Homebase Payroll Review 2023

Overview of Homebase Payroll Software

Homebase Payroll is a software as a service (SaaS) solution for small businesses that have hourly employees. With Homebase payroll software, your employees track their time by clocking in and out of the mobile app. The small business payroll software calculates all of the payroll data, including hours, breaks, overtime, and paid time off (PTO), then converts the timesheets into payroll.

The app allows employees to update their own payroll forms and personal information when they’re hired or make a life change, such as tax deductions and banking information. The system automatically handles taxes and sends direct deposits. Homebase also files your payroll taxes with the IRS. 

Is Homebase the Best Payroll Solution for a Small Business?

Homebase Payroll may be one of the best solutions for small businesses because it offers an affordable payroll software plan that allows you to process payroll for unlimited employees from a single location. 

Other benefits of using Homebase for your small business include:

• The mobile app works for both iOS and Android 
• Team members clock in and clock out from their smartphones or mobile devices
• Employees manage their own payroll forms and paperwork, and can access W-2s, paystubs, and earnings
• Automated payroll is generated directly from employee hours and time cards
• Manage work schedules, including time-off requests and shift trades
• Business owner can run payroll with a few clicks
• Team can use a messaging functionality
• Employees gets payday notifications
• Employees can use either direct deposit and printable checks
• It’s easy to use and set up

Reasons Homebase May Not Be the Best Solution for a Small Business

There are a few drawbacks to using Homebase for payroll. First, it charges per location (such as restaurant, office, or store), meaning it may get more expensive as your business grows or if you already have more than one location. Also, you’re only allowed one administrator role in the lowest level version, so if you have more than one person who needs to manage payroll, you may need to pay for more licenses. 

Homebase reviews also note that the app can be glitchy, and that can mean a lot of time spent with customer support. There have also been some reports of software integrations not working well. However, user reviews also note that customer support is quick and easy to talk to. 

How Does Payroll Work in Homebase?

Homebase Payroll works by first converting your pay rates, hours, and minutes into a payroll summary report. From there, the software determines employee wages and sends out direct deposits or checks, depending on their preferences. Homebase also tracks breaks, overtime, time off, and other scheduling factors. All you have to do is click a few buttons on your mobile device. 

You can also use Homebase as a timesheet solution and integrate it with other payroll processing software, such as ADP, Paychex, Bank of America, Gusto, or others. 

Homebase Payroll Solutions

Homebase Payroll aims to help reduce the time, headaches, and risk of manually processing payroll for small business owners. The software can help automate payroll processes such as timekeeping, tax deductions, tax filing, employee scheduling, time-off requests, and more. The payroll solution includes time clocks, employee scheduling, payroll, and team communication. You can view real-time schedules and timesheets, 

Homebase can also help with other human resources functions, such as:

• Hiring and onboarding — Homebase lets you handle your hiring processes through the app. You can post jobs, promote paid postings, collect referrals, and track applicants, plus message applicants and schedule them for interviews. 
• HR and compliance — Manage all employee information, including emergency contacts and payroll details. Also, track employee certifications and allow employees to self-serve and e-sign employee documents, which are securely stored within the Homebase system. The app also allows you to enforce labor compliance, such as accurate time tracking, employee certification tracking, and notifications of labor laws. Homebase can also create a customized employee handbook for your small business. 
• Employee happiness — Homebase gives employees the ability to self-serve their schedules, time-off requests, and pay stubs, plus tax information. They can also e-sign documents and update their personal information easily. The app allows them to communicate with each other for schedule changes. Homebase can also provide employees a way to get payroll advances before payday if they need it. The service allows you to recognize employees for good work, track performance metrics, celebrate anniversaries and birthdays, and give the team space for feedback on your company and how they feel in their roles. 
• Labor cost controls — Homebase’s employee time system gives you control over timesheets, including keeping employees from clocking in early, automatically clocking them out if they’ve forgotten, and notifications when they’re close to reaching overtime. They also provide reports on labor costs to help you build forecasts and build your employee schedules. 

Pros and Cons of Using Homebase for Payroll Processing

Homebase Pricing

For Homebase Payroll, the cost is a $36/month base rate plus $6 per employee. This price includes:

• Unlimited payroll runs
• 1099s and W-2s for employees
• Tax filings and amendments
• Free set-up and transfer services

You only pay the $6 fee for employees who get paid, and there’s no monthly contract. 

Homebase also offers human resources software beyond Homebase Payroll, including hiring tools and employee scheduling tools, at a number of pricing tiers depending on size of your business and how much you need from the app. It charges per location as opposed to per employee, which means you can have an unlimited number of employees on your payroll. You can also currently save 20% if you sign up to be billed annually as opposed to monthly.

Homebase Payroll Software Integrations

Homebase software integrates with other software tools in your accounting, HR, and business management suite, such as point of sale (POS) systems, accounting software, and others. These integrations can help you forecast labor costs and sales so you can budget accordingly, and they can help you manage your bookkeeping and accounting. 

POS integrations

Integrate your employee schedules and employee time with your point of sale systems so employees can clock in and out at your POS terminal. You can also forecast labor needs based on trends and connect sales to employee time. Some popular POS software that Homebase integrates with include:

• Toast
• Shopify
• Square

Accounting integrations

Help manage taxes, bookkeeping, and accounting by integrating Homebase with your accounting software. Homebase integrates with many popular accounting software systems, such as:

• Intuit Quickbooks
• Restaurant365

Payroll integrations

If you want to use Homebase as an employee time tracking system or use its other human resources functions — but use another payroll software to run payroll — Homebase integrates easily with some of the most popular payroll providers, such as:

• Paychex
• Gusto
• ADP

Recruiting integrations

Homebase provides applicant tracking and job posting capabilities on some of the most popular recruiting services, including integrations with:

• Craigslist
• Glassdoor
• Google
• Indeed
• ZipRecruiter

Homebase Payroll Software Alternatives

There are several software alternatives to Homebase Payroll, including:

• Online Payroll by Intuit QuickBooks
• Gusto
• Deputy
• Sling
• Humanity
• 7shifts

Find the right payroll software for your business using Nav’s payroll software resources guide. Using Nav can help you find small business financing or credit cards for your business, too, based on your business data. See your options in Nav today.