The best payroll software for small business owners should do more than calculate wages and file taxes. It should fit the way your company actually runs, whether you’re paying salaried staff, hourly teams, contractors, or a mix of all three.
With the right platform, you can automate payroll, manage paid time off and staff attendance, and give employees access to pay stubs, tax forms, and benefits. It can also reduce manual work and help lower compliance risk.
In this guide, I reviewed top payroll systems for small businesses and focused on the features that matter most in day-to-day HR operations, such as payroll automation, tax filing, time tracking, employee self-service tools, pricing, and overall ease of use.
Software | Best for | Starter monthly pricing |
|---|---|---|
Overall best payroll software for small businesses | $6 per person + $49 base fee | |
Small restaurants and retail shops | $6 per person + $35 base fee | |
Payroll automation & workflow tools | $8 per person + $40 base fee* | |
QuickBooks users and contractor payments | $6.50 per person + $50 base fee | |
Companies with plans to scale | Call for a quote | |
Payroll services and support | Call for a quote | |
Global pay runs | $29 per person |
The Fit Small Business editorial process follows strict standards to ensure that our best answers are founded on the basis of accuracy, clarity, authority, objectivity, and accessibility.
To create this guide, I compared popular small business payroll software and evaluated each using the same scoring method based on payroll functionalities, HRIS and reporting, pricing, customer support, and overall system performance. I reviewed product walkthroughs and leveraged free trials or free plans, if available, to test the system’s different features.
In addition to the scoring rubric, my recommendations are based on more than eight years of experience writing about and evaluating HR solutions for small to mid-sized businesses (SMBs). I also have 10 years of expertise in handling different facets of human resources, including managing HR software. These allowed me to provide insights to help business owners determine which platform best fits their needs.
See my full methodology below.
Best payroll software for small businesses compared
Software | Multi-state pay runs | Payroll tax services | Time Tracking | My score out of 5 |
|---|---|---|---|---|
In higher tiers | âś“ | Included in higher tiers | 4.04 | |
âś“ | âś“ | âś“ | 3.66 | |
âś“ | âś“ | Paid add-on | 3.59 | |
âś“ | Local tax filings in higher tiers | In higher tiers | 3.45 | |
âś“ | âś“ | Paid add-on | 3.43 | |
âś“ | âś“ | Paid add-on | 3.40 | |
âś“ | âś“ | âś“ | 3.40 |
If you need more than just payroll tools, consider a professional employer organization (PEO) service like Justworks. Topping our list of the best PEOs for small businesses, Justworks handles payroll, assumes tax liability, and takes HR worries off your hands.
Gusto: Best payroll software for small business
Pros
- Unlimited and automatic pay runs
- Access to Gusto brokered health plans with zero administration fees (pay only for premiums)
- Financial wellness tools available via Gusto Wallet
- Offers international contractor payments and Employer of Record (EOR) services to hire and pay global employees
Cons
- Garnishment service isn’t available in South Carolina
- Time tracking, next-day direct deposits, performance reviews, and multistate payroll are available only in higher tiers
- No dedicated payroll specialist
Overview
Who should use it:Â
Choose Gusto if you want to run payroll, offer employee benefits, and handle basic HR tasks from one system. It works well for small teams that want to simplify payroll compliance and reduce manual admin.
Why I like it:Â
Learning how to run Gusto payroll is easy, even if you have minimal knowledge of using pay processing tools. It calculates wages, remits and files payroll taxes, offers benefits plans, and gives workers self-service access without adding separate HR tools.
I also like that it offers more built-in HR support than QuickBooks Workforce or Square Payroll. If you need payroll plus benefits and onboarding tools, Gusto has all the essential features you need. While Rippling goes further on automation and customizable workflows, Gusto is easier to manage.
The main downside is that some useful features cost extra or require a higher plan. Multistate payroll, time tracking, next-day direct deposit, and stronger support aren’t included at the entry level, so the total cost can rise as your team grows or payroll gets more complex.
Plans
- Simple:Â $49 base fee monthly + $6 per person/month
- Plus:Â $89 base fee monthly + $14 per person/month
- Premium:Â $180 base fee monthly + $22 per person/month
- Contractor-only payroll plan:Â $35 base fee + $6 per person/month (for businesses that only pay contract workers)
Add-ons for all plans
- Global contractor payments:Â $15 per payment to US-based bank accounts; foreign exchange rates may vary
- Gusto Global:Â $699 per person/month; EOR services (powered by Remote)
- R&D tax credits:Â 15% of identified tax credits
- State tax registration:Â Pricing varies by state
- Same-day pay:Â $90 per payroll; lets you pay employees within hours
- Instant pay:Â $100 per payroll; lets you pay employees in minutes
- Workers’ compensation: Pay only for premiums
- Health insurance and retirement plans:Â Pricing varies depending on the plan
- Health insurance broker integration:Â $6 per eligible employee/monthly
- Gusto Money Plus:Â $19 per month; tools to manage and organize company funds
Add-ons for the Simple plan (included free in the Simple & Plus tiers)
- Next-day pay:Â $15 base fee monthly + $3 per person/month
- Time & Attendance Plus:Â $6 per person/month
- Performance reviews:Â $3 per person/month
Add-ons for the Simple and Plus plans
- Priority support: $30 base fee monthly + $3 per person/month; priority positioning when accessing phone and chat support
- HR resources:Â $30 base fee monthly + $3 per person/month; access to certified HR experts, compliance alerts, and an online HR resource center
- Simple-to-use payroll interface:Â You can process payroll in three steps and view or edit employee hours, time off and overtime details, deductions, and earnings on one page.
- Financial management tools:Â The free Gusto Wallet app lets your employees track finances, identify budgets for expenses, split paychecks into different accounts, and automatically set aside money every payday for savings. Few payroll platforms in this guide offer a built-in financial wellness tool with this much employee-side functionality.
- Net-to-gross pay calculations:Â Gusto can calculate the gross pay needed to deliver a specific net amount after taxes. This is useful for off-cycle payments and bonuses, where you want an employee to receive an exact payout without manually working backward through tax deductions.
- Automated payroll and tax filings:Â Gusto supports automatic payroll and multiple pay schedules, which helps reduce repeat admin work each pay period. It also calculates, withholds, files, and pays federal, state, and local payroll taxes automatically.
Gusto lets you add employee time data and additional earnings like bonuses directly into its payroll solution. (Source: Gusto)
Want to see how Gusto compares with its competitors and other HR software? Check out these articles:
- Gusto vs Square Payroll
- Wave Payroll vs Gusto
- Gusto vs QuickBooks Workforce
- Rippling vs Gusto
- Gusto vs BambooHR
- ADP vs Paychex vs Gusto
Square Payroll: Best for small restaurants & retail shops
Pros
- Offers flat pricing with an affordable contractor plan
- Connects easily with Square POS.
- Has two- and four-day direct deposits, including an instant payment option via the Cash App
Cons
- Instant payments require you to store funds in an online Square balance account
- Limited HR tools
- Two-day direct deposits are available only to qualified businesses
Overview
Who should use it:Â
I recommend Square Payroll if you run a restaurant or retail shop. The software works best for businesses already using Square POS to track sales and employee hours.
Why I like it:Â
What stands out to me is how easy Square Payroll is to manage. The pricing is simple, payroll runs are unlimited, and you don’t have to deal with the setup complexity that can come with more customizable platforms like Rippling.
I also like that it stays focused on core payroll tasks instead of trying to be a full HR suite. That makes it easier to use than broader platforms like Paychex and ADP if your main priority is paying employees accurately and on time.
The tradeoff is that it has less depth outside payroll. If you need stronger HR tools, more advanced reporting, or broader workforce management features, you’ll likely get more value from Gusto or Rippling.
Plans
- Full-service payroll:Â $35 base fee monthly + $6 per person/month
- Contractor-only payroll:Â $6 per person/month
Add-ons
- Mail paper copies of W-2s/1099s:Â $3 per mailed form/year
- Health insurance and retirement benefits:Â Pricing varies depending on the plan
- Payroll amendment service:Â Call for a quote
- Smooth integration with Square products:Â It integrates well with Square POS, allowing the direct tracking of employee work hours and tips on its dashboard and easy importing of attendance and tip data into Square Payroll to pay workers. You can even get money from your Square balance account to fund payroll.
- Tax amendment services:Â While this is a paid service, Square helps you fix payroll tax filing errors, such as worker classification mistakes or adding missing payroll history from a previous payroll provider that was not submitted on time. This is crucial if you need help managing the intricacies of amending payroll reports submitted to local authorities.
- Online forum or community: You get access to Square’s online community, where you can meet other Square users, ask them questions about the payroll platform or other Square products, and even solicit advice on how to tackle small business operations, like launching a digital marketing campaign.
- Simple payroll automation with unlimited pay runs: Square lets you automate payroll and run it as often as needed without additional fees. While Gusto also offers unlimited payroll runs, Square’s advantage is how closely payroll ties into POS-driven workflows.
Aside from letting you run payroll, Square Payroll’s main dashboard shows your pay run history and an overview of your total labor costs. (Source: Square Payroll)
Want to learn more about Square and its products? Read our What is Square article, including our guide to Square fees.
Rippling: Best for payroll automation & workflow tools
Pros
- Modular HR, payroll, expense management, and IT features integrate with each other
- It offers global payroll, EOR services, and a professional employer organization (PEO) solution if you want to outsource day-to-day HR and payroll tasks
- PEO services can be easily switched on and off
- Integrates with over 600 business software
Cons
- Pricing isn’t all transparent; difficult to find on its website
- You have to purchase its core Rippling Platform before you can buy other modules
- HR help desk option with phone and email support costs extra
- Can get pricey as you add more features
Overview
Who should use it:Â
Rippling fits businesses that want more control over how payroll connects to HR, IT, and basic finance tasks. It’s a better fit for those handling frequent employee changes and approval workflows, and want those actions tied to payroll automatically.
Why I like it:Â
What makes Rippling a good payroll option for small businesses is its payroll automation and highly customizable workflow tools. It streamlines the process by eliminating manual steps, such as calculating wages and taxes and going through all pay details to check for errors. Rippling also provides compliance alerts, which help ensure that you’re always up-to-date with federal regulations and labor laws.
I like that its platform has more room to grow than Square Payroll or QuickBooks Workforce. Gusto may be easier to manage, but Rippling gives you broader admin capabilities and a wider suite of HR tools.
The downside is that it can get pricey once you start adding modules. For small teams with simple payroll needs, Rippling can feel heavier than necessary because of its full-featured HR platform.
Rippling works with you to create a custom package that fits your needs. Monthly fees start at $8 per employee plus a $40 base fee, according to Rippling’s small business page. Note that you have to purchase the core Rippling Platform before getting any of its modules.
Here are some of its custom-priced add-on tools and services:
HR modules
- Global payroll
- EOR services
- PEO services
- Recruiting
- Scheduling
- Time & attendance
- Benefits administration
- Headcount planning
- Learning management
- Performance reviews
- HR help desk: HR advisory services via phone and email
IT modules
- Identity & access management
- Device management
- Inventory management
Finance modules
- Expense management
- Corporate cards
- Bill pay
- Easy-to-use workflows: Customizable workflows require no coding experience, as they come with if-then logic to automate processes. For example, you can set up a workflow that automatically notifies applicable employees to prepare items that new hires need based on their position and job levels, such as company laptops or corporate credit cards.
- Modular tools: Rippling lets you choose the HR and payroll tools you want, and you can easily add other features as your employee management needs grow. It even has an expense management module, as well as IT tools to monitor business software access and company computer devices.
- Pay run comparisons:Â Rippling pulls your last payroll numbers automatically when you begin processing a new payroll cycle, so you can compare the two easily. It helps you identify any obvious errors quickly to prevent you from having to backtrack to correct them later.
Rippling claims that it can run payroll in as fast as 90 seconds. (Source: Rippling)
QuickBooks Workforce (formerly QuickBooks Payroll): Best for QuickBooks users and contractor payments
Pros
- Integrates seamlessly with QuickBooks accounting software
- Next-day deposits are included in the starter plan; a same-day option available in higher tiers
- Low-cost plan for processing contractor payments
- Tax penalty protection covers all tax filing mistakes, regardless of who made the error.
Cons
- Automated local tax filings and time tracking are available only in higher plans
- Limited HR tools
- Tax penalty protection only for the Elite plan; lower tiers get an accuracy guarantee that only covers mistakes made by QuickBooks representatives
Overview
Who should use it:Â
Businesses already using QuickBooks for accounting. It’s a good option if you want payroll and accounting data to stay in sync without manual entry or special integrations.
Why I like it:Â
QuickBooks Workforce (previously known as QuickBooks Payroll) fits naturally into an accounting workflow. Payroll expenses, taxes, and employee data flow directly into your books, making payroll reconciliation and reporting easier than using a separate payroll system.
It also stands out on payment speed and contractor pricing. The base plan includes next-day direct deposit, which is faster than what Gusto typically offers at the same tier, and its contractor plan is more cost-effective than Square Payroll for businesses paying multiple contractors.
Where it falls short is outside payroll. It doesn’t offer the same HR tools as Gusto, Rippling, ADP, or Paychex, and features like local tax automation and time tracking require upgrades. If you need payroll plus broader employee management, other platforms in this guide will give you more coverage.
- Workforce Payroll: $50 per month + $6.50 per employee monthly
- Workforce Premium: $88 per month + $10 per employee monthly
- Workforce Elite: $134 per month + $12 per employee monthly
- Contractor payments package: $15 monthly for 20 workers + $2 for each additional contractor
- Low-cost contractor-only payroll: QuickBooks Workforce contractor payments package is the cheapest among our list of best payroll software for small business owners. For $15 per month, you can process payments for up to 20 workers — with Square Payroll, paying 20 contractors will cost $120 per month (computed as $6 × 20 workers = $120).
- Additional tax penalty protection:Â On top of its tax accuracy guarantee that only covers mistakes that its representatives make, QuickBooks has tax penalty protection. This will cover the penalty and interest for any payroll tax error for up to $25,000 a year, regardless of who made the mistake. Note that you must purchase its Elite plan to have this protection.
- Online community: Similar to Square, it has an online forum where you can connect with other QuickBooks users if you have queries about using QuickBooks Workforce or need advice on how to run a small business.
Aside from a “to-do” list, QuickBooks Workforce main dashboard contains shortcuts for running payroll and adding employees. (Source: QuickBooks Workforce)
Also read: How to do payroll in QuickBooks Online
RUN Powered by ADP: Best for growing companies
Pros
- Built-in compliance tools that flag pay errors
- Has a wide range of HR features
- Offers PEO services and global payroll tools
Cons
- Pricing isn’t transparent
- Applicant tracking, salary benchmarks, and learning management reserved for higher plans.
- Benefits, time tracking, and workers' compensation are paid add-ons
Overview
Who should use it:Â
Businesses that expect to grow and want payroll software that can scale with them. It’s a good fit if you plan to move into more advanced HR tools or outsourced services over time.
Why I like it:Â
ADP RUN is built with growth in mind. You can start with basic payroll and move into more advanced HR features, recruiting tools, and outsourced services without switching providers. That upgrade path is something you don’t get as easily with QuickBooks Workforce or Square Payroll.
Its higher tiers include extra HR support and more advanced tools like ZipRecruiter job postings, applicant tracking, and salary benchmarks to help you assess the competitiveness of your employee compensation package. Compared with Gusto, ADP offers more structured compliance features and service-backed options, which can be useful as payroll gets more complex.
The downside is in pricing. Costs aren’t transparent, and features like time tracking, benefits, and recruiting tools often require upgrades or extra fees. If you want predictable pricing and fewer upsells, Square Payroll will feel more straightforward.
Plans
- Essential Payroll:Â Call for a quote
- Enhanced Payroll:Â Call for a quote
- Complete Payroll & HR:Â Call for a quote
- HR Pro Payroll & HR:Â Call for a quote
Add-ons
- Time and attendance:Â Call for a quote
- Retirement plans:Â Call for a quote
- Workers’ compensation: Call for a quote
- Health insurance plans:Â Call for a quote
- Multiple payment options:Â Pay your employees via direct deposit, paychecks, and through the Wisely Direct Debit Card. It also offers check signing and stuffing services and will even deliver the envelopes to your office before payday. Unlike Paychex, ADP provides secure paychecks with 10 advanced fraud protection features.
- Certified payroll reporting:Â ADP supports certified payroll, which is required for government-funded projects. This is a key advantage over Gusto, Square Payroll, and QuickBooks Payroll, which do not offer the same level of support for this requirement.
ADP Run’s dashboard shows payroll analytics, important notifications, and pay processing tasks. (Source: ADP)
Paychex Flex: Best for payroll services & support
Pros
- Offers dedicated payroll support
- Has a wide suite of HR tools, such as recruiting, time tracking, and learning management
- Payroll services include a PEO solution, tax management across multiple states, and tax credit claims assistance
Cons
- Pricing isn’t transparent
- Many HR tools (pre-employment screening, time tracking, HR consulting) cost extra
- Can get pricey depending on add-on features selected
Overview
Who should use it:Â
Paychex Flex fits businesses that want payroll software backed by real service support. It’s a strong option for those who would rather have help available for pay processing, compliance questions, and related HR tasks instead of handling everything on their own.
Why I like it:Â
What I like about Paychex Flex is that it gives businesses more ways to get payroll done. You can run payroll yourself in the platform, start it in the mobile app, or work with a payroll specialist if you need extra help. That makes it a better fit than Gusto, QuickBooks Workforce, or Square Payroll for teams that want more direct support.
I also appreciate the range of services available as your needs grow. Paychex covers payroll, HR tools, benefits, and tax credit support, which gives it similar breadth to ADP. The difference is in how those services are delivered. Paychex leans more into guided support, while ADP focuses more on structured tiers and scaling into larger platforms.
Plans
- Paychex Flex Select:Â Call for a quote
- Paychex Flex Pro:Â Call for a quote
Add-ons for all plans
- Time and attendance:Â Call for a quote
- Talent management:Â Call for a quote
- HR analytics:Â Call for a quote
- Health insurance and retirement plans:Â Call for a quote
- Workers’ compensation: Call for a quote
- HR consulting:Â Call for a quote
- Enhanced support:Â Call for a quote; includes phone and email access to customer support
- Premium support:Â Call for a quote; includes access to customer support advisors and a Paychex payroll specialist who can enter and submit payroll on your behalf
Add-ons for the Select plan (included free in the Pro tier):
- Garnishment payment services:Â Call for a quote
- State unemployment insurance service:Â Call for a quote
- Workers’ compensation report service: Call for a quote
- General ledger service:Â Call for a quote
- Pre-employment screening:Â Call for a quote
- Employee handbook builder:Â Call for a quote
- Dedicated payroll support:Â Paychex gives you access to dedicated payroll specialists who can assist with processing pay runs. This level of support is not available in Gusto, QuickBooks Payroll, or Square Payroll, which rely more on self-service tools.
- Paychex Voice Assist: Paychex offers a voice-activated tool that lets you start, review, and submit payroll using a Google Assistant-compatible device. You can start a new pay period, make adjustments, or continue a pay run that’s already in progress without having to log in to your Paychex Flex account manually.
- Pre-check payroll previews:Â Paychex Pre-check lets employees review pay details before payroll is finalized, helping catch errors early. This adds an extra layer of accuracy compared to Gusto, Square Payroll, and QuickBooks Payroll, which rely more on admin-side review.
Paychex Flex’s dashboard provides easy access to reports, pay runs, and employee lists. (Source: Paychex)
Remote: Best for global pay runs
Pros
- Runs payroll in 100+ with built-in compliance and tax handling
- Unified platform for payroll, taxes, benefits, and HR data
- Automated global payments to employees, tax authorities, and benefits providers
- Strong compliance support with real-time updates on local payroll laws
Cons
- Requires more setup and coordination than plug-and-play US-only payroll tools
- Limited support; via email, live messaging and chat only
- Higher cost than US-only payroll software
Overview
Who should use it:Â
Businesses that plan to run payroll across multiple countries and want to consolidate everything into one system. It’s best for teams prioritizing compliance, accuracy, and scalability over low cost.
Why I like it:Â
Remote provides businesses with a compliant way to pay international employees in over 100 countries. You can manage country-specific pay runs, benefits, timesheets, expense reimbursements, PTO, and approvals from one platform, which helps reduce manual data inputs and missed deadlines.
What makes Remote stand out to me is its in-house payroll infrastructure and local expertise. Instead of acting mainly as a pass-through to third-party vendors, Remote keeps more control over payroll calculations, compliance, and payments, which is important when you’re dealing with different tax rules, currencies, benefits deductions, and reporting requirements in each country.
However, if you don’t have plans to expand business operations in other countries, Remote’s global payroll tool isn’t the right fit for you. Other small business payroll software in this guide may be better options, or you can sign up to Remote’s US PEO service if you need expert help managing payroll and core HR tasks.
- Global payroll: $29 per employee monthly
- Employer of Record: $699 per employee monthly
- Contractor Management: $29 per contractor monthly
- Contractor Management Plus: $99 per contractor monthly
- Contractor of Record: Starts at $325 per contractor monthly
- US PEO: Starts at $99 per employee monthly
- Equity: Starts at $39 per month
Modules for recruiting, performance reviews, HRIS, and surveys are available, including on-demand services for background checks, entity setup, and global mobility support. Remote also provides a 15% discount for 12 months to eligible startups and non-profits.
- Global payments engine: Remote automates payments to employees, tax authorities, and benefits providers across countries and currencies. This eliminates the need for separate payment systems or manual wire transfers.
- Payroll processing hub: Run payroll for employees in multiple countries from a single dashboard instead of managing separate local vendors. This centralization reduces admin work and gives HR and finance teams a consistent workflow across regions.
- Automated compliance management: The platform tracks local labor laws, tax updates, and classification rules, then applies them directly to payroll runs. This helps you stay compliant without manually monitoring regulatory changes in every country.
- Unified payroll and HR data: Payroll, benefits, time off, and employee data all sit in one system, providing you with a complete view of global workforce costs and activity. This makes reporting, audits, and payroll reconciliation much easier to manage.
Remote offers a wide range of reports, such as payroll summaries, employee lists, general ledger reports, and variance-related documents. Source: Remote
Looking for more payroll software options? Check out our buyer’s guide on the best payroll services to help you find a payroll software or service that fits your business’s needs.
How to choose the best small business payroll software
When searching for the best payroll system for your small company, you should consider the following factors:
- Business needs:Â Start with how you pay your team. Consider your location, workforce size, and payroll complexity to figure out which features you actually need.
- Budget: Your payroll software should fit your budget, but don’t focus only on the base price. I’d also check which features are included and which require upgrades so you can estimate long-term costs more accurately.
- Scalability:Â Choose a platform that can support your current needs and still work as your team grows. This includes handling more employees, locations, and additional HR features like benefits or hiring tools.
- Compliance: Payroll compliance goes beyond tax calculations. Look for software that handles filings, flags potential errors, and keeps up with changing regulations. If you don’t have in-house HR expertise, those with advisory support can reduce risk.
- Automation: Check the system’s workflows and automation tools, as these can help reduce payroll errors and minimize processing time. Are they customizable? Does it allow you to assign specific users to specific tasks?
- Employee experience:Â Payroll software also affects your employees. Self-service access to pay stubs, tax forms, and direct deposit updates can reduce admin work and improve transparency.
- Integration with your existing systems:Â Payroll rarely works on its own. If you already use accounting, POS, or time tracking software, strong integrations can save time and reduce manual entry.
- Support and service level:Â Think about how much help you may need. Some platforms are self-service, while others offer dedicated specialists, 24/7 support, or help across phone, email, and chat.
- Reviews:Â User reviews can reveal issues you may not see in demos, such as support quality, reliability, and unexpected costs. I usually check multiple sources like G2, Capterra, and Reddit to get a more balanced view.
Methodology: How I evaluated the best small business payroll software
I used a scoring rubric with 42 data points to evaluate and compare these 12 payroll systems:
- Gusto
- Rippling
- Square Payroll
- Paychex Flex
- ADP RUN
- QuickBooks Workforce
- OnPay
- Patriot Payroll
- SurePayroll
- Homebase Payroll
- Deel
- Remote
To narrow the list to my top seven picks, I focused on the features small businesses are most likely to need, such as unlimited pay runs, automatic payroll tax filing, and tools that simplify payroll processing. I also reviewed pricing, customer support, reporting, integrations, and basic HRIS tools for managing employee data and documents.
I added my expert score to each criterion based on the overall usefulness and effectiveness of the features offered. While I wasn’t able to test every product directly, I reviewed key payroll features, watched product demos and video tutorials when available, and checked user feedback for insight into ease of use and system performance.
Below is my full evaluation criteria:
- Payroll features 30%:Â I gave the most weight to payroll functionality, including multiple pay schedules, two-day direct deposit, wage garnishments, tax filing and payment services, and year-end reporting for W-2s and 1099s. I also looked at payment options, contractor payroll, and whether the software supports payroll in all 50 states.
- Pricing 20%:Â I looked for transparent pricing, free trials or discounts, unlimited payroll runs, and overall value for money. I also gave higher points to providers that cost no more than $350 per month to run payroll for 50 employees.
- Platform/interface 18%:Â I considered overall ease of use, mobile app functionality, and access to tools like time tracking and benefits administration. I also reviewed data security, permission controls, and accounting integrations.
- HRIS and reporting 17%:Â For this criterion, I evaluated features for storing employee records, managing onboarding and offboarding, and handling new hire reporting. I also looked for employee self-service tools, customizable reports, payroll templates, and benefits availability across all 50 states.
- Customer support 15%:Â I looked at available support channels, support hours, and payroll service options. I also considered self-help resources like knowledge bases, community forums, and other support materials.
Frequently asked questions (FAQs)
Payroll software calculates employee wages, taxes, and deductions, then helps you pay workers through direct deposit, pay cards, or paper checks. Many platforms also file and pay payroll taxes for you, while some include HR tools like time tracking, PTO management, and employee self-service.
The best payroll software for a small business depends on your budget, payroll complexity, and the tools you need beyond pay processing. In this guide, I found that Gusto is the best overall option, but other providers may be a better fit depending on whether you prioritize accounting integration, automation, scalability, or payroll support.
Small business payroll software usually charges a monthly base fee plus a per-employee fee. In many cases, pricing starts around $30 to $50 per month, plus about $4 to $10 per employee monthly, though costs can go higher if you add time tracking, benefits administration, or HR support.
At a minimum, payroll software should include employee record management, time and PTO tracking, and self-service access to pay stubs and tax forms. Depending on your needs, it may also help to have onboarding tools, benefits administration, hiring features, and compliance support.
Payroll software helps reduce manual calculations, lowers the risk of payroll errors, and saves time on tax filing and pay processing. Many systems also improve compliance, streamline recordkeeping, and give employees easier access to their payroll information.