The 8 Best Payroll Software For Small Businesses

Best for small businesses looking for a comprehensive payroll and HR software solution.

Pros

Easy to use
Modern interface
Great tax support

Cons

Limited reporting
Few integrations

Gusto is the best payroll system choice overall for small businesses that need easy-to-use software with reliable customer support. Gusto is ideal for small businesses with fewer than 100 employees that need to completely automate their payroll processing system.

At Merchant Maverick, we use Gusto to manage our own payroll, so we can attest to its ease of use from both the administrative and employee sides. This cloud-based payroll system has an easy-to-navigate interface and intuitive onboarding and benefits set-up, and it fully automates payroll, streamlining that tedious task through everything from onboarding to 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.

gusto: best small business payroll software

Gusto Pricing

Gusto offers three different pricing plans and a free 30-day trial. A short-lived Basic plan, starting at $19 a month, was discontinued by the company after a beta rollout. 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 HR compliance assistance and an HR resource center, as well as the addition of a dedicated customer service representative. Gusto also offers a plan for businesses that hire only independent contractors. The software’s ‘Contractor Only’ plan costs $6/month/contractor.

Read our full Gusto pricing post for more details.

Gusto Features

Gusto offers strong benefits administration features and assists with adding worker’s compensation and HSA plans to your payroll. Bear in mind that this 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 ease and functionality are what you need, though, 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

When To Use Gusto

Gusto is perfect for small to medium-sized businesses that 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., 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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ADP: Best Payroll Software For Beginners

ADP Payroll

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Best for small businesses that are new to payroll software.

Pros

Easy to use
Can grow with a company

Cons

Added fees
Small fish in a big pond

ADP is the best payroll software for small businesses with no payroll or accounting experience that need to automate both processes. ADP is also a great choice for larger businesses with more than 50 employees that need a few extra bells and whistles to facilitate payroll automation.

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. 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.

adp: best payroll software for beginners

ADP Pricing

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.

For the full scoop on ADP’s pricing, read our deep-dive into ADP’s costs and fees.

ADP 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
Many integrations

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.

Square Payroll: Easiest Payroll Software To Use

Square Payroll

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Best for small businesses looking for a simple payroll software solution.

Pros

Inexpensive
Easy to use
Basic

Cons

Rudimentary features
Limited payroll functions

Square Payroll is the best payroll software for small businesses that already use Square products, as well as businesses looking for a bargain and that employ numerous contractors. Square doesn’t include a lot of bells and whistles, but it gets the job done well for small businesses that need to be compliant and always on top of their payroll reporting.

Square has a niche: simple and easy. Square’s payment processing app offers a straightforward system without a stream of bells and whistles. And that is exactly what is delivered with Square payroll 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. Its lone complaints come from bigger companies looking for a more curated interface and people who say it sometimes 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.

Square Pricing

With Square, 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 is only paying contractors, you will pay a $5/month fee per contractor on your payroll. If you pay both contractors and salaried/hourly employees, you pay a $29 subscription and $5/employee/month. There are no contracts with Square, so you can cancel your plan at any time.

For more details, read our full Square Payroll pricing post.

Square Payroll 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
Employee self-service portal with mobile app
HR support
Time tracking
Benefits administration
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.

Paylocity: Most Customizable Payroll Software

Paylocity

Best for businesses with unique payroll requirements.

Pros

Customizable
Copious features
Modern interface

Cons

Expensive
Steep learning curve
Not for the tech-shy

Paylocity is the best payroll system for mid-sized businesses that need software they can tailor and customize to suit their business needs. The software boasts a large feature set that works well for businesses that need both payroll as well as HR capabilities.

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 it 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 app counter-intuitive and prone to errors, which does not make this a good option for Luddites or payroll newbies.

paylocity: most customizable payroll software

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.

Paylocity 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
Web Time (cloud-based time tracking)
Employee self-service portal with mobile app
Benefits essentials
New hire reporting
Custom-built PTO tracking and management

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 that know enough about payroll and HR to communicate their desires to the Paylocity team. It’s not for payroll newbies but is a solid find for a small business with more advanced requirements.

QuickBooks Online Payroll: Best Payroll Software For QuickBooks Users

Intuit Online Payroll

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Best for businesses that already use QuickBooks.

Pros

Easy to use
Perfect for QuickBooks users
Priced well

Cons

Mediocre customer service
Confusing to navigate QuickBook’s myriad formats

Intuit is the best payroll system for businesses that already use QuickBooks products and want to easily integrate with a payroll solution. Intuit has a reputation for regularly adapting and reworking its payroll features, which may appeal to businesses that anticipate rapidly scaling their growth and operations in the near future.

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.

quickbooks online payroll: best payroll software for quickbooks users

QuickBooks Online Pricing

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. As the prices scale, the features improve and become curated for your business. At the upper tiers, Intuit offers white-glove treatment for onboarding and sends you a dedicated HR representative to work with your company.

QuickBooks Online Payroll 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 W2s 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 and year-end forms
Workforce portal
Manages garnishments and deductions
Offers reporting features

When To Use QuickBooks Online Payroll

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, Intuit has demonstrated a desire to evolve and grow as payroll competition becomes fiercer. The biggest complaint about QuickBooks in the past was customer service and confusion about prices, but they have adjusted their pricing and seem to be keeping their finger on the pulse of complaints. We are always impressed when a company responds swiftly to feedback.

Paycor: Best HR Software

Paycor

Best for small businesses looking for strong HR features.

Pros

Easy setup
User-friendly
Strong payroll features

Cons

Extra fees
Too many essentials are sold a la carte

Paycor is the best payroll system for small businesses that need a full Human Capital Management system with payroll processing features. Paycor boasts an intuitive and modern-looking user interface that may appeal to smaller businesses that need some extra hand-holding.

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.

paycor: best hr payroll software

Paycor Pricing

Paycor has adopted a tiered pricing system with 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.

Prices for Basic Payroll start at $99 + $5 per employee per month; Complete Payroll is offered for $149 + $6/employee/month, and Essential Payroll is $199 + $7/employee/month. Paycor’s HCM pricing tier starts at $199 + $12/employee/month, and adds more advanced features such as automated workflows, document management, performance reviews, and more.

Paycor 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, and training can all be in one location. There is no flipping back and forth between programs.

Paycor offers the following features in its Basic Payroll package:

Same-day direct deposit
Free W2s filed and sent
Assisted payroll setup
Standard report building and customizable reports
Garnishment/child support self-service
HR support center
Up to 10 employees

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.

SurePayroll: Best Payroll Software For Small Businesses With Few Employees

SurePayroll

Not Yet Rated

Best for small businesses that need a straightforward payroll solution with tax support.

Pros

Easy to use
Modern interface
Inexpensive

Cons

Website is slow
Ample extra fees
Limited integrations

SurePayroll is the best payroll system for overlooked industries and very small businesses. SurePayroll works best for small businesses that need easy-to-use software with basic payroll processing features.

SurePayroll is leading the way for bare-bones cloud-based software that caters to small businesses. 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.

SurePayroll: best payroll software for small businesses with few employees

SurePayroll Pricing

SurePayroll doesn’t publish its prices online. However, our business was quoted $29/month, plus $4/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 W2 reports. You can get one month free, however, to try SurePayroll. Overall, SurePayroll is an affordable option.

SurePayroll 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 are 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
Employee self-service portal with mobile app
Garnishments
New hire reporting
HR support

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. The software’s features and customizable options are few; 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.

OnPay: Best Mobile Payroll Software

OnPay

Best for small businesses within the field service industry.

Pros

Customizable HR & payroll tools
Strong mobile experience
Responsive customer service

Cons

Poor scalability for larger businesses
Extra fees to process year-end tax documents

OnPay is the best payroll software for small businesses that want a simple system to onboard new employees and that need to automate both their payroll and HR processes. OnPay boasts fast, unlimited payroll processing as well as flexible frequency to accommodate different reporting needs, and even offers a robust mobile experience to assist small businesses with their HR and payroll.

OnPay is a cloud-based payroll software solution that provides an impressive range of flexibility and functionality. The software offers users fast payroll processing that’s made even better with custom fields and forms, as well as a sleek, easy-to-use mobile app experience.

OnPay has a positive reputation for responsive customer service that’s available through an easily navigable dashboard, and it even integrates with QuickBooks for small businesses that are already using Intuit QuickBooks products. This is one of the best payroll software solutions for small businesses that want to combine a wide range of customizable payroll features with HR resources and tools to streamline processes.

OnPay Payroll Dashboard

OnPay Pricing

OnPay’s pricing includes just a single plan that starts at a flat rate of $36 a month, with a monthly per-employee fee of $4. OnPay doesn’t offer a free trial or free version of its software, so you can use all of its features and functions without worrying that you’re missing out because you didn’t upgrade to a higher service tier. And, since OnPay doesn’t require that its users sign any contracts for terms of use, you only need to pay to keep using the software on a monthly basis without risking getting hit with penalty fees.

OnPay Features

OnPay’s features are very customizable and appropriately varied for small businesses that need help with payroll. There is only one service plan available with OnPay, so you can enjoy all of the biggest features the software has to offer 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
Self-service portal
Tax services
New-hire reporting
Online HR library and resources
Responsive mobile site experience
Integrations with popular services (TSheets, QuickBooks Online, Xero, etc.)

When To Use OnPay

OnPay works best for very small businesses that are rapidly growing and need to flesh out both their payroll and HR processes. Its highly intuitive online platform complements its expansive set of HR tools, tracking capabilities, and customer service that work well on mobile as well as on a desktop PC. Certain businesses may find a single service plan limiting; however, the pricing is relatively inexpensive compared to certain higher-tier plans offered by solutions such as Paylocity and Intuit QuickBooks.