Best HR Software for Small Business in 2023

The monthly cost of Rippling’s modules starts at $8 per employee. For your small business HR software needs, Rippling can work with you to create a custom package with the features that you want. Note, however, that you have to purchase its core workforce management platform before getting any of its modules.

In the quote we received, its workforce platform with full-service payroll, new hire onboarding, time tracking, and software integrations cost $35 plus $8 per employee monthly. For an additional monthly fee of $8 per employee, per module, you can add Rippling’s IT solutions for managing business apps, devices, and computer inventory. Benefits administration services are also available, but pricing varies depending on the insurance broker.

NOTE: Right now get your first month FREE. But hurry! You must sign up before December 1, 2023!

If you need other HR solutions and services, including basic finance tools, Rippling offers the following custom-priced modules:

Hiring tools

Like others on our list, Rippling can post to multiple job sites (like Indeed or LinkedIn), track applicants through the interview process, and, when hired, have them onboard online. However, Rippling is ace at customizing the hiring workflow, including automatically ordering background checks, and can onboard new employees in 90 seconds.

IT solution

Rippling was the first HR software we ever reviewed that provided basic IT solutions for setting up and managing your employees’ computers and business software. We still think its process is the most intuitive. You can even order laptops through Rippling, and all of your staff’s system permissions and app accounts will be set up. It can also help with the deprovisioning process and store your computers in its warehouse for safekeeping and reassignment.

Robust software integrations

None of the other software in this guide have as robust third-party integration options as Rippling does. It connects with over 500 software applications, making it much more efficient for companies planning to add Rippling to an existing group of software products.

Payroll processing

Processing payroll with Rippling takes less than two minutes. It offers direct deposit payments and tax filing services, plus pay-as-you-go workers’ compensation through AP Intego. It handles a multitude of wage garnishment issues, even sending the money to the applicable agencies. You can also use it for international employees. Reporting is also intuitive—it has metrics you can evaluate immediately before running payroll to ensure you’re not missing anything.

Robust learning management system

Take advantage of Rippling’s over 1,000 pre-built courses, from cybersecurity to HIPAA, or build your own. You can set up training programs and enrollment rules, and track progress. Set up quizzes and record certifications for compliance as well. You can even automate enrollment into needed or mandated courses so employees keep certifications up to date. It’s one of the most robust of the products on our list, and as usual, Rippling makes it easy.

Flexible PEO

Rippling offers PEO services you can turn on when you need to outsource your HR administration; you can also turn it off with the click of a button when you’re back to only needing the software. ADP Run and Paychex may have PEO services, but they lack Rippling’s easy on/off button. In addition, ADP’s PEO (ADP TotalSource) is a completely separate product that runs on a different software than its small business HR and payroll solutions, so toggling back and forth isn’t an option.

Rippling earned an average score of 4.85 out of 5 on popular user review sites like G2 and Capterra. Users said they love the intuitive interface and easy integrations. Several others also commented that its robust solutions, ease of use, customizability, and good customer service are standout features.

Aside from its contractor-only payroll package, Gusto offers three plans:

Simple: $40 per month + $6 per employee monthly

• Includes full-service payroll, tax filings, payroll tax filings, single state pay processing, two- and four-day direct deposits, employee benefits, new hire reporting, offer letter templates, onboarding, and basic support

Plus: $80 per month + $12 per employee monthly

• Simple + next-day direct deposits, multistate payroll including W-2s and 1099s, time and paid time off (PTO) tracking, applicant tracking, basic job postings, project tracking, and full support with extended support hours

Premium: Custom-priced

• Plus + performance reviews, surveys, full-service payroll migration, access to HR experts, direct line to priority phone and email support, and a dedicated account manager

Contractor-only plan: $35 per month + $6 per contractor monthly

• Full-service payroll, four-day direct deposits, and state new hire reporting

Gusto also offers the following add-on solutions and services:

• State payroll tax registration: Pricing varies per state
• International contractor payments: Pricing varies
• R&D tax credits: 15% of identified tax credits
• HR advisory services for Plus plan only: $8 per employee monthly (this is included for free in the Premium tier)
• Health and other benefits: Pricing varies by benefit

Affordable payroll-first plans

If your pain point is payroll, Gusto is an excellent choice. Rippling, Zenefits, BambooHR, and Homebase offer payroll as an add-on and require you to purchase their core HR products first. Paychex and ADP charge by pay run, while Gusto allows unlimited pay runs, which is great if you pay different types of employees on different schedules. With monthly fees that start at $40 plus $6 per employee, it’s optimal for small businesses looking for solid pay processing tools.

Benefits administration

Gusto offers health, dental, and vision insurance; commuter benefits; retirement plans; HSAs and FSAs; and 529 college savings accounts. The kicker is that its health insurance is not available in 13 states (Alabama, Alaska, Hawaii, Louisiana, Mississippi, Montana, Nebraska, North Dakota, Rhode Island, South Dakota, Vermont, West Virginia, and Wyoming) as of this writing. However, you can add your own broker for $6 per month per employee.

If this is a dealbreaker for you, consider Paycor, Paychex, and ADP Run for benefits available across the US. Rippling also has extensive coverage, but its benefits modules are paid add-ons.

Basic HR tools

Gusto doesn’t compare to Paychex or ADP Run on the number of HR features and tools available. Its job posting solution isn’t as robust as ADP’s, which can post jobs to 25,000 sites (via ZipRecruiter). While its hiring tools are limited, it does provide for average small business needs, like offer letters, online W-4 and I-9 forms, HR documents, basic time tracking, and a self-onboarding portal.

In-house HR expertise

Gusto provides access to certified HR experts—you can direct any compliance and HR questions you have to them. However, you’ll need to subscribe to Gusto’s highest plan to get it (or pay $8 per person monthly if you’re on the Plus tier).

Gusto is rated highly on user review sites like Capterra and G2, with an average score of 4.30 out of 5. Employers and employees praise the interface and ease of running payroll. Some reviewers also appreciate how it handles the filing of payroll taxes. However, a few complained about having experienced slow load times when accessing its software.

Paychex offers a wide range of HR solutions and services, but for its payroll platform, Paychex Flex, it has three plans:

Paychex Flex Essentials: $39 per month + $5 per employee

• Includes full-service payroll, tax filing and payment services, direct deposits, hiring and onboarding, new hire reporting, employee self-service tools, cashflow assistance, and a financial wellness program

Paychex Flex Select: Custom-priced

• Essentials + learning management and access to job posting website and general ledger integrations

Paychex Flex Pro: Custom-priced

• Select + background checks, state unemployment insurance (SUI) services, garnishment payments, custom analytics, an employee handbook builder, and paycheck previews to allow employees to review their paychecks before paydays

For solopreneurs and the self-employed, the provider offers a custom-priced Paychex Solo plan. Aside from payroll, this package includes incorporation services and access to a 401(k) plan.

Multiple plan options

Paychex offers multiple plans that target different business sizes. It alone offers an option specific to solopreneurs (Paychex Solo). It also has a Paychex Flex product with three plan options, wherein premium tiers come with more compliance support. It even provides a PEO package, a service that other competitors on this list don’t offer (except Rippling and ADP).

Robust HR tools

Paychex’s plethora of HR tools is one of the reasons it earns a place on this list. In addition to the tools offered in its plans, it has a wide range of add-ons. Some examples include compliance support, employee recognition, time clocks, talent management, and compensation benchmarking. Paychex provides a custom quote after discussing your needs with you.

Strong hiring support

Paychex’s hiring tools go beyond job posting and applicant tracking. Like Rippling, it has screening and background checks (Pro Plan.) Further, its team of HR professionals can provide recommendations and expert support. In addition to paperless onboarding that even works for mobile, Paychex offers online learning sessions, including sexual harassment prevention training.

Benefits and insurance options

Paychex is licensed as an insurer, so it offers insurance directly. Unlike Gusto and Zenefits, which have limited health benefits coverage, its health insurance covers all 50 states. It can even help automate your benefits management processes through its benefits administration solution, Flock, which is a paid add-on to Flex.

Payroll processing

Paychex can manage both employee and contractor payroll, but it doesn’t have Gusto’s contractor-only plan and charges by pay run. However, its “Voice Assist” feature provides you with a secure and hands-free way to process payroll. It works on Google Assistant-compatible devices and comes with voice verification and artificial intelligence (AI) tools so you can run payroll without having to log into Paychex Flex. None of the other HR solutions for small business owners we reviewed have this functionality.

Users who left positive Paychex reviews online said that it offers good reporting options, great onboarding functionalities, and an easy-to-learn interface. We also found its platform simple to use because it does not crowd its interface with extraneous features. Overall, its average user rating on third-party user review sites is 4.15 out of 5.

With Zenefits, you can choose from monthly billed and annually billed plans. While annually billed plans offer discounted pricing, you have to pay the fees in advance and in a lump sum. In addition, all plans and add-ons require at least five employees. Below are the base plans:

Essentials: $10 per employee monthly ($8 per employee, per month if billed annually)

• Includes onboarding, employee management, time and PTO tracking, staff scheduling, and access to an analytics dashboard

Growth: $20 per employee monthly ($16 per employee, per month if billed annually)

• Essentials + performance reviews, customizable employee analytics, and compensation management

Zen: $27 per employee monthly ($21 per employee, per month if billed annually)

• Growth + employee surveys and a “People Hub” collaboration tool

If you have contingent workers, such as temporary staff and independent contractors, Zenefits will bill you $6 per active worker monthly with any plan. The following add-on solutions and services are also available:

• Payroll: $6 per employee monthly
  • Full-service payroll with tax filing services
• Advisory services: $10 per employee monthly
  • Access to certified HR pros
• Benefits administration if you have your own broker: $5 per employee monthly
• Recruiting solutions to help you find and hire employees: Starts at $62 per month

Contingent employee support

TriNet Zenefits is the only provider on our list with a special pricing for contingent employees, which includes temp workers as well as contractors. For only $6 per month for only the months they are working, you can add that employee to your plan and add-ons. This is cheaper and more functional than Gusto’s Contractor Plan. It’s an economical way to handle HR for seasonal workers or times when you surge operations with contract or temp labor.

Hiring support

The good thing about TriNet Zenefits is that its base HR product includes the basic hiring features small businesses need—from online offer letters to self-onboarding and employee information management. Storing new hire forms and other company files (like policies and handbooks) is also made easy with TriNet Zenefits’ document management feature.

However, it lacks the job postings of Homebase and ADP, the hiring services of Paychex, and the applicant tracking tools of BambooHR, Zoho People, and Paycor. If you want both job postings and applicant tracking, consider either Rippling or Gusto.

Compliance tools

TriNet Zenefits supports and automates a host of compliance tasks across payroll, benefits, and general HR, such as generating pay stubs that adhere to state requirements, sending required notices during onboarding and offboarding, and monitoring Affordable Care Act compliance. What stands out, however, is its Compliance Assistant tool, which helps you develop a deeper understanding of what’s required of your business, set reminders for deadlines, and monitor your compliance status.

Feature-rich platform

TriNet Zenefits’ HR solutions are designed to handle all aspects of the employee lifecycle. Its standard plans include many features you may have to pay extra for with other services on our list. For example, its most basic plan includes a time clock—something Paychex, for example, offers as an add-on. The higher plans have performance management tools which several on our list offer only as add-ons.

If you have employees in Hawaii, however, you cannot get health benefits for them. Instead, consider Paycor, ADP Run, or Paychex. Rippling is also a good option, but its benefits modules are paid add-ons.

Time and scheduling in every plan

In all TriNet Zenefits’ plans, time and scheduling are included—which means no add-on fees. This is a great feature for companies with hourly employees because they won’t have to shop around for time clocks and other systems that integrate.

Overall, TriNet Zenefits earned an average score of 4.10 out of 5 from real-world users, the lowest score of those on our list. Many reviewers said that it is generally affordable and easy to use, although some users wish for more setup support and help dealing with tax issues.

ADP Run offers four plans:

Essential: $40 per weekly pay run + $3 per employee monthly*

• Includes payroll, tax filings, onboarding, direct deposits and a Wisely debit card, new hire reporting, and employee discounts

Enhanced: Custom-priced

• Essential + check signing services, SUI management, background checks, and job postings via ZipRecruiter

Complete: Custom-priced

• Enhanced + HR forms and documents, an employee handbook wizard, and an HR help desk

HR Pro: Custom-priced

• Complete + training programs, enhanced HR help desk support, and additional assistance in creating your employee handbook

*Pricing is based on a quote we received

Multiple product options

ADP Run is most comparable to Paychex Flex and offers a set of plans for small businesses and enterprises—although ADP doesn’t have a special tier for solopreneurs. It also has a wide range of additional tools it can add to your plan, like Paychex does.

It has a PEO service you can upgrade to, ADP TotalSource. However, it isn’t as flexible as Rippling, which lets you easily turn off PEO and switch to using its software again.

Robust hiring tools

ADP can post to 25,000 job sites—way more than the competition, but you may need to pay for some. It also provides training tools, including prerecorded training courses to help you scale faster. Ultimately, it gives you the solutions to onboard new employees efficiently without taking away unnecessary time from your schedule.

Benefits administration

Like Paychex, ADP issues insurance directly from its organization. You can choose from health plans to retirement options, and more. It even has retail and restaurant discounts that you can offer as a perk to employees. On top of that, it’s licensed in all 50 states, so you don’t have to worry whether or not your business is covered. In contrast, TriNet Zenefits’ health plans don’t cover Hawaii; Gusto’s health insurance is limited to 37 states; and Homebase, Zoho People, and BambooHR don’t offer benefits plans.

Employee payment options

Aside from direct deposits, ADP has a pay card program to give your unbanked employees more payment receipt options. Subscribing to one of ADP Run’s premium plans also grants you access to secure paychecks with check signing and stuffing services. It even delivers the checks to your office so you can distribute them to your employees on payday. None of the other providers in this guide offer such robust paycheck services.

Wisely Pay Card

Gusto and Paychex also offer paycard services, but ADP has added enhancements to its Wisely pay card to even more closely mimic the tools provided by regular banks. It now offers the capability to receive earned pay in advance of a paycheck. It also has cash-back rewards, bill pay, savings envelopes, and access to mobile wallets. These enhancements put this pay card above the competition.

Many of the online ADP Run reviews are positive. Users raved about the features and onboarding but said that overall UX needed work. ADP Run scored an average rating of 4.50 out of 5 on third-party review sites.

Paycor offers four plans:

Basic: Custom-priced

• Includes payroll, tax services, check stuffing, new hire reporting, basic wage garnishments, and a custom report writer

Essential: Custom-priced

• Basic + onboarding, PTO tracking, “Pro” wage garnishment payment services, basic analytics, and access to an online HR support center

Core: Custom-priced

• Essential + employee data imports and access to Paycor’s HR solution

Complete: Custom-priced

• Core + advanced analytics, compensation planning and access to Paycor’s talent development module

Advanced HR features

For companies focused on employee management, Paycor’s training, talent development, and performance management modules are useful. You can go deep with skill surveys in addition to performance reviews. It even provides a compensation solution to help you plan and execute salary increases, bonuses, and rewards. Aside from TriNet Zenefits, none of the providers in this list have a plan that includes compensation planning, although some offer it as an add-on.

Compensation management

While TriNet Zenefits has compensation tools, Paycor takes it to the next level with customized and automated compensation, including bonuses, merit increases, and other programmable rewards. This can help eliminate manual work, make compensation more predictable for your employees, as well as make everything easier to track and budget.

However, Paycor lacks compensation benchmarking capabilities. If you need salary comparison tools, consider ADP’s DataCloud, which provides current market insights to aid you in creating competitive salary packages.

Hiring tools to support growth

Companies that need support as they grow will find Paycor’s recruiting and applicant tracking tools helpful as it streamlines essential hiring processes, like resume parsing and sending offer letters. You can even create a career page to help boost your employer brand. However, its job postings don’t reach 25,000 job sites like ADP does.

Users who rated Paycor on G2 and Capterra gave it an average score of 4.25 out of 5. They say the software is easy to use with efficient time tracking and payroll functionalities. Others commented that while customer service is generally good, the wait times are sometimes long.

Bamboo’s website states that for under 20 employees, it charges on a per-employee, per-month basis. Over 20 employees incur a monthly flat rate. Volume discounts are also automatically applied as your employee count rises. However, pricing isn’t transparent. We contacted the provider to get a quote, and we were provided the monthly fees for its Advantage plan (see below):

Essentials: Custom-priced

• Includes employee management, benefits tracking, workflow automation, and email support

Advantage*: $8.25 per employee monthly for a business with 20 workers

• Essentials + applicant tracking, onboarding tools, and phone support

You can also add other HR solutions to its base plans, such as:

• Payroll: $3 per employee*
• Time tracking: $4.25 per employee*
• Performance management: Custom-priced
• Benefits administration: Custom-priced

*Pricing is based on a quote we received

Engagement tools

The system allows you to run satisfaction surveys that come with Net Promoter Scores (NPS) for measuring employee loyalty and engagement levels. It helps you gauge how your workers feel about the company so you can identify where to improve. ADP, Gusto, TriNet Zenefits, and Paycor offer this in higher plans, and Rippling has surveys as an add-on.

Performance management

BambooHR is one of our top-rated performance management systems, sharing that honor with Zoho People and TriNet Zenefits. It rated highly for customizable review cycles and evaluation criteria. It also offers automated reminders and a goal status report to help managers to track team-wide progress.

Employee management

Like other software on the list, you have an employee database for staff changes, org charts, and documents. You can set permissions to control what employees can edit and view in the self-service portal, and changes automatically flow to its other solutions, including third-party integrations. Bamboo has 50 built-in integrations—a good number, though Rippling offers 10 times that—and an open API if you have a special need.

Learning management

One feature that Gusto, Homebase, and TriNet Zenefits don’t offer is training tracking. With BambooHR, you can set up the different training required for each employee (plus optional ones) with deadlines you can use to confirm they are completed on time. This helps support your employees’ developmental plans and ensures your staff attend required programs, like sexual harassment prevention training.

Overall, it earned average user scores of 4.54 out of 5 on third-party sites like Capterra and G2. Users like the intuitive platform, easy setup, implementation support, and the many HR tools that BambooHR offers. However, they’re not a fan of its mobile app because of its limited features.

Similar to TriNet Zenefits, Zoho People offers monthly and annual subscription options. However, annual plans require a lump sum, advance payment of the total fees. There are six plans:

Free plan: For up to five users only

• Includes an employee database, PTO and document management, and one system administrator seat

Essential HR: $1.50 per employee monthly ($1.25 per employee monthly if billed annually)

• Free + onboarding tools, forms, automations, and unlimited administrator seats

Professional: $2.50 per employee monthly ($2 per employee monthly if billed annually)

• Essential HR + time tracking, shift scheduling, and billing and invoicing integrations

Premium: $3.50 per employee monthly ($3 per employee monthly if billed annually)

• Professional + performance reviews, advanced HR analytics, and employee engagement tools

Enterprise: $5 per employee monthly ($4.50 per employee monthly if billed annually)

• Premium + learning and course management, online assessments, cases or employee query management, and a discussion forum

People Plus: $10 per employee monthly ($9 per employee monthly if billed annually)

• Enterprise + recruitment, expense tracking, payroll (India only), and communication tools

Businesses with more than 500 employees can contact the provider for a custom quote. Add-on solutions are also available if you want to further enhance the capabilities of Zoho People’s base plans.

• Zoho Payroll (for US companies): $19 + $3 per employee monthly
  • Includes automatic payroll and tax computations, payroll tax forms, employee self-service tools, and direct deposit payments (via integration with Forte)
• Employee profiles (for managing staff data but without employee login access): Starts at 23 cents per employee profile monthly; pricing may change depending on the plan selected
• Learning management: $2 per employee monthly (or $18 per user, per year)
• Hiring tools: $60 per recruiter monthly (or $600 per recruiter, per year)
• Premium support: $114 monthly (or $1,128 annually) or 25% of recurring licensing fee, whichever is higher
• Product onboarding assistance: Starts at $1,000; pricing may change depending on the plan selected

Time and attendance

While Zoho People’s free plan lets you monitor PTO, its time and attendance options grow more robust if you sign up for its premium tiers. It also lets you assign shifts and customize shift rotations if that fits your business model. And since it captures and verifies employee clock-ins/outs through facial recognition, it helps eliminate buddy punching and prevents time theft.

Employee performance management

Although an add-on, Zoho People’s performance management module stands out and made our list of the best performance management tools. Aside from employee evaluation forms, it offers 360-degree feedback and customized performance appraisal methods. Analyzing your employee’s work performance and potential is also made possible through an online 9-box matrix for identifying your top performers, rising stars, and those who need training. None of the other providers offer a similar matrix for assessing employees.

Employee query management

Unlike the other providers on this list that offer access to either HR advisers (like Gusto and Paycor), dedicated specialists (such as ADP and Paychex), or an HR help desk (like Rippling), Zoho People provides an HR case management tool that organizes and tracks the status of all of the questions your employees ask. This is a great feature for an HR specialist or manager. However, Zoho charges 58 cents per profile monthly for this in its Essential, Professional, and Premium plans.

Learning management

With this module, you can add videos, assignments, and quizzes to create your own courses for specific departments, jobs, or skills. You can combine self-guided or blended instruction (Zoho charges $2 per employee monthly for this in its Essential, Professional, and Premium plans). Gusto, Homebase, and TriNet Zenefits don’t offer learning management at all. While Rippling has more course offerings, Zoho has strong interaction features—from course feedback and a discussion forum to a manager’s space where they can suggest courses and track a supervisee’s progress.

Users gave Zoho People an average rating of 4.35 out of 5 on third-party user review sites. They raved about its wide range of products and the customizations it offers. However, some said there is a steeper-than-usual learning curve mainly because of its many features.

With Homebase, you can sign up for either a monthly or annual subscription. If you select an annual subscription, you can save up to 20%, but you must pay the annual fees in a lump sum and upfront. There are five plans to choose from:

Basic: Free for businesses with only one location (up to 20 employees)

• Includes time and attendance, scheduling, and employee management solutions

Essentials: $24.95 per location monthly ($20 per location monthly if billed annually)

• Basic + GPS tracking, advanced time tracking and scheduling, and team communication tools

Plus: $59.95 per location monthly ($48 per location monthly if billed annually)

• Essentials + PTO tracking and controls, hiring, and user permission settings

All-in-One: $99.95 per location monthly ($80 per location monthly if billed annually)

• Plus + new hire onboarding, HR and compliance, and labor cost management

You can also purchase the following add-ons:

• Payroll: $39 plus $6 per employee monthly
• Job posting boosts: Starts at $79 per job listing
• API access for integrations: custom-priced; free for All-in-One plan holders
• HR Pro advisers and resources: custom-priced; free for All-in-One plan holders

Solid time tracking and scheduling tools

Managing your workforce’s shifts and attendance at work is easy with Homebase’s online platform. Its free plan is equipped with the essential tools you need for tracking time and creating work schedules. If you upgrade to its paid plan, you are granted access to advanced solutions like customizable overtime and break preferences, automated real-time alerts and notifications, and location-based clock-ins through its mobile time clock. The paid plans also allow you to manage staff availability, as well as take snapshots of employees clocking in via tablets and POS devices.

Feature-rich platform

Aside from tracking employee attendance and creating staff schedules, Homebase can help you post job ads, find qualified candidates, onboard new hires, and communicate with teams. Note that Paychex and Gusto don’t have scheduling tools, while Rippling requires you to purchase two modules if you want to monitor employee attendance and track applicants as they move through the hiring pipeline.

Team communication

Communication tools are not easily found in others on our list but are an integral part of Homebase. While some, like Zoho, have employee announcement tools, Homebase has in-app communication for teams that include automated reminders, built-in messenger, shift feedback, and manager logs. These are typical of shift and scheduling tools, but not necessarily HR.

Payroll

Available as a paid add-on ($39 plus $6 per employee monthly), Homebase can handle pay processing for both employees and contractors. It supports multiple wage rates and blended overtime, and provides automated tax payments and filings. Unlike ADP Run, which charges fees per pay run, this provider lets you process payroll as many times as you want in a month. However, Homebase lacks the pay card option that ADP, Paychex, and Gusto have.

HR and compliance tools

New hires get their onboarding packets online, which include documents they need to fill out and direct deposit forms they can electronically sign. You can also store and manage basic employee information, as well as track PTO policies and requests.

In addition, Homebase can help you stay compliant with regulations that impact overtime, employee breaks, schedules, and payroll. However, you have to pay if you want HR advisory services—a feature that ADP Run, Gusto, and Paycor offer in premium plans.

Homebase scored an average of 4.40 out of 5 from real-world users; reviewers appreciate its ease of use, affordability, and efficient time and scheduling tools. Some, however, wished for more customization options and fewer app glitches.