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Payroll Service Recommendation for US based business


#1

Payroll in the USA is a nightmare and I have outsourced to payroll services in the past at previous business startups. It’s just too complicated to do payroll internally here. I was hoping that someone in the US has figured out a way to integrate with ERPNext, but in checking the discussions and integrations, I don’t see that anyone has posted about this.

I would welcome any suggestions on successful small business payroll solutions for US business. If there is already someone who has figured out how to integrate with Intuit, Square, Gusto Patriot or any others, I would be thankful for the advice.


#2

Have you tried Payroll processing in ERPNext? If there are any functional gaps you see, kindly list them.


#3

Pawan,

Yes, I looked at the HR module and the payroll processing and it is not in line with the needs of US businesses. Witholdings and distributions to various government agencies are made through a payroll service and ERPNext does not do this. Plus these services also do direct depositing and the various compliance filing for medical insurance coverages which are required for US businesses. HR is a VERY complicated business in the US.

In summary, right now we use a payroll service and book a journal entry to cover payroll and payroll expenses, it’s fine but a manual process. It would be great if ERPNext could integrate with one or more of the major payroll providers, this would really be an attractive feature for any potential us company looking at using ERPNext.


#4

Try gusto. It’s super easy and cheap. I use it for some smaller stuff and it’s great.


#5

Thanks, I am familiar with Gusto but I was hoping to find out if there is a packaged integration or solution which works with ERPNext. Something which leverages the API to automate the process. There are lots of great integrations currently out there with ERPNext (Stripe, Dropbox, Fedex) but nothing to address Payroll or HR. Curious if anything like this exists or is in development.


#6

@AV8 why not list out the features that you want then we can make a bounty to make the additions to the software.


#7

@woakes070048 I would love to have $$ to put a bounty on this but we are a small startup with only three employees right now. We couldn’t justify the expense as a group with limited resources and payroll being a “wish list” item. Our hope is to grow on the ERPNext platform and have the ability to give back to the community once our company matures and has greater sales growth.


#8

@av8 you dont have to give to the bounty just start it. Then others if they want the same feature will help fund the project. I see this a big need to our customers so i would help fund the project.


#9

You might not have the money, but you could put in the requirement documents, create a bounty & make enough noise. Perhaps people will contribute and it will become a reality. Giving back doesnt have to be code. Could be initiatives, time, etc…


#10

In our case in Canada, I can speak to that - perhaps this is the case for you in the US!?

Our federal government CRA publishes the precise formulation to calculate standard ‘federal + provincial source deductions’

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/t4127-payroll-deductions-formulas-computer-programs.html

Long ago I implemented, then for say 10 years maintained in LibreOffice calc, a macro basic code & test data suite from the manual.

Once implemented, with each annual version update, I spent less than a day to revise and test that updates new rates and changes.

Hope this helps.


#11

I spent a good deal of time reviewing various payroll/HR services and also arrived at the conclusion that Gusto would be a good candidate to integrate. Unfortunately, payroll, benefits administration and compliance are a nightmare in the US. Our insurance industry is unlike most countries and employee contributions to health care make it impossible to handle payroll internally for a small business. As a founder of other companies, I can say that addressing payroll and sales taxation are the two biggest hurdles to implementing a successful ERPNext system for a US business.

Based on the feedback on this string, I’ll craft a bounty for Gusto integration which has a well documented API. Gusto happens to also be based close to our offices in San Francisco, CA so I would be happy to be a point person/project manager in seeing this successfully integrated.

If anyone else has thoughts on this subject, please feel free to chime in as I will be happy to incorporate other “wish list” items into the bounty scope of work.


#12

@AV8
Hey Jeremy,
I am wondering what the outcome was. How is AV8 handling payroll today?
Thanks,
Max


#13

Hi Max,

We settled on using Gusto to do our payroll and HR benefits administration. It’s pretty cheap and easy to use. They do all the payroll tax filings for us so it’s pretty simple for us. We run payroll every two weeks and just book a journal entry for the salary expense as well as the employee and employer payroll tax withholdings.

Gusto debits our bank account for the salary payments (net pay to employees) as one transaction. There is a second debit which goes to the government for payroll tax withholding. This is for both the employee and employer amounts due. Two journal entries every two weeks. Since the ammounts are almost always the same we just use the duplicate function for the journal entry and slightly tweak the amounts as payroll is mostly the same from week to week. Takes us two minutes to run these.