Wave Payroll: Affordable Services for Entrepreneurs

Managing payroll can be an extremely time-consuming and complex process for small business owners and entrepreneurs.

But with the right payroll software, you can simplify payroll management and free up more time to focus on growing your business.

In this review of Wave Payroll, we'll look at how it provides an affordable, easy-to-use solution tailored specifically for entrepreneurs and small business owners looking to streamline payroll.

Introduction to Wave Payroll

Wave Payroll is an affordable, cloud-based payroll solution designed specifically for entrepreneurs, freelancers, and small business owners. With easy setup, intuitive tools, and transparent pricing, it aims to simplify payroll so you can focus on growing your business.

Overview of Wave Payroll

Wave Payroll handles all aspects of payroll processing and payment, including:

• Calculating federal, state, and local tax withholdings
• Direct deposits into employee bank accounts
• Filing payroll taxes
• Producing pay stubs and custom reports

Designed as an online platform, Wave Payroll works on any device and integrates seamlessly with Wave's free accounting software. You can run payroll in a few clicks.

Key Features

Key features of Wave Payroll include:

• Direct Deposit - Deposit paychecks electronically into employee accounts. Avoid printing checks.
• Tax Calculations - Automatically calculate income tax, social security, Medicare and other deductions.
• Payroll Reporting - Generate reports on payroll expenses, taxes owed and more for compliance.
• Employee Self Service - Employees can access pay stubs and tax documents online through their own login.
• Integrations - Seamlessly connects with Wave's accounting platform. Integrates with payment processors like Stripe.

These features simplify payroll administration so entrepreneurs can focus on business growth.

Pricing and Plans

Wave Payroll offers affordable pricing, including:

• Free Plan - The core payroll features are free for 1 employee.
• Paid Plans - For 2+ employees, paid plans start at $20/month with volume discounts available.

With no contracts or setup fees, Wave Payroll is more affordable than competitors for startups and small teams.

Ideal Users

Wave Payroll is an ideal payroll solution for:

• Startups & Small Businesses - Simple, affordable payroll for early stage ventures.
• Freelancers - Pay yourself as an employee using Wave's payroll features.
• Entrepreneurs - Easy to use if you handle your own payroll.

For microbusinesses that need an basic payroll solution, Wave Payroll provides an affordable option.

Benefits of Using Wave Payroll

Wave Payroll provides several key benefits for entrepreneurs and small businesses looking to manage payroll in a streamlined, cost-effective manner.

Saves Time

Wave Payroll automates many of the manual, time-consuming processes involved with running payroll, such as:

• Calculating taxes and deductions for each employee
• Printing and delivering paper checks
• Filing required payroll taxes and documents

This frees up valuable time for business owners to focus on core operations and growing their business.

Cost Effective

Compared to traditional payroll services, Wave Payroll is extremely affordable:

• The free plan allows running payroll for 1 employee at no cost
• Paid plans scale up reasonably as the business grows
• Significantly cheaper overall than competitors

For bootstrapped startups and small teams, Wave Payroll provides major cost savings.

Easy To Use

With an intuitive, user-friendly interface, Wave Payroll is designed for simplicity:

• Easy, fast setup without IT expertise required
• Minimal training needed for employees and managers
• Simple tools to add new hires, adjust pay rates, track hours

The platform is accessible for entrepreneurs without an accounting background.

Access Anywhere

Wave Payroll enables managing payroll on-the-go with mobile access:

• Native iOS and Android apps
• Ability to approve timesheets, run reports, make quick edits remotely
• Useful for remote teams and business owners on the move

The cloud-based software provides flexibility to handle payroll tasks anywhere.

Key Payroll Features

Wave Payroll offers several key features to help businesses manage payroll tasks efficiently.

Direct Deposit

Wave Payroll allows users to quickly set up direct deposit for employees. This ensures funds are deposited conveniently on payday, avoiding delays with physical checks. Direct deposit setup supports connections to all major banks.

Payroll Reporting

Robust reporting capabilities track pay runs over any time period. Users can easily pull reports showing payments, deductions, taxes, and more for any or all employees. This simplifies payroll analysis and reconciliation tasks.

Managing Employees

The system stores employee details like salary, benefits, deductions in one centralized location. As details change over time, users can conveniently log in to update employee profiles. This eliminates paperwork and makes payroll changes quick and seamless.

Managing Contractors

Alongside regular W-2 employees, Wave Payroll supports adding and paying 1099 contract workers. Contractors can be invited and paid through the same system used for employees. This removes the need to use multiple platforms to pay staff.

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Payroll Tax Management

Wave Payroll fully automates payroll tax calculations, payments, and filings for simplicity and compliance.

Automatic Tax Calculations

Wave Payroll accurately calculates federal, state, and local payroll taxes based on the latest rates and each employee's details. This ensures the correct amounts are determined and owed for every pay period.

Some key features of the automatic tax calculations include:

• Integration of tax tables at federal, state, and local levels to apply up-to-date rates
• Ability to configure tax jurisdictions based on where employees live and work
• Calculation of income tax withholdings using employee W-4 exemptions
• Determination of employer tax liabilities for Social Security, Medicare, unemployment insurance, and more

By automatically handling tax calculations, Wave Payroll reduces the risk of errors and provides peace of mind that all payroll taxes are done correctly.

Tax Payments

Wave Payroll enables easy payment of payroll tax liabilities directly within the software. There is no need for an external payment system or bank website.

Key features around tax payments include:

• Scheduled payment of tax liabilities on their due date
• Integration with bank accounts to pull funds and remit taxes owed
• Email notifications when a tax payment is scheduled and processed
• Detailed reporting of historical tax payments made

Automating payments saves the hassle of manually handling each payroll tax deadline. Everything is taken care of seamlessly.

Tax Filing

For further simplification, Wave Payroll handles filing and submission of all required payroll tax returns and forms at federal, state, and local levels.

Tax filing capabilities include:

• Quarterly and annual payroll tax returns for federal (941, 940) and state equivalents
• Local returns such as for city/county income taxes
• Electronic filing or paper filing options available
• All necessary supplemental forms and schedules

By removing the complexities of payroll tax filing, Wave Payroll ensures full legal compliance and on-time filings.

Year-End Tax Support

Come year-end, Wave Payroll provides robust tools for tax reporting, including:

• Employee W-2 forms prepopulated from payroll data
• Contractor 1099 forms for non-employee compensation
• Annual wage and tax summaries for each employee
• Importing of data into tax prep software like TurboTax

With Wave Payroll, users can easily handle all their year-end tax reporting and filings without hassles or delays.

Implementation and Support

Wave Payroll aims to make setup quick and easy for small businesses. Its intuitive wizard guides users through the initial configuration process, allowing most customers to run their first payroll within 24 hours of signup.

Quick Setup

The payroll setup process is straightforward with Wave's guided prompts. Users provide basic business and employee information through the payroll wizard. This information populates the necessary payroll forms and tax documents to begin processing payments. The wizard allows running a test payroll first to confirm accuracy before the initial live payroll.

Payroll Migration

For those switching from another payroll provider, Wave can import employee payroll data to retain historical records. Users can upload CSV files with past payroll details. Wave's support team is also available to assist with more complex payroll migrations involving merging records or managing discrepancies.

Ongoing Support

Wave Payroll emphasizes responsive customer support through multiple convenient channels. It offers 24/7 live chat and email ticketing from within the payroll software. For more complex questions, US-based phone support is available during extended business hours. Common inquiries range from clarifying particular form requirements to troubleshooting errors when processing payroll.

Help Resources

To supplement its support channels, Wave provides a suite of self-service payroll resources. These include step-by-step payroll processing guidelines, searchable FAQs, prerecorded webinars explaining key features, and tutorial videos for the payroll platform. The materials aim to educate users and resolve common pain points when managing payroll internally.

Summary and Recommendation

Wave Payroll is an excellent option for entrepreneurs and small business owners seeking an affordable, full-featured payroll platform. With easy setup, automated tax calculations, direct deposit, and seamless integration with accounting software, it simplifies payroll for lean teams.

Key Takeaways

• Costs just $20 per month plus $4 per employee, significantly lower than competitors
• Automates tax calculations, filings, and payments for accuracy and compliance
• Supports direct deposit with fast, reliable payroll delivery
• Integrates with Wave's free accounting software and other platforms
• Ideal for solopreneurs, microbusinesses, freelancers, and consultants

Best-Fit Businesses

Wave Payroll works best for startups, entrepreneurial ventures, freelancers, consultants, and microbusinesses with under 10 employees. Service businesses in industries like creative services, healthcare, real estate, and professional services can benefit greatly from Wave's combination of affordability, reliability, and ease-of-use.

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