The best HR payroll software makes managing the entire employee lifecycle (from hiring to retiring) easier for users. Here are our top picks for small businesses.
8 Best Human Resources Payroll Software for 2023
This article is part of a larger series on Payroll Services.
Human resources payroll software combines both HR and payroll features in one platform. By sharing information between the two functions, you can save time and increase accuracy. The best human resource management (HRM) and payroll software not only offer solutions that integrate well with each other but have reasonably priced plans and online tools that are easy to learn and use.
In this guide, we researched and compared 13 popular options and narrowed the list down to our top eight recommendations.
- Gusto: Best overall human resource payroll software for businesses needing payroll, team, and project tracking tools
- Paychex Flex: Best for startups and small companies wanting dedicated payroll support
- Rippling: Best HRM payroll software for workflow automation and software integrations
- QuickBooks Payroll: Best for QuickBooks accounting users and paying contractors
- ADP Run: Best for growing companies looking for scalable plans
- Square Payroll: Best for small businesses, retail shops, and restaurants needing basic HR tools
- OnPay: Best HR payroll software with robust system permissions
- TriNet Zenefits: Best for businesses in highly regulated industries
QuickBooks Payroll is a great option for businesses that have many different types of employees due to its versatility, ease of use, and wide variety of features. | ||
|
QuickBooks Payroll is a great option for businesses that have many different types of employees due to its versatility, ease of use, and wide variety of features. |
|
Top Human Resource Payroll Software Compared
All of the human resource and payroll software we reviewed offer payroll, employee information management, and state new hire reporting tools. Below are some of the standout features, including the providers’ basic pricing details.
Pricing Calculator: Do You Want to Compare Costs?
Use our online calculator to compute the estimated monthly and annual costs of our top recommended human resource and payroll software.
Gusto: Best Overall HR Payroll Software
Pros
- Full-service payroll with tax payments and filings included in all plans
- Reasonably priced contractor-only payroll option
- Employee benefits include non-standard options like college savings plans and financial management tools
- Unlimited and automatic pay runs
Cons
- Health insurance coverage limited to 37 states
- Lacks payroll mobile app
- Multistate pay processing isn’t available in the starter plan
- Time tracking, hiring, and performance reviews included in higher tiers
Gusto is a highly rated and popular small business payroll software with HR functions for hiring employees, tracking attendance and projects, and managing performance reviews. It can process both employee and contractor payroll, files the applicable payroll taxes and year-end W-2/1099 reports, and even handles tip credits. Health benefits options are also available, although the coverage is limited to 37 states as of this writing.
Scoring 4.72 out of 5, Gusto earned the highest overall rating in our evaluation due to its intuitive interface, solid payroll tools, reasonably priced plans, and reporting capabilities. Many users also love its user-friendly platform that makes processing employee payments easy for them. However, Gusto lost some points for not providing health insurance in all 50 states, whereas robust HR solution suites like ADP, Paychex, TriNet Zenefits, and Rippling do.
Gusto’s payroll tool (Source: Gusto)
Gusto Overview
See how Gusto compares with some of its competitors:
- Gusto vs QuickBooks Payroll
- Gusto vs Paychex vs ADP
- Gusto vs Rippling
- Gusto vs OnPay
- Gusto vs TriNet Zenefits
Paychex Flex: Best for Startups & Small Businesses Needing Dedicated Payroll Support
Pros
- Reasonably priced starter plan
- Has multiple HR and payroll plans
- Dedicated payroll specialist
- Offers a wide range of HR solutions, including PEO services
- Special package for solopreneurs includes payroll, incorporation support, and access to a 401(k) plan
Cons
- Pricing isn’t all transparent
- Year-end payroll tax filings cost extra
- Learning management tools and state unemployment insurance (SUI) services are included in higher tiers
- Time tracking, performance reviews, recruiting, and benefits are paid add-ons
Paychex Flex is a feature-rich human resource and payroll software. It has a wide range of tools and services that help you manage the entire employee lifecycle—from hiring to retiring. What’s great about Paychex is that apart from providing 24/7 customer support, it assigns a dedicated payroll specialist to its clients. Plus, it has small business tiers that are perfect for startups and solopreneurs. The other providers in this guide don’t offer dedicated payroll support.
In our evaluation, Paychex earned a 4.35 out of 5 with high marks (4 and up) in nearly all criteria. Many like its efficient payroll, onboarding, and employee self-service tools. However, it scored the lowest in pricing because most of its products and plans are custom-priced (except for Paychex Flex’s starter tier).
Paychex Flex’s “People View” tool lets you add new employees and invite them to accomplish onboarding tasks, such as filling up forms and updating their personal info. (Source: Paychex)
Paychex Flex Overview
For a direct comparison of Paychex Flex with other HR software for payroll, see our articles:
Rippling: Best HRM Payroll Software for Automation & Integrations
Pros
- Offers modular HR, payroll, benefits, and IT solutions that integrate seamlessly; you can choose only modules that you need
- IT tools streamline computer and app provisioning and deprovisioning processes
- Integrates with 500+ third-party software and apps
- Unlimited and automated payroll
Cons
- You must purchase its core “Rippling Unity” workforce management platform before you can get its other modules
- Can get pricey as you add more solutions/modules
- HR help desk option with phone and email support costs extra
- Lacks live phone support (you have to go through its chat tool to contact customer reps)
Rippling is a highly adaptable human resource payroll software. Its core platform is a workforce management solution that includes onboarding tools, system permissions, and a unified database. Depending on your HR needs, you can add other modules, such as payroll, benefits, hiring, and headcount planning. It even has expense management capabilities and IT tools for tracking computers and controlling access to more than 500 business software. Best of all, Rippling’s robust workflow automation makes managing information and processes across its various solutions easy for users.
Scoring 4.26 out of 5, Rippling earned top marks for reporting, user popularity, HR functions, and payroll features. It lost points because pricing isn’t all transparent and live phone support with an HR expert costs extra. It also doesn’t provide a dedicated payroll specialist as Paychex does. Nonetheless, many users left positive reviews on third-party sites like G2 and Capterra, wherein they praised its intuitive platform, robust HR functions, and seamless third-party software integrations.
Rippling’s feature-rich platform not only manages HR and payroll, but also helps you track business apps, passwords, and computer devices. (Source: Rippling)
Rippling Overview
For a direct comparison of Rippling with the other providers on our list, see our guides:
QuickBooks Payroll: Best for QuickBooks Users and Paying Contractors
Pros
- Offers next- and same-day direct deposits
- Unlimited and automatic payroll
- Tax penalty protection program; QuickBooks to cover tax penalties (up to $25,000/year)
- regardless of who makes the mistake
- Seamless integration with QuickBooks Accounting
- Affordable contractor payments package
Cons
- Time tracking and local tax filings included in premium tiers
- Tax penalty protection available only in highest plan
- Integrates mostly with QuickBooks products; you need its accounting platform to access third-party software integrations
- Basic HR features
- Health insurance coverage is limited (unavailable in HI, VT, and DC)
If you use QuickBooks accounting and want a simple HR payroll solution that connects seamlessly with it, then QuickBooks Payroll may be right for you. It allows unlimited pay runs with automated payroll tax payments and filings. What sets QuickBooks Payroll apart from the other human resources and payroll software in this guide is its low-cost contractor payments plan—perfect for small businesses that only pay contract workers.
QuickBooks Payroll earned 4.22 out of 5 in our evaluation, with high ratings (4 and above) in reporting, payroll functionalities, pricing, and ease of use. It didn’t rank higher on our list because it doesn’t offer advanced HR tools like TriNet Zenefits’ compensation planning module, Rippling’s and Paychex’s online learning programs, or ADP’s job postings to 25,000+ job sites. And, while its average number of reviews on G2 and Capterra is below 500, most of the feedback is positive, with users raving over its efficient payroll tools and fast payment options.
QuickBooks Payroll’s main dashboard (Source: QuickBooks Payroll)
QuickBooks Payroll Overview
See how QuickBooks Payroll stacks against the other HRM payroll software on our list:
- QuickBooks Payroll vs Gusto
- QuickBooks Payroll vs Paychex
- QuickBooks Payroll vs ADP Run
- QuickBooks Payroll vs Square Payroll
ADP Run: Best for Growing Companies Looking for Scalable Plans
Pros
- Feature-rich platform; comes with job posting, background checks, new hire onboarding, payroll, benefits, and training solutions
- Has multiple products and flexible plans that cater to different business sizes
- Offers secure paychecks with advanced fraud protection
- Automated payroll and tax filings
Cons
- Non-transparent pricing
- Charges fees on a per-pay run basis; year-end tax reporting and form delivery cost extra
- Time tracking, workers' compensation, and benefits plans are add-on products
- Advanced HR tools like learning management, applicant tracking, job postings, and salary benchmarks are included in higher tiers
ADP Run is optimal for those needing a human resource and payroll software for managing a wide range of functions. It has a comprehensive solution suite with flexible plans that can handle basic to complex HR and payroll processes. This makes ADP 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.
Scoring 4.19 out of 5 in our evaluation, ADP’s robust solution suite that includes payroll, employee benefits, onboarding, online training, and hiring tools contributed to its high scores. Users also appreciate its ease of use and how its payroll solution helps them save time and simplify processes. However, it lost points due to its non-transparent pricing.
Aside from letting you run payroll, ADP Run’s dashboard shows your to-do list and details of your last pay run. (Source: ADP)
ADP Run Overview
Read our ADP vs Paychex vs Gusto and ADP Run vs QuickBooks Payroll comparison articles to see how ADP stacks up against other human and resource payroll software.
Square Payroll: Best for Small Businesses, Retail Shops & Restaurants Wanting Basic HR
Pros
- Has a low-cost contractor-only plan
- Seamless integration with Square POS
- Offers fast direct deposits, including an instant payment option
- Automatic and unlimited payroll
Cons
- Standard direct deposit has a four-day processing timeline
- A Square Payments account is needed for next-day direct deposits and instant payments
- Limited HR solutions; doesn’t offer hiring, job posting, and learning management tools
Most people know Square for its POS and payment processing, but it also handles payroll and basic HR functions through its Square Payroll solution. It sets itself apart from most other human resource and payroll software on our list in that it has a low-cost plan for contractors, offers an instant payment option, and connects seamlessly with Square POS (which is popular among small retail and restaurant businesses).
With an overall score of 4.11 out of 5, Square Payroll didn’t rank high on our list because it lacks expert HR advisers on staff and has limited HR functions. However, its payroll features are strong, with tools that include multiple payment options, automatic and unlimited pay runs, year-end W-2/1099 reporting, and automatic payroll tax filings. Users who left reviews on third-party sites like G2 and Capterra also rated it positively for ease of use, affordability, and payroll functionalities.
Square Payroll’s main dashboard contains helpful links for running different types of payroll (such as contractor pay runs and off-cycle payments). (Source: Square Payroll)
Square Payroll Overview
Check out our Square Payroll vs QuickBooks Payroll guide to see how one compares against the other.
OnPay: Best HR Payroll Software With Robust System Permissions
Pros
- Has an affordably priced plan
- Offers full-service payroll with automatic tax filings and unlimited pay runs
- Niche payroll services for churches, nonprofits, farms, and agriculture companies
- Solid customer support; with free account migration services for new clients
Cons
- Lacks multiple tiers that cater to varying payroll and HR needs
- Eligibility for either two- or four-day direct deposits is based on OnPay’s risk assessment
- Limited third-party software integrations
- Basic HR features
Unlike the other human resources payroll software in this guide, OnPay only has one plan (priced at $40 + $6 per employee monthly), which comes with all of its features—from multistate payroll to PTO tracking and full customer support. This means that you don’t need to upgrade to higher plans to unlock features as you would with other providers like Gusto (whose starter tier only covers payroll for one state, but costs the same as OnPay). This provider even has extensive permission settings (six levels) for delegating HR payroll responsibilities and determining who can access specific tools.
Scoring 4.08 out of 5 in our evaluation, OnPay received high ratings (4 and up) in nearly all criteria. It lost points because its direct deposits take longer than two days. Plus, it has limited integration options and HR functionalities (such as learning management and performance reviews). However, users still like its affordability and intuitive interface that’s easy to navigate.
OnPay’s intuitive interface allows you to easily toggle between employee PTO view options and approve/disapprove requests.
(Source: OnPay)
OnPay Overview
Read our OnPay vs Gusto guide to see this provider compares with one of its competitors.
TriNet Zenefits: Best for Highly Regulated Businesses
Pros
- Reasonably priced plans with multiple options
- Strong compliance tools with HR advisory services
- Time tracking and employee scheduling included in all plans
- Unlimited pay runs
Cons
- Payroll and advisory services are paid add-ons
- Medical, vision, and dental plans not available in Hawaii
- All plans and add-ons have a minimum five employee requirement
TriNet Zenefits (formerly Zenefits) is an HR program to which you can add payroll and HR advisory services. Its most basic plan comes with solutions (like time tracking and background checks) that some of the providers on our list offer in its higher tiers. We found TriNet Zenefits optimal for businesses in highly regulated industries because of its solid tools that not only automate HR and benefits compliance but also monitor your compliance status.
Earning an overall rating of 4.07 out of 5, TriNet Zenefits scored well (4 and up) in nearly all of our criteria, given its transparent pricing and efficient HR, payroll, and reporting functionalities. Users also like its user-friendly interface and how well its solutions integrate with each other. However, it didn’t rank higher on our list since it doesn’t offer automatic pay runs, dedicated support, and health insurance that covers all states (unavailable in Hawaii, as of this writing).
TriNet Zenefits’ “Compliance Assistant” tool allows you to track federal compliance requirements and even create custom deadlines. (Source: TriNet Zenefits)
TriNet Zenefits Overview
Check out our TriNet Zenefits vs Gusto and TriNet Zenefits vs Rippling guides to see how this provider compares with two of its competitors.
HR vs Payroll Software: What’s the Difference?
While some of the systems we considered have basic HR features along with payroll, others have core HR products that are pretty robust and allow you to add on payroll services. To help you find the right solution for your business, it’s useful to see the differences in the software types and when each might be your best fit.
How We Chose the Best Human Resources Payroll Software
We selected human resource payroll software that processed paychecks for hourly, salaried, and contract workers and can handle direct deposits and checks. We also looked for solutions that can calculate deductions and tax withholdings, file tax reports, and provide basic payroll reports. Lastly, all the companies we reviewed either include HR tools in their payroll system or have HR products that work with their payroll module.
Click through the tabs below for a more detailed breakdown of our evaluation criteria.
35% of Overall Score
We looked for HR services and functions like online onboarding, state new hire reporting, self-service portals, and a staff of expert advisers. We also gave additional points to software providers offering health insurance available in all 50 states and advanced HR solutions like hiring, compensation, learning, and performance management.
20% of Overall Score
We gave the most credit to solutions that process direct deposits in two days or less, have multiple payment options, handle year-end tax reporting, manage tax payments and filings (federal, state, and local taxes), and offer a penalty-free guarantee.
20% of Overall Score
We looked for features that make the software easy to use, such as having an interface that’s intuitive and customizable. Extra points were given to providers that offer integration options, set-up assistance, live phone support, and a dedicated representative.
15% of Overall Score
We checked to see if the provider has transparent pricing, zero setup fees, and multiple plan options with unlimited pay runs. We also gave additional points to those with plans that cost $1,200 or less per year for 10 employees.
5% of Overall Score
Preference was given to software with built-in basic payroll reports and customization options.
5% of Overall Score
We considered online user reviews and customer service quality trends from popular review sites like G2 and Capterra. Software with an average of 4+ stars and with 1,000 or more reviews on third-party review sites also get higher points.
Bottom Line
A platform that has a combination of HR and payroll functions not only streamlines processes but also provides a unified database to store employee information. It can make tasks like onboarding, benefits administration, and performance reviews easier to handle since you don’t have to use separate systems to manage HR functions.
We found that Gusto offers the essential human resource and payroll features that small businesses need. While its health insurance is not available in all states, businesses located in areas where it does offer health plans can take advantage of its affordable pricing and intuitive interface with solid payroll and HR tools. Sign up for a Gusto plan today.