When you are running a business employment taxes can be time-consuming and confusing. You must follow all the IRS filing requirements, deadlines, and proper forms. Violations may result in expensive penalties that severely impact business finances.
As a small business owner or startup business, you likely have a lot of accounting and tax questions. One of those questions may be whether you should use a payroll provider. Read on for more information about two very popular platforms.
Popular Payroll Providers
Two popular payroll services are Gusto and Rippling. These are the best payroll providers, offering everything you need plus add-on services as your business grows.
They both have websites that are easy to navigate. Both companies have long-standing, solid reputations. Gusto and Rippling are reliable and trustworthy when handling sensitive payroll records.
The average small business owner spends around 10 hours a month handling payroll. By using a payroll service you free up hours and no longer need to stay up-to-date on payroll tax laws.
Rippling Payroll Service
Rippling was founded in 2016 by the former CEO of Zenefits. They offer payroll, benefits management, payroll tax, and human resource tools through cloud-based software.
Their platform combines IT and HR into a tech-forward symphony of services. Built for businesses with as few as 1 or as many as 1,000 employees, paperless onboarding of new hires is complete in 90 seconds.
Payroll Software Features:
- 401(k) Tracking
- Benefits Management
- Direct Deposit or Check
- Federal, State & Local Tax Filing
- All 50 states and International
- Job codes and multiple pay rates
- Payroll Reporting
- Self Service Portal
- Tax Compliance
- Vacation/Leave Tracking
- Worker’s Comp
- W-2, W-4, 1099 Preparation
- Wage Garnishment
The platform will manage your employee’s offer letters, I-9’s, health insurance, time off, and more. The system is 100% online and paperless.
Benefits of Rippling
This company offers a very user-friendly dashboard and intuitive interface with turnkey IT systems management.
- Syncs payroll and all HR data, no entering of data manually
- Automatic compliance with all relevant laws and regulations
- Automatic calculation and filing of payroll taxes with local, state, and federal agencies
- Pay contractors and employees around the world
- Customized PTO policy, review and approve time-off requests, and sync with payroll
- Automatically keeps payroll and general ledger up-to-date by syncing with more than 500 apps
Rippling works with third-party benefits brokers which means you have the benefit of a professional independent broker to obtain the best deal on your benefits. Rippling has more integrations than Gusto, along with standard API connections with accounting systems such as NetSuite and Quickbooks.
Cons of Rippling
Overall Rippling gets very good reviews, but the client experience will bring up anything negative.
- The paystub pdf look that has a giant “This is not a check” watermark lacks a professional paystub look
- Frequent re-login for rPass access needs improvement
- The “add-ons” in the demo are not native to Rippling, they are partners you can subscribe to and feed into Rippling
- You are unable to go back to the previous screen, you must go to the home page and re-run the report every time
- Unable to change an employee’s username from their personal email to their work email
The most frequent complaint among users is the inability to call customer support and talk to a live person when having an important issue. Support is email only.
Gusto Payroll Service
Gusto (f/k/a ZenPayroll) was founded in 2011. This cloud-based payroll platform offers services for payroll processing, benefits, payroll tax, and human resources tools.
Gusto provides a modern platform that includes full-service payroll plus health insurance, 401(k)s, expert HR, and team management tools. The company services more than 100,000 businesses nationwide.
Payroll Software Features:
- 401(k) tracking
- Benefits Management
- Check Printing
- Direct Deposit
- Multi-State
- Payroll Reporting
- Self Service Portal
- Tax Compliance
- Vacation/Leave Tracking
- W-2/1099 Preparation
- Wage Garnishment
- Health Reimbursement (QSEHRA)
- Workers Compensation
- HSA and FSA
Gusto is able to run payroll automatically for both hourly and salary employees with fixed hours.
Benefits of Gusto
Gusto has excellent integration with time-tracking software and accounting. It has a good mobile interface and its autopilot makes sure your employees receive their wages on time. You can set up a customized payment schedule that you may change at any time.
- Handles all state and federal payroll taxes automatically
- Small-Group Health Insurance—more than 3,500 plans and 100 carriers
- Paycheck splitter—allows employees to split paychecks between multiple accounts
- Gusto Wallet App for your employees
- Resources include calculator and tools, talk shop blog, help center, and COVID-19 Resource Hub
Eighty-Five Percent of Gusto customs say this platform is easier to use than their prior payroll provider.
Cons of Gusto
When it comes to the negative aspects, the best source of information online client reviews.
- No registration for benefits in all states, you must register your company in each state where you have employees
- They require you to sign a power of attorney for their bank account
- Complaints about being left on hold or non-responsive service
- Support hours cut down to about four hours per day
- Complaints about payrolls run late and incorrect taxes being taken
To Gusto’s credit, after each negative comment, there was a prompt response from Gusto trying to rectify the problem with the client.
Rippling vs Gusto Quick Comparison
These two payroll services are very close. Let’s take a side-by-side look at what they offer.
Features of Gusto and Rippling:
- 401(k) tracking
- COBRA administration
- Deduction Management
- Document Management
- E-Verify/1-9 Forms
- HIPAA compliant
- Orientation workflow management
- Payroll reporting
- Tax compliance
- Time and attendance management
Business Description
Gusto—OG cloud payroll and benefits for startups
Rippling—Cloud payroll and benefits; employee IT management
Pricing
Gusto—$25.00 per month for Basic Plan Beta Program
Rippling—$8.00 per employee per month
5 Star Rating
Gusto—4.7 out of 5 stars
Rippling—4.9 out of 5 stars
Payroll Autopilot
Gusto—Yes
Rippling—Yes
Customer Service
Gusto—Excellent in the past, recent online complaints
Rippling—Excellent but unable to contact via telephone
Payroll Tax Compliance
Gusto—Excellent
Rippling—Excellent
Integrated Benefits
Gusto—Guide, 401(k), health benefits, workers comp, 529, HAS, FSA, computer benefits
Rippling—401(k), health benefits, workers comp, life & disability, HAS, FSA, computer benefits
3rd Party Benefit Providers Integration
Gusto—Difficult
Rippling—Easy
Employee IT/Systems Management
Gusto—No
Rippling—Yes
Employee Onboarding
Gusto—Easy
Rippling—Easiest
Quickbooks Online Integration
Gusto—Yes
Rippling—Yes
Platform
Gusto—Cloud
Rippling—Cloud, Windows, Apple; Mobile Apple and Droid
Training
Gusto—Documentation, Live online Webinars
Rippling—Documentation, Live online Webinars
Customer Support
Gusto—Business Hours
Rippling—Business Hours and Online
Gusto vs Rippling Review
Determining whether or not you should outsource accounting is a question most small businesses consider. As your business grows, the accounting work will become more complex and time-consuming. Both Gusto and Rippling work well for startups and small businesses, providing an easy and efficient payroll system.
Both companies provide equivalent payroll and HR management services. For a company with a lot of remote workers, Rippling is a great choice with its coverage in all 50 states and internationally.
Payroll Easy Street
When you are considering the use of payroll providers, the logic of outsourcing the financial handling of your business is one many business owners question.
Pasquesi Partners’ team of tech-savvy CPAs and accountants will answer all your questions about the financial handling of your business, including outsourcing payroll services. Check our website to find a pricing plan that meets your needs.
If those plans don’t work, we are happy to provide you with a custom quote for your business needs. Contact us today to put your business on payroll easy street!