Best Payroll Software For Small Businesses
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When it comes to finding the perfect payroll software for your business, Merchant Maverick understands the myriad features small business owners need. Whether you are looking for customizable options or affordable tax support, comparing the options can become overwhelming. The payroll software business is booming right now as more and more companies look to automate and streamline stressful aspects of their businesses, and the victors of this competitive surge are small businesses.
Merchant Maverick has spent countless hours learning the ins and outs of payroll software (fact: I have had a series of payroll software-related nightmares lately; we have reached peaked immersion level) so you can grab a coffee and save yourself some hours — and potential nightmares — by delving into our top choices for small businesses instead. What you need is out there, and we will make sure you find the best fit for your business.
Learn More About Our Top Picks
| Company | Summary | Next Steps |
|---|---|---|
 | Best overall payroll system for small businesses. | |
 Not Yet Rated | Best payroll system for overlooked industries and very small businesses | |
 | Best payroll system for tailoring and customization to your business requirements | |
 | Best for small businesses with no payroll or accounting experience | |
 | Best for companies that use QuickBooks software |
Other Featured Options:
- Square Payroll: Best for companies already using Square products, businesses looking for a bargain, and employers with numerous contractors
- Paycor: Best for businesses looking for a full Human Capital Management system with payroll
Read more below to learn why we chose these options.
1. Gusto
Gusto
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Best overall payroll system for small businesses.
Merchant Maverick uses Gusto and can attest to its ease of use from both the administrative and employee sides. The cloud-based payroll system has an easy to navigate interface and intuitive onboarding and benefits set-up, and it fully automates payroll, taking the tedious task and streamlining everything from onboarding through termination. Unlike so many other payroll providers, Gusto provides transparent pricing, but the price does run a smidge higher than other comparable systems. What you pay for, however, is a robust program with a track record of friendly and helpful customer service, full tax support, and includes solid HR features.
Customers rave about Gusto — especially people in the payroll and bookkeeping worlds — and they find the program is updating and expanding according to client needs. Reporting options and integrations continue to grow and evolve.
Pros: Easy to use, modern interface, great tax support
Cons: Limited reporting and integrations
Gusto Pricing
Gusto offers three different pricing plans and offers a free 30-day trial. The Core, Complete, and Concierge plans run from $39 a month + $6 per employee (Core) t0 $149 a month + $12 per employee (Concierge). The Concierge package offers the HR compliance assistance and HR resource center and also includes the addition of a dedicated customer service representative.
Features
Gusto offers strong benefits administration features and assists with adding worker’s compensation and HSA plans to your payroll. However, Gusto is a basic program designed to help small business owners who may not have an accountant or bookkeeper, and people with ample experience might find the program lacking in its customizability and reporting features. If it is ease and functionality you need, Gusto can’t be beaten.
At the top level (Concierge), Gusto offers the following features:
- Unlimited payroll runs
- Automatic tax filing
- Direct deposit
- Garnishment
- Paid time off policies & time-off requests
- Reporting
- Customizable admin permissions
- Employee offers & onboarding
- Holiday pay
- Time tracking
- Employee directory & surveys
- Custom employee handbook
- HR & compliance support
- HR resource center
- Dedicated customer support team
With its easy onboarding platform and streamlined access to benefits, Gusto offers everything a small business needs to start a solid payroll and HR system. Their dedicated support is an additional feature that helps this program beat its competitors.
When To Use Gusto
Gusto is perfect for small to medium-sized businesses who may not have a full accounting department and are looking for an easy, functional, customer-oriented program to run payroll. It is not a bargain-basement option, inexpensive with limited features, nor is it an intricate option with numerous integrations and bells and whistles. Gusto is just right. It fills a need with attention and care, focusing on small businesses and catering to their needs with ample support. This is our best overall option for small businesses and we recommend it widely.
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2. SurePayroll
SurePayroll
Not Yet Rated |
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Best payroll system for overlooked industries and very small businesses
SurePayroll is leading the way for bare-bones cloud-based software that caters to small businesses. As a matter of fact, SurePayroll is best for industries like household employment, nannies, clergy, or non-profits; and it’s a great fit for very small businesses with fewer than five employees. If you are looking for an inexpensive, simple, straightforward payroll program, SurePayroll deserves to be in top contention. It’s simple to use and was designed for small businesses both in terms of price and functionality.
Also, SurePayroll continues to listen to client feedback and has worked on its features in recent months. For small businesses that need a basic payroll system and don’t need to add a lot of extra integrations, SurePayroll is a competitive option in this price range.
Pros: Easy to use, modern interface, inexpensive
Cons: Website is slow, ample extra fees, limited integrations
SurePayroll Pricing
SurePayroll doesn’t publish its prices online. However, our business was quoted $29 a month, plus $4 per employee. One frustration with SurePayroll is the extra fees. Integrations like time-tracking can cost an additional monthly fee, and the monthly cost does not include the cost for year-end filing and W-2 reports. You can get one month free, however, to try SurePayroll. Overall, SurePayroll is an affordable option.
Features
SurePayroll’s features were designed with small businesses in mind. This means that a small business should find every feature and customization they need, but not too many extras. That said, SurePayroll’s employee app and attention to 24-hour support is unmatched at this price point, and also can be specifically customized to meet the needs of those overlooked industries.
SurePayroll offers the following features:
- Unlimited payroll processing
- Tax services
- Direct deposit
- Bank checks/check signing
- Check stock for printing
- Employee self-service portal with mobile app
- Garnishments
- New hire reporting
- Poster updates
- HR support
- Labor poster updates
- Tax guarantees
With its easy-to-use features and intuitive programing, SurePayroll is a great choice for companies looking to get-up-and-go with a straightforward product. However, companies or small businesses looking to integrate a payroll system with their other systems (like time tracking or invoicing) might find the transition cumbersome.
When To Use SurePayroll
SurePayroll is the perfect payroll software to use if your company is small or if you are looking for a payroll system that specifically manages nanny/household employees. There isn’t a bevy of features and customizable options; however, most small business owners who are running payroll by themselves without an accountant may feel bogged down by options they’ll never use in a more robust app, and SurePayroll doesn’t lack any essential features or reports. Full tax support at its current price puts SurePayroll among the least expensive options available, and it truly is simple and easy with excellent customer support.
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3. Paylocity
Paylocity
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Best payroll system tailored and customized for your business
Paylocity is a web-based payroll program designed for businesses of all sizes. The company only recently included small businesses in its payroll software, but the company stands out as a leader in bridging the gap between more streamlined payroll and HRM solutions.
Customizability is where Paylocity has a competitive edge. Its program boasts many integrations for HR, benefits, time tracking, performance reviews, and applications fully tailored to your company’s needs and wishes. Paylocity wants to create a bespoke program specifically with your needs in mind. With a drag and drop interface and a specialized account person a phone call away to help make changes, there is a lot to like about this program. However, some users find the program counter-intuitive and prone to errors, which does not make this a good option for Luddites or payroll newbies.
Pros: Customizable, copious features, modern interface
Cons: Expensive, steep learning curve, not for Luddites
Paylocity Pricing
Paylocity offers three different payroll tiers (Effortless Payroll, Efficient Tech, and Modern Workplace.) The price varies by feature access, not by the number of employees. There are no contracts, and you can cancel your plan at any time. We were quoted between $125 to $200/month plus $6-8/month/employee depending on the plan. For small businesses, Paylocity is a bit more expensive than its competitors. However, at the Modern Workplace level, Paylocity is a full human capital management system and payroll system, incorporating the entire employee life cycle.
Features
Paylocity’s features are varied and easily customizable based on your business needs. At the most basic payroll level, Paylocity offers all the best features of a cloud-based payroll system. However, for companies looking to expand beyond payroll, the system accommodates growth and other aspects of HR.
Here is a full list of features available:
- Unlimited payroll processing
- Tax services
- Direct deposit
- Bank checks/check signing
- Check stock for printing
- Employee self-service portal with mobile app
- Garnishments
- New hire reporting
- Poster updates
- QuickBooks integration
- HR support
- Benefit essentials
- Web expenses
- Unemployment management
- Web Time (cloud-based time tracking)
- General ledger reports for people operating without QuickBooks
- Custom-built PTO tracking and management
- Web recruiting and background checks
- Web onboarding
- Employee performance management
- Access to learning management systems
With its easy-to-use features, Paylocity is a solid choice for companies wanting a modern product they can tailor to their needs. It has ample integrations and a one-on-one account manager.
When To Use Paylocity
Paylocity is not a simple program: it was designed to appeal to HR directors and accountants, not necessarily the small business owner running payroll for a few people on a monthly basis. If you need simple and basic, this isn’t for you. Instead, this program is going to appeal to growing businesses that want a more streamlined HR and payroll system, and who know enough about payroll and HR to communicate their program desires to the Paylocity team. It’s not for payroll newbies but is a solid find for a small business with more advanced requirements.
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4. ADP
ADP Payroll
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Best for small businesses with no payroll or accounting experience
It is estimated that one in six employees in the United States receive a paycheck from ADP. The iconic and prolific payroll provider is a big player in the payroll industry, and it certainly deserves its spot. ADP is known for its easy-to-use interface and guided assistance through the program. Features, however, are not sacrificed for functionality, and the reporting dashboard and options for integrations are impressive.
ADP has been around long enough to know a thing or two about payroll and that is reflected in the ample customer service it offers and its attentiveness to complaints and concerns. Run ADP is the option for small businesses with 1-50 employees, but there are other options if a company grows and needs additional assistance.
Pros: Easy to use, can grow with a company
Cons: Added fees, small fish in a big pond
ADP Pricing
ADP generally offers customers two free months and reduced-rate contracts to sign a yearly contract. Each contract is different, but most contracts request a 12-month commitment and are paid upfront. There is no termination fee, but there are no refunds for canceled contracts. On average, you will pay $160 with 10-15 employees. We were quoted $179.86 monthly for 11 employees for payroll and HR Plus; that is a $10 per employee fee in addition to payroll fees. (ADP charges a fee each time you run payroll.) There is also a $25 set-up fee that is usually waived with a contract. All quotes are customized per your business location, number of employees, frequency of running payroll, etc.
Features
ADP is easy to use and well-organized. The interface is surprisingly intuitive, and the setup process comes with guided support. When it’s time to enter employees and set up your payroll schedule, ADP wants to make sure you feel supported: An ADP representative will walk all users through a tutorial and provide links for access to your payroll.
Run ADP offers the following features:
- Payroll processing
- Direct deposit
- Tax filing
- Garnishment payment
- Electronic reporting
- Time-tracking
ADP also has a long list of integrations including popular options like QuickBooks, Wave, TSheets, Slack, Clover, and ZipRecruiter. Its legacy program is quick to develop workarounds for any needed assistance and integrations, and the ADP customer support team is top-notch.
When To Use ADP
ADP is a great program for small businesses with a handful of employees that do not have an HR or accounting team. The program is easy to use, intuitive, and solid (and since ADP has been in the payroll business for a long time, you know they have decades of experience and information to help businesses work through difficulties). For a business with only one or two employees, ADP is simply too expensive for basic payroll but is a solid option otherwise.
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5. Intuit QuickBooks Online Payroll
Intuit Online Payroll
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Best for companies that already use QuickBooks
QuickBooks is an old standby and its products are hard to ignore; for businesses that already use QuickBooks software, upgrading to Intuit QuickBooks Online payroll should be a breeze, and users will find that the program is trustworthy, easy to navigate, and affordable.
Pros: Easy to use, perfect for QuickBooks users, priced well
Cons: Mediocre customer service, confusing to navigate QuickBook’s myriad formats
Intuit QuickBooks Online Pricing
QuickBooks Online Payroll recently went through a renovation of its Intuit program and prices. The biggest update is that all of the new payroll options are full-service platforms. Intuit QuickBooks has month-to-month contracts and no early termination fees. Payments are monthly, and you can cancel your subscription at any time. QuickBooks also runs promotions for its payroll product frequently, so be sure to check for any available discounts before purchasing.
QuickBooks has a tiered pricing system with three different options. The most basic package (Core) costs $45/month +$4/per employee; the second tiered option is the Premium Payroll which costs $75/month +$8/per employee; the Elite option costs $125/month +$10/per employee.
Features
If you’re already accustomed to QuickBooks Online, Intuit Online Payroll will seem familiar and easy to get used to. The software is well organized, and the UI is intuitive. People who like QuickBooks and already use aspects of the software are more likely to have a positive experience transitioning to the Intuit Online Payroll system.
One great bonus about Intuit is that it integrates well with TurboTax. Employees can import their W-2s straight into TurboTax by using their employee identification number.
Intuit QuickBooks Online offers the following features at its Core level:
- Next day direct deposit
- Unlimited payroll runs
- Calculates paychecks
- Calculates and files federal and state taxes
- Calculates and files year-end forms
- Expert support
- Workforce portal
- Manages garnishments and deductions
- Offers reporting features
As the prices scale, the features improve and become curated for your business. At the upper tiers, Intuit offers the white-glove treatment to onboarding and sends you a dedicated HR representative to work with your company.
Intuit payroll is also expanding its integrations on a weekly basis. QuickBooks is known for giving access to over 400 apps, and the Intuit Online program has many you might be familiar with, such as TSheets, Expensify, Shopify, and Chaser.
When To Use Intuit QuickBooks Online
If your small business already uses and likes QuickBooks, you will find a lot to love about the addition of Intuit payroll. With the new overhaul of payroll and pricing, it also shows that QuickBooks is determined to evolve and grow as payroll competition becomes fiercer. The biggest complaint about QuickBooks is the customer service and confusion about prices, but they adjusted their pricing and are keeping their finger on the pulse of complaints. We are always impressed when a company responds swiftly to feedback.
Get Started with Intuit Online Payroll
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6. Square Payroll
Square Payroll
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Best for companies already using Square products, businesses looking for a bargain, employers with numerous contractors
Square has a niche: simple and easy. As a payment processor, it is a straightforward system without a stream of bells and whistles. And that is exactly what they deliver with the Square payroll program as well, boasting an intuitive and easy to use payroll program that integrates well with the rest of Square’s products. Competitive pricing and a simple interface are big plusses for Square. Its lone complaints come from bigger companies looking for a more curated interface and people who say sometimes it takes a long time to get connected with a payroll expert. However, if it is simple and basic you want, Square can provide, and at a reasonable rate.
Pros: Inexpensive, easy to use, basic
Cons: Rudimentary features, limited payroll functions
SquarePricing
With Square, there are no hidden fees and sneaky terms and conditions. There are two different plans depending on your type of employee and payroll needs. If your business is only paying contractors, you will pay a $5 a month fee per contractor on your payroll. If you pay both contractors and salaried/hourly employees, you pay a $29 subscription and $5 per employee per month. There are no contracts with Square, so you can cancel your plan at any time.
Features
When you join Square Payroll, you have access to all the basic payroll features. Square’s features are easy to access and understand, even if you have never run payroll before, and the interface is designed to walk you through each step of the process.
Square offers the following features:
- Unlimited payroll processing
- Tax services
- Direct deposit/Bank checks/cash card
- Employee self-service portal with mobile app
- Garnishments
- Time tracking
- Benefits administration
- Poster updates
- HR support
- Supports off-cycle payments
Square Payroll integrates directly with other Square products like Square POS. While Square payroll will work best and have peak functionality if you’re using other Square applications, there are other programs outside the Square brand that integrate well with Square. There are six additional integrations including QuickBooks, TSheets, and ZipRecruiter.
When To Use Square
Square is best for small businesses that might already be using Square products or businesses looking for simple and inexpensive payroll options. The pricing is competitive among payroll systems for similar employee numbers, and the setup is simple and intuitive for companies that may not have an HR department. However, larger companies that need customization around payments and pay-scales may find Square too limited for their specific needs. The best bet? If you are already using Square POS, integrating Square’s payroll system is simple and quick, and a logical choice for streamlining your sales, payroll, and time cards.
Get Started with Square Payroll
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7. Paycor
Paycor
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Best for businesses looking for a full Human Capital Management system with payroll
Paycor’s Human Capital Management (HCM) program, including its cloud-based full-service payroll system and the rest of the HR/benefit management suite, is sleek, usable, and has an intuitive interface. This makes it an easy software to learn and understand; combined with the company’s commitment to resolving issues and rolling out new features and customized options, Paycor shows dedication to improvement and innovation. If you need payroll and HCM support, Paycor should be the first place you look.
Pros: Easy setup, user-friendly, strong payroll features
Cons: Extra fees, too many essentials are sold a la carte
Paycor Pricing
Paycor has adopted a tiered pricing system, and while the company’s base prices are inexpensive, there are quite a few features that cost extra fees per month. If your company does not need the extras (perhaps no need for extensive recruitment and scheduling software), the payroll systems are priced well and appear to offer a competitive option for buyers looking for an economical solution.
The one thing to note is that some of the more popular essentials of an HR management suite are still add-ons with additional monthly fees. For example, if you want to add time-tracking or a benefits management package, you’ll be paying more per month.
Paycor’s prices for their Basic Payroll start at $99 a month; Complete Payroll is offered for $149 a month; and Essential Payroll is $199 a month. The price is up to 10 employees.
Features
The payroll system for Paycor is rated highly for usability and features. Loaded with reports and customizations, Paycor’s system is easy to navigate. There are helpful resources within the program and available online to walk your business through any issues. The best part of Paycor is that payroll, scheduling, recruitment, HR, training, can all be in one location. There is no flipping back and forth between programs: Paycor aims to meet client needs.
Paycor offers the following features in its Basic Payroll package:
- Same-day direct deposit
- Free W2s filed and sent
- Assisted payroll setup
- Help from US-based experts
- Standard report building and customizable reports
- Garnishment/child support self-service
- HR support center
- Up to 10 employees
In addition to the basics, your business can add features. Some of the more popular additional features are the Paycor learning management systems, recruiting and application tracking, and a scheduling platform that runs needed reports on inventory and job costing.
Paycor is continuously expanding its integrations, and currently, the platform has 35 available integrations/partners. The company also has an API available for app creation within the platform and a genuine desire to create bespoke integrations and applications based on need.
When To Use Paycor
If you want a payroll system and an HR platform, Paycor is a fantastic choice. Paycor is perfect for small to medium-sized businesses looking for enterprise-level HR assistance. The software was designed to streamline services, so it is best suited for an owner-operator or business owner with a small HR department. Large companies that need a significant amount of customization may find Paycor too limited for their specific needs.
Paycor is a great option for a company that wants to expand to a full HCM suite, and it is basic, easy to learn, and inexpensive.
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What To Look For In Good Payroll Software
Payroll can be cumbersome and the tasks are specific and require skilled knowledge; if you want to outsource payroll, you’ll want to start with what your company needs. Are you looking for a program that is easy to use? Or one with a bevy of customizable features? Are you hoping for more one-on-one help or are you okay with less hand-holding? How much are you willing to pay? Do you want to offer benefits and do you already have a broker? Are all these questions making your brain hurt like when you drink a Slurpee too fast?
For good or bad, those are things you need to know. The payroll company you choose needs to understand your business in order to do the best they can, and it can be an overwhelming process. However, the end goal is the same: to create a system that works and takes the overwhelming aspects of business off of your plate.
As you sit down to research, there are some key features that can guide your choices. Here are the things to look for in a good payroll software:
- Full Tax Support: Payroll requires a decent amount of time and work on taxes and filing quarterly reports, and the penalties for screwing up can be costly. With affordable options to add full tax service and support to your payroll program, I would advocate outsourcing the taxes. In fairness, while some self-service programs do still exist, most are being phased out in lieu of full service as we continue with great speed toward the trend of automation.
- Excellent Customer Service: Read reviews, speak to someone who had to go through a crisis with the company, and know what type of hand-holding you will/will not need. Some options offer a designated account representative whose job is to advocate for you and assist you through onboarding and everything after. (Also, know that angry people write angry reviews and that review may not tell a full story. Instead, look for patterns of poor behavior that go unresolved or ignored.)
- Mobile Apps: This is almost becoming a necessity. Payroll providers might need to submit payroll on the go, and employees will need the ability to access their payment information if the need arises (like applying for a loan or filing taxes). Ask about apps and what type of mobile services are available. Phones are our computers, and companies can’t assume their employees have home access to a desktop computer for onboarding or enrolling in benefits. Make it easy. Look for an app.
- Benefits Administration Options: Not all payroll companies are created equal when it comes to how they help you administer benefits. If you are required by law to provide health insurance, or if you are interested in offering any type of competitive benefits, choosing a payroll program that has great integrations or an in-system administration is important.
- Ease of Use For Administrators & Employees: With payroll and HR, there are two types of users having a very different experience: the administrators and the employees. For a system to work, it needs to benefit both parties.
- HR/Attendance Add-Ons: If at any point you want to add HR options or time-tracking or any other type of extra program, it is easier if your programs are in the same suite of products. Look for a payroll company that will grow with your company if you plan on expanding.
- Affordability: There is a very cheap way to do payroll: DIY. But I will argue that the time you save and redistribute back into your company is worth the cost. Choosing to outsource payroll is going to cost some money, but it doesn’t have to be egregiously expensive. Know what you can spend and work from there.
- Integrations: If you are using other software, make sure it integrates with your payroll platform. Ask specific questions about the integrations you need.
- Security: Last, but not least, as a client of a system that has access to sensitive information (name, social security, wage information, bank account numbers), you are well within your right to ask how your data is being protected. A good payroll company will be 100% transparent about what they are doing to secure data and prevent hacking (and it happens…too often).
What matters is that you know what your company needs and can afford before you contact a payroll sales rep. It’s important to be in the driver’s seat because sales reps want to sell you a product,, and if you don’t know what your company needs, it’s easy to be swayed by features that you may not need or want to pay for.
Choosing The Right Payroll Software For Your Business
So, when it comes down to the decision-making moment, how do you choose between the payroll options? With a loud roar, we can say: It depends! Each payroll provider is different and each small business is different; which company wins your heart will be the one that meets and fulfills your needs. That sounds romantic, but remember: You’re hiring a payroll company to perform a service for you–so, ask yourself these questions:
- How much tax support do I need?
- What reports do I require to run my business?
- Will I need hand-holding through onboarding or can I manage it myself?
- Do I need payroll or am I looking for a full human capital management program?
- Is a modern interface important to me?
- Does the payroll provider have a functional app?
- What do the reviews say about the company? What are patterns and unresolved issues?
- How easy is it to schedule a demo?
- Does the price include filling W-2s?
- Are there tax experts in case of a tax emergency?
With answers to those questions under your belt, you should have a firm grasp on what type of payroll system your company needs. Thanks to the varied options available, it should be easy to find something that is a perfect fit.
A Last Look At Our Top Picks
- Gusto
Summary - Best overall payroll system for small businesses. - SurePayroll
Summary - Best payroll system for overlooked industries and very small businesses - Paylocity
Summary - Best payroll system for tailoring and customization to your business requirements - ADP Payroll
Summary - Best for small businesses with no payroll or accounting experience - Intuit Online Payroll
Summary - Best for companies that use QuickBooks software - Square Payroll
Summary - Best for companies already using Square products, businesses looking for a bargain, and employers with numerous contractors - Paycor
Summary - Best for businesses looking for a full Human Capital Management system with payroll
Shelbi Wescott
Writer at Merchant Maverick
Shelbi Wescott is a writer and educator from Portland, Oregon. When she isn't writing about ways to help small businesses, she is a published author churning out pages for her science-fiction and mystery books. In 2015, her book After Life won an Honorable Mention for Best YA Mystery from the Library Journal. (It has ghosts. And mystery.) Shelbi has both a BA in English Literature and a Masters in Teaching from Lewis and Clark College.
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