9 Best Payroll Software for Small Business Users in 2023

• Automatic and unlimited payroll runs in all 50 states: Unlike ADP Run and Paychex, Gusto allows you to process unlimited payroll runs, including bonus and off-cycle payments, at no extra cost. On top of that, you can even set payroll to run on autopilot. However, its starter plan only comes with single-state payroll. You’ll have to upgrade to its higher tier if you require multistate pay processing.
• Automated tax payment and year-end report filing: Gusto withholds, pays, and files taxes on federal, state, and local levels automatically. It handles year-end tax reporting (W-2s and 1099s) for free, unlike ADP Run and Paychex, which charges extra for this.
• International contractor payments: Businesses can pay their contractors in more than 90 countries, such as India, Canada, the United Kingdom, and the Philippines.
• Employee benefits: Gusto offers standard and nonstandard benefits options, such as 529 college savings accounts and Gusto Wallet—a free financial management app with time tracking tools. However, its health insurance is available only in 37 (as of this writing).
• Multiple pay options: With Gusto, employees are paid through manual checks, pay cards, or direct deposits. The standard direct deposit timelines are two and four days, but subscribing to Gusto’s higher tiers gets you a next-day option.
• Efficient time tracking and workforce management tools: Aside from project tracking and workforce costing tools, you can monitor your employees’ and contractors’ time through Gusto or via the Gusto Wallet. You can also create custom PTO policies and send/approve time-off requests, but these tools are available only in Gusto’s higher tiers.

Multilocation business owners might find Gusto a bit pricey because they’ll have to upgrade to at least its Plus plan to unlock Gusto’s multiple state pay runs. If you have a limited budget, any of the payroll programs for small business users on our list can handle your multistate payroll needs (although Patriot Payroll charges $12 monthly for each additional state tax filing).

If offering benefits is important to you, Gusto is a great choice—provided your business is not located in one of the 13 states (Alabama, Alaska, Hawaii, Louisiana, Mississippi, Montana, Nebraska, North Dakota, Rhode Island, South Dakota, Vermont, West Virginia, and Wyoming) where it doesn’t offer health insurance. If you are, consider any providers in this guide (except Patriot Payroll and Homebase Payroll, as neither offers benefits).

• Automatic and unlimited payroll: You can approve and set payroll to run automatically with QuickBooks. It also lets you process payroll as many times as your business requires. However, its basic tax filing services only cover federal and state taxes. You have to be on its Elite plan if you want automated local tax filings; otherwise, you’ll have to file local tax forms yourself.
• Low-cost contractor payments: For small businesses that only need to pay contract workers, QuickBooks Payroll has a budget-friendly contractor payments package. For $15 per month, you can process payments for up to 20 workers (plus $2 for each additional contractor), e-file 1099 forms, and pay contractors via next-day direct deposits.
• Fast direct deposits: Apart from next-day direct deposits, you can pay employees through same-day direct deposit at no extra cost, provided you subscribe to QuickBooks Payroll’s higher tiers. Note that most providers on this list have a standard two-day processing time, although Square Payroll offers instant payments if you have a Square Payments account.
• Tax penalty protection: QuickBooks 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 your errors covered. Experts will also represent you before the IRS and concerned agencies and will assist you in resolving the problem. No other providers on our list will offer to represent you to help fix tax issues or cover mistakes you make under any circumstance.

QuickBooks Payroll lacks the advanced HR features you need to manage employees. It doesn’t have the job posting and hiring tools that Rippling, Gusto, Homebase, Paychex Flex, and ADP Run offer. While its contractor payments plan includes next-day direct deposits, it lacks Square Payroll’s flexible options that allow you to pay contract workers via check, direct deposit, or its Cash App.

• Payroll analytics: Rippling pulls your last payroll numbers automatically when you begin processing a new payroll 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.
• Full-service payroll: With Rippling, you can run payroll with just three clicks. It calculates all employee payments, taxes, and deductions automatically. Payroll tax filings are also done by Rippling automatically. If you have employees and contractors based in satellite offices outside of the US, Rippling can help you manage international payroll processes so you can pay your workers accurately and on time.
• Robust HR solutions and services: Rippling has a wide range of HR solutions, such as applicant tracking, benefits administration, time and attendance, headcount planning, compensation bands, and learning management tools. Its EOR service can even help you hire and pay international workers. However, these modules are paid add-ons to Rippling’s core workforce management platform.
• IT solutions: If you have new hires, Rippling can help you assign the computer units and identify business apps that employees have access to. For resigning employees, you can easily disable software access and remotely lock their computers on their last day. Rippling even stores your unassigned computer units in its warehouse, and you can check the inventory through its system. None of the providers we reviewed have robust IT solutions.
• Flexible PEO: Rippling offers PEO services to businesses that need help managing payroll, benefits, and day-to-day HR operations. And, unlike ADP and Paychex, if you decide that you no longer need a PEO, then you can turn Rippling’s PEO services off from your account.

Rippling’s feature-rich HR payroll platform may be too much for small businesses that only need basic pay processing solutions. If you don’t require robust software integrations and advanced HR functionalities, try Patriot Payroll. It has all the essential tools you need to run payroll and is more affordable than Rippling ($37 plus $4 per employee monthly vs $35 plus $8 per employee monthly) and the other providers on our list.

• Multiple employee payment options: Aside from direct deposit, employees and contractors can be paid through manual checks or via Square’s Cash App. Square Payroll also offers next-day and instant payment options through its Instant Payments feature.
• On-demand pay option: This allows eligible employees to get a portion of their earned salary before the pay period is over. You don’t need to track these transactions manually because Square will deduct the applicable amount (including transfer fees, if any) automatically when you run payroll.
• Affordable contractor-only plan: Priced at only $6 per contractor monthly, Square Payroll’s contractor package comes with all the features of its “pay employees and contractors” plan, including unlimited pay runs.

Similar to QuickBooks Payroll, Square Payroll doesn’t have a wide range of HR solutions. Rippling is a great choice if you want an all-in-one HR payroll software. It even has IT tools to manage business apps and devices, as well as finance solutions for processing expense reimbursements.

For contractor-only businesses with a handful of workers and only need direct deposit payments, we recommend QuickBooks Payroll’s contractor payments plan, as it is more affordable. QuickBooks will charge you $15 monthly for 20 workers (plus $2 for each additional worker), whereas Square will bill you $6 per contractor monthly.

• Special payroll services: OnPay can handle the pay processing requirements of various businesses (like restaurants and bars) and organizations, such as churches and nonprofits. For those with special tax requirements like agricultural businesses, OnPay offers automated tax payments and filings of Form 943.
• Essential HR tools: OnPay’s in-app offer letters, online I-9 and W-4 forms, e-signature tool, and automated workflows are designed to streamline onboarding. It handles state new hire reporting, plus you can create custom checklists to ensure that incoming employees complete all the new hire requirements. If you need HR guides and legal templates, OnPay has an online HR resource library that you can access.
• Employee benefits: Unlike Gusto’s health insurance, which covers only 37 states (as of this writing), OnPay’s health plans are available in all states in the United States. Your employees are also granted access to dental, vision, disability, and retirement plans. Furthermore, OnPay can generate employee census data reports that you can use when requesting insurance quotes from carriers and benefits providers.
• Payroll support: Aside from phone, chat, and email support, OnPay can guide you through pay processing if you need help. The provider even assists new clients in setting up their accounts, migrating employee information, and customizing integrations with accounting and time tracking solutions.

If you require payroll assistance from OnPay’s support team on a weekend, you won’t be able to contact them via phone. It only provides email support on Saturdays and Sundays. ADP Run and Paychex Flex are great choices if you need 24/7 support. Paychex Flex even offers a dedicated payroll specialist to its small business clients.

In addition, OnPay’s HR functionalities are basic. While it has offer letters and automated onboarding workflows, it doesn’t post your open jobs like Gusto, Rippling, Paychex Flex, and ADP Run do. Time tracking and scheduling tools are also available only through its integration with When I Work, Deputy, and QuickBooks Time. This is unlike Homebase, which has time tracking and staff scheduling as its core functionalities.

• Hands-free pay processing: The “Paychex Voice Assist” feature offers a hands-off experience in processing, reviewing, updating, and submitting payroll. This voice-activated tool, which works on any Google Assistant-compatible device, comes with built-in verification and artificial intelligence (AI) solutions for user authentication. 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.
• PEO services: If you ever go through a growth period in which you need an HR expert but aren’t ready to hire, Paychex has a PEO service to help you manage essential day-to-day HR processes.
• Multiple payment options: Aside from direct deposits, Paychex Flex supports employee payments made through pay cards and paper checks. It even offers check logo and signing services. Similar to Square Payroll and QuickBooks Payroll, Paychex Flex also has a same-day payment option but via automated clearing house (ACH) transfers—provided you get its Select plan.
• HR tools: In addition to a library of HR documents and an online employee handbook builder, you are granted access to a learning management module to help you run e-training courses for your staff and a performance review solution for tracking employee performance. Screening applicants and welcoming new hires will also be easy with its background checks and online onboarding solutions.
• Experienced customer service: During implementation, Paychex will assign you a representative to help you set up. Once its system is up and running, you get access to US-based support with experienced professionals you can contact 24/7 in case you need assistance. You even have the option to submit payroll via phone to your designated payroll specialist. Live chat features, in-app help options, and how-to guides are also available.

Budget-constrained small business owners may find Paychex Flex a bit expensive given its add-on fees for time tracking and document management—solutions that most of the providers in this guide offer at no extra cost or in higher tiers. Unlike Square Payroll and QuickBooks Payroll, it doesn’t have a low-cost contractor-only payroll plan.

• Multiple employee payment options: With ADP Run, you can pay your employees via direct deposit and paychecks and through the Wisely Direct Debit Card. It also offers secure paychecks with check signing and stuffing services. ADP will even deliver the sealed envelopes containing employee paychecks to your office so that you can distribute these to your staff.
• Flexible plan options: In addition to ADP Run’s multiple tiers with full-service payroll and access to essential HR tools, ADP has a wide range of products that can cater to midsize and large businesses. It offers a PEO option, ADP TotalSource, for companies that need to outsource their payroll and HR administration completely.
• Certified, experienced payroll professionals available 24/7: Similar to Paychex Flex, ADP Run allows you to get in touch with payroll and HR experts whenever you need them. You also receive legal assistance on employment matters from Upnetic Legal Services—provided you subscribe to its highest tier.
• Recruitment and HR tools: ADP’s partnership with ZipRecruiter makes it possible for you to post open jobs to leading job boards. It also offers background checks, state new hire reporting, and onboarding, in addition to training tools and an online library of HR forms and documents. You won’t get this level of HR support with any other provider on our list except Paychex Flex.

Time tracking, pay-as-you-go workers’ compensation, and benefits are paid add-ons to ADP Run’s payroll plans. If you don’t want to pay extra for these solutions, consider Square Payroll, and OnPay. If you only need payroll with an attendance module for capturing the clock ins/outs of employees, Homebase Payroll is a great option. It even has a scheduling tool—a feature that the other providers on our list don’t offer.

• Robust payroll plan: Homebase Payroll is one of the payroll systems for small businesses that we reviewed that’s reasonably priced and comes with several HR features. For only $39 plus $6 per employee monthly, you get hiring, onboarding, time tracking, and scheduling tools in addition to full-service payroll and automatic tax filing services. Gusto, ADP Run, Paychex Flex, and Rippling may offer similar functionalities but you either have to pay extra or subscribe to its higher tiers to get these solutions.
• Full-service payroll: Unlike Paychex Flex and ADP Run, Homebase Payroll offers unlimited pay runs so that you can process employee and contractor payments as many times as you need in a month. Salaries are sent to the employees’ accounts via direct deposits, although Homebase Payroll also supports payments made through printable checks. In addition to W-2 and 1099 reporting, Homebase provides automated payroll tax payments and filings.
• Early access to wages: Homebase Payroll offers an employee perk that grants your staff early access to wages. Your workers can transfer a portion of their salary to their bank account before payday to help pay for emergency expenses.

Homebase Payroll is great for small businesses that don’t operate in multiple states and have fewer than 20 employees because you only need to pay for its payroll module and still access its main platform’s free plan (which comes with time tracking, scheduling, and hiring tools). However, if you plan to grow into a multi-location company, you’ll be charged monthly fees for Homebase itself (in addition to the fees you pay for Homebase Payroll).

For fast-growing startups, consider Paychex Flex and ADP Run. Both offer flexible payroll plans that can fit the needs of small to large businesses. Rippling is also a good option because it has modular solutions that you can mix and match—provided you get its core workforce management platform.

• Self-service plan: You can save the most money if you have a couple of employees and are willing to file payroll taxes on your own using Patriot’s Basic Payroll plan. Priced at only $17 plus $4 per employee monthly, this is the most cost-efficient option among all the payroll providers in this guide.
• Flexible payroll system: In addition to unlimited pay runs, Patriot Payroll supports multiple pay rates, plus you can either use its standard deduction and contribution types or create your own to capture payroll details for garnishments, health insurance options, and retirement plans. Employees and contractor payments are made through direct deposits, but the processing time is four days.
• Tax penalty guarantee: If you subscribe to one of its Full Payroll plans, Patriot ensures that your taxes will be calculated and filed on time. Any disputes will be resolved and paid for by Patriot for tax filing mistakes that its representatives commit. Compare this to QuickBooks—under its Elite plan, it covers the penalty and interest for any payroll tax error for up to $25,000 a year, regardless of who made the mistake.

Patriot Payroll only offers its two-day direct deposit feature to qualified clients. If you want fast direct deposits, we recommend QuickBooks Payroll (its basic plan comes with next-day options) and Square Payroll (its Instant Payments feature lets you pay employees instantly).

For companies with business locations in several states, Patriot can handle multistate pay runs but charges a $12 fee for each additional state tax filing. If you don’t want to pay extra, consider the other payroll providers on our list (except Gusto).