Wave Payroll at a Glance
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. Onboarding new employees is easy with Wave Payroll, thanks to the self-serve employee portal. Your workers can complete their profiles, enter personal and tax deduction info themselves and they can view pay stubs and tax forms by logging into the system.
If your employees prefer to get paid via direct deposit, they should receive money three days after you process payroll. Otherwise, they can choose to be paid by check. If they choose the check option, you’ll have to make sure you have checks for printing; Wave Payroll doesn’t offer a print-and-mail option.
You can try Wave Payroll for 30 days before paying anything. If you like it, you provide your payment info then and you’ll pay monthly to use the software. Be sure to test out all the features from the company and employee side to make sure it’s a good system for your business. For example, there are timesheets available, but you have to manually add hours worked. This may work well if you have few hourly workers, but it could end up being a big time sink if you have a larger staff.
Pricing
Pricing for Wave Payroll is a bit different in that you pay either $20 or $35 per month as a base payment, depending on the state in which you’re running payroll. 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.
It’s worth noting that you don’t pay for every contractor every month. Instead, they are classified as “vendors” and you only pay $6 per contractor that you pay each month. So if you have six contractors on call but only need to pay three this month, you’ll be charged $18. Contractors can be paid via direct deposit just like standard employees, but classifying them correctly in your payroll is vital to ensure your tax information is accurate.
Open to sacrificing some features to reduce or eliminate your cost? Consider an option from our Top Free Payroll Software list.
Featured Partners
1
OnPay
Yes
Yes
$40 per month + $6 per user
2
SurePayroll
Yes
Yes
$29.99/mo plus $5 per employee
3
Gusto
Yes
Yes
$40 per month plus $6 per user
4
Rippling
Yes
Yes
$35 per month + $8 per user
How Wave Payroll Works
With Wave Payroll, your small business can manage payroll, employee deductions and taxes in an easy-to-use, affordable platform. You may set up payroll for both employees and independent contractors while giving them access to a portal with their information and tax forms, such as W-2s and 1099s.
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. If you live in a state where automatic tax filing is unavailable, you’ll be able to export the appropriate forms and 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.
Is Wave Payroll Right for Me?
Wave Payroll is meant for small businesses and startups that have a fluctuating roster of employees and contractors. It’s especially affordable if you pay people periodically, such as with occasional contract workers or seasonal employees, because you can put those people on hold with Wave Payroll and not pay during those dry periods. If you use all of Wave’s apps, including invoicing and accounting, it can be a useful suite of business management products because those apps seamlessly work together.
Wave Payroll Is Best For:
- Small Businesses That Use Wave: Wave Payroll is a solid choice for startups and small businesses that already use and like Wave’s other apps, such as Wave Accounting and Wave Invoicing.
- Small Businesses With Varying Payroll Needs: Those with payroll needs that change frequently may benefit from Wave Payroll as it can allow them to put employees on hold and avoid pay runs whenever necessary.
Wave Payroll Is Not Recommended For:
- Small Businesses With Multistate Employees: Wave Payroll might not make sense for small businesses that have workers in multiple states since automatic filing is only an option in 14 states.
- Small Businesses Looking for a Robust Software: Small businesses in need of benefits administration, time tracking and other features may be better off with a more comprehensive payroll solution.
What Sets Wave Payroll Apart
While Wave Payroll’s features are pretty basic, its employee status option is a great perk. This is particularly true if you have seasonal or occasional employees and independent contractors that you pay sporadically. You can change their status from active to inactive and only run payroll for them when you need to.
In addition, Wave Payroll seamlessly integrates with Wave Accounting, which is great news if your business is using the accounting app and familiar with it. Wave Payroll can automatically track and post payroll expenses to Wave Accounting.
Wave Payroll Features
Here’s an overview of several of Wave Payroll’s most noteworthy features:
Dashboard
The dashboard is a good place to look if you’re looking for a quick summary of your payroll function. It includes upcoming start and end pay dates, a “Things to do” list and easy access to payroll setup. There’s also a “Review this payroll” button that can give you a glance of your current payroll and the total payroll amount.
Timesheets
With timesheets, you can track the hours of your hourly and salaried employees. Keep in mind that this feature is only available for you as the employer as there are no timesheets for employees to fill out on their own. Your workers will have to track their hours in another way so you can enter them manually before you run payroll.
Automatic Journal Entries
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.
Ease of Use
Since Wave Payroll was specifically created for startups and small businesses with limited to no payroll processing experience, the interface is easy to use. No matter how tech-savvy you are or aren’t, you’ll find the setup process simple as there are step-by-step instructions and a 24/7 chatbot to guide you. Wave Payroll is fairly basic with minimal features so you shouldn’t get overwhelmed as you might with more comprehensive payroll solutions.
Compliance
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. Plus there are no staff available to advise you on compliance.
Onboarding
It’s not uncommon for payroll software to offer self-serve onboarding for employees. Unfortunately, Wave Payroll lacks this feature. As an employer, the responsibility of entering payroll and banking information for each employee and independent contractor falls on you. This can take a lot of time, especially if you have a large workforce.
Tax Filing
As we previously mentioned, Wave Payroll will automatically file taxes in 14 states: Arizona, California, Florida, Georgia, Illinois, Indiana, Minnesota, New York, North Carolina, Tennessee, Texas, Virginia, Washington and Wisconsin. If you live elsewhere, your only option will be to file taxes manually.
Time Tracking
Time tracking is available through timesheets, which can give you the chance to keep tabs on the hours your employees and independent contractors work. Unfortunately, there is currently no way for workers to fill out timesheets on their own. They’ll need to do so manually or through a different method so you can later input the information into the software.
Benefits Administration
Wave Payroll won’t help you much with benefits, such as health insurance and retirement plans. 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.
Analytics and Reporting
You can use Wave Payroll to create basic payroll reports. If you go to the dashboard, you’ll be able to track wages and taxes you’ve paid or assess payroll benefits and deductions. You’ll have more robust reporting options if you use Wave Accounting as this app allows for cash flow statements, sales tax reports, profit and loss statements and more. There are also filters for custom reports.
Accessibility
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.
Wave Payroll Pricing and Plans
| Tax Services State Plan | Self-Service State Plan | |
|---|---|---|
|
Starting Price
|
$40 per month plus $6 per person
|
$20 per month plus $6 per person
|
|
U.S. Payroll
|
Yes
|
Yes
|
|
Global Payroll
|
No
|
No
|
|
Onboarding
|
No
|
No
|
|
Tax Filing
|
Yes
|
No
|
|
Benefits Administration
|
No
|
No
|
|
Time Tracking
|
Yes
|
Yes
|
|
Expense Management
|
Only with Wave Accounting
|
Only with Wave Accounting
|
|
Workflow Automations
|
No
|
No
|
|
Mobile Apps
|
No
|
No
|
|
Reporting and Analytics
|
Yes
|
Yes
|
|
Third-Party Integrations
|
Yes
|
Yes
|
|
Error-Free Guarantee
|
No
|
No
|
|
Customer Support
|
Yes
|
Yes
|
Customer Service and Support
While Wave Payroll does offer a few customer support options, including email support and chatbot support, they’re not necessarily reliable. We tried to ask a question through the chatbot feature and didn’t receive a helpful response. You may have better luck seeking support via the self-service Help Center.
Wave Payroll Alternatives & How They Compare
| Wave Payroll | OnPay | Gusto | Deluxe | |
|---|---|---|---|---|
|
Rating
|
 |
 |
|
 |
|
Starting Price
|
$20 to $40 per month plus $6 per person per month
|
$40 per month plus $6 per user per month
|
$40 per month plus $6 per user per month
|
$45 per month plus $7 per user per month
|
|
U.S. Payroll
|
Yes
|
Yes
|
Yes
|
Yes
|
|
Global Payroll
|
No
|
No
|
No
|
No
|
|
Onboarding
|
No
|
Yes
|
Yes
|
Yes
|
|
Tax Filing
|
Yes, with the tax services state plan
|
Yes
|
Yes
|
Yes
|
|
Benefits Administration
|
No
|
Yes
|
Yes
|
Add-on
|
|
Time Tracking
|
Yes
|
No
|
Yes
|
Yes
|
|
Expense Management
|
Yes, with Wave Accounting
|
No
|
Yes
|
No
|
|
Workflow Automations
|
No
|
Yes
|
Yes
|
Yes
|
|
Mobile Apps
|
No
|
Yes
|
Yes
|
No
|
|
Reporting and Analytics
|
Yes
|
Yes
|
Yes
|
Yes
|
|
Third-Party Integrations
|
Yes
|
Yes
|
Yes
|
Yes
|
|
Error-Free Guarantee
|
No
|
Yes
|
No
|
Yes
|
|
Customer Support
|
Yes, via email and chat
|
Yes
|
Yes
|
Yes
|
|
Learn More
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Read Reviews
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Wave Payroll vs. OnPay
While Wave Payroll is a basic payroll solution without all the bells and whistles, OnPay is more robust. With OnPay, for example, you’ll have more support with benefits as it acts as an insurance broker and makes it easy to set up health insurance, 401(k) plans and other benefits for your employees. Plus there’s a handy mobile app employees can use to track and manage their PTO.
Wave Payroll vs. Gusto
Gusto is more expensive than Wave Payroll for good reason. It offers automatic tax calculations and filings, no matter where you operate in the U.S. Wave Payroll, on the other hand, limits this convenience to businesses in 14 states. Unlike Wave Payroll, Gusto also lets you purchase insurance products and other benefits through it.
Wave Payroll vs. Deluxe
When it comes to price, Deluxe is more expensive than Wave Payroll. While it will calculate and file your taxes and offer tax payment penalty protection (a feature Wave lacks), using the software can be tricky, especially if you don’t have a tech team to help you out. Plus you have to pay extra for add-on features, such as benefits administration.
Featured Partners
1
OnPay
Yes
Yes
$40 per month + $6 per user
2
SurePayroll
Yes
Yes
$29.99/mo plus $5 per employee
3
Gusto
Yes
Yes
$40 per month plus $6 per user
4
Rippling
Yes
Yes
$35 per month + $8 per user
Our Expert Opinion
While Wave Payroll isn’t the most robust payroll solution on the market, it will get the job done if you’re a startup or small business in search of basic payroll capabilities. 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. If your business is in a state where Wave doesn’t offer automatic tax filing or you prefer additional features, such as benefits administration and self-service onboarding, you should look elsewhere.
Frequently Asked Questions (FAQs)
Which payroll company is best?
Depending on the size and needs of your business, the best payroll company could be Wave Payroll because of its flexibility; OnPay for its integrations and ease of use; QuickBooks Payroll because you’re already using QuickBooks for accounting; or ADP RUN because your company is growing quickly.
What is the easiest payroll software to use?
The easiest payroll software depends on what your company’s needs are. For example, Wave Payroll is a simple system to learn and use. Some of the best payroll services that are also easy to use include OnPay, Gusto and ADP RUN.
Does Wave have time tracking?
Wave does offer a timesheet feature, so you can enter hours employees or contractors worked and their rate for payroll purposes. For salaried employees, simply leave the hours worked at zero. This is a manual feature, so it’s a bit like a built-in spreadsheet, but it syncs directly with the payroll software.
