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The Best Payroll Software For Small Businesses

Find the best payroll software for your business, from affordable payroll tools to full-service payroll, HR, and global payroll platforms.

    Erica Seppala
  • UPDATED

Our content reflects the editorial opinions of our experts. While our site makes money through referral partnerships, we only partner with companies that meet our standards for quality, as outlined in our independent rating and scoring system.

We researched the best small business payroll software based on pricing, features, payroll tax support, ease of use, integrations, and scalability. These are our top picks.

Compare Our Top Picks

ProviderBest ForPriceHRNext Steps
Best Overall Software$49/month + $6/person - $180/month + $22/month per personPlus Plan only
Best All-In-One SoftwareCustom pricing
Best For Growing BusinessesCustom pricing
Best For Employee ExperienceCustom pricing
Best HCMCustom pricing
Show More Options
Easiest Payroll Software$6/contractor or $35/month + $6/per employee
Best Low-Cost Software$49/month + $6/month per person
Best For QBO Users$50/month + $6.50/per person - $203/month + $10/per person
Best Free Software$0/month for 9 employees
Best For Payroll Taxes$17/month +$4/month per person - $37/month + $5/month per person
Best Software With Free Accounting$40/month + $6/employee
Best International Payroll SoftwareCustom pricing
Best For Hourly Employees$0/month
Show Fewer Options

Gusto

Best Overall

Best Overall Software

Gusto is a great fit for small and midsize businesses that want payroll, tax support, HR tools, benefits administration, and transparent pricing in one platform.

It supports unlimited payroll runs, automated tax filing, onboarding, benefits, time tracking, PTO, reports, employee self-service, and access to HR support on higher-tier plans. Businesses can also add tools for workers’ comp, HSAs, and international contractor payments.

Business Size
Small-medium sized businesses with up to 650+ users
Time Tracking
Mobile App

PROS

  • Strong features and add-ons
  • Great tax support on all plans
  • Easy to use

CONS

  • Limited reporting
  • Advanced features on higher tiers

ADP Payroll

Best All-In-One Software

ADP is a good fit for businesses that want scalable payroll software with built-in HR support.

Businesses can start with RUN Powered by ADP for payroll, tax filing, employee self-service, reporting, onboarding, and basic HR tools, then move into more advanced ADP products for workforce management, benefits, compliance support, HR outsourcing, and PEO services.

Business Size
Small to enterprise-sized businesses with 1,000+ employees
Time Tracking
Mobile App

PROS

  • Excellent reporting options
  • Guided payroll runs for beginners
  • Solid HR tools

CONS

  • Many added fees
  • Nontransparent pricing

Paychex

Best For Growing Businesses

Paychex works well for businesses that want payroll software with room to add more HR support over time.

Paychex supports payroll, tax administration, employee self-service, new hire reporting, and HR tools, with add-ons for time tracking, benefits, retirement, business insurance, and HR services. Its biggest advantage is how customizable it is for businesses with growing payroll and HR needs.

Business Size
Self-employed contractors to enterprises with 1,000+ employees
Time Tracking
Mobile App

PROS

  • Good customer support
  • Built-in HR and onboarding
  • Numerous integrations

CONS

  • Extra fees
  • Non-transparent pricing
  • Tax support complaints

Paylocity

Best For Employee Experience

Paylocity is especially useful for businesses that want payroll to connect with more of the employee experience.

Paylocity offers payroll, tax support, employee self-service, mobile access, onboarding, time tracking, scheduling, expenses, reporting, and employee communication tools. It also gives employees and managers more ways to handle everyday HR and workforce tasks without relying as heavily on manual processes.

Business Size
Small to enterprise-sized with 1,000+ users
Time Tracking
Mobile App

PROS

  • Strong employee self-service tools
  • Time, scheduling, and HR tools
  • Modern mobile experience

CONS

  • Not the cheapest for basic payroll
  • Non-transparent pricing

Paycor

Best HCM

Paycor is best for businesses that want payroll software with stronger HR analytics and workforce insights.

Paycor supports full-service payroll, HR tools, onboarding, hiring, benefits administration, employee management, and advanced reporting, with add-ons for time tracking and scheduling. Businesses can use Paycor to track labor costs, turnover, headcount, compensation, performance, and other workforce trends.

Business Size
Small to large businesses with 1,000+ users
Time Tracking
Add-on
Mobile App

PROS

  • Advanced payroll features
  • HR guidance from certified pros
  • Highly scalable

CONS

  • Can be expensive
  • Limited integrations

Square Payroll

Easiest Payroll Software

Square Payroll is a practical choice for small businesses that want easy payroll software without a steep learning curve.

Square Payroll supports employee and contractor payments, payroll tax calculation and filing, automated payroll runs, employee self-service, onboarding, benefits, and time tracking through Square Shifts or integrations. It’s especially useful for businesses already using Square POS or other Square products.

Business Size
Small to large businesses paying 1+ workers
Time Tracking
Mobile App

PROS

  • Easy to use
  • Integrates with Square ecosystem
  • Solid mobile app

CONS

  • Basic feature set

OnPay

Best Low-Cost Software

OnPay is built for small businesses that want full-service payroll without sorting through multiple plan tiers.

Its single plan includes unlimited payroll runs, federal, state, and local tax filings, W-2 and 1099 filings, multistate payroll, employee self-service, HR tools, and industry-specific setup options. Businesses get a broad payroll feature set without having to upgrade for the basics.

Business Size
Small to mid-sized businesses (1-500 employees)
Time Tracking
Mobile App

PROS

  • Customizable HR and payroll tools
  • Responsive customer service
  • Competitive pricing

CONS

  • Limited integrations
  • Add-ons can raise overall costs

QuickBooks Workforce

Best For QBO Users

QuickBooks Workforce makes the most sense for businesses already using QuickBooks Online for accounting.

Businesses can manage payroll and bookkeeping in the same ecosystem, reducing duplicate data entry and keeping payroll records connected to accounting. QuickBooks Workforce also supports full-service payroll, direct deposit, payroll tax filing, reports, contractor payments, payroll AI, employee self-service, benefits, and optional time tracking.

Business Size
Small to medium-sized businesses
Time Tracking
Mobile App

PROS

  • Competitive pricing
  • Seamless QBO integration
  • No long-term contracts

CONS

  • Poor customer service
  • No local tax support on lowest tier

Payroll4Free

Best Free Software

Payroll4Free is best for very small businesses that need basic payroll tools at no base software cost.

The free plan is available for businesses paying nine or fewer employees and includes employee and contractor payments, tax calculations, vacation tracking, reports, direct deposit or paper checks, and an employee portal. Tax filing, tax deposits, and some services cost extra.

Business Size
Small businesses with up to 9 employees (additional employees add monthly costs)
Time Tracking
Mobile App

PROS

  • Free plan available
  • Includes essential payroll features
  • Easy to use

CONS

  • Outdated UI
  • Unsuitable for large businesses
  • Ad-supported

Patriot Payroll

Best For Payroll Taxes

Patriot Payroll is a cost-effective option for small businesses that want more control over payroll tax support.

Businesses can choose Basic Payroll to run payroll and handle tax filings themselves, or Full Service Payroll to add federal, state, and local payroll tax filings and deposits. Patriot also includes unlimited payroll runs, multistate payroll, direct deposit, contractor payments, and an employee portal.

Business Size
Small to mid-sized businesses with up to 500 employees
Time Tracking
Mobile App

PROS

  • Excellent tax support
  • Excellent US-based support
  • Competitive pricing

CONS

  • Limited HR features
  • Few integrations and no API
  • Limited benefits administration

Wave Payroll

Best Software With Free Accounting

Wave Payroll works best for small businesses already using Wave for accounting, invoicing, or bookkeeping.

Wave connects payroll with its free accounting tools, helping businesses keep wages, payroll expenses, and tax payments tied to the books. It supports employee and contractor payments, direct deposit, tax forms, employee access, payroll journal entries, and full-service payroll.

Business Size
Small businesses
Time Tracking
Mobile App

PROS

  • Easy to use
  • Affordable pricing
  • Integrates with Wave accounting

CONS

  • No HR support
  • No benefits administration
  • No phone support

Rippling

Best International Payroll Software

Rippling is built for businesses managing payroll, HR, compliance, contractors, and IT across a distributed team.

Businesses can use Rippling to pay international employees and contractors, manage localized onboarding, sync employee data across systems, track time and PTO, handle tax compliance, and run custom payroll reports. It’s best for companies that need more than basic domestic payroll.

Business Size
Small businesses to enterprises
Time Tracking
Mobile App

PROS

  • Customizable solutions
  • Full-service payroll tax support
  • International payroll support

CONS

  • No free trial
  • Non-transparent pricing
  • Payroll is only an add-on service

Homebase

Best For Hourly Employees

Homebase is built for businesses that need payroll connected to hourly team management.

Homebase combines payroll with scheduling, time clocks, timesheets, team communication, onboarding, and employee self-service tools. Its free Basic plan includes scheduling, time tracking, timesheets, and messaging for one location, while payroll is available as a paid add-on for businesses ready to pay employees.

Business Size
Small to large businesses with 1+ employees
Time Tracking
Mobile App

PROS

  • Free time tracking and scheduling
  • Modern UI
  • Competitive pricing

CONS

  • Glitchy mobile app
  • Free plan is limited
  • Payroll an add-on

Our Rating Methodology

Each provider gets 10–15 hours of research, is scored by a subject-matter expert, and is reviewed by a second expert before publication. Ratings are not influenced by our referral partnerships.

Features
40%
Ease Of Use
20%
Customer Service
20%
Pricing
10%
User Reviews
10%

Best Payroll Software For Your Small Business

Frequently Asked Questions

What is the best payroll software for small businesses?

Gusto is one of the best overall payroll software options for small businesses because it’s easy to use and includes full-service payroll tax support.

ADP and Paychex are strong choices for businesses that want more HR tools and scalability. Square Payroll is a good fit for businesses already using Square, while OnPay is a solid value pick for full-service payroll.

How much does payroll software cost for a small business?

Most payroll software charges a monthly base fee plus a per-employee or per-person fee. Basic plans may start around $20 per month plus a few dollars per employee, while full-service payroll plans often cost closer to $40 to $50+ per month plus a per-person fee.

Some providers use custom pricing, especially for larger businesses or plans with more HR features. Free payroll software exists, but tax filing, direct deposit, or support may cost extra.

What features should I look for in payroll software?

Look for payroll software that can calculate paychecks, run direct deposit, file payroll taxes, and prepare year-end W-2s and 1099s. You want software that makes it easy to run payroll

Other valuable features include employee self-service, time tracking, HR tools, benefits administration, multiple pay schedules, and accounting integrations. Look beyond pricing to choose payroll software that’s going to work for your business. 

Does payroll software handle tax filing?

Most full-service payroll software can calculate, file, and pay payroll taxes for you. It’s one of the many benefits of using good payroll software.

Just make sure tax filing is included in the plan you choose. Some lower-cost payroll software only calculates taxes and leaves the actual filing and payments up to you.

Can payroll software handle contractors and employees?

Most payroll software can pay both W-2 employees and 1099 contractors.

Many platforms also prepare year-end tax forms, such as W-2s for employees and 1099s for contractors. Some providers offer contractor-only plans or international contractor payment tools.

Erica Seppala

Erica Seppala

Editor & Senior Staff Writer at Merchant Maverick
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
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