What SMBs Want in a Payroll Solution

What SMBs Want in a Payroll Solution

What features do small and midsized businesses (SMBs) want in a payroll system, and what issues do they face? To find out, Bredin surveyed 600 U.S. and UK SMB principals.

In the U.S., very small businesses (VSBs, with 1-19 employees) and small businesses (SBs, with 20-99 employees) put a premium on direct deposit capabilities, tax calculation and filing, and compliance with labor laws.

U.S. midsized businesses (MBs, with 100-500 employees), prioritize an employee self-service portal, followed closely by employee benefits management. MBs also value direct deposit capabilities, automated payroll processing, and mobile access for employees.

In the UK, the most sought-after features are tax calculation and filing, compliance with labor laws, and integration with accounting software.

Top Payroll Solution Features

We also asked U.S. and UK SMBs about the challenges they experience with payroll systems. The most common challenge for VSBs, SBs, and UK SMBs is data entry mistakes. VSBs also complain about overtime calculation errors and incorrect tax withholding; SBs, failure to account for PTO; and UK SMBs, incorrect tax withholding and failure to update payroll records. MBs struggle most with PTO accounting, followed by overtime calculation errors.

SMB Challenges with Payroll Systems

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