The Best Payroll Software For Small Businesses

Total Rating	4.4
Pricing3.7
Ease Of Use4.9
Features4.6
Customer Service4.1
User Reviews3.9

Payroll Processing Time

Next day-4 days

Pricing Range

$49/month + $6/person - $180/month + $22/month per person

Business Size

Small-medium sized businesses with up to 650+ users

Pros

Generous features and add-on options
Modern interface
Great tax support on all plans
Easy to use

Cons

Limited reporting
Benefits administration limited to 38 states and DC
No mobile app
Next-day direct deposit & built-in time tracking unavailable on cheapest plan

Why We Chose Gusto For Overall Best Payroll Software

Gusto's Home Dashboard

Gusto is perfect for small to medium-sized businesses looking for a robust payroll program with full tax support, built-in time tracking, solid HR features, and excellent customer service. Gusto's 4.4 star rating is one of the highest overall ratings of any payroll software we've reviewed, earning it the coveted "overall best" title. The software offers the best mix of features, functionality, and pricing for most small businesses.

Gusto Pricing

Gusto’s pricing includes three different pricing plans for paying employees and a free 30-day trial. The Simple, Plus, and Premium plans run from $49/month + $6/person – $180/month + $22/month per person. The larger the plan, the more advanced features you unlock.

Gusto also offers a plan for businesses that hire only independent contractors. The software’s ‘Contractor Only’ plan costs $35/month + $6/month per person .

Gusto Features

Gusto’s Team Insights Dashboard

Gusto boasts strong benefits administration features and assists with adding worker’s compensation and HSA plans to your payroll. If ease and functionality are what you need, Gusto can’t be beaten.

The software comes with the following features:

Unlimited payroll runs
Automatic federal, state, and local tax filing across all 50 states
Custom payroll reports
Custom admin permissions
Employment offers & onboarding
Built-in time tracking on the Plus plan
Employee directory & surveys
HR& compliance support
Dedicated customer support team
Optional add-ons for international contractor payments

When To Choose Gusto

You want a well-rounded payroll software that gives a large bang for your buck in terms of features
You need excellent employee management and built-in HR features
You want payroll software that is easy for you and employees to use
You aren’t in a state affected by Gusto’s limited benefits administration support

Get Started With Gusto

Paychex: Best payroll software for growing businesses

Paychex

Total Rating	4.1
Pricing2.2
Ease Of Use4.4
Features4.6
Customer Service3.8
User Reviews3.9

Payroll Processing Time

2 days (can pay for faster processing times)

Pricing Range

$39/month + $5/employee or custom pricing

Business Size

Self-employed contractors to enterprises with 1,000+ employees

Promo: Eligible clients can enjoy three months of free payroll services Get 3 Months Free

Pros

Easy to use
Good customer support
Built-in HR and onboarding
Numerous integrations

Cons

Extra fees
Non-transparent pricing
Tax support complaints
Very limited demo

Why We Chose Paychex As The Best Payroll Software For Growing Businesses

Paychex's Home Dashboard

With a 4.1 star rating, Paychex earned its place as one of the best payroll software options for businesses. Paychex's robust feature set, 24/7 customer support, custom pricing, and built-in HR and onboarding make Paychex one of the most scalable options on this list.

Paychex Pricing

Paychex has four pricing plans to choose from with Paychex Flex Essentials starting at $39/month + $5/employee. You must contact Paychex to get a quote for its customizable plans.

Additional fees may apply for add-on services, including time tracking, software setup, HR packages, tax services, and employee benefits.

Paychex Features

Paychex’s Payroll Dashboard

Paychex has a solid set of features that can be customized for businesses of all sizes. At its most basic level, here is what Paychex has to offer:

Direct deposit, prepaid pay cards, & paper check payment options
New hire reporting
Self-service employee portal with access to tax forms and paystubs
Rich HR library
Automatic payroll tax calculations & tax credit services
Standard analytics & reports

When To Choose Paychex

You need a scalable payroll software with the employee management and feature set to grow with your business
You need extensive payroll, HR, and time tracking features
You value customer support and ease of use
You want optional PEO services

Get Started With Paychex

ADP Payroll: Best all-in-one HR and payroll software

ADP Payroll

Get A Quote

Get Started With ADP Payroll

Total Rating	4.0
Pricing1.1
Ease Of Use4.8
Features4.6
Customer Service3.7
User Reviews3.3

Payroll Processing Time

2-5 days

Pricing Range

Custom pricing

Business Size

Small to enterprise-sized businesses with 1,000+ employees

Pros

Excellent reporting options
Guided payroll runs for beginners
Scalable payroll software
Solid HR tools

Cons

Many added fees
Nontransparent pricing
Garnishments only available on higher plan tier

Why We Chose ADP For Small Business Payroll

ADP's Payroll Run Dashboard

We chose ADP because it's a great program for small businesses that are looking for a single solution to help manage payroll and HR. It boasts one of the most comprehensive feature sets of any payroll software on the market, a wealth of HR tools, ample integrations, solid customer support options, and strong reporting.

ADP Pricing

ADP has custom pricing with multiple plan options, though you’ll need to get a quote to see exactly what your business would pay. ADP often has a promo deal and offers discounts for annual payments. Each contract is different, but most require a 12-month commitment and are paid upfront. There is no termination fee, but there are no refunds for canceled contracts.

ADP Features

ADP’s Payroll Tax Dashboard

ADP is easy to use and well-organized, and guided support and other resources help you navigate the features and get the most out of the software. Run ADP offers the following features:

Auto-scheduled payroll runs
Paycheck delivery or direct deposit payment options
Automatic payroll tax calculation & filing
Ability to run payroll across multiple states & counties
Garnishment payments
Electronic reporting
Time tracking add-on
380+ integrations
Employee management with employee portal & time-off tracking

When To Choose ADP

You need payroll software with an extensive feature set
You want built-in benefits administration, time tracking, and HR features
If integrations are important to you since ADP has hundreds of integrations
You want a scalable payroll software
You value a payroll mobile app

Paycor: Best all-in-one HCM and payroll software

Paycor

Total Rating	4.0
Pricing1.5
Ease Of Use3.7
Features4.6
Customer Service4.5
User Reviews4.1

Payroll Processing Time

Same-day - 4 days

Pricing Range

Custom pricing

Business Size

Small to large-sized businesses with 1,000+ users

Pros

Easy to use
Advanced payroll features
HR guidance from certified professionals
Highly scalable

Cons

Can be expensive
Limited integration options

Why We Chose Paycor As The Best HCM For Businesses

Paycor Dashboard

Paycor earns a spot as the best HCM (human capital management) software because it boasts advanced payroll features, full-service payroll, and enterprise-level HR features. Paycor also has numerous add-ons to meet your business's specific needs and offers the advanced analytics and reporting that businesses need from scalable payroll software.

Paycor Pricing

Paycor doesn’t disclose pricing information. Custom pricing is based on your business’s specific needs, so you’ll need to contact Paycor directly for a no-obligation quote.

Paycor Features

Paycor’s HR & Onboarding Feature

Paycor has a highly competitive selection of features, making it a great option for growing or larger businesses. Small businesses with advanced payroll needs could still benefit from Paycor.

Here are some of the features you’ll find with Paycor:

Full-service payroll
Auto schedule payroll
Extensive HR features
Onboarding & hiring features
Advanced analytics
Custom reporting
Employee management
Benefits administration
Time tracking & scheduling add-on

When To Choose Paycor

You need a full-service HCM
You are a large business that needs advanced payroll and HR features
You are a small business with complex payroll needs or are poised for quick growth

Get Started With Paycor

Square Payroll: Easiest payroll software to use

Square Payroll

Get Started With Square Payroll

Total Rating	4.1
Pricing3.5
Ease Of Use3.9
Features4.6
Customer Service3.7
User Reviews4.4

Payroll Processing Time

Same-day to 4-day

Pricing Range

$6/contractor or $35/month + $6/per employee

Business Size

Small to large businesses paying 1+ workers

Pros

Very affordable
Easy to use with plenty of support options
Tons of Square software and third-party integrations
Solid mobile app

Cons

Very basic feature set
No software demo
Customer support complaints

Why We Chose Square Payroll For Easiest Payroll Software To Use

Square Payroll's Payroll Dashboard

We chose Square Payroll as one of the best payroll software options for small businesses because it's easy to use, affordable, feature-rich, and seamlessly integrates with other Square products, including Square POS. Square Payroll's UI is simple and it readily integrates with other Square products.

Square Payroll Pricing

The biggest benefit of Square Payroll’s pricing is that there are no hidden fees, no sneaky terms and conditions, and no contracts with Square, so you can cancel your plan anytime.

There are two different plans depending on your type of employee and payroll needs. If your business only pays contractors, you will pay $6/per person on your payroll. If you pay both contractors and salaried/hourly employees, you pay $35/month + $6/employee.

Square Payroll Features

Square Payroll’s Benefits Administration Dashboard

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 across all 50 states
Hire & pay contractors and employees
Automate payroll runs with Square Payroll’s scheduled payroll
Automatic federal & state payroll tax calculation, filing, and remittance
Employee self-service portal with mobile app
HR services add-on
Employee portal & self-onboarding
Time tracking through Square Shifts or third-party integration
Benefits administration
20+ integrations

When To Choose Square Payroll

If you are an existing Square user
If you are looking for one company that offers payroll, invoicing, payment processing, and POS
You value ease-of-use
You want an affordable software, especially if you just need to pay only contractors

OnPay: Best affordable payroll software

OnPay

Total Rating	4.2
Pricing3.0
Ease Of Use4.5
Features4.4
Customer Service4.1
User Reviews4.7

Payroll Processing Time

2-4 Days

Pricing Range

$40/month + $6/month per person

Business Size

Small to mid-sized businesses (1-500 employees)

Pros

Customizable HR and payroll tools
Generous feature set
Responsive customer service
Affordable, competitive pricing

Cons

Very limited integrations
Extra fees to process year-end tax documents
Time tracking costs extra
No free trial

Why We Chose OnPay For Best Affordable Payroll Software

OnPay's Home Dashboard

OnPay makes the list as the most affordable option, not only because it has a low $40/month + $6/month per person price, but also because the amount of features included at that price point gives small businesses the best bang for their buck.

Unlike other payroll options, OnPay doesn't have dozens of additional add-ons, as almost all features are built-in (minus time tracking). You'll get a solid feature set, excellent customer service, unlimited payroll processing, and customizable reporting all for an affordable monthly price.

OnPay Pricing

OnPay’s pricing includes just a single plan that starts at a flat rate of $40/month + $6/month per person. Your first month is free, and there are no setup costs or contracts.

OnPay Features

OnPay’s Payroll Run Dashboard

Only one service plan is available with OnPay, so you can enjoy all of the biggest features the software offers, including unlimited payroll runs with quick processing speeds, employee self-service options to review paychecks and tax forms, and onboarding and employee time management options for administrative users.

OnPay offers the following features with its single service plan:

Unlimited payroll runs for both contractors & employees
Completely automated payroll tax support at the federal, state, & local level
Employee self-service portal to access paystubs, employment documents, and tax forms
Pay workers via direct deposit, paper check, or debit card
Free multistate payroll
Extensive online HR library
Seven industry-specific payroll setup options
Pay-as-you go benefits option
14 integrations

When To Choose OnPay

You have a tight budget and need an affordable payroll software option
You want extensive payroll and HR features
You value excellent customer support

Get Started With OnPay

QuickBooks Online Payroll: Best payroll software for QuickBooks users

QuickBooks Online Payroll

Get Started With QuickBooks Online Payroll

Total Rating	4.2
Pricing2.6
Ease Of Use4.1
Features4.4
Customer Service4.6
User Reviews4.4

Payroll Processing Time

Same-day-5 days

Pricing Range

$50/month + $6/per person - $229/month + $11/per person

Business Size

Small to medium-sized businesses with up to 150 employees

Current Deal: Get 50% off for three months when you sign up now. Save 50% Today

Pros

Competitive pricing
Seamless integration with other QuickBooks Online products
Easy signup and no long-term contracts

Cons

150 employees or fewer
Poor customer service
Mobile app needs improvement
No local tax support on lowest tier plan

Why We Chose QuickBooks Online For Best Payroll Software For QB Users

QuickBooks Online Payroll's Home Dashboard

QuickBooks Online Payroll is the ideal payroll solution for businesses that already use QuickBooks for accounting. QuickBooks Payroll integrates directly with QuickBooks Online, making it easy to manage payroll and the books all at once. Intuit also often gives discounts for users adding QB payroll.

Small businesses can handle pretty much any basic payroll function using QuickBooks Online Payroll, and the learning curve is minimal as the software's UI will be quite familiar to existing QuickBooks users.

QuickBooks Payroll Pricing

QuickBooks Payroll pricing ranges from $50/month + $6/per person – $229/month + $11/per person. As the prices scale, the features improve and become curated for your business. Intuit offers white-glove treatment for onboarding at the upper tiers and sends you a dedicated HR representative to work with your company.

Intuit QuickBooks has month-to-month contracts and no early termination fees, so you can cancel your subscription at any time.

QuickBooks Payroll Features

Intuit Online Payroll’s Reports Dashboard

Intuit Online Payroll 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.

Intuit QuickBooks Online offers the following features:

Next-day direct deposit & check printing options
Unlimited payroll runs across all 50 states
Paycheck deductions & garnishments
Calculate & file federal and/or state taxes and year-end forms
Workforce portal for employee pay stub & tax form access
Create and run payroll reports for your business
Automated payroll runs
Optional QuickBooks Time add-on or time tracking integrations
Benefits administration

When To Choose QuickBooks Payroll

You want payroll software that directly integrates with QuickBooks software
You want fast automated 24-hour direct deposit
You want payroll tax penalty protection and a mobile app for employees

Payroll4Free: Best free payroll software

Payroll4Free

Get Started With Payroll4Free

Total Rating	3.0
Pricing3.6
Ease Of Use2.7
Features3.1
Customer Service2.6
User Reviews3.1

Payroll Processing Time

2-4 days

Pricing Range

$0/mo - $40/month

Business Size

Small businesses with up to 10 employees (additional employees add monthly costs)

Pros

Free plan for businesses with up to 10 employees
Includes essential payroll features
Easy to use

Cons

Outdated UI
Unsuitable for large businesses
Only runs on Windows
Ad-supported

Why We Chose Payroll4Free For Best Free Payroll Software

Payroll4Free earns a spot as the best free payroll software option on the market and we wanted to include an option for businesses that need to keep costs down. Payroll4Free provides users with access to essential payroll features, plus extras such as tax forms, reporting, direct deposits, and an employee portal — at no cost, so long as you have 10 or fewer employees and are okay with an ad-supported experience.

If you're interested in other free options, check out our top free payroll software picks.

Payroll4Free Pricing

As the name suggests, Payroll4Free is a forever-free payroll software. All features are included in your free plan. However, there are two upgrade options. You can purchase the Payroll Tax Service if you want Payroll4Free to deposit and pay your payroll taxes and can also buy the Direct Deposit Service if you’d prefer to use Payroll4Free’s bank instead of your own.

Payroll4Free Features

Payroll4Free has a surprising number of features available to its users for no cost. While it is without the embellishments you’ll find with some of its competitors, this software has all of the essentials small businesses need to run payroll, including:

Unlimited payroll runs
Direct deposits
Tax forms & calculations
Vacation time tracking
Reporting
Accounting software integrations
Unlimited live customer support

When To Choose Payroll4Free

You have ten employees or fewer
You want free payroll software
You only need basic payroll processing and employee management features without more advanced payroll features
You are okay with an ad-supported experience in exchange for no monthly payment

Patriot Payroll: Best for affordable payroll tax management

Patriot Payroll

Get Started With Patriot Payroll

Total Rating	3.9
Pricing4.0
Ease Of Use3.4
Features3.5
Customer Service4.6
User Reviews4.8

Payroll Processing Time

2-4 days

Pricing Range

$17/month +$4/month per person - $37/month + $4/month per person

Business Size

Small to mid-sized businesses with up to 500 employees

Pros

Excellent tax support
Excellent US-based customer service
Competitive pricing
Easy to use with a free demo

Cons

Limited HR features
Few integrations and no API
Very limited benefits administration options
Up to 500 employees or fewer

Why We Chose Patriot Payroll For Affordable Payroll Tax Management

Patriot Payroll's Home Dashboard

We chose Patriot Payroll because it combines strong payroll features, affordable pricing, good customer service, and excellent tax support. Patriot is one of the few solutions that offer both DIY and full-service payroll options. The full-service plan is a highly competitive $37/month + $4/month per person while still including full payroll tax support, making Patriot a highly cost-effective payroll option.

Patriot Pricing

Patriot Payroll has two pricing plans. The Basic plan is priced at $17/month +$4/month per person. If you want full tax support, you can spring for the Full Service plan, priced at $37/month + $4/month per person.

Patriot Payroll integrates with other Patriot services, including time tracking, HR management, and accounting for an additional fee.

Patriot Features

Patriot Payroll’s Run Payroll Dashboard

Patriot Payroll has everything you need to run payroll easily. The Basic plan includes the following features:

Unlimited payroll runs including free multistate payroll
Free two-day direct deposit
Employee portal with tax form & paystub access for employees and contractors
Workers’ comp integration
Contractor payments & optional 1099 e-filing
Net to Gross Payroll tool
Mobile-friendly software
QuickBooks and QuickBooks Online integrations
Time-off accruals tracking

When To Choose Patriot Payroll

You want affordable payroll with low monthly payments
You want affordable payroll tax support
You value all-in-one payroll, accounting, timekeeping, and HR software
You value excellent customer support

Wave Payroll: Best payroll software with free accounting

Wave Payroll

Get Started With Wave Payroll

Total Rating	3.0
Pricing3.5
Ease Of Use2.9
Features3.2
Customer Service2.1
User Reviews4.1

Payroll Processing Time

3 Days

Pricing Range

$20/month + $6/employee - $40/month + $6/employee

Business Size

Small businesses paying 1-150+ employees

Pros

Easy to use
Affordable pricing
Integration with Wave’s free accounting software

Cons

Full-service payroll not available in 36 states
No HR support
No benefits administration
No phone support

Why We Chose Wave Payroll For Best Payroll With Free Accounting

Payroll by Wave's Payroll Dashboard

Wave earned its spot by offering an easy-to-use payroll service that integrates directly with Wave's free accounting software. For existing Wave Accounting users, integrating with Wave Payroll is seamless, or for new users who want a simple way to manage both their bookkeeping and payroll, Wave is a good option. Wave is easy to use, affordable, and covers basic payroll features. Wave Payroll does lack some of the more advanced payroll features some businesses will need, so it's ideal for smaller businesses.

Wave Payroll Pricing

Wave Payroll offers two pricing plans that cost $20/month + $6/employee – $40/month + $6/employee. The difference between the two plans is that one is self-service and the the more expensive is full-service. The full-service plan is currently only available in 14 states.

Wave Payroll Features

Payroll by Wave’s Employee Management Dashboard

Wave lacks many payroll features you’ll find in other software options on this list. But it does offer the basics, including:

Direct deposits
Self-service pay stubs & tax forms
W-2 and 1099 tax forms
Full-service payroll available in 14 states
Basic reports
Paid time off
Basic employee management

When To Choose Wave Payroll

You want to handle account and payroll seamlessly and for minimal cost
You have a small budget and need affordable payroll software
You are okay with self-service payroll (since only around a dozen states qualify for full-service)
You don’t need advanced payroll features and want something simple without the bells and whistles

Rippling: Best international payroll software

Rippling

Get Started With Rippling

Total Rating	4.3
Pricing2.4
Ease Of Use4.6
Features4.7
Customer Service4.2
User Reviews4.7

Payroll Processing Time

2 days

Pricing Range

$8/month per employee

Business Size

Small businesses to enterprises with 2-2,000+ users

Pros

Fully customizable payroll, HR, and IT solution
600+ integrations
Full-service payroll tax support
Supports US-based and international payroll runs

Cons

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

Why We Chose Rippling Payroll For Best International Payroll Software

Rippling Payroll's Home Dashboard

We chose Rippling as one of the best options for businesses with internationally distributed teams seeking an all-in-one HR, payroll, and IT solution on a global scale. Rippling earns a high 4.3 overall star rating from us by offering extensive payroll features, automatic compliance and filings, and HR data sync. Rippling's price and the sheer abundance of available features are the best fit for large businesses and international payroll support.

Rippling Pricing

Rippling does not disclose pricing online but instead requests you submit a request for a free quote based on the services you need. Its website does note that pricing starts at $8/month per employee, although it is unclear exactly what you’ll receive for this price.

Rippling Features

Rippling Payroll’s Payroll Dashboard

Rippling’s customizable plans may include several HR and IT features. In this post, however, we’ll focus on its payroll features, which include:

Global payroll with support for international employees
Automatic tax filings at the federal, state, & local level
Automatic tax compliance, including W-2, W-4, 1099, & new-hire filing
Employee time tracking & PTO tracking
Paycheck garnishments & deductions
Job costing and custom payroll reports
600+ integrations

When To Choose Rippling Payroll

You need full-service payroll software for international employees
You want extensive suite of employee management and HR tools
You want modular pricing with optional PEO services
You value an extensive integration library

Homebase: Best payroll for hourly employees

Homebase

Get Started With Homebase

Total Rating	3.8
Pricing3.6
Ease Of Use2.7
Features4.0
Customer Service4.4
User Reviews4.4

Payroll Processing Time

2+ days

Pricing Range

up to $99.95/month per location

Business Size

Small to large businesses with 1+ employees

Pros

Free time tracking and employee scheduling
Modern UI
Competitive pricing
Quick and easy set up

Cons

Glitchy mobile app
Not designed for salary workers
Free scheduling plan is limited to 20 employees and one location
Payroll is only an add-on

Why We Chose Homebase As The Best Payroll Software For Hourly Employees

Homebase's Home Dashboard

Homebase's pricing and feature set is ideal for hourly employees. Homebase offers full-service payroll, good customer service, affordability, and an impressive (and free!) employee scheduling software. Pricing is competitive, so it's a great choice for budget-minded business owners who don't have salaried employees.

Homebase Pricing

Homebase’s scheduling and time-tracking software is free for one user in one location. You can upgrade to a paid plan if you have multiple locations or users. The payroll add-on is available for any plan for $39/month + $6/person .

Homebase Features

Homebase has everything you need to track hours, schedule employees, and pay your workers on time. Homebase has a handful of HR tools, solid customer service, and a clean, easy-to-use interface that makes it easy to get started.

Standout features of Homebase include:

Unlimited payroll runs for all 50 states & DC
1099s, W2s, & amendments included
Two-day direct deposits
HR tools such as new hire onboarding, job posts, applicant tracking, & a team roster
Employee scheduling, time clocks, & timesheets
Built-in messaging
Automated tax filings & payments
QuickBooks Online integration
Well-rated mobile app
Comprehensive employee portal with schedules, pay stubs, tax forms, time-off requests, & more

When To Choose Homebase

You need combined scheduling and payroll software
You have 20 or fewer employees and only one location
You need an affordable way to pay hourly employees
You run a very small business or have a nanny that you need to pay professionally and affordably

Methodology

Merchant Maverick has been researching and reviewing payroll providers since 2018. Our writers have tested more than 75 different payroll software systems, evaluating pricing, features, ease of use, customer service, and user reviewers. Read more about how we rate payroll providers.

Weighted Rating Breakdown

Features 40%

Ease Of Use 20%

Customer Service 20%

Pricing 10%

User Reviews 10%

When comparing different apps, we consider over seventy data points, including the speed and cost of payroll runs, federal and state tax filing features, HR integrations, employee management tools, time tracking, and more. Our lists of the best providers include only apps we’ve deemed worthwhile from several vantage points. The payroll apps we pick are widely available and relatively easy to train on, with robust features and reasonable pricing. We also look carefully at features such as employee and client portals, user onboarding services, PTO management, benefits administration, multistate compliance, and more.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure the providers included meet our internal standards for quality and reputation.

75+

Vendors evaluated

Attributes assessed per vendor

Features weighed

20+

Combined years of experience

Search For The Best Payroll Software By Industry

Are you looking for industry-specific payroll software? While our list of the best payroll software works well for many businesses, if you are in a certain niche like construction or trucking, you might require software that fits your specific features and needs better.

Here are some best payroll software selections by industry:

Or, if you don’t want to search by industry and are just looking for something budget-friendly, check out the cheapest payroll software options for small businesses.

What Is Payroll Software?

Payroll software is software designed to help businesses calculate payroll, pay employees and contractors, and stay compliant with payroll tax laws.

Types Of Payroll Software

There are four types of payroll software:

Payroll software
Payroll apps
HR Software
PEO

Generally speaking, payroll is considered an HR process. However, while many payroll software solutions include some HR features, these options tend to lack some of the richer HR features and services found within the best HR software.

Depending on your business’s needs, you may be better served by a hybrid payroll and HR software solution or two separate solutions that offer a more comprehensive feature set.

Or, if you want to be completely hands-off with your small business payroll and would rather outsource your payroll software entirely, you could look at the top PEO companies instead. PEOs, or Professional Employer Organizations, are companies that handle a company’s employee management, such as payroll, HR, benefits administration, and onboarding, so that a small business doesn’t have to manage all of these elements on its own.

If your business isn’t ready for a PEO or even full-fledged payroll software, a simplified payroll app could be a good alternative, or you could always go the DIY payroll route, though that can be time-consuming and potentially lead to payroll calculation errors.

Learn more about the different types of payroll software and which is best for your business.

How Does Small Business Payroll Software Work?

The majority of payroll software is cloud-based. Payroll software generally uses the SaaS pricing model meaning you’ll pay monthly for access to the software. You’ll usually create a login using your email to access the software online. Some companies offer payroll mobile apps so you can manage your payroll on the go.

Payroll software often provides payroll processing, payroll tax calculations, employee management, time tracking, benefits administration, and reporting, among other features.

Do I Need Payroll Software For My Small Business?

Deciding whether your small business could benefit from payroll software depends on whether you know how to run payroll and how to calculate payroll. If you answered no to either question, going with payroll software would keep you from having to go through the process of learning how to do payroll manually.

The Benefits Of Using Payroll Software

Saves time on processing payroll, tracking time, & managing employee hours & PTO
Prevents payroll calculation errors
Ensures payroll tax & labor law compliance
Helps with year-end payroll tasks
Makes tax season easier with payroll records & reporting in one spot

These are just a few of the benefits of payroll software. Read our full list of payroll software benefits to learn how payroll software can help your business.

How Much Should You Expect To Pay For Payroll Software?

Payroll software pricing can be tricky.

Some SaaS companies are transparent with their pricing, and others offer custom packages that require a quote from a sales representative. You can generally expect to pay a base monthly fee of anywhere from $25-$45/month plus a per-employee fee of around $6-$10/per person for basic payroll capabilities. Some companies also charge add-on fees for specific features or services like time-tracking, benefits administration, etc.

The number of features you need and the number of employees you have will have the biggest impact on how much payroll software will cost you. Learn more about potential payroll costs and fees.

How To Choose A Good Payroll Software Company

To choose a good payroll company, look for the following:

Competitive pricing
Multiple customer support options
Positive customer reviews & testimonials
Benefits support in the state you pay employees in
An easy-to-navigate interface

Shy away from any company that is not forthright with its pricing when asked. Also, avoid companies with predominantly negative customer reviews or a lack of standard SaaS security measures like data encryption, two-factor authentication, employee controls, and physical server safeguards and monitoring.

Our complete guide on how to choose payroll software can help you make the right decision for your business.

Erica SeppalaEditor & Senior Staff Writer

It’s important to choose payroll software that at least has standard features like tax filing, direct deposit, and reporting. Also look for user-friendly software, good customer support, and competitively-priced, scalable plans that can grow with your business.

The Bottom Line On Choosing The Right Payroll Software For Your Business

To choose the right payroll software for your business, you’ll need to determine what your business needs in a payroll software solution. Start by answering these questions:

How much payroll 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?
Can I customize the software to suit my business’s needs?

For better or worse, these are all questions to which you need definitive answers before making a final decision on payroll software for your business. Fortunately, each payroll software has the same end goal: creating a reliable and efficient payroll system for your business.

The payroll software that is right for your business is the one that meets all your budget and payroll support needs. Thanks to the varied options available, it should be easy to find something that is a perfect fit for your business.

Small Business Payroll Software FAQs

What is the best HR software for small businesses?

Merchant Maverick’s top picks for the best HR software solutions for small businesses include:

Gusto
Zenefits
BambooHR
Namely
Paycor

These are great options for small business owners who need to outsource or upgrade their HR departments.

That said, not all HR software solutions are created equally. Some emphasize stellar payroll capabilities, while others rely on a bevy of customizable features. The best HR software for your small business comes down to how mature your HR processes are, which will impact the priorities you should look for in HR software.

Can I do my own small business payroll?

Doing payroll by yourself may seem daunting, but doing it manually isn’t out of the question. DIY payroll can be a cheaper solution if outsourcing the process seems too expensive or if you prefer to know what’s going on with all of your payroll processes and taxes.

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Chelsea Krause

Expert Contributor

Chelsea Krause is a writer who specializes in accounting, payroll, and small business loans. She has been helping small business owners manage their finances since 2016. She is a QuickBooks Certified User and former eCommerce store owner. Her accounting expertise has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business. Chelsea graduated summa cum laude with a BA in English & Creative Writing from George Fox University and studied abroad at the University of Oxford as well.

@AccountingMage

View Chelsea Krause's professional experience on LinkedIn.

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1. Gusto

❮ ❯

Best overall payroll software
Pricing starts at $49/month + $6/person
Unlimited payroll runs and full tax support across 50 states

Start Trial

2. Paychex

❮ ❯

Best for growing businesses
Pricing starts at $39/month + $5/employee
Scalable with packages for businesses at every stage

3. ADP Payroll

❮ ❯

Best all-in-one HR and payroll software
Custom pricing
Extensive HR library and tools

Get A Quote

4. Paycor

❮ ❯

Best all-in-one HCM
Custom pricing
Advanced features & multiple add-on options

5. Square Payroll

❮ ❯

Best for ease of use
$35/month + $6/employee
Cheap contractors-only plan for only $6/per person

6. OnPay

❮ ❯

Best affordable payroll software
$40/month + $6/month per person
Extensive payroll and HR features

7. QuickBooks Online Payroll

❮ ❯

Best for QuickBooks Online users
$50/month + $6/per person - $229/month + $11/per person
Generous promotional pricing for new customers

8. Payroll4Free

❮ ❯

Best free payroll software
Pricing starts at $0/month for 10 employees
Optional paid tax and direct deposit services

9. Patriot Payroll

❮ ❯

Best for affordable tax support
Pricing starts at $17/month +$4/month per person
Full or self-service payroll tax support options

10. Wave Payroll

❮ ❯

Best with free accounting software
Pricing starts at $20/month + $6/person
Full-service payroll in 14 states

11. Rippling

❮ ❯

Best for international workers
$8/month per employee
Strong international payroll support

12. Homebase

❮ ❯

Best payroll software for hourly employees
Pricing starts at $0/month
Free employee scheduling software plan