroll Tax Center allows you to see the status of your payroll taxes at a glance.
• Starting at $40 per month plus $6 per person per month, Gusto stands out as payroll software that puts an emphasis on HR and employees.
• The Essentials plan gives you access to all the features from the Simple Start plan, plus bill management and employee time you add to invoices.
• Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser.

Another perk is the ability to send payable invoices to clients they can pay in a few clicks. You’ll get real-time visualization of all of your finances in one singular place, which can save you a great deal of time when preparing financial reporting. One of the biggest QuickBooks Online benefits is the way it slots into other apps in the QuickBooks universe. We recommend asking yourself the following question when considering which accounting and bookkeeping system to go with. The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation. After an in-depth review process, our experts gave Intuit Online Payroll a 4-star rating.

Low Cost

Medium to large-sized businesses with up to 150 users can use QuickBooks Online Payroll to automate running payroll, manage HR, handle benefits administration, and manage payroll taxes. You might use Quicken for your business if you’re a sole proprietor using your personal bank account for your business. QuickBooks software for small business also provides you with advanced features like the ability to create invoices, track inventory, and handle regular expenses like payroll. As an accounting solution for small businesses, QuickBooks is usually a better choice.

• QuickBooks’ payroll service also prepares end-of-year tax filings, draws up W-2 and 1099 payroll tax forms, and submits those forms to the IRS on your behalf.
• Also, you can incorporate important perks to offer your staff, like HR support, employee health benefits, and 401(k) plans.
• The Elite plan is currently discounted 50% to $62.50 per month for the first three months, which then jumps to $125 per month, plus a $10 per employee additional fee.
• While these features can be beneficial, they can increase the overall cost of using the software.
• QuickBooks is a comprehensive accounting software program owned by Intuit and used by many businesses to manage their finances.

You can get a historical view of the total cash that has flowed in and out of your accounts. QuickBooks Online lets you create estimates, email them to clients, and convert them into invoices after you complete the work. There’s another neat feature that lets you use your phone to snap and save photos of receipts and add them as expenses.

Cons of QuickBooks Online vs Desktop

QuickBooks Payroll has some 20 reports, such as payroll billing summary, payroll deductions and contributions, payroll tax liability, total pay, workers’ compensation, etc. You can customize to add or delete the columns that you want in the reports before running them. If you mark a report as a favorite, you can access it in a single click the next time.

Reports are generated quickly and accurately, with data that can be used to make decisions about the future of your business and help you have a better understanding of its financial position. In addition, it is easy to find and address any errors or customer data. The QuickBooks Payroll solution can take care of payroll and taxes all in one place. Let’s discuss some of the primary advantages of the QuickBooks Desktop Payroll you can harvest for your payroll management.

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QuickBooks Online is the only accounting software QuickBooks Payroll integrates with, and if you have employees in more than one state, you may have to pay extra monthly tax filing fees. You can access payroll data, list of banks, next payroll run date and more from a single dashboard. Adding new employees is as simple as adding a row of spreadsheet data.

QuickBooks also offers plans that allow you to bundle its payroll and accounting software. Regardless of plan, the platform comes with real-time reporting features, which can help you prepare for upcoming payroll costs, monitor paid time off, and review payroll history. You can try it out for yourself if you want to see what having an efficient accounting platform can do for your business. There will be challenges to scaling your workforce, but small businesses with varying needs can rely on QuickBooks for every part of the process, from payroll from payday to tax time.