And while it offers workers’ comp and an employee portal, it lacks benefits options and HR tools that similar providers offer. However, it’s still a good option for Wave Accounting users who need efficient payroll tools. Wave Payroll is a cloud-based software that helps small businesses run payroll and calculate and file payroll taxes. While it offers a reasonably priced option for small businesses, it is lacking in some features compared to competitors and only offers tax filing services in 14 states.
The states include Arizona, California, Georgia, Florida, Illinois, Minnesota, Indiana, North Carolina, New York, Washington, Tennessee, Virginia, Texas, and Wisconsin. If you live in any of these states, you can file taxes automatically. The employee onboarding process is made easy through the self-service portal.
Tax Support
Let’s cut to the chase; the platform doesn’t provide worker benefit packages. Sure, it can handle deductions from paychecks, but you’ll need to separately source health insurance offerings — among other items — for your staff. The platform seamlessly integrates with Next Insurance, a third-party workers’ compensation insurance provider. This connection makes it a piece of cake to stay covered against liability. Of course, you can still source your own provider, but we appreciate Wave’s efforts to save small-business owners time and frustration when searching for coverage. A nifty feature is Wave’s no-cost accounting software, which is available to Payroll users.
You’ll get more bang for your buck with one of our top payroll software choices instead. While Wave Payroll offers live support through text and email from 9 AM to 5 PM EST, the software lacks phone support. For the busy business owner, Wave Payroll’s customer service options are limited and may not be useful in an emergency. Wave payroll offers many basic payroll features and work seamless with Wave’s accounting features like invoicing, expense tracking, and basic inventory reporting.
It’s particularly ideal if you operate in one of the 14 states it files taxes in automatically and appreciate an easy-to-use interface without a lot of extras or clutter. Wave Payroll is simple to learn and use, and though it offers a lot of helpful features, there’s quite a bit lacking, too. There’s an automated tax filing option if you live and pay workers in specific states; otherwise, you’ll have some paperwork to do.
How Wave Payroll works
This connection means businesses can manage multiple financial aspects from a singular platform. For comparison, many competitors require technical knowledge to link third-party programs. As a result, Wave’s seamless integrations are a breath of fresh air. Wave Payroll automatically calculates, withholds and pays federal and state taxes for businesses in 14 U.S. states. This feature is a huge relief for time-strapped business owners.
Currently, Wave Payroll does not offer a mobile app for iOS and Android devices. This means you’ll have to log in to your account via desktop and won’t be able to manage or run payroll while you’re on the go. If you have Wave Accounting, automatic journal entries might come in handy. Once payroll has been run, the entry will be posted on the Transactions page on Wave Accounting automatically. Since deductions and benefits will appear as “Uncategorized Expenses,” you may go into Wave Accounting to categorize them.
- Wave Payroll doesn’t have time tracking functionalities, so you need to input the hours into its online time sheet manually.
- And, to help ensure that all tax computations are correct, Wave Payroll regularly updates its system with the latest tax tables and regulatory changes.
- It was easy for me to add bank accounts and integrate other key extensions.
- This is not a problem for businesses that deal in wholesale transactions that are not subject to sales tax, but is problematic for retail businesses whose pricing includes GST.
Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. Great for when things were super, super simple, but at 11 employees, I’m ready to ditch for something that can really help us when we really need it to just work.
Wave Payroll vs. Gusto Comparison:
While you can add these deductions, it’s up to you to purchase and manage them through different resources. Unlike other payroll solutions, Wave Payroll doesn’t have relationships with benefits providers. When it comes to complying with local, state and federal payroll regulations, Wave Payroll lags behind. The software only offers automatic tax filing in 14 states so compliance issues are more likely to pop up if you have to go through the process manually. While Wave Payroll is less robust than other payroll software options, it has all of the tools you need to easily pay your employees and contractors in an accurate, timely fashion. In fact, It feels like the entire data-entry system could be simplified, especially when considering that Wave Payroll only offers basic payroll processing.
Payroll by Wave calculates state and federal payroll taxes you’re required to pay. If you’re not in one of those states, the site still tells you what’s due, but you have to actually do the filing and make the payments yourself. You can see what’s accumulated, what’s due, and what’s been paid by clicking the Taxes link in the navigation pane. Wave Payroll is a simple payroll solution for small businesses needing basic payroll features, such as direct deposit, deductions, check-printing, and much more.
We believe everyone should be able to make financial decisions with confidence. Wave invoices are integrated with our free accounting software, so payments are recorded and categorized for you – which means less bookkeeping and tax season prep. We totally get it—running payroll for your List of Tangible and Intangible assets small business can seem like a daunting task, especially when you’ve got so much on your plate. That’s why a payroll software like Wave’s can help ease the burden of doing payroll on your own. We’ve also crafted a guide to small business payroll to help you navigate the process.
The 14 states where they offer an automated tax filing option charge users $40 per month for payroll services. Wave Payroll is best for small businesses with very simple payroll needs. As a Wave add-on, it integrates all the information into your Wave Accounting software, making bookkeeping and payroll accounting a breeze. Users love its simple-to-use interface, even if some features take a few more steps to complete.
Can you do payroll on Wave?
And it’s a unique perk since many competitors, like Zoho Payroll, will calculate taxes but don’t file them for you. Wave offers a collection of small business software options, including Wave Payroll, allowing businesses to manage and run payroll easily. However, any business looking to offer healthcare options, a 401(k), or needs to send garnishments will find Wave Payroll lacking. And if you have more than 20 employees, Wave Payroll isn’t your best choice.
Sage Payroll Essentials Plus
Wave can pay and file taxes for you in 14 states (see Wave’s website for the full list), and for that you’ll pay $35 per month to have automated tax filing. Otherwise, the cost is $20 per month and you’ll have to file taxes yourself. There’s a $6 fee per person on your payroll per month, whether employees or contractors. Compared to other payroll services such as Gusto, Paychex Flex, or Justworks, Wave offers a different pricing model.
The software’s seamless integration with Wave’s accounting makes Wave a great option for businesses looking for an all-in-one accounting and payroll solution. Wave Payroll is a good option for very businesses with simple payroll needs. It lets you run payroll in a matter of minutes and provides you with the information you need for filing taxes—or, if you are in one of the states it services, it files them for you. It has an employee portal for viewing pay stubs and tax forms (if applicable). You can also connect your employee accounts to Wave Accounting so that Wave can calculate, pay and file payroll taxes on their behalf in some states.
Each link opens a screen whose directions are clear and understandable. As we noted earlier, though,the actual payroll run screens require some extra work. Should you need help along the way, chat, phone, and email help are available, as is a 30-day free trial. Save the record and add any additional workers, then click Continue Setup, which takes you back to the main setup page, where the Manage Employees link opens your Employees page. Click on an employee in the list to open his or her complete data record.