Best Payroll Software For Small Businesses

Managing payroll shouldn't take up half your Sunday. But for most small business owners, that's exactly what happens: chasing tax deadlines, manually calculating deductions, and hoping nothing slips through the cracks. 

We analyzed dozens of platforms, spoke with hundreds of small business owners, and reviewed real user feedback to find solutions that actually hold up. Every platform was evaluated on accuracy, compliance support, ease of use, and accounting integrations. 

Below you may find vendors offering both a payroll plan and a full HR suite. While both are designed to help you manage your workforce, they differ in scope. A payroll plan typically handles the core mechanics — calculating wages, processing payments, and filing payroll taxes. A full HR suite, on the other hand, goes further by bundling in additional HR functions such as benefits administration, compliance support, onboarding, and employee management tools. For a small business looking to simply run payroll, the payroll plan suffices. But if you're looking to consolidate your HR operations under one roof, a full HR suite offers a more comprehensive solution. 

Gusto automates payroll end-to-end — federal and state filings, W-2s, 1099s, and direct deposits across all 50 states. It integrates directly with QuickBooks, eliminating duplicate entry. The platform is clean and intuitive, requiring no prior payroll experience to operate effectively. 

Pros And Cons 

Best For 

The software is suitable for healthcare facilities, marketing firms, retail stores, restaurants, nonprofit organizations, and law firms. 

Key Features 

• Automated Tax Filings 
• Payment Options 
• Compliance 

Pricing 

The vendor offers a starting price of $49/month under its Pay Myself module’s Solo plan. For the Pay My Team Plan, the software offers:

• Simple - $49/month + $6/person/month 
• Plus - $80/month + $12/person/month 
• Premium - $180/month + $22/person/month 
• Contractor Only - $35/month + $6/person/month 

Disclaimer: The pricing is subject to change. 

Why We Like It 

We like Gusto for its easy-to-use interface, smooth onboarding, and strong support, which make payroll setup straightforward even for first-time users. It helps reduce the chances of errors during tax filing. Moreover, it eliminates paper checks with a Gusto debit card, offering a more streamlined and eco-friendly way to pay employees. 

User Ratings 

Multiple user reviews highlight how Gusto is a convenient payroll app that is easy to use on mobile devices. However, some users are of the view that login time should be under a minute.

OnPay handles payroll across W-2s and 1099 contractors, supporting direct deposits, paper checks, and prepaid debit cards in a single run. It automatically files Form 940 and Form 941, manages multi-state taxes, and generates customizable reports across 50+ data points. 

Pros And Cons 

Best For 

The software suits the needs of retail businesses, accounting firms, financial services companies, etc. 

Key Features 

• Custom Payroll Reporting 
• PTO Tracking 
• Unlimited Monthly Pay Runs 

Pricing 

The base fee of OnPay starts at $49/month + $6/month/employee. The vendor offers free data migration and setup. It also offers a 30-day free trial, so businesses can test the core features before onboarding.

Disclaimer: The pricing is subject to change. 

Why We Like It 

OnPay has earned a position on this list because of its easy onboarding and detailed help tutorials. Users can get help from the tutorials available on the website rather than waiting for customer support to respond. Moreover, dental offices and law firms gain automated tax filings, while restaurants handle overtime, tipped wages, and cash tips flawlessly. Farms and nonprofits manage Form 943 and FUTA exemptions effortlessly. 

User Ratings 

Users like how the software offers a smooth onboarding experience, with representatives who guide them through the entire process. However, a few user reviews suggest that instead of a recurring reminder about social security verification, the software should provide an option to acknowledge or dismiss it once.

Paylocity gives small businesses full control over payroll configuration; check types, accruals, and General Ledger mapping. Built-in review tools flag pay issues before processing, and automated compliance covers labor updates and bank setups across 100+ countries. 

Pros And Cons 

Best For

Paylocity is used by supply and equipment companies, non-profit organizations, healthcare providers, entertainment businesses, etc. 

Key Features

• Tax Services 
• On-Demand Payment 
• Garnishment Services 

Pricing 

Paylocity offers tailored plans to meet the diverse needs of companies. All plans come with custom pricing, meaning the final quote depends on the number of users, organization size, and selected features. 

Disclaimer: The pricing is subject to change. 

Why We Like It

For small businesses, time is money and wasting it on a clunky interface can be frustrating. Paylocity earns a high rating in user experience. With their focus on product and functionality, businesses can benefit from better payroll and efficient customer support. Moreover, it automates wage garnishment compliance by handling documentation and disbursements via check or electronic payment. 

User Ratings 

Users like the ease when it comes to accessing paychecks and tax documents, as per the user reviews. However, some reviews also note that the software could add a way to manage contracts for foreign employees. 

Square Payroll enables businesses to automate timecard-to-payroll synchronization with Square POS and Team Management. The software handles tips, commissions, and multi-state tax filings, including 940, 941, 944, W-2, and 1099-NEC forms. 

Pros And Cons 

Best For 

The software is most commonly used by restaurants, hospitals and healthcare facilities, and real estate firms. 

Key Features 

• Automated Tax Filings 
• Labor-Cost Reporting 
• Instant Deposit 

Pricing 

Square pricing starts at $35/person with an additional $6/person paid under its Full-Service Payroll. The software also offers Contractor-Only Payroll for $6/person paid.

Disclaimer: The pricing is subject to change. 

Why We Like It 

We recommend it for Square-first businesses that offer retirement plans as well. The software handles vacation time and retirement for employees while automatically tracking and paying commission to employees, if set by the organization. The software also lets organizations set up auto-deductions for employees. Above all, management can access all the information via the mobile app.

User Ratings 

Numerous user reviews suggest that users value the software for simplifying payroll, time tracking, and admin tasks, though some think that submitting timecards through the employee app can be frustrating.

QuickBooks Payroll integrates accounting for automated federal/state/local tax calculations, filings, and same-day direct deposits. Its AI-powered processing flags anomalies. Moreover, Mineral platform advisors, a partner of QuickBooks, provide expert guidance on state-specific labor laws and employee handbooks to businesses. 

Pros And Cons 

Best For 

The software is used by education management organizations, marketing and advertising firms, retail businesses, construction companies, etc. 

Key Features 

• Same-Day Direct Deposit 
• Automatic Payroll 
• Tax Filing And Compliance 

Pricing 

Quickbooks Payroll pricing starts at $88/month with an additional $6.50/employee/month under its Payroll Core and Simple Start modules. It offers other pricing plans for bookkeeping + payroll with a 30-day free trial: 

• Payroll Core and Essentials – $125/month + $6.50/employee/month 
• Payroll Premium and Plus – $203/month + $10/employee/month 

Disclaimer: The pricing is subject to change. 

Why We Like It

QuickBooks Desktop suits small businesses without IT support. It is simple to install and use locally. It auto-downloads transactions and credit card buys and also categorizes recurring bills like insurance. Its trusted penalty protection covers up to $25,000 for tax errors and even represents the company before IRS, under certain conditions. 

User Ratings 

Scheduling payments directly into employee accounts is easier, according to user reviews, though support quality can be inconsistent. 

Deel offers global payroll in 150+ countries from one dashboard. It automates salary calculations, taxes, contributions, and multi-currency payments with local compliance. Employees get self-service pay slips, while teams gain real-time insights and error-free runs. Setup starts with simple onboarding flows. 

Pros And Cons 

Best For 

Suitable for payroll in sectors like transportation companies, IT services firms, financial services providers, and cybersecurity businesses. 

Key Features 

• Real-time Gross-to-Net Payroll 
• Multi-Country Processing 
• Automated Tax Filing 

Pricing

Deel’s starting price for payroll is $24/employee/month, under its Managed Payroll module for businesses in the US. For Global organizations, the platform charges $29/employee/month. 

Disclaimer: The pricing is subject to change 

Why We Like It 

We like Deel for its smooth global payroll setup and reliable on-time payments that keep international teams paid without hassle. Strong onboarding support and responsive customer service shine during transitions from other tools. Furthermore, its centralized platform cuts down on scattered apps, simplifying everything in one place. 

User Ratings 

Based on user reviews, Deel is ideal for working with contractors around the globe and handling their payroll. However, some think that the exchange rate could improve.

ADP RUN is a solid payroll solution that calculates federal, state, and local payroll taxes, handles filings and payments, generates W-2s, and manages new-hire reporting. The platform’s built-in error alerts identify any potential issues before they turn into Internal Revenue Service (IRS) penalties. 

Pros And Cons 

Best For 

Designed to support payroll needs in insurance, automotive, and health, wellness, and fitness sectors, etc. 

Key Features 

• AI Error Flagging 
• RUN & DONE Automation 
• Employee Self-Service Portal 

Pricing 

The vendor offers ADP Run with four custom plans, along with a 6-month free offer under certain conditions. The plans include: 

• Essential Payroll 
• Enhanced Payroll 
• Complete Payroll & HR+ 
• HR Pro Payroll & HR 

Disclaimer: The pricing is subject to change 

Why We Like It

Our team values ADP for its scalability as businesses grow, flexible pay options, enhanced employee handbook support to streamline policy creation, competitive retirement plans via ADP Retirement Services add-on to attract talent, and simplified workers' compensation insurance with pay-as-you-go options for risk preparedness. 

User Ratings 

Users praise the software’s dependable, personal support, according to some verified reviewers; however, some think that payroll does not sync well with time tracking. 

Paychex Flex suits small businesses needing accurate payroll with tax calculations, filings, and payments across mobile or desktop. The Paychex preview preprocessing report enables data review and fixes before submission. 

Pros And Cons 

Best For 

A practical option for businesses in industries such as recreational facilities and services, non-profits, real estate firms, and medical practices, etc. 

Key Features 

• Pre-Payday Paystub Review 
• Admin Audit Trail 
• Compliance Safeguards 

Pricing 

Paychex offers the following two plans to cater to payroll-related needs of the users: 

• Paychex Flex Select 
• Paychex Flex Pro 

Disclaimer: The pricing is subject to change 

Why We Like It 

Businesses handling workforce complexity may find Paychex Flex a solid option for payroll runs. We particularly like its smooth connection with many platforms, including BambooHR for HR management and Clover software for point-of-sale and time tracking. Paychex Flex automates time logs and salary adjustments into payroll for budding businesses.

User Ratings 

User rating reveals how Paychex Flex is very user-friendly and offers real-time payroll tracking, though the mobile app can feel cluttered. 

9. Patriot Payroll 

Patriot Payroll suits small businesses seeking straightforward payroll with standout labor cost tracking. The employee census report provides a quick snapshot of worker details, while the Departments report breaks down costs by team for better budgeting and planning. 

Pros And Cons 

Best For 

The software is perfect for architecture and planning firms, computer software companies, construction businesses, etc. 

Key Features 

• Payroll Management 
• Payroll Reporting 
• W-2 Preparation 

Pricing 

Patriot Payroll has a starting price of $17/month with an additional $4/worker paid under its Basic Payroll plan. Companies can get a 30-day free trial for all payroll and accounting plans. Companies can also choose the Full Service Payroll for $37/month + $5/worker paid. 

Disclaimer: The pricing is subject to change. 

Why We Like It 

Our team found Patriot Payroll perfect for small businesses managing hourly teams with varied roles. It provides free 4-day and 2-day direct deposit options, plus check printing capabilities. Moreover, it is simple to use and helps businesses manage tax filing processes and payroll efficiently.

User Ratings 

User reviews show that the software is ideal for beginners with no advanced knowledge. However, some users think that customer service should be improved. 

10. Remote

Remote's global payroll consolidates multi-country payroll, taxes, benefits, and compliance into one AI-powered platform across 100+ countries. Businesses can use automated payments, bulk uploads, seamless HR integrations, and in-house experts for accuracy and speed, without outsourcing.

Pros And Cons 

Best For 

The software is best for accounting firms, business analytics companies, finance firms, etc. 

Key Features 

• AI-Powered Payroll Workflows 
• Multi-Country Tax Compliance 
• Automatic Payments Engine 

Pricing 

Pricing for the software starts at $29/employee/month under its Payroll plan. Organizations can choose other plans based on their needs. 

Disclaimer: The pricing is subject to change. 

Why We Like It

We like Remote as it handles compliance automatically; no IT team needed. Watchtower keeps the organization ahead of regulatory changes, and IP Guard protects their intellectual property overseas. It's like having a legal and security team built right into your payroll software. 

User Ratings 

User rating shows how users like the ease of managing everything from contracts to payroll in one place. Though some users think that contractor adjustment takes time to implement. 

11. SurePayroll 

SurePayroll by Paychex suits small businesses paying W‑2 employees and 1099 contractors, offering unlimited payroll runs with automatic tax calculations, filings, and direct deposit via web or mobile. Its Full Service plan handles federal, state, and local taxes plus W‑2 and 1099 generation, with 24/7 online reports and easy scaling into Paychex HR tools. 

Pros And Cons 

Best For 

The software is used by hospitals and healthcare organizations, consumer goods, wellness and fitness centers, etc.

Key Features 

• Automated Payroll Calculations 
• Contractor Payment Management 
• Benefits Deduction Tracking 

Pricing 

SurePayroll has a starting price of $29/month with an additional $7/employee under its Full Service module. The vendor offers flexible payroll plans designed for small businesses, with straightforward monthly billing and no long-term commitments. Another plan businesses could opt for is No Tax Filing for $20/month + $4/employee 

Disclaimer: The pricing is subject to change. 

Why We Like It 

SurePayroll is highly regarded for its "Auto-Run" capability, which allows business owners to automate recurring payroll and tax filings with minimal monthly intervention. Its easy-to-use interface and mobile accessibility make it an efficient choice for those who want a no-frills system that integrates easily with common accounting software. 

User Ratings 

Users find SurePayroll effective for smooth payroll and filing, according to the user reviews online. Though occasional state tax errors and service issues occur. 

12. Zenefits

Zenefits (now TriNet HR Platform) unifies HR and payroll for small and midsize businesses, automating multi-state tax calculations and filings including W‑2s and 1099 contractors. It also syncs HR changes into a three‑click payroll run that pulls time, benefits, expenses, and hours tracked in real time. 

Pros And Cons 

Best For 

Zenefits supports businesses across industries such as IT, entertainment, financial services, etc.

Key Features 

• Employee Management 
• Payroll Processing 
• Benefits Administration 

Pricing 

The final quote of the software varies for every business based on the number of users, the size of organizations, and the features needed. Businesses may also expect additional costs for implementation, third-party integrations, personalized training, and data migration. 

Disclaimer: The pricing is subject to change. 

Why We Like It 

We recommend Zenefits (TriNet HR Platform) for automating HR and payroll tasks and maintaining clear payroll records without requiring a dedicated manager. It takes care of time-consuming processes that businesses often struggle with, allowing organizations to focus on growth. 

User Ratings 

User feedback shows that Zenefits is helpful for generating timely and accurate payroll. However, some users feel the employee self-service experience could be more intuitive. 

13. Homebase 

Homebase Payroll works well for small hourly teams. Hours from time clocks go straight into paychecks. It handles tax calculations, filings, direct deposits, and unlimited runs. Features like tip management, next-day payroll, and payroll reports help streamline operations for tipped hourly teams. 

Pros And Cons 

Best For 

The software supports businesses across industries such as restaurants, automotive, non-profit organizations, etc. 

Key Features 

• Automated Timesheet Payroll 
• Multi-Location Runs 
• Direct Deposit Processing 

Pricing

Under its Essentials module, the software charges $30/location/month with unlimited employees. Businesses can also choose the following modules: 

• Basic- Free 
• Plus- $70/location/month (unlimited employees) 
• All-In-One- $120/location/month (unlimited employees) 

Disclaimer: The pricing is subject to change. 

Why We Like It 

We recommend Homebase because it lets employees easily check schedules, trade shifts, and preview wages via a simple mobile app. Clocking in is effortless and location-specific, making it ideal for hourly teams in small service businesses. Moreover, scheduling and time tracking let organizations build shifts, track hours, and approve timecards in one smooth flow. 

User Ratings 

User sentiments show how the platform predicts what payroll may cost for the week, helping them plan accordingly. However, some users think that the iPhone version could be improved. 

Key Buying Advice For Small Businesses 

When selecting the best HR and payroll software for small businesses (1–100 employees), start by matching your headcount, mix of W-2 and 1099 workers, and any multi-state tax requirements to the plan details.

Prioritize unlimited payroll runs, full-service tax handling (federal, state, and local), and automatic W-2/1099 generation, essential for contractor-heavy or multi-location teams. Whether you need the best small business payroll software for a startup or for a small business looking to scale globally, keeping in mind these details are very important. 

In-House Or Outsource: What Should SMBs Prefer? 

• Outsource: If you are a small business (<50 employees) without dedicated IT or HR staff, outsourcing payroll can help reduce costs through automation, compliance tools, and reduced administrative overhead.
• Did you know: A 10-person business spending 5 hours/week on manual payroll at $30/hour spends ~$7,800/year in labor — more than most full-service payroll plans. 
• In-House: If you want direct control over payroll operations, an in-house approach works well for businesses with steady payroll volume, custom workflows, or sensitive data that requires full control. It requires upfront investment in software and staff but can reduce long-term costs, with ROI typically achieved in 2–3 years. 

What Not To Overlook

Headcount Tiers: Very small teams (1–10 employees) benefit from lower-base plans focused on core payroll essentials without complex HR features. As teams grow beyond 25, deeper reporting, multi-state tax handling, and scalable integrations gain priority to support expansion. 
Options:

• Core/Basic plans- Patriot Basic, Gusto Simple
• Enhanced/SMB tiers- ADP RUN, QuickBooks Payroll 

Tax Automation: Plans with full tax filing and payment automation reduce error risks and save time for businesses handling federal, state, or local compliance. Self-service options cut costs if your team prefers manual oversight with guided calculations. 
Options:

• Full-service- Paychex Flex, Gusto, OnPay 
• No Tax Filing- SurePayroll 

Worker Support: Smooth contractor payments alongside W-2 employees are essential, especially for 1099s, tips, or variable hourly wages in service industries. Look for unlimited runs and flexible pay types to avoid extra fees. 
Options:

• Contractor-focused- Patriot, Square Payroll 
• Multi-worker- ADP RUN, QuickBooks Payroll 

Mobile Access And Accounting Syncs: Reliable mobile apps enable on-the-go payroll runs, while seamless GL exports to QuickBooks or Xero keep books aligned without double-entry. Test during trials for speed and data accuracy. 
Options:

• Mobile-strong- Square Payroll, Homebase 
• Sync-heavy- QuickBooks native, Gusto 

Compliance Support: Penalty protection up to $25,000 and audit assistance grow vital as headcount rises, shielding against IRS issues from misfiling or multi-state complexities. Prioritize guarantees and dedicated support. 
Options:

• Protected plans- QuickBooks, ADP RUN 
• Expert guidance- Remote, Deel 

In the end, choose a platform befitting your business size, payroll complexity, and compliance needs, so payroll runs accurately every cycle and integrates seamlessly with your accounting and HR workflows. 

When To Switch To A Different Software?

For SMBs, switch payroll software at quarter-ends or year-start (Jan 1) to align with tax cycles and simplify data migration, avoiding mid-year chaos. Plan 30-60 days ahead for testing, especially if outgrowing features like Gusto's Simple plan. This timing minimizes errors, ensures smooth W-2/1099 handling, and sets you up for scalable growth without disruptions. 

Best Payroll Option- Niche 

Best Payroll Option- Affordability 

Frequently Asked Questions