When you start looking for payroll software, the biggest challenge can be figuring out how each provider is different. Most calculate wages, offer direct deposit, and pay taxes, but which one is really best for your business? We walk you through a variety of features that are important to consider when choosing a payroll software that fits your business size, employee needs, growth, and budget. We cover everything from ease-of-use to integrations with other software. Check out our best payroll software list to learn more.
8 Best Payroll Software for Small Business
Payroll Provider | Best for | Cost |
---|---|---|
(Best Overall) Small businesses <100 employees, easy intuitive software, HR/benefits/payroll all-in-one solution | Free trial, low cost | |
Integrates with QuickBooks accounting software, same and next day direct deposit, tax penalty-free guarantee | Low cost | |
Businesses with <50 employees that want the most affordable full-service payroll minus insurance | Low-cost DIY plan | |
Flexible plans that scale with growing businesses, 24/7 customer service | Custom pricing | |
Companies with <25 employees that want free payroll and can manage their own tax filings | Free with limited options | |
Retailers and restaurants wanting Square’s payroll and POS integration for time card and tip payment sync | Low cost | |
Mid-to-large businesses (200-500+ employees) that want a strong HR system with full-service payroll | Mid-level flexible pricing options | |
All-in-one payroll and HR solution, 24/7 customer support, dedicated point of contact | Custom pricing |
Still not sure which payroll software is best for you? Answer four short questions to find out.
Which Payroll Provider Is Right for You?
Answer a few questions about your business and we'll give you personalized product match
How We Evaluated the Best Payroll Software
We evaluated top-rated online payroll software programs by comparing costs (flat fees per employee, per pay run, and add-on fees) and other features. We looked for basic features like paycheck and tax calculations, electronic tax payments, direct deposit, and so on; software that didn’t have the basics or required you to be an expert at doing payroll were automatically rated lower. Customer support was also a major consideration since that can make or break your experience with new payroll services.
Gusto: Best Overall Payroll Software for Small Businesses
Gusto is the best payroll software for small businesses, because it is one of the easiest, most affordable payroll software tools to use and manages payroll for employees as well as independent contractors. It offers many convenient features like self-onboarding for employees, benefits management, automatic payroll runs, and top-rated customer service.
You can sign up for Gusto’s Core plan starting at $45 monthly for one employee.
Gusto Strengths | Gusto Weaknesses |
---|---|
Pricing as low as $45 monthly for one employee | Doesn’t offer insurance in 24 states |
Strong new hire support | Doesn’t scale well for businesses with >100 employees |
Electronic tax payments, filing, and year-end reports | |
Unlimited and automated pay runs |
Gusto’s Pricing
The base price for Gusto is $39 per month, plus $6 per month, per employee or contractor. Gusto doesn’t offer an edition with more limited features.
Gusto Product Pricing Plans
Features | Core | Complete | Concierge |
---|---|---|---|
Monthly Price | $39 + $6/employee, per month | $39 + $12/employee, per month | $149 + $12/employee, per month |
Plan Comparison | Full-service payroll and benefits features | Core + Time management, onboarding, and employee engagement tools | Complete +HR Pro advising and resources, templates, training, and dedicated support team |
Gusto Features
- Ease-of-use and setup: Modern and intuitive interface; support team is available for live chat during setup; there’s also a searchable support center and video guides.
- Unlimited pay runs: Run payroll as many times as you want at no extra cost for both employees and contractors.
- Payment options: Check, two-day direct deposit; payroll available on-demand or as employees earn it (Cash out feature).
- Self-service: New hires can e-sign and e-file their tax docs and retrieve them when needed.
- Paid time off: Employers can set paid time off (PTO) policies within the system and manage time taken so they know how much each employee has at any time.
- Benefits: Health insurance, 401(k) retirement, 529 savings plans, commuter benefits, health savings accounts, flexible spending accounts.
- Integrations: QuickBooks, Xero, and FreshBooks, When I Work, Homebase, Ximble, Receipt Bank.
- Add-ons and premium features: Time and attendance, unlimited access to certified HR professionals, employee org chart, HR training and templates, dedicated support team and phone line.
- Average user review: 4.8 out of 5 stars; many users like the self-service features of Gusto and customer service quality. Some employers complained about system issues when they exceeded 100 employees; they also don’t like that benefits aren’t in all states.
To learn more about Gusto’s unlimited pay runs, tax filing options, and employee benefits, check out our Gusto review.
QuickBooks Payroll: Best for QuickBooks Accounting Users
QuickBooks Payroll is best for businesses that are currently using QuickBooks accounting software. It connects with QuickBooks very easily and can be a comfortable option for QuickBooks users. The basic price plan is just a little more expensive than Gusto’s, but it includes free next-day direct deposit and access to insurance in all 50 states.
QuickBooks Payroll Strengths | QuickBooks Payroll Weaknesses |
---|---|
Directly integrates with QuickBooks accounting software | Doesn’t offer benefits outside of insurance and workers’ comp |
Fast direct deposit processing (slowest is next-day) | Few outside software integrations; primarily integrates with Intuit products |
Insurance available in all 50 states | Inconsistent customer service |
Electronic tax payments, filings, and year-end reports | |
Unlimited and automated pay runs |
QuickBooks Payroll Product Plans
Features | Core | Premium | Elite |
---|---|---|---|
Monthly Price | $45 + $4/employee, per month | $75 + $8/employee, per month | $75 + $8/employee, per month |
Plan Comparison | Full-service payroll + health benefits + next-day direct deposit | Core + same-day direct deposit + mobile time tracking + HR support center workers’ comp | Premium + 24/7 support + professional setup + HR advisor +tax penalty protection |
QuickBooks Payroll Features
- Ease of use and Setup: Step-by-step tutorials within a comprehensive online knowledge base; the interface is intuitive; the tabs and icons are clearly displayed and labeled.
- Unlimited pay runs: Run payroll as many times as you want at no extra cost for both employees and contractors.
- Payment options: Check, direct deposit (next-day is available to everyone; same-day is available with premium plan).
- Self-service: Employees can see pay stubs, time-off balances, and deductions.
- Benefits: Health insurance is available in all 50 states through a third-party vendor.
- QuickBooks accounting integration: Its general ledger to payroll integration is more seamless than that of other providers, and efficiencies can come from your familiarity with QuickBooks.
- Add-ons and premium features: Same-day direct deposit, tax penalty-free guarantee of up to $25,000 (no matter who’s at fault), TSheets time tracking, professional setup, federal and state labor law posters.
- User reviews: 3.8 out of 5; QuickBooks users love the compatibility and customization options. However, even loyal users complain about the upcharges on the payroll side and issues with consistent customer service.
To learn more about how QuickBooks Payroll can pay your employees quickly, give access to benefits, and integrate with other Intuit products, check out the: QuickBooks Payroll review.
Patriot Software: Best Budget-Friendly Choice for Full-Service Payroll
Starting at $34 per month (for one employee), you can run payroll with Patriot just as you can with QuickBooks Payroll or Gusto, and the service will be much cheaper than other options on our list, except the free payroll software. Of course, this will only work if you don’t need access to health insurance or outside software integrations. You also have the option of running payroll DIY-style for $10 monthly, but you’ll have to file and pay your own payroll taxes.
Patriot Payroll Strengths | Patriot Payroll Weaknesses |
---|---|
Least expensive full-service payroll option (tied with Square Payroll) | Longer payroll processing time (requires 4-day lead time for direct deposit vs average 2-day or one/same-day with QuickBooks Payroll) |
Allows you to start with a do-it-yourself plan and upgrade to a full-service option | No benefits or insurance |
Unlimited pay runs | Upcharges for some basic services other services provide for free |
Electronic tax payments and filings |
Patriot Payroll Product Pricing Plans
Features | Basic | Full-service |
---|---|---|
Monthly Price | $10/month + $4/month, per employee | $30/month + $4/month, per employee |
Plan Comparison | Unlimited pay runs + direct deposit + printable W2s + employee self-service | Basic + filing and paying payroll taxes + year-end payroll tax report filings + tax-filing accuracy guarantee |
Patriot Payroll Features
- Ease of use and setup: Setting up Patriot software is easier than with ADP or Paychex (fewer features equals fewer decisions) but a little more difficult than Gusto. You can get help over the phone, via chat, by email, or through the searchable Help Center.
- Unlimited pay runs: Run payroll as many times as you want at no extra cost for both employees and contractors.
- Payment options: Check, direct deposit.
- Self-service: Employees can see pay stubs, change their bank account information, etc.
- Add-ons and premium features: Time-tracking, HR software (functions as electronic file storage).
- User reviews: 4.1 out of 5 stars; users commented on the ease of setup, and those who upgrade to the tax services like those benefits. Users rated the support team highly. However, some complain that direct deposit is outsourced to a third party, causing issues when you need to resolve errors.
To learn more about Patriot’s do-it-yourself and full-service plan options as well as what real users think of it, check out our Patriot Payroll Review.
ADP: Best for Startups & Growing Businesses That Need Flexible Plans
ADP is best if you have plans to scale your business in the next five years. Although a little pricier than the options we’ve discussed so far, it has all of the basics you need like direct deposit, electronic tax payments, year-end tax filing, and so on. Features are customizable, and there are different payroll options for small, medium, and large companies.
ADP Run Strengths | ADP Run Weaknesses |
---|---|
Flexible product plans | Pricing isn’t transparent; you must call for a quote |
Feature-rich, including strong HR features | Upcharges for setup, W2s, etc. |
24/7 customer support | Customer support can be slow and inconsistent |
Tax payments and filing |
ADP Run Pricing
To get pricing for ADP, you’ll have to call and speak to a representative. There’s also a $200 set-up fee that reps will sometimes waive. In addition, if you’re looking for payroll services for a nonprofit, you may be able to secure a 25% discount. Of course, all discounts are time-sensitive.
ADP Run Product Pricing Plans
Features | Essential Payroll | Enhanced Payroll | Complete Payroll Plus HR | HR Pro |
---|---|---|---|---|
Price | Contact for Quote | Contact for Quote | Contact for Quote | Contact for Quote |
Plan Comparison | Full-service payroll, taxes and reporting | Essential+ check signing +unemp insurance audit + background checks + job Board | Enhanced + Handbook and HR support + HR forms + advanced reporting + dedicated support | Complete + legal assistance + extra support + employer/employee trainings |
ADP Features
- Setup and ease of use: Setup assistance available; may take days or weeks to finalize setup; interface is intuitive with icons and help options; system can still be somewhat complex due to the wide range of features.
- Self-service: Changes to life events (marriage, new child, address), pay stubs, W2s, 401(k) changes, direct deposit.
- Leave management: PTO and sick leave policies; dedicated professionals who monitor state and federal laws to ensure leave programs, including paid sick leave, are compliant with state law.
- Benefits and insurance: Health, dental, vision, life, and disability insurance for your employees; business insurance for you, including workers’ compensation, business owner’s policy (BOP), commercial auto, disability, and certificates of insurance.
- Reporting: Reports on payroll, taxes, benefits, garnishments, employee, and birthdays, to name a few; you can also create custom reporting.
- Software integration: Interfaces to most general ledger software like QuickBooks and Xero; syncs to timekeeping systems as well as with benefits providers and banks; you can also output a generic file for use when sharing data with third-party providers.
- Add-ons and premium features: Insurance and benefits, timekeeping, check delivery, W2 preparation, and delivery.
- User reviews: 4.2 out of 5 stars: Users seem to like how well the system handles paychecks and taxes. There are complaints about resolutions taking too much time and some stated that it required several phone calls to get issues resolved.
Payroll4Free.com: Best Free Payroll Service for Small Businesses
Payroll4Free.com is best for employers who need to pay less than 10 workers (although you can use it with up to 25). It offers basic payroll processing features, including both W-2 employee and 1099 contractor payments and is free for businesses who print their own paychecks and file their own taxes.
Payroll4Free Strengths | Payroll4Free Weaknesses |
---|---|
Free to employers with <25 workers | Lots of manual data entry |
Tax filing and direct deposit are cheap add-ons | Interface looks and functions are old-fashioned |
Payroll4Free.com’s Features
- Setup and ease of use: Guided setup tool; How-to video on YouTube for new user setup; lots of room for error with manual entry.
- Payment options: Manual check, direct deposit if you pay the upcharge.
- Self-service: Pay stubs, tax forms, leave balance, personal information changes.
- Leave management: Can set up PTO and sick leave accruals; usage data will need to be keyed by hand unless you do a time clock integration.
- Software integration: Integrates with timekeeping software; general ledger software can upload and share files using the CSV format.
- Basic payroll reports: Payroll reports on employee earnings, taxes, time-off accruals, and payroll.
- Add-ons and premium features: Tax filing ($12.50/month), direct deposit ($12.50/month).
- User reviews: No user reviews on our site; reviews on other third-party sites indicate that employers like that it’s free and fairly simple if you have a handful of workers. There are complaints about how dated the system is and its slow speed.
Square Payroll: Best for Retailers/Restaurants Using Square POS
Square is the best payroll software for retailers and restaurants that are already using Square’s free POS system. Time records within the POS automatically sync to the payroll system, so paycheck and tip calculations are accurate.
Square Payroll Strengths | Square Payroll Weaknesses |
---|---|
Simple, affordable pricing | Access to live customer service requires a code from Square’s website to reach a rep |
Unlimited pay runs | No automated payroll feature (like Gusto has for salaried employees) |
Direct integration with Square’s free POS system | Doesn’t support all local taxes |
Square Payroll Pricing
The base price for Square Payroll is $29 per month, plus $5 per month, per employee or contractor. If you only need to pay contractors, the base fee is waived, and the charge is $5 per contractor per month.
Square Payroll Features
- Ease-of-use and setup: Can complete setup in minutes; online forum is available for help.
- Unlimited pay runs: Run payroll as many times as you want at no extra cost for both employees and contractors.
- Payment options: Manual check, direct deposit.
- Compliance: New hire reporting to the state.
- Taxes: Federal and state.
- Paid time off: PTO and sick leave tracking.
- Benefits: Health insurance, retirement, workers’ compensation.
- Integrations: Homebase, QuickBooks, AP Integrations.
- Average user review: 4.1 out of 5 stars; some employers like how easy it is to use. Most complaints are in regards to customer service and how difficult it is to reach a rep.
To learn more about Square Payroll’s easy setup and intuitive payroll process, check out our: Square Payroll review.
Paycor: Best for Larger Businesses Needing HR Tools
Paycor is best for businesses that have a strong need for HR tools and want to streamline them with payroll. In addition to being able to pay employees and taxes on time, Paycor gives numerous HR tools and modules you can use to manage job candidates, employee performance, training plans, etc. It allows you to put more focus on the people part of your business in the most efficient way.
Paycor Strengths | Paycor Weaknesses |
---|---|
People management tools | Limited customer service (no 24/7 like ADP or Paychex) |
Customizable interface |
Paycor Product Plans
Features | Basic | Essential | Complete |
---|---|---|---|
Monthly Starting Price | $99 | $149 | $199 |
Plan Comparison | Payroll and tax filing, reporting, mobile app | Basic + Custom reporting, PTO management, garnishments, compliance checklists, advanced analytics | Essential + dedicated garnishment support team, new hire onboarding, 401(k) integrations, GL provider integrations, 1 on 1 HR support |
Paycor Features
- Setup and ease of use: Easy to use; Interface is made up of widgets that you can customize to your need; you can turn features on and off as you need them, which prevents your interface from being cluttered with tools you’re not ready to use.
- Self-service: View pay stubs, request time off, clock in and out from the mobile app, review benefits.
- Payment options: Check, direct deposit, pay cards.
- Benefits: Insurance and other benefits in all 50 states; charged for as a separate package.
- Reporting: Tons of reporting options; generate reports on cash requirements, labor distribution, unpaid employees, headcount, etc. You can also schedule reports to be sent to you or anyone you’re working with (like a CPA) on any frequency.
- Add-ons and premium features: Onboarding, performance reviews, training, time and attendance (includes robust PTO tracker), benefits.
- User reviews: 4.3 out of 5 stars; many users like that Paycor combines HR and payroll in one software. There was a user who couldn’t quite justify the cost, because they weren’t doing much hiring.
Paychex: Best Payroll Software for Quality Customer Service
Paychex is similar to ADP in functionality and has a robust set of features with flexible product plans. All customers get access to 24/7 customer service, and any employer who purchases a package other than the lowest-tier plan gets a dedicated service rep. In addition, compliance experts are on staff to ensure you don’t break any payroll or HR laws.
Paychex Strengths | Paychex Weaknesses |
---|---|
24/7 customer service with all plans | Pricey |
Customizable plans | Learning curve due to robust features |
Multiple pay options (including pay on-demand and pay cards) |
Paychex Flex Pricing
Similar to ADP, you’ll need to speak with a representative before you can get a quote for your business. In our experience, prices usually range from $77 to $123 per pay period for 10 employees, and it charges additional for year-end tax documents. Keep in mind that Paychex offers time-sensitive discounts, so you may or may be able to get a better deal. Also, there’s a $200 setup fee the representative may offer to waive if you sign up immediately.
It’s worth noting that pricing for both ADP and Paychex is based on an old-fashioned model of pricing by payroll run. That means those businesses in the service and retail industry that run weekly payrolls will pay two to four times more with ADP than office-type businesses that pay semimonthly or monthly.
Paychex Product Pricing Plans
Features | Express Payroll | Paychex Flex Select | Paychex Flex Pro | Paychex Flex Enterprise |
---|---|---|---|---|
Price | Contact for Quote | Contact for Quote | Contact for Quote | Contact for Quote |
Plan Comparison | Full-service payroll, taxes, 24/7 phone support and mobile app | Express + dedicated specialist + compliance poster kit +check signing+e-learning system | Flex Select + analytics + garnishment service + onboarding + background checks + workers’ comp | Flex Pro + custom analytics + performance feedback, employee training, compliance doc storage |
Paychex Features
- Setup and ease of use: Assistance with setup available; setup will require you answer many questions and may take a few weeks; interface is more menu-driven than Gusto or ADP, and there’s a bit more of a learning curve compared to software like Gusto.
- Payment options: Check, direct deposit (same-day available with upcharge), pay card, payroll on-demand.
- Self-service: Mobile app employees can use to look at payroll, benefits, and time-off data.
- Leave management: Tracks leave programs and accruals; time-off requests and tracking need to be handled manually, unless you pay extra for time and attendance.
- Benefits: Available in a separate package; Health insurance, workers’ comp, and other benefits
- Reporting: More than 100 reports on-demand; Choose specific parameters to customize and export.
- Software integration: Ximble, Humanity, Intacct Now, and Xero. It also has an open application programming interface (API) program for software developers to build interfaces with Paychex.
- Add-ons and premium features: Benefits, time and attendance, garnishment service
- User reviews: 4.2 out of 5 stars ; In general, users like the accuracy of its payroll and the support they get from the Paychex team. What they don’t appreciate are the pushy sales folks who try to get them to make a purchase or upgrade.
Not seeing what you’re looking for? Read our guide on how to choose a payroll service for your business.
Bottom Line
Payroll software helps make what would otherwise be a time-consuming and complicated process more efficient and economical. And since most come with some payroll compliance resources and expertise (some built into the system while others are live experts), they help you avoid legal risks and penalties. Be sure to determine the features your business needs most and your budget limitations before deciding which payroll software works best for you.
Liam Horsley
QuickBooks is well known and most preferable software for accounting as well as payroll service too. This is the first choice of most of the accountants but from last few years Gusto becomes popular software for payroll service as compared to QuickBooks. We like the brief which you share in this article I think it becomes very useful for the users.
Amanda Norman
Hi Liam,
Thank you for sharing your experience. We love getting feedback from our readers that have real experience with the vendors we recommend.
Thanks for reading!
Mandy, Moderator
wholesale nfl jerseys
Hello, everything is going fine here and of course every one is sharing facts, that’s actually good, keep up writing.
918kiss malaysia
What’s up, I would like to subscribe for this blog to obtain newest updates,
so where can i do it please assist.
Laura Handrick
You can subscribe by scrolling down on the home page to the bottom. Sign up and we’ll send you weekly updates!
https://fitsmallbusiness.com/
Bo
I read through the whole article and click on guesto. After giving my information. Site brings me to their next page. Where prices are totally different than what this article wrote. On that guesto page nothing compare to stuff mention about them. My conclusion…
Don’t trust this article.
Laura Handrick
Hi Bo,
Thank you for your comments. We strive to provide accurate information and are happy to update articles as pricing changes or new information comes to light. However, I clicked the link within the article and found the pricing on Gusto’s website of $39/month + $6 per employee per month to be exactly the same as what’s stated in the article. https://go.performi.com/goto/gusto/
Gusto does have other pricing plans for larger companies however that need additional features. And sometimes to do price comparisons, we compare different software for a fixed number of users, say 10 users or 25 users as examples. Perhaps you navigated to a different pricing page? I am happy to look into this further if you can provide additional information. Thank you for sharing your concerns.
Laura, HR
Kresha
I have used Gusto for two years as an employer and I can assure you the prices quoted here are exactly what I pay each month. This article, while I agree are biased toward Gusto, is definitely accurate. Also, I contact them REGULARLY via phone for customer support, so I assure you it does exist, although if I remember correctly, I did have to hunt to find it before I pinned it to my bulletin board so I can see it at a glance. (Another commenter mentioned that “Gusto does not even have a phone number to contact.”)
(By the way, I have no connection with this site or this author whatsoever. I happen to be another reader who ran across the article and in reading the comments, wanted to assure you that the prices quoted are accurate in my situation.)
I also use QuickBooks (for accounting, not payroll), and the prices offered to me every few months or so to add payroll as an add-on are likewise the same as quoted in this article, so I find nothing non-trustworthy here. I assume the author does indeed receive an affiliate commission for each of these products, but that’s no reason to automatically not trust the facts and opinions presented, merely to double check the article to see if true value is offered to us, the readers – and for my part, I appreciate having this information gathered together into one article, even though this author’s opinion and preference for one of the products is certainly made clear.
Just wanted to weigh in to share that my experience (with prices) matches exactly what this author has stated.
Gui
It is a bias report that Gusto is the best of all. The fact is Gusto does not even have a phone number to contact. The only San Francisco address shown on their website does not exist.
Could company $ be taken and employee confidential information be used for other purpose?