12 Best Payroll Software For Small Businesses To Simplify Paydays

Managing payroll, taxes, and compliance can overwhelm small business owners with limited time and payroll experience. Mistakes in filings or calculations can quickly lead to fines, frustrated employees, and lost hours. Finding the right software is critical - it must handle W-2 and 1099 workers, multi-state taxes, and accurate filings, all while staying within budget.

To identify the best payroll software for small businesses, we analyzed dozens of platforms, spoke with hundreds of owners about real-world payroll challenges, and reviewed extensive user feedback. Each system was assessed for accuracy, compliance support, ease of use, and accounting tool syncs.

This guide highlights payroll solutions that simplify compliance, support W-2 and 1099 workers, and cut time spent on manual payroll tasks.

Gusto is built specifically for businesses with 1 to 100 employees – who need to handle payroll, taxes, and team payments. It has topped our lists for multiple reasons. It helps business owners get full automation for federal, state, and local payroll taxes across all 50 states. Plus, W-2s and 1099s are generated, filed, and delivered to employees/contractors seamlessly.

It also integrates smoothly with renowned software like QuickBooks Online and the Xero accounting solution, so employee data, deductions, and other details flow automatically. For hourly teams, mobile time tracking lets staff log hours on the go, and those timesheets sync right into payroll for accurate calculations.

Pros And Cons

Best For

This software supports businesses across industries, including healthcare, manufacturing, and restaurants.

Key Features

• Employee Benefits
• HR Tools
• Time Tracking
• Compliance
• Reporting

Pricing

The vendor offers two modules, one for Teams and one for Solo:

Pay Myself:

• Solo - $49/month + $6/person/month

Pay My Team:

• 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 favor Gusto for its balance between automation depth and operational control. It’s a dependable payroll system for businesses that need high-confidence payroll execution and tax compliance across all 50 states. In practice, the tool works best for business owners and startup founders managing mixed salaried and hourly teams who cannot afford payroll volatility or filing errors. We especially like Gusto for its consistency – payroll runs on schedule; filings are automated, and reporting stays clear across states without introducing operational complexity or manual oversight.

User Ratings

Rated 4.5/5 stars across multiple user reviews. Users appreciate Gusto for simplifying payroll, Human Resources (HR), and benefits, with a handy self-service portal, though some cite limited customization.

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 mobile app lets businesses run payroll from anywhere. Plus, built-in error alerts identify any potential issues before they turn into Internal Revenue Service (IRS) penalties, which translates to more time for the actual work of running the business.

Pros And Cons

Best For

Designed to support payroll needs in sectors including hospitality, healthcare, and construction.

Key Features

• Faster And Easier Payroll
• Flexibility And Compliance Built-in
• Expert Hiring And HR Support
• Integrate Add-ons Seamlessly
• ADP RUN Payroll

Pricing

ADP Run pricing starts at $79/month + $4/employee. The vendor offers the following four pricing plans at custom pricing with a 6-months free offer under certain conditions. The plans include:

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

Disclaimer: Pricing references are based on publicly available third-party information and industry benchmarks. Actual costs may vary.

Why We Like It

ADP RUN has earned its place on the list for numerous reasons. We like that it offers integrated Time & Attendance that syncs hours directly into payroll runs. However, ADP’s main strength lies in its process rigor and compliance depth. It uses automated tax filing and AI-powered error flagging to keep small businesses safe.

Its tailored dashboard – with step-by-step ‘priority to-do' lists, alerts, and payroll dates - helps businesses avoid common errors. This actually works well for owners who may not have dedicated payroll staff but still need accurate, compliant payroll for every cycle.

User Ratings

Holds an average rating of 5/5 from verified reviewers. Users praise the software’s dependable, personal support, though some mention overall higher expenses. 

QuickBooks Payroll delivers automatic tax calculations, filings, and payments, along with full W-2 management forms. Businesses also get HR resources through Mineral platform advisors, which provides expert guidance on state-specific labor laws and employee handbooks. This setup includes custom policies, auto payroll scheduling, and customizable pay stub delivery with notifications.

Native time tracking pulls hours straight into payroll runs, while seamless sync with QuickBooks Online pushes all payroll data to the books. In everyday use, it avoids manual tax errors that lead to penalties (with up to $25,000 protection on the Elite plan for covered issues).

Pros And Cons

Best For

Common among small businesses in industries like nonprofits, construction, and retail.

Key Features

• Same-Day Direct Deposit
• Automatic Payroll
• Time Tracking Management
• Employee Benefits Administration
• Tax Filing And Compliance

Pricing

It offers three pricing plans for bookkeeping + payroll with a 30-day free trial:

• Payroll Core + Simple Start – $88/month + $6.50/employee/month
• Payroll Core + Essentials – $125/month + $6.50/employee/month
• Payroll Premium + Plus – $203/month + $10/employee/month

Disclaimer: The pricing is subject to change.

Why We Like It

We find QuickBooks Payroll a practical choice for businesses already using QuickBooks Online, as payroll flows directly into existing accounting records. It works best for owners managing both varied schedules and multiple departments who need accurate payroll and reliable tax filing. All in all, we recommend it for Small and Medium-Sized Businesses (SMBs) that want payroll integrated directly with QuickBooks financial workflows without investing in separate integrations or IT support.

User Ratings

Receives a combined rating of 4.4/5. Users find QuickBooks Payroll valuable for QuickBooks Online customers, though support quality can be inconsistent.

Paychex Flex handles payroll for small businesses that need to stay on top of tax accuracy. With the tool, owners can get a straightforward process for running payroll on mobile or desktop, with federal, state, and local tax calculations, filings, and payments.

The Paychex Preview Preprocessing Report gives small businesses a clear chance to review all the payroll data beforehand, spot any discrepancies, and make fixes before final submission. Additionally, employees can also handle their own direct deposit setup and form access through self-service, so those tasks don't land back on the admin's desk. Operationally, this creates a stable environment where business owners no longer have to manually verify if local withholding rates for multi-state hires are current.

Pros And Cons

Best For

A practical option for businesses in industries such as real estate, education, and hospitality.

Key Features

• Payroll Services
• Human Resources
• Retirement Services
• Employee Benefits
• Time And Attendance
• Professional Employer Organization (PEO) Services

Pricing

Paychex pricing starts at $39/month + $5/employee. The vendor also offers two modules for different needs:

• Payroll Plans
• Paychex Flex Select
• Paychex Flex Pro
• Full-Service HR & Payroll
• Flex Enterprise
• HR Pro
• HR PEO

Disclaimer: Pricing references are based on publicly available third-party information and industry benchmarks. Actual costs may vary.

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. From a workflow standpoint, these integrations ensure that businesses can automate the transfer of time-logs and salary adjustments directly into the payroll engine. We recommend Paychex Flex, specifically for budding businesses that want payroll to be tied well with HR and accounting.

User Ratings

The software reflects a 4/5 user rating. Users like Paychex Flex for its user-friendly interface and real-time payroll tracking, though the mobile app can feel cluttered. 

OnPay handles payroll tasks for small businesses, managing a mix of W-2 employees and 1099 contractors, plus taxes across multiple states. Owners can enter hours just once for unlimited monthly payroll runs, which then trigger automatic federal, state, and local tax calculations, filings, and payments in all 50 states.

In addition, the general ledger exports push data straight into Xero or QuickBooks. For small business owners, this means the bank balance and accounting software stay automatically aligned. This results in a more accurate picture of available funds to minimize the risk of cash flow discrepancies caused by pending payroll tax obligations. In addition, employee self-onboarding and lifetime access to documents mean admins don't have to go through the redundant cycles of manual document retrieval.

Pros And Cons

Best For

Used by small businesses across sectors such as healthcare, nonprofit, and restaurants.

Key Features

• Org Charts
• Employee Onboarding
• Reporting And Analytics
• Self-Service Portal
• PTO Tracking
• Health Insurance

Pricing

The vendor offers a pricing plan with free data migration and setup, and one month free. It also comes with a 30-day free trial. The base fee starts at $49/month + $6/month/person.

Disclaimer: The pricing is subject to change.

Why We Like It

OnPay has earned a position on this list, all thanks to its multi-state tax support, as well as easy contractor management. We recommend it for its clear reporting and QuickBooks/Xero integration reduce bookkeeping friction, while responsive support assist businesses owners to mitigate significant errors. Recognized by Forbes and CNBC for ‘Best Overall Payroll Service for Small Business’ in 2023, it suits multi-state small businesses needing dependable payroll administration. 

User Ratings

Scored 4.8/5 stars based on aggregated user feedback. Reviewers appreciate the software’s strong support and clear tutorials, though initial setup can require some learning.

Rippling helps execute payroll quickly, along with automatic federal, state, and local tax calculations, filings, and payments. W-2s and 1099s get generated too, backed by an accuracy guarantee and penalty indemnification if any system errors slip through.

Crucially, approved timecards and payroll-specific onboarding data flow directly into the disbursement engine. This synchronization removes the need for any manual data bridges between employee attendance records and their final paychecks. Simultaneously, the general ledger syncs post journals automatically to QuickBooks or NetSuite. This results in a single, clean audit trail where the payroll records remain perfectly aligned with the company's financial statements.

Pros And Cons

Best For

Suitable for payroll use in sectors including professional services, healthcare, and financial services.

Key Features

• Benefits Administration
• Global Workforce Management
• Global Payroll
• Rippling PEO
• Rippling HR Services

Pricing

Rippling pricing starts at $8/employee/month alongside a monthly base fee of $35/month. The platform also includes the following modules:

• UK And Global Payroll
• Time & Attendance
• Benefits Administration
• Scheduling
• Chat
• Recruiting
• Learning Management
• Headcount Planning
• Performance Management
• Surveys
• Global Employer of Record Services

Disclaimer: The pricing is subject to change.

Why We Like It

We like Rippling because it brings order to what is often a fragmented early-stage setup. By keeping payroll closely aligned with HR, IT, and finance, it reduces operational friction as teams grow. Its adoption by fast-scaling companies like Barry’s and Superhuman signals reliability at scale, particularly for maintaining payroll accuracy and compliance across roles. For small businesses looking to stay disciplined and predictable early on, Rippling helps eliminate tool sprawl and avoid costly mistakes.

User Ratings

Rated 4.9/5 based on consistent reviewer feedback. Users appreciate Rippling HR for simplifying payroll and onboarding, though workflow customization has some limitations.

Square Payroll works well for small businesses, especially those already using Square Point of Sale (POS). Small businesses can pull timecards and tips straight from Square POS into unlimited monthly payroll runs. This triggers multi-level tax processing to satisfy federal, state, and local regulatory requirements in all 50 states.

The mobile app (now integrated into the Square Team app) lets businesses execute full payroll runs rather than just basic approvals, on the go. This functionality includes the ability to manually adjust hourly totals, input one-time bonuses, and override tip allocations before the final transmission. In addition, the labor cost reports help track wages against sales, giving clear visibility into how payroll impacts the bottom line.

Pros And Cons

Best For

Often selected by organizations in industries such as retail, food and beverage, and beauty.

Key Features

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

Pricing

Square offers two plans, including:

• Full-Service Payroll - $35/month + $6/person paid
• Contractor-Only Payroll - $6/person paid

Disclaimer: The pricing is subject to change.

Why We Like It

We recommend it for Square-first businesses that want payroll aligned with how money flows, thereby minimizing manual reconciliations. It works best for retailers, restaurants, and service brands that want payroll closely tied to daily sales and labor data. The added advantage is Square Banking, which supports faster access to funds and growth capital.

User Ratings

Rated 4.8/5 stars based on numerous user reviews. Users value Square Payroll for simplifying payroll, time tracking, and admin tasks, though schedule integration with Appointments is limited.

Wave Payroll helps business owners pay salaried, hourly, or contractor workers through direct deposit, with built-in tax calculations. Plus, automatic generation of W-2s for employees and 1099s for contractors happens all right inside the Wave accounting dashboard. Payroll entries sync to Wave accounting, track leave accruals and expense breakdowns by workers, and give employees self-service access to pay stubs and updates. Business owners save hours on manual entries and tax forms, maintaining matched books without juggling systems.

Pros And Cons

Best For

Fits operational needs in industries like freelancers, contractors, and consultants.

Key Features

• Automated Payroll Processing
• Direct Deposit Payments
• Tax Filing Automation
• Employee Self-Service
• Integrated Accounting Sync

Pricing

Wave pricing model for payroll comes with a 30-day free trial. It starts with a $40/month base fee, plus $6/active employee and an additional $6/independent contractor paid. This structure keeps costs predictable for small businesses while allowing flexibility as teams expand.

Disclaimer: The pricing is subject to change.

Why We Like It

We like Wave Payroll for its simplicity within the Wave ecosystem. Its native ‘expense-to-payroll' workflow allows business owners to convert tracked employee expenditures directly into taxable or non-taxable reimbursements. Integration with Wave’s accounting and invoicing tools keeps books matched, so there’s no need to export, import, or double-check entries later. It’s a strong fit for service businesses with field staff, where owners can approve mobile receipts and auto-trigger reimbursements in the next payroll simultaneously.

User Ratings

Receives a combined user rating of 4.5/5 stars. Users find Wave efficient for freelance payroll and invoicing, though some features may be unnecessary for smaller businesses.

Patriot Payroll works well for small businesses that want straightforward payroll combined with useful tools for tracking labor costs and staying on top of basic tax compliance. With Employee Census reports, businesses can actually see a quick snapshot of worker details - like status, job titles, hire dates, demographics, and contact info. Similarly, the Departments in Payroll report breaks down costs by team or department, helping with allocation, budgeting, and planning decisions.

The Full-Service plan takes care of federal, state, and local tax filings, payments, plus automatic W-2 and 1099 generation, while the Basic plan lets businesses handle filings themselves at a lower price point. Both offer mobile and web access for unlimited payroll runs, free direct deposit, and a clean interface that keeps things moving.

Pros And Cons

Best For

A practical option for businesses in industries such as distribution, healthcare, and maintenance.

Key Features

• Payroll Management
• Payroll Reporting
• Tax Compliance
• W-2 Preparation

Pricing

Patriot offers a 30-day free trial for all payroll and accounting plans:

Payroll Software:

• Basic Payroll - $17/month + $4/worker 
• Full Service Payroll - $37/month + $5/worker 

Accounting Software:

• Accounting Basic - $20/month
• Accounting Premium - $30/month

Disclaimer: The pricing is subject to change.

Why We Like It

Businesses that need precise control over payroll, labor costs, and employee payments can benefit from Patriot Payroll features. It suits owners managing multi-department teams or tracking workforce expenses across locations, where accurate payroll reporting and timely disbursements directly support operational and financial decisions. Recognized by U.S. News & World Report for ‘Best for Tax Filing,’ it combines reliable tax compliance with efficient, user-friendly payroll management.

User Ratings

Reflects a 5/5 score across user reviews. Users appreciate Patriot Payroll’s responsive support, though payroll modifications can be more challenging.

SurePayroll works well for small businesses managing both W-2 employees and 1099 contractors. It gets payroll done fast with automatic tax calculations, filings, and direct deposits in a single platform. Businesses can run unlimited payroll runs right from the mobile app or desktop. With the Full Service option, federal, state, and local taxes get calculated, filed, and deposited, plus W-2s and 1099s generated for all states.

Reports and paystubs stay available online 24/7, and free onboarding support, combined with automatic scheduling, gets things set up smoothly. Backed by Paychex, it scales easily into additional HR tools and benefits as the business grows, without forcing a platform switch in the future.

Pros And Cons

Best For

Designed to support payroll needs in sectors including dental offices, law firms, and retail.

Key Features

• Automated Payroll Calculations
• Tax Filing Support
• Employee Direct Deposit
• Contractor Payment Management
• Benefits Deduction Tracking

Pricing

SurePayroll offers flexible payroll plans designed for small businesses, with straightforward monthly billing and no long-term commitments. The plans include:

• Full Service - $29/month + $7/employee
• No Tax Filing - $20/month + $4/employee

Disclaimer: The pricing is subject to change.

Why We Like It

SurePayroll is ideal for small businesses that need fast, reliable payroll while keeping compliance simple. SMBs can benefit from accurate multi-state tax filings and contractor management without adding HR complexity. With 24/7 access to reports along with integration into Paychex tools, it supports growth and operational oversight as businesses scale. We especially like how it maintains accuracy for dispersed workforces, letting owners focus on growth rather than regulatory pitfalls.

User Ratings

Shows a consolidated rating of 4.5/5. Users find SurePayroll effective for smooth payroll and filing, though occasional state tax errors and service issues occur.

Zenefits - now rebranded as the TriNet HR Platform - combines payroll with HR tools for small and midsize businesses. It manages federal, state, and local tax calculations and filings and generates W‑2 and 1099 forms for employees and contractors. This unified platform ensures that salary changes or new hires entered in HR automatically flow into payroll runs with no need for any manual updates. Building on that, the platform executes a ‘three-click payroll’ workflow that aggregates data from integrated time-tracking, benefits deductions, and expense modules into a single run.

Pros And Cons

Best For

Zenefits supports businesses across industries such as manufacturing, e-commerce, and life sciences.

Key Features

• Employee Management
• Payroll Processing
• Benefits Administration
• Time And Attendance Tracking
• HR Compliance

Pricing

The software cost begins at $10/employee/month. The final cost depends on selected service tiers, add-ons, and the overall size of the workforce.

Disclaimer: Pricing references are based on publicly available third-party information and industry benchmarks. Actual costs may vary. 

Why We Like It

We recommend Zenefits for how it offloads the mental burden of tax deadlines and maintains a clear financial history without hiring a payroll manager. It suits teams needing integrated payroll, HR, and compliance support, especially where audit risk is high. With scalable PEO or HR Plus models, businesses get access to professional guidance with no need to switch platforms. In fact, its pricing also remains reasonable for budding organizations.

User Ratings

Based on multiple reviews, the software is rated 4.2/5. Users like the ease when it comes to accessing paychecks and tax documents. However, reviewers also note that the software could add a way to manage contracts for foreign employees.

Paylocity unifies payroll, reporting, and tax filing in one software for small businesses to save time and offer efficiency. Teams can verify and revise their payroll registers before payroll processing and can view employees marked for retro pay or prorated to make respective changes. Moreover, the software lets teams customize ledgers, accruals, and complex reports.

Pros And Cons

Best For

Paylocity is designed for various industries such as retail and warehouse, education, healthcare, non-profit, etc.

Key Features

• Benefits Administration
• Time And Attendance
• Payroll Processes
• Automated Workflows

Pricing

The starting price for Paylocity is estimated to be between $22/user/month to $32/user/month. Its Payroll plan provides several features, such as custom payroll workflows, payroll support for 100+ countries, 30+ payroll audits, etc.

Disclaimer: Pricing references are based on publicly available third-party information and industry benchmarks. Actual costs may vary.

Why We Like It

We recommend Paylocity for its ‘Employee Self Service’ feature. Small businesses generally have fewer resources, and it relieves the HR department of some of the burden. This feature lets employees manage their own data. They can view direct deposit information, digital timecards, and submit time off requests.

User Ratings

Based on multiple reviews, the software is rated 4.2/5. Users like the ease when it comes to accessing paychecks and tax documents. However, reviewers also note that the software could add a way to manage contracts for foreign employees.

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.

What Not To Overlook

• Headcount Tiers - Very small teams (1–10 employees) often benefit from lower-base plans; as teams grow beyond 25 employees, deeper reporting and HR scaling become more important
• Tax Automation - Plans that handle filings and payments lower chances of errors; self-service options lower cost if you’re comfortable managing taxes yourself
• Worker Support - Ensure smooth handling of 1099 payments alongside W-2s, including tipped or variable wages for service roles
• Mobile Access And Accounting Syncs - Test apps for on-the-go payroll and verify general ledger exports to accounting systems during trials
• Compliance Support - Penalty protection and audit guidance become increasingly important as the business grows

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.