Human resources payroll software combines both HR support features and payroll tools. By sharing information between the two functions, you can save time and increase accuracy. Costs can run from $10 to $150 per employee per month depending on your needs.
8 Best Human Resource Payroll Software for Small Business
Payroll Provider | Best for |
|---|---|
Best overall HR payroll software for small businesses | |
Businesses that expect to grow significantly in the coming years and want an HR payroll provider that can grow with them | |
Companies that use QuickBooks looking for payroll and HR software that natively integrates into their accounting | |
Businesses with less experienced HR staff that need access to HR professionals and assistance with compliances | |
Companies that are prioritizing HR software over payroll but want a platform that handles both well | |
Businesses that need flexibility in their toolset | |
Retailers, restaurants using Square POS, or businesses that only hire contractors or seasonal workers | |
Businesses needing a very user-friendly program that can handle payroll and HR objectives |
HR vs Payroll Software: What’s the Difference?
While the programs we considered have at least some HR features along with payroll, others have core HR products that are pretty robust and allow you to add on payroll. It’s useful to see the differences in the software types and when each might be your best fit:
HR Payroll Software: This is the best of both worlds. Integrated HR payroll software operates payroll and HR functions together so that a change in one—such as adding a new employee—is reflected in the other—getting the new employee’s information into the payroll. It can make it easier to do HR analysis, manage benefits, and prevent errors in employee information.
Payroll Software: Straight payroll software handles the tasks of organizing and executing paying employees and filing taxes. It lets you track employee hours, wages, taxes, and deductions, prints paychecks, and handles direct deposits or pay cards. It may have little to no HR support.
Payroll Services: Payroll services handle all your payroll needs. You provide the information, and they run your payroll, ensure compliances, and get your people paid. Naturally, it’s more expensive than purchasing software, but you have the work done for you by payroll experts, and it may pay for itself in time and labor saved. It might also be limited on HR support.
How We Chose the Top 8 Best Human Resources Payroll Software
We selected human resource payroll software that processed paychecks for hourly and salary workers and can handle direct deposits and checks. They calculate deductions and let you get basic payroll reports. Finally, all the companies have HR products that work with the payroll software or include HR tools within payroll.
Overall, we chose Gusto as the best HR payroll software. Earning 4.11 out of 5 stars, it offers affordable plans, a great set of payroll features, and multiple HR functions.
RUBRIC SCORECARD CRITERIA:
15% of Overall Score
We gave points for plans that cost less than $1000 per year for 10 employees, as well as companies that offered transparent pricing, free trials, unlimited pay runs, and multiple options.
35% of Overall Score
We looked for HR features like self-service portals, online onboarding, filing new employee forms, and a staff of expert advisors. We also favored payroll services that had insurance in all 50 states and advanced HR features like compensation management, and training and performance management.
20% of Overall Score
We gave the most credit to software that processed direct deposit in two days or less, handled local as well as federal and state taxes with a penalty-free guarantee, and other options.
20% of Overall Score
We looked for features that make the software easy to use such as a modern, intuitive interface that’s customizable and several support options. We also gave credit to companies that provide help in the form of set-up assistance and a dedicated representative. Finally, we looked for integrations with other business software.
5% of Overall Score
We average our software reviews from real users with review ratings from G2, Capterra, and TrustRadius that are also based on a 5-star scale; any option with an average of 4+ stars is ideal. We also favor software with 1,000+ reviews on any third-party site.
5% of Overall Score
We looked for a large selection of reports and whether you could customize them.
Gusto
PROS
- Contractor-only plan
- Allows for pay advances
- HR includes onboarding, new hire support, advising
CONS
- No mobile app
- Health insurance limited to 39 states
| RATING CRITERIA | Pricing | 5 | OUT OF | 5 |
| HR Features | 3.75 | OUT OF | 5 | |
| Payroll Features | 4.75 | OUT OF | 5 | |
| Ease of Use | 3.25 | OUT OF | 5 | |
| Popularity | 5 | OUT OF | 5 | |
| Reporting | 4 | OUT OF | 5 |
Gusto is a highly-rated and popular payroll service with HR functions in its higher plans. It works for contractors as well as wage-earning employees, can handle tips and PTO, and files taxes even on the local level. It offers health insurance in 39 states and is working to provide the other 11. Users find it intuitive and praise its customer support.
This service left the competition behind with 4.11 out of 5 stars. It lost some points for not having as many reports as other software on our list and for not providing insurance in all 50 states. However, users love the service, giving it an average of 4.64 on average, on independent review sites.
Pricing
- Core product starts at $39 per month, plus $6 per employee, per month
- Basic product is $19 per month, plus $6 per employee, per month (it’s a beta product that’s only for businesses with one to two employees)
Features
Some features are only available on more expensive plans.
- Payroll: Unlimited pay runs, automatic pay runs, 2-day direct deposit or pay cards, pay contractors as well as hourly and salary employees, multiple pay rates, PTO tracking, time trackers, and employee self-service terminal
- Tax filing: Federal, state, and local tax filing; year-end report prep and delivery; files state and federal unemployment insurance
- HR: Employee onboarding, workers comp, files new hire forms, document management, expert advisers and HR library
Benefits: Health, dental, and vision insurance in 39 states; Gusto wallet; health reimbursement plans, HSA, and FSA; 401(k), commuter benefits
ADP
PROS
- Health insurance in all 50 states
- New hire support includes background checks
- Good for companies of all sizes
CONS
- No transparent pricing
- No manual check capabilities
- Charges per pay run
| RATING CRITERIA | Pricing | 1.5 | OUT OF | 5 |
| HR Features | 4.25 | OUT OF | 5 | |
| Payroll Features | 4.25 | OUT OF | 5 | |
| Ease of Use | 4 | OUT OF | 5 | |
| Popularity | 5 | OUT OF | 5 | |
| Reporting | 5 | OUT OF | 5 |
ADP is a standard for human resources and payroll, because it provides excellent features and a comprehensive toolset at reasonable prices. ADP serves small businesses and major corporations, making it a good choice for growing businesses that don’t want to deal with the hassle of switching companies because they’ve outgrown the one they’re with.
ADP earned 3.86 out of 5 stars. It charges per pay run, and you need to contact sales for a quote. Some features cost extra. It also lost points for not letting you issue checks manually. ADP users used to complain about the customer service and delays, but in the last year, they’ve remarked that ADP has worked hard to improve.
Pricing
- ADP does not list pricing online.
- We received a quote of $9.95 per employee, per pay run for basic payroll for 10 employees.
- There are setup fees.
- The first three months are free.
Features
Some features are only available on more expensive plans.
- Automatic pay runs
- 2-day direct deposit or pay cards
- PTO tracking, time trackers, employee self-service terminal
- Federal, state, and local tax filing
- Year-end report prep and delivery
- Penalty insurance if ADP makes an error
- Employee onboarding
- Files new hire forms
- Document management
- Expert advisers available 24/7
- HR handbook wizard
- Post jobs on ZipRecruiter, background checks, HR advisers, and training
- Health, dental, and vision insurance in 50 states
- Employee discounts; HSA and FSA; 401(k)
QuickBooks
PROS
- Affordable
- Health insurance for all 50 states
- Same- and next-day direct deposit
CONS
- Limited integrations
- Basic HR features only
| RATING CRITERIA | Pricing | 5 | OUT OF | 5 |
| HR Features | 3.38 | OUT OF | 5 | |
| Payroll Features | 4 | OUT OF | 5 | |
| Ease of Use | 3.63 | OUT OF | 5 | |
| Popularity | 3.75 | OUT OF | 5 | |
| Reporting | 4 | OUT OF | 5 |
If you use QuickBooks and want a simple payroll processor with basic HR functions, QuickBooks Payroll may be right for you. It does not charge for setup, allows unlimited pay runs, including one-off checks, and offers next-day direct deposit. It works with SimplyInsured to provide health benefits and Mammoth for HR functions. Of course, it integrates with QuickBooks.
QuickBooks earned 3.84 out of 5 stars for features, although it should be noted that Gusto, ADP, and Paychex offer a greater range of HR functions and benefits. QuickBooks ranks higher because of its pricing, which is clearly and consistently presented on its website.
Pricing
- Core product starts at $22.50 per month, plus $4 per employee, per month
Features
Some features are available in premium plans only.
- Unlimited pay runs
- Automatic pay runs
- Next-day or same-day direct deposit
- Contractor payroll as well as hourly and salary employees; PTO tracking; time trackers; employee self-service terminal
- Federal and state tax filing, year-end report prep and delivery, files state and federal unemployment insurance
- Employee onboarding
- Workers’ comp
- Access to an HR adviser
- Health, dental, and vision insurance in 50 states; 401(k)
Paychex
PROS
- Pay card program
- Basic plan
- Manage federal, state, and local taxes
CONS
- Non-transparent pricing
- No plan under $1,000 per year (10 employees)
- Charges per pay run
| RATING CRITERIA | Pricing | 1.5 | OUT OF | 5 |
| HR Features | 4.25 | OUT OF | 5 | |
| Payroll Features | 4.5 | OUT OF | 5 | |
| Ease of Use | 3.5 | OUT OF | 5 | |
| Popularity | 5 | OUT OF | 5 | |
| Reporting | 5 | OUT OF | 5 |
Paychex is another payroll software that does not list pricing online and will customize a plan for you. It’s a feature-rich software for payroll and HR functions. It offers good customer service but can be pricier than others on our list. Its more advanced plans offer advisers to help you stay compliant with regulations from payroll to OSHA, and it has hiring services as well.
Independent user reviews give it an average of 4.12 out of 5 stars, preferring ADP and Gusto. We rated it 3.81, a close second to QuickBooks. Users said it was harder to learn. However, as far as feature set, pricing, and service, it’s very similar to ADP.
Pricing
- Paychex does not list pricing online.
- We received a quote of $123 per month for biweekly pay runs of basic payroll for 10 employees.
- Setup fees are around $150.
- One sales associate said they may raise prices each year but that you can call and negotiate.
Features
Some features cost extra.
- 2-day direct deposit or pay cards
- Online tip-sharing
- PTO tracking
- Employee self-service terminal and employee onboarding
- Federal, state, and local tax filing
- Year-end report prep and delivery
- Workers’ comp
- New hire form filing document management
- Performance management
- HR resource center
- Dedicated HR partner (extra cost)
- Health, dental, and vision insurance plus Health reimbursement plans, HSA, and FSA
- 401(k) options & financial wellness tools
Zenefits
PROS
- Time tracking is included
- Customizable wage codes
- Insurance in 49 states
CONS
- No pay card option
- Payroll is an addition to the HR solution
- No insurance for Hawaii
| RATING CRITERIA | Pricing | 5 | OUT OF | 5 |
| HR Features | 4 | OUT OF | 5 | |
| Payroll Features | 3.75 | OUT OF | 5 | |
| Ease of Use | 3.25 | OUT OF | 5 | |
| Popularity | 2.5 | OUT OF | 5 | |
| Reporting | 4 | OUT OF | 5 |
Zenefits is an HR program to which you can add payroll services and consulting. Even its most basic plan offers hiring and onboarding, an employee portal, time tracking, and PTO and document management services. It works with health insurance brokers to provide insurance in 49 states. Overall, if you are looking for a solid HR foundation and want to incorporate payroll, Zenefits is worth checking out.
We gave Zenefits a solid 3.79 out of 5 stars. It lost points because it didn’t offer pay cards or manage local taxes, but its payment plans are affordable and clear. Some features are only available in higher plans, but this is typical of all the HR payroll software we reviewed. Users give it 4.14 out of 5 stars, praising the ease of use and how well everything integrates.
Pricing
- Core product starts at $8 per employee, per month and goes up to $21 rate
- Payroll is an add-on of $6 per employee, per month
Features
- Unlimited pay runs
- 2-day direct deposit
- Multiple pay rates
- PTO tracking and time tracking
- Employee self-service terminal
- Federal and state tax filing, year-end report prep and delivery
- Employee onboarding
- Dedicated HR support, updates on regulation changes for compliances
- Health, dental, and vision insurance in 49 states; health reimbursement plans, HSA, and FSA; 401(k), wellness programs
Rippling
PROS
- International payroll
- Integrates with 500+ apps
- Handles local as well as state and federal taxes
CONS
- Not good for >1,000 employees
- Help desk and compliances extra
| RATING CRITERIA | Pricing | 4.13 | OUT OF | 5 |
| HR Features | 4.25 | OUT OF | 5 | |
| Payroll Features | 4.25 | OUT OF | 5 | |
| Ease of Use | 2.5 | OUT OF | 5 | |
| Popularity | 2.5 | OUT OF | 5 | |
| Reporting | 4 | OUT OF | 5 |
Rippling is a highly adaptable payroll program. It starts with an employee management program that includes a database, onboarding, document management, reporting, and API integrations for over 400 programs. Then you can add modules, including full-service payroll that works in all 50 states and internationally.
Ripping earned top marks for HR features, but lost points because it does not offer pay cards, set-up help, or a dedicated representative. Nonetheless, it offers local as well as state and tax filing, which not every payroll software does, and has a full range of HR and benefits management tools. Rippling also had the highest user satisfaction score of the software we reviewed: 4.9 out of 5 stars.
Pricing
- Employee Management (must purchase): $10 per employee, per month
- Payroll Add-on: $8 per employee, per month
- Employee benefits: $6 per employee, per month
- Applicant tracking: $6 per employee, per month
- Device management: $8 per employee, per month
Features
- Unlimited pay runs
- 2-day direct deposit
- Multiple pay rates and international payroll
- PTO tracking
- Employee self-service terminal
- Federal, state, and local tax filing plus year-end report prep and delivery
- Employee onboarding
- ACA and COBRA administration
- New hire form Filing
- Document management
- Expert advisers on staff (costs extra)
- Health, dental, and vision insurance in 39 states; HSA and FSA; 401(k)
Square Payroll
PROS
- Works with POS software
- Unlimited pay runs
- Health insurance in all 50 states
CONS
- Limited advanced HR functions
- No expert advisers on staff
| RATING CRITERIA | Pricing | 4.5 | OUT OF | 5 |
| HR Features | 3.75 | OUT OF | 5 | |
| Payroll Features | 4.38 | OUT OF | 5 | |
| Ease of Use | 2.88 | OUT OF | 5 | |
| Popularity | 2.5 | OUT OF | 5 | |
| Reporting | 3 | OUT OF | 5 |
Most people know Square for its POS and payment processing, but it also handles payroll and HR functions. It sets itself apart from the other HR payroll processing on our list in that it has a simplified plan for contractors and also lets you keep your account dormant, making it a good choice for seasonal businesses as well.
This service earned 3.71 out of 5 stars. The HR functions are among the most limited of those on our list, and it lacks expert HR advisers. However, the payroll features are strong, including automatic and unlimited payroll runs, 2-day direct deposit, pay cards, tax reporting, and more. Users rate it higher than Paychex or QuickBooks for ease-of-use and overall satisfaction.
Pricing
- Contractor-only plan($5 per contractor, per month)
- Employee Plan $29 per month + $5 per employee, per month
Features
- Unlimited pay runs
- 2-day direct deposit or cash app,
- Contractors payroll plus hourly and salary employees
- PTO tracking
- Employee self-service terminal
- Federal, state, and local tax filing; year-end report prep and delivery;
- Files state and federal unemployment insurance
- Employee onboarding
- Workers’ comp
- Files new hire forms, document management
OnPay
PROS
- Employee self-serve portal and onboarding
- Files and pays federal and state taxes
- Easy to use and highly rated by users
CONS
- Does not file local taxes
- Direct deposit takes more than two days
| RATING CRITERIA | Pricing | 3.5 | OUT OF | 5 |
| HR Features | 3.75 | OUT OF | 5 | |
| Payroll Features | 3.5 | OUT OF | 5 | |
| Ease of Use | 3 | OUT OF | 5 | |
| Popularity | 2.5 | OUT OF | 5 | |
| Reporting | 4 | OUT OF | 5 |
OnPay offers services in all 50 states and has a single plan with all features with straightforward pricing: $36 + $4 per employee, per month. Users gave it very high marks for features and interface—an average of 4.89 out of 5, the highest satisfaction rating among users except for Rippling.
This service earned 3.46 out of 5 stars from us. It does not have experts on staff and cannot calculate local taxes. Direct deposit processing time is longer than two days. It does, however, have a pay card program and works for contractors as well as wage-earners. Its HR features are all added in; no need to pay extra to get a specific benefit.
Pricing
- $36 per month + $4 per month, per employee
- There’s a one-month free trial.
Features
- Unlimited pay runs
- Pay cards
- Payroll processing for contractors as well as for hourly and salary employees
- Multiple pay rates
- PTO tracking
- Employee self-service terminal and onboarding
- Federal and state tax filing, year-end report prep and delivery
- Workers’ comp
- Files new hire forms, handles document management
- Document templates, custom reports
- HR library
- Health, dental, and vision insurance in 50 states; health reimbursement plans, HSA, and FSA; 401(k)
- Surveys
Bottom Line
By combining your HR and payroll functions into one system, you can sync employee information. It can make tasks like onboarding, benefits management, and scheduling easier and more accurate. The software we reviewed offered strong integrations, excellent payroll features, and at least basic HR functions.
Gusto offers the best functionality for the price for small businesses. While its health insurance is not available in all states, for those where it does offer plans, businesses can take advantage of great prices, an intuitive interface, and solid HR and payroll tools. Gusto offers month-to-month pricing and no long-term obligations. Sign up for a free 30-day trial today.
Lindsey Rankin
There are multiple incorrect references in this article. When speaking about Paycor’s ease of use the snapshot below that includes a picture of Paychex’s dashboard. In the same breath, Paycom’s pay data grid does not represent what you have pictured. Rather that is an old screenshot of another payroll provider. There are statements that are an unclear as to which HR solution is being referenced. The article overall provides value but needs some clean up.
Amanda Norman
Hi Lindsey,
Thanks for pointing this out. We’ll get it taken care of.
Best wishes,
Mandy, Moderator