Best Payroll Software for Nonprofits in 2023
This article is part of a larger series onPayroll Services.
无论你或运行一个小型的非营利组织a global organization, finding payroll software that can help you manage employee and contractor payments can sometimes be challenging. While on the hunt for the best payroll services for nonprofits, look for a provider that offers budget-friendly solutions with essential features, such as tax filing and quick payment options. In addition to offering solid client support, the provider should understand your needs as a nonprofit and streamline your payroll processes so you can focus more on running your organization.
To find the optimal nonprofit payroll software, we evaluated 10 solutions and narrowed the list down to our top five recommendations
- Gusto:Best overall payroll software for nonprofit organizations
- QuickBooks Payroll:Best for QuickBooks accounting users
- Paycor:Best robust payroll and HR solution
- Patriot Payroll:Best for small nonprofits that need a simple payroll solution
- ADP Run:Best scalable payroll software to grow with
If you need more information before choosing a provider, check out ourguide to understanding payroll for nonprofits, where we walk you through everything from unemployment taxes to labor laws.
Payroll Software for Nonprofits Compared
Looking for something more robust?
If you need a solution that will handle payroll and all your HR functions, consider Justworks. This is a professional employer organization (PEO), which means it treats your employees as its own for administrative purposes. Justworks can cover everything from hiring to retiring, handles payroll in multiple states, including assuming tax liability, and generally takes HR worries off your hands. It’s No. 1 on our list ofbest PEOs for small businessesand, at $59 per employee monthly, is an affordable option. Learn more in ourJustworks review.
Gusto: Best Overall Payroll Software for Nonprofits
Pros
- Unlimited pay runs
- Customizable reporting
- Reasonably priced plans with a contractor-only payroll option
- Gusto Giving lets employees donate from their paycheck
- Supports international contractor payments in 90+ countries
Cons
- No pricing discounts for nonprofits
- Health insurance limited to 37 states
- Time tracking, next-day direct deposits, and multistate payroll are available only in higher tiers
Gusto Plans & Pricing
- Simple:$40 per month plus $6 per employee monthly
- Plus:$80 per month plus $12 per employee monthly
- Premium:Custom priced
- Contractor-only payroll package:$35 plus $6 per contractor monthly
- State payroll tax registration:Pricing varies per state
- HR advisory services for Plus plan only:$8 per employee monthly, which is included for free in the Premium tier
Gusto’s excellent tools earned it first place in our guides to thebest small business payroll softwareand thebest payroll services, and it’s featured in multiple payroll and HR software lists. Its price point, ease of use, and integration with Aplos nonprofit management software earn it the top spot on this list as well. Its contractor-only payroll plan is a great option if you only work with contract employees. Gusto offers excellent tools for employees too, including Gusto Wallet, which makes it easy to budget, save, and even give to charities.
Since Our Last Update:
Gusto has also increased pricing for its contractor-only payroll plan, from $6 per worker monthly to $35 plus $6 per worker monthly. As part of a new promo, new clients that sign up for this plan will get discounted pricing of only $6 per contractor monthly (no base fee) for the first six months. After this period, you will be charged the regular monthly fee. Note that this promotion can end anytime—please check Gusto’s website for the latest promo offer.
In our evaluation, Gusto earned an overall score of 4.42 out of 5. It earned high ratings in nearly all our criteria, with perfect marks for popularity and reporting. While Gusto doesn’t currently offer health insurance in all 50 states like ADP Run and Paycor, it’s reasonably priced, easy to use, and highly regarded by users.
Gusto Overview
QuickBooks Payroll: Best for QuickBooks Accounting Users
Pros
- Direct integration with QuickBooks Accounting
- Next- and same-day direct deposit
- Tax penalty protection that covers users’ errors up to $25,000 with Elite plan
- Unlimited pay runs
- Affordable plan for processing contractor payments
Cons
- 税收惩罚保护只在精英计划
- Local tax filings and time tracking available only in higher tiers
- Limited health benefits coverage (doesn’t include HI, VT, and DC)
- Doesn’t have mobile apps for employee self-service (only offers a workforce portal you can access online)
QuickBooks Payroll Plans & Pricing
- Core:$45 per month plus $5 per employee monthly
- Premium:$75 per month plus $8 per employee monthly
- Elite:$125 per month plus $10 per employee monthly
- Contractor payments package:$15 monthly for 20 workers; plus $2 for each additional contractor
For help deciding which payroll package is best for you, check out ourQuickBooks Payroll plans comparison.
QuickBooks Payroll offers many of the most important pay processing tools that a nonprofit organization needs at a reasonable price. Given that its payroll function can be directly and easily accessed through the QuickBooks system, it saves QuickBooks users time from having to separately set up a chart of accounts and import pay-related data into its platform. With QuickBooks being a household name for accounting software, this is a huge competitive advantage, especially compared to those with very limited integration capabilities such as Patriot Payroll.
Since Our Last Update:
QuickBooks has released a Contractor Payments package that’s optimal for businesses with only contract workers. For $15 per month, you can process payments for up to 20 workers (plus $2 for each additional contractor), e-file 1099 forms, and pay contractors via next-day direct deposits.
With 4.23 out of 5 in our evaluation, QuickBooks Payroll earned high ratings for pricing, payroll features, ease of use, and reporting. It lost points for not having a pay card option or nonprofit discount and for the limited coverage of its health insurance. User popularity ratings were good but not as high as the others on our list. Overall, real-world users liked the software for ease of use but said setup could take some time and the support could be problematic at times.
QuickBooks Payroll Overview
Paycor: Best Robust HR & Payroll Solution
Pros
- Solid payroll features with fully customizable pay grids
- Unlimited pay runs
- Robust HR product offering
- Occasionally offers new client promos that waive setup fees
Cons
- Expensive for small nonprofits
- Recruiting, time and scheduling, workers’ compensation, and benefits administration are paid add-ons
- HR tools not included with the Basic plan
Paycor Plans & Pricing
- Basic:$99 per month plus $5 per employee monthly
- Essential:$149 per month plus $7 per employee monthly
- Core:$199 per month plus $8 per employee monthly
- Complete:$199 per month plus $14 per employee monthly
Mid-market plans (50+ employees):Call Paycor for a quote
Paycor is a payroll and HR solution that offers a full suite of employee management services in one place. In addition to full-service payroll and tax administration, you can also use Paycor for help with recruiting and onboarding new employees and benefits administration. It’s not the cheapest on our list but still a good option for nonprofits, as it can fulfill many of the duties of an HR department without the cost of hiring a full-time person.
With a score of 3.96 out of 5 in our evaluation, Paycor earned perfect marks in popularity and reporting, and ratings of 4 and up in payroll and HR features. The high monthly fees of its payroll plans and the lack of a robust tax penalty guarantee cost this provider some points.
Paycor Overview
Patriot Payroll: Best for Small Nonprofits Needing a Simple Payroll Solution
Pros
- Very affordable pricing
- Unlimited pay runs
- US-based customer support with extended weekday hours
- Do-it-yourself (DIY) tax filing option available
Cons
- Full-service garnishments or child support not available
- Limited integration options
- Some functions require its HR or time tracking add-ons
Patriot Payroll Plans & Pricing
- Basic:$17 per month plus $4 per employee monthly
- Doesn’t include tax filing services
- Full Service:$37 per month plus $4 per employee monthly
- Time tracking:$6 per month plus $2 per employee
- HR software:$6 per month plus $2 per employee
- Basic employee data management and HR reports
- Multistate tax filings:$12 monthly for each additional state
- 1099 e-filings (for Basic Payroll subscribers only):$20 for up to five 1099 e-filings; an additional $2 per 1099 is required for six to 35 filings (no additional charge for 36 or more)
Patriot Payroll is the only provider on our list that can suit your needs whether you’re looking for a full-service payroll option or a more affordable DIY version for doing payroll. It’s the simplest on our list, with just the most basic payroll tools. Even the HR add-on is for organization, documentation, and HR reports, whereas ADP offers more HR tools and Gusto comes with hiring and performance reviews. However, with budgeting being such an important aspect of nonprofit financials, it is a great option for those looking for an affordable solution.
In our evaluation, Patriot Payroll scored a 3.78 out of 5, gaining top points for its budget-friendly software and popularity among users. It lost points for its limited HR features and only offering a four-day direct deposit funding period (the two-day option is only for qualified companies). Many other providers on our guide, such as Gusto, offer two-day funding in their starter tiers.
Patriot Payroll Overview
ADP Run: Best Scalable Payroll Software to Grow With
Pros
- Well-known brand with over 70 years of payroll expertise
- Multiple plan options with flexible features
- Full-service quarterly and annual tax filings
- Serves small nonprofits to international charities
Cons
- May require a setup fee; prices often increase after the first year
- 效益、时间跟踪和工人的赔偿are add-on products
- Year-end reporting (W-2s/1099s) cost extra
ADP Run Plans & Pricing
- Essential:$49 base monthly fee plus $2.50 per employee, per weekly pay run*
- Enhanced:Custom priced
- Complete:Custom priced
- HR Pro:Custom priced
*Pricing is based on a quote we received for 25 employees.
From an entry-level payroll plan that’s comparable to the other software on our list to full HR and payroll that can serve businesses with up to 1,000 employees, ADP Run’s features are scalable and completely customizable. It’s a great solution for growing nonprofits, particularly those that want to expand internationally. Although more expensive, many of its customer reviews on Capterra highlight its powerful employee management tools. ADP also has the most experience with nonprofits of those on our list and says it can alter its plans to suit your needs.
Earning a 3.60 out of 5 in our evaluation, it’s only the price that kept it from our No. 1 position. It earned 5 out of 5 for HR tools and reporting and very high scores for everything else. If you are looking for HR software as well as payroll processing, then the extra expense can be worth it.
ADP Run Overview
How We Chose the Top Payroll Services for Nonprofits
We compared several of the most popular providers, focusing on features that would be most valuable for nonprofit organizations. We looked for payroll providers that offer unlimited pay runs, flexible direct deposit schedules, seamless integrations with third-party software, and the availability of both basic and customized payroll reports.
Click through the tabs below for a more detailed breakdown of our evaluation criteria.
35% of Overall Score
25% of Overall Score
20% of Overall Score
10% of Overall Score
The best payroll software for nonprofits includes basic HR tools, such as online onboarding, new hire reporting, and employee benefits. Self-service portals that allow your team to manage their information also hold a huge value.
5% of Overall Score
We considered online user reviews, including those of our competitors like G2 and Capterra, based on a 5-star scale, wherein any option with an average of 4-plus stars is ideal. Also, software with 1,000 or more reviews on third-party sites is preferred.
5% of Overall Score
Aside from having access to basic payroll summaries, users should be able to customize and create new reports within the system. Reporting is especially important for nonprofits that need an easy way to determine their payroll costs.
Payroll Software for Nonprofits Frequently Asked Questions (FAQs)
Yes. Nonprofit organizations are exempt from federal unemployment taxes and, in some cases, state unemployment taxes. Be sure to check that your payroll software notes this to avoid adding undue expenses and complications.
Payroll can take a lot of time and energy to stay on top of, yet it’s vital that you are accurate and timely. Not only can mistakes or late payrolls cause ire with your paid employees, but they can put you in violation of the law. Payroll software makes it easier to pay employees―sometimes taking only minutes to complete―plus offers automated checks to make sure you are error-free and in compliance with federal, state, and even local laws.
Yes. You must withhold federal, state, and local income taxes as well as FICA (Social Security and Medicare) taxes from all qualifying employees. The exception to this may be clergy, who are often considered self-employed for calculating FICA and, thus, you may not need to pay this on their behalf. Learn more inIRS Publication 517.
Yes, because minimum wage applies to all qualified employees. There are some exceptions. Check with the US Department of Labor (DOL) or your state for details. The minimum wage is currently $7.25 an hour or higher if your state or local municipality has its own rate.
Bottom Line
Whether you’relooking for a full-service payroll solutionor a more DIY approach, it’s important that you find the payroll software with the features you need. Essential functionalities can range from full-service tax filings to quick direct deposits. You also have to consider pricing and whether or not the nonprofit payroll service you’re considering meets your budget.
We found Gusto to be the best payroll software for nonprofits. It offers reasonably priced plans with a contractor-only package that’s optimal for organizations that mostly hire contract workers. Gusto is a crowd favorite among users given its user-friendly platform, solid payroll tools, and multiple direct deposit options. Sign up for a plan today.