The Best Payroll Software For Small Businesses

We chose Gusto as the overall best payroll system choice for small businesses that need easy-to-use software with a solid feature set and built-in time tracking options.

Gusto is perfect for small to medium-sized businesses that may not have a full accounting department and are looking for a functional, customer-oriented program to run payroll. This cloud-based payroll system has an easy-to-navigate interface with intuitive onboarding, and it fully automates payroll, streamlining everything from onboarding to termination.

While Gusto does provide transparent pricing, the price runs 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 solid HR features.

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 $40 a month + $6 per employee (Simple) to $80 a month + $12 per employee (Plus).

The Plus plan adds next-day payroll processing, time tracking, stronger employee management features, more customization options, HR tools, and multistate payroll processing.

The Premium package offers HR compliance assistance and an HR resource center, as well as the addition of a dedicated customer service representative. Gusto also offers a fourth plan for businesses that hire only independent contractors. The software’s ‘Contractor Only’ plan costs $35/month + $6/month/contractor.

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 (including bonus and off-cycle runs)
• Automatic federal, state, and local tax filing across all 50 states
• Create custom payroll reports to track your business’s payroll expenses
• Customizable admin permissions
• Employment offers and onboarding
• Built-in time tracking on the Plus plan (integrations available on all plans)
• Employee directory and surveys
• HR and compliance support
• Dedicated customer support team, including live support hours and chat options
• Optional add-ons for international contractor payments

• Gusto does not offer benefits administration in 13 states, including Alabama, Alaska, Hawaii, Louisiana, Mississippi, Montana, Nebraska, North Dakota, Rhode Island, South Dakota, Vermont, West Virginia, and Wyoming.
• Next-day direct deposit and built-in time tracking are not available on Gusto’s cheapest plan for paying both employees and contractors.
• Gusto does not have a mobile app, so employers must use a web browser to run payroll remotely, as will employees who want to view their pay stubs and related payroll information.

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.

ADP boasts one of the most comprehensive feature sets of any payroll software on the market and adds a wealth of HR tools that range from employee handbook templates to one-on-one support from HR professionals. On top of offering useful payroll features, ample integrations, and strong reporting, ADP also has solid support options.

Run by ADP is the option for small businesses with 1-50 employees, but there are other options if a company grows and needs additional assistance. However, for a business with only one or two employees, ADP is simply too expensive for basic payroll.

ADP generally offers customers three free months and reduced-rate contracts to sign a yearly contract. Each contract is different, but most contracts require 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 most likely 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.

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:

• Payroll processing, including off-cycle payroll runs
• Hands-off payroll processing with auto-scheduled payroll runs
• Options for paycheck delivery or direct deposit
• Automatic payroll tax calculation and filing
• Run payroll across multiple states and counties
• Garnishment payments options
• Electronic reporting
• Time tracking feature add-on and integration options
• Numerous integrations
• Employee management with employee portal and time off tracking

• ADP’s pricing is largely nontransparent, so you’ll need to get a quote before comparing costs and features with other options on the market.
• ADP’s add-ons tend to be pricey, so you’ll be able to build a comprehensive payroll and HR service package, but those a la carte options can add up quickly.
• ADP’s cheapest plans don’t offer garnishment payment services or state unemployment insurance management, so you’ll need to opt for a pricier plan if you’d like those services.

We chose QuickBooks Online Payroll because we believe that it is the best payroll system for the many businesses that already use QuickBooks products and want to integrate easily with a payroll solution.

Small businesses can handle pretty much any basic payroll function using QuickBooks Online Payroll. Plus, they can integrate with other solutions within the QuickBooks business software suite and third-party services.

The biggest complaint with this service in the past was confusion about prices, but QuickBooks has adjusted its pricing and seems to have its finger on the pulse of complaints. However, QuickBooks is still notorious for its less-than-stellar customer service, so it’s a mixed bag.

There is a very active help forum, so you’re likely to find that your support questions have already been asked and answered.

QuickBooks Payroll pricing ranges from $45/month +$6/month per employee to $125/month plus $10 per employee. 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. 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.

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 and check printing options
• Unlimited payroll runs across all 50 states (including multistate payroll add-ons)
• Manage paycheck deductions and garnishments
• Calculates and files federal and state taxes and year-end forms
• Workforce portal for employee pay stub and tax form access
• Create and run payroll reports for your business
• Automate payroll runs with scheduled payroll
• Optional QuickBooks Time add-on or time tracking integrations
• Benefits administration for health and dental insurance, plus 401(k) retirement plan options

• QuickBooks Online Payroll is limited to businesses paying 150 employees or contractors or fewer. If your business grows past that limit, you’ll need to find another payroll software solution.
• QuickBooks charges extra for direct deposit payments to contractors, so if your business only pays contractors, you may consider other options with more generous plans for contractors such as Square Payroll.
• QuickBooks Workforce is very poorly rated among users. Complaints range from stability issues to the app being completely unusable.
• Local tax support is not available on QuickBooks Online Payroll’s cheapest plan, so you’ll need to upgrade to get full tax support.

We chose Square Payroll as one of the best payroll software options for small businesses because it’s dedicated to keeping payroll simple and easy. Square’s point of sale app offers a straightforward system without being flashy. And that is exactly what Square Payroll delivers as well. This intuitive and easy-to-use payroll program integrates well with the rest of Square’s products.

Competitive pricing and a simple interface are big plusses for Square Payroll. Complaints about the service come from bigger companies looking for a more curated interface and people who say it sometimes takes a long time to connect with a payroll expert. However, if you want something simple, Square can provide it at a reasonable rate.

The biggest benefit of Square Payroll’s pricing is that there are no hidden fees or sneaky terms and conditions. There are two different plans depending on your type of employee and payroll needs.

If your business only pays contractors, you will pay a $6/month fee per contractor on your payroll. If you pay both contractors and salaried/hourly employees, you pay a $35 monthly subscription fee plus $6/employee/month.

There are no contracts with Square, so you can cancel your plan anytime.

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 and pay contractors and employees
• Automate payroll runs with Square Payroll’s scheduled payroll
• Automatic federal and state payroll tax calculation, filing, and remittance
• Employee self-service portal with mobile app
• Optional HR services add-on
• Employee portal and self-onboarding
• Time tracking through Square Shifts or third-party integration
• Benefits administration including health, dental, and retirement plans
• Integrations (including QuickBooks, QuickBooks Time, and ZipRecruiter)

• Square Payroll’s customer service is poorly rated. Customer complaints cite Square Payroll’s lengthy resolution times and trouble getting in touch with someone who is knowledgeable about payroll.
• Square Payroll’s full feature set can be expensive. Separate services, such as Square Shifts for employee management, come at an additional cost that can make it expensive to take full advantage of Square’s features.
• Square Payroll doesn’t offer a demo or free trial. You can sign up for the app without paying, but there isn’t much to see unless you pay for the app. Alternatives like Gusto and Patriot Payroll boast self-guided demos that allow you to freely explore the software.

We chose OnPay because it’s the best payroll software solution for small businesses that want to combine a wide range of customizable payroll features with HR resources and tools to streamline processes.

Unlike the vast majority of payroll services, OnPay doesn’t limit access to advanced features behind more expensive plan tiers. OnPay keeps all its features on a single plan, making it an affordable, comprehensive payroll solution.

OnPay boasts fast, unlimited payroll processing as well as flexible frequency to accommodate different reporting needs. Other perks include benefits administration, onboarding workflows, and solid employee management features.

OnPay has a positive reputation for responsive customer service that’s available through an easily navigable dashboard. It even integrates with QuickBooks for small businesses already using Intuit QuickBooks products.

OnPay’s pricing includes just a single plan that starts at a flat rate of $40 a month, with a monthly per-employee fee of $6. Your first month is free, and there are no setup costs.

Since OnPay doesn’t require users to sign any contracts for terms of use, you only need to pay to keep using the software every month without risking getting hit with penalty fees.

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 and employees
• Completely automated payroll tax support at the federal, state, and 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 and resources
• Responsive mobile site experience
• Seven industry-specific payroll setup options
• Pay-as-you go benefits option
• Integrations with popular services (QuickBooks Time, QuickBooks Online, Xero, etc.)

• OnPay lacks built-in time tracking. You’ll have to purchase time tracking separately to track your employees’ hours, which can drive up costs. However, OnPay does offer time tracking integrations with QuickBooks Time, When I Work, and Deputy.
• OnPay’s integrations are very limited. In addition to the three integrations listed above, OnPay only integrates with Xero, Mineral, PosterElite, and QuickBooks Online & Desktop accounting software. Other payroll services, such as ADP, Gusto, or QuickBooks offer hundreds of integrations.
• OnPay’s mobile app is poorly rated. Although this seems to be a recurring theme with payroll software mobile apps, OnPay’s mobile app continues the trend of poor mobile payroll experiences.

We chose Paychex as one of the best payroll software for small businesses because of its standout features, including strong employee management tools, 100+ reports, and solid payroll tax support.

We believe that these features are a perfect match for growing businesses. Paychex offers all essential payroll features for small businesses and customized solutions for large businesses.

The Paychex UI is intuitive and easy to use. Setup is simple, and 24/7 customer support is in place to help you get the most out of your software. Basic pricing for Paychex is pretty competitive, though costs can add up with customized plans and add-ons. That said, businesses may find the strong features well worth the cost, and growing businesses will appreciate the scalability of this payroll software.

Paychex has four pricing plans to choose from. Paychex Flex Essentials is priced at $39/month + $5/employee per month; 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’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, and paper check payment options
• New hire reporting
• Self-service employee portal with access to tax forms and paystubs
• Rich HR library and business forms
• Automatic payroll tax calculations and tax credit services
• Standard analytics and reports

• Paychex’s pricing is very nontransparent. Although Paychex does list pricing for one plan, all its other plan pricing is shrouded in mystery. For business owners, this means extra time spent getting a quote and challenges comparing Paychex with other service providers.
• Paychex has many add-ons. Add-ons aren’t an issue by themselves because they allow businesses to build customizable packages. However, features such as job costing reports, time tracking, and garnishment services are add-ons with Paychex, where they tend to be baked into other payroll software service plans to help keep costs down.
• Paychex offers a very limited demo. Again, other payroll software providers such as Gusto and Patriot Payroll offer full-fledged, self-service demos that allow business owners to explore the software before they buy it. Paychex’s demo is very limited, by comparison.

We chose Payroll4Free because it is the best free payroll software option on the market and we wanted to include an option for businesses that need to keep costs as low as possible.

While you won’t get the bells and whistles of other paid programs, you will have access to essential payroll features at no cost — provided your business has 25 or fewer employees.

With Payroll4Free, you can pay your employees and contractors without worrying about a monthly subscription fee. Payroll4free offers a surprising number of features at no cost, including tax forms, reporting, direct deposits, and an employee portal.

The tradeoff is that the software is ad-supported, although you aren’t inundated with advertisements. The UI could also use a refresh, but at this price point, it isn’t a huge issue.

If Payroll4Free doesn’t cut it for your business but you still want a free payroll software option, check out our top free payroll software picks.

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.

You can also buy the Direct Deposit Service if you’d prefer to use Payroll4Free’s bank instead of your own. Even with both of these add-on services, you will never pay more than $30/month to use Payroll4Free.

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 and calculations
• Vacation time tracking
• Reporting
• Accounting software integrations
• Unlimited live customer support

• It’s possible to outgrow Payroll4Free’s services. If your business outgrows Payroll4Free’s 25-employee limit, you’ll need to switch to another free payroll service provider, such as HR.my, or move on to paid services.
• Payroll4Free only runs on Windows OS. While you can run Payroll4Free on a Mac, that Mac must be running Windows.
• Payroll4Free is ad-supported. Ads can be distracting. They aren’t a huge issue but should be something to watch out for when using the software.
• Payroll4Free does have paid services. If you need tax support or you want to handle direct deposit through Payroll4Free’s bank, you’ll have to pay.

We chose Patriot Payroll because it combines strong payroll features, affordable pricing, good customer service, and excellent tax support — making it a great payroll software option for small businesses.

Patriot offers basic and full-service payroll options at one of the lowest pricing points you’ll find. This cloud-based software is intuitive, easy to use, and comes with all the features you expect from good payroll software.

But where Patriot really stands out is for its tax support. With its full-service package, you won’t have to worry about payroll taxes, as Patriot will file and deposit federal, state, and local taxes for you.

Year-end filings are also included at no additional charge, and you can e-file your 1099s through the software. Best of all, Patriot includes a tax filing accuracy guarantee for your protection.

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

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

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 and paystub access for employees and contractors
• Workers’ comp integration
• Contractor payments and optional 1099 e-filing
• Net to Gross Payroll tool
• Mobile-friendly software
• QuickBooks and QuickBooks Online integrations
• Time-off accruals tracking

• Patriot Payroll has limited integrations. Currently, Patriot Payroll integrates with QuickBooks (Online,  Time, and Desktop), Vestwell, and Next Insurance.
• Patriot Payroll does not offer health, vision, or dental insurance benefits administration. Current benefits are limited to retirement plan contributions and workers’ compensation insurance.
• Patriot Payroll is designed for small to mid-sized businesses with 500 or fewer employees. As such, Patriot Payroll wouldn’t be a good fit for mid-sized businesses looking to scale up to the enterprise level.

Wave earned a spot on our radar with its impressive free-forever accounting software, so we wanted to check out its payroll software option as well. We found Wave Payroll to be simple, easy-to-use payroll software that covers the payroll basics that smaller businesses may be looking for at an affordable price. For existing Wave Accounting users, integrating with Wave Payroll is seamless.

On the flip side, though, Wave Payroll lacks many features that you’ll find with its competitors, such as time-tracking and off-cycle pay runs. Additionally, full-service tax support isn’t available for 36 states. HR support is also pretty much nonexistent. However, businesses that don’t need advanced features and want basic, affordable payroll software may be satisfied with what Wave Payroll has to offer.

Wave Payroll offers two pricing plans that cost $20-$40/month plus $6/month per active employee or contractor paid. The more expensive plan provides full-service tax support and is only available in 14 states.

A 30-day free trial is available to test out the software.

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 and tax forms
• W-2 and 1099 tax forms
• Full-service payroll available in 14 states
• Basic reports
• Paid time off
• Basic employee management

• Wave’s full-service payroll is only available in Arizona, California, Florida, Georgia, Illinois, Indiana, Minnesota, New York, North Carolina, Tennessee, Texas, Virginia, Washington, and Wisconsin. Customers in all other states will have to handle their own payroll tax filing and deposits.
• Wave does not offer benefits administration. You can set up deductions for health insurance, retirement plan contributions, and the like, but you’ll have to set them up through a third party or broker.
• Wave does not offer phone support. If you have a problem with the service or need to ask a question, your choices are limited to live chat support, chatbot support, email, or visiting the Wave help center.

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 can help simplify complex admin tasks and makes it easy to run payroll by syncing with HR data.

Rippling streamlines payroll, making it possible to pay your employees in just minutes. It also boasts great tax support, including automatic compliance and filings, and syncs with your HR data for automated payroll.

As you would expect, though, these features come at a cost. The price — and the sheer abundance of available features — may prove to be too much for smaller businesses with more basic payroll needs.

For very small businesses (or those looking for low-cost software), Rippling is likely overkill. User reviews also indicate that there is a steep learning curve, and setup can be a bit complicated, so beginners may want to search for an easier, more straightforward payroll software option.

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 user, although it is unclear exactly what you’ll receive for this price.

Rippling Payroll’s Payroll Dashboard

Rippling’s customizable plans may include a number of 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, and local level
• Automatic tax compliance, including W-2, W-4, 1099, and new-hire filing
• Employee time tracking and PTO tracking
• Paycheck garnishments and deductions
• Job costing and custom payroll reports
• Over 400 integrations

• Rippling Payroll’s solution is only an add-on service. To use Rippling Payroll, you’ll need to purchase Rippling Unity. If you’re only in need of basic payroll software without all the extra noise, you’re better off with simple payroll software that supports international payments, such as Gusto (which offers contractor payments across 80+ countries).
• Rippling’s pricing isn’t very transparent. Although Rippling does advertise a low per-person rate, the true cost of the software depends on what modules you need to complete your package. It’s easy to run up costs with a module-based software package.
• Rippling does not offer a free trial. There’s no way to explore the software without either getting in touch for a guided demo or subscribing to the software.

A free employee scheduling software with solid payroll features, Homebase is an ideal option for businesses with hourly employees.

Homebase Payroll is full-service, so you don’t have to worry about manual tax filings. Add in good customer service, a competitive monthly cost, and other essential features, and it’s easy to see why this software made this “best of” list.

Homebase has a handful of HR tools, solid customer service, and a clean, easy-to-use interface that makes it easy to get started. Pricing is competitive, so it’s a great choice for budget-minded business owners.

Homebase may not be the best choice for businesses that primarily employ salaried workers or have more complex payroll needs.

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/month per active employee.

Homebase has everything you need to track hours, schedule employees, and pay your workers on time. Standout features of Homebase include:

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

• Homebase is best for businesses paying hourly employees. If your business primarily pays salaried employees and doesn’t need extensive scheduling options, you’ll be better off with more flexible payroll-focused solutions, such as OnPay or Paychex.
• Homebase’s pricing model is best for small businesses with fewer than 20 employees and only one location. All other small businesses will need to pay extra for Homebase’s shift scheduling and time-tracking plan. If you only need payroll, Homebase isn’t a great option.
• Homebase does not offer benefits administration. However, you can set up payroll deductions for employee benefits such as health insurance premiums.