Wave Payroll vs Digits
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
Wave Payroll
Wave Payroll is a simple payroll solution built into the Wave accounting ecosystem. It is designed for very small businesses that already use Wave for accounting and want an integrated payroll solution. Wave Payroll handles direct deposit, tax payments, and W-2s, making it a natural choice for businesses already in the Wave ecosystem.
Digits
Digits is a modern financial intelligence platform for small businesses that connects to your accounts and uses AI to surface insights, trends, and anomalies in your finances automatically.
Pros
- ✓Seamlessly integrates with Wave accounting — no manual data transfer needed
- ✓Very affordable pricing for micro-businesses
- ✓Simple interface with minimal setup required
- ✓Free Wave accounting included with subscription
Cons
- ✗Limited features compared to dedicated payroll platforms
- ✗Tax filing is only automatic in select states — manual filing required in others
- ✗No mobile payroll app
- ✗Not suitable for businesses with complex payroll needs
Pros
- ✓AI-powered financial insights
- ✓Clean modern interface
- ✓Automatic anomaly detection
- ✓Good cash flow visibility
- ✓Integrates with existing accounting tools
Cons
- ✗Not a full accounting replacement
- ✗US-focused
- ✗Still a newer platform
- ✗Limited tax filing features
- ✗Best as a complement to existing accounting software
Wave Payroll vs Digits: Side by Side
| Factor | Wave Payroll | Digits |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Payroll Software | Accounting Software |
| Pricing Model | Paid | Paid |
| Starting Price | $20/mo + $6/person | Contact for pricing |
| Best For | Micro-businesses already using Wave accounting that want simple integrated payroll | Small business owners wanting AI-powered financial insights and visibility on top of their existing accounting software |
| Our Pick | — | — |
Wave Payroll Features
- ✓Payroll processing
- ✓direct deposit
- ✓tax payments and filings
- ✓W-2 and 1099 preparation
- ✓Wave accounting integration
- ✓employee self-service
Digits Features
- ✓AI bookkeeping
- ✓transaction categorization
- ✓cash flow insights
- ✓financial reporting
- ✓bank feed integration
Pricing Comparison
Our Take
Choose Wave Payroll if micro-businesses already using wave accounting that want simple integrated payroll. Choose Digits if small business owners wanting ai-powered financial insights and visibility on top of their existing accounting software.
Best For
Micro-businesses already using Wave accounting that want simple integrated payroll
Best For
Small business owners wanting AI-powered financial insights and visibility on top of their existing accounting software
Also Consider
If neither Wave Payroll nor Digits is the right fit, Multiplier is worth evaluating.
Multiplier
Startups and SMBs hiring internationally on a budget
From $40/contractor/mo
Frequently Asked Questions
What is the difference between Wave Payroll and Digits?
Wave Payroll is best for micro-businesses already using wave accounting that want simple integrated payroll. Digits is best for small business owners wanting ai-powered financial insights and visibility on top of their existing accounting software.
Which is better, Wave Payroll or Digits?
Choose Wave Payroll if micro-businesses already using wave accounting that want simple integrated payroll. Choose Digits if small business owners wanting ai-powered financial insights and visibility on top of their existing accounting software.
How much does Wave Payroll cost?
Wave Payroll starts at $20/mo + $6/person. Pricing model: Paid.
How much does Digits cost?
Visit Digits website for current pricing.
Who should use Wave Payroll?
Micro-businesses already using Wave accounting that want simple integrated payroll
Who should use Digits?
Small business owners wanting AI-powered financial insights and visibility on top of their existing accounting software