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Best Payroll Software for Small Business 2023

Best Payroll Software for Small Business

We reviewed 20 of the most popular payroll software programs available in the US, evaluating each based on key factors such as HR features, ease of use, pricing, scalability of plans, and customer service feedback.

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To summarize, Gusto is often a go-to provider for small businesses seeking payroll software. With its robust payroll features, automatic tax filing, and flexible plans, Gusto fits businesses of all sizes across various industries.


But while Gusto is highly recommended, it is not the only option. SurePayroll has some of the lowest-priced plans, including a self-service and a full-service. If you require more comprehensive HR management, then Paychex and ADP are good choices. OnPay balances payroll services that are solid at a good price point.

Payroll Hero Section

Our top pick for payroll software: Gusto

Gusto stands out as the best overall payroll solution, thanks to its user-friendly interface and comprehensive payroll services, including HR tools.

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Best Payroll Software

Best 5 Payroll Software for Small Businesses

Compare the Best Payroll Software Costs and Features

Compare the Best Payroll Software Costs and Features

Provider Starting monthly base price Monthly fee per employee Free year-end tax filing Health benefits administration Free trial Get started
Gusto
$40.00 $6.00 ✓ ✓ Free demo
QuickBooks Payroll
$22.50 $4.00 ✓ ✓ 2 mos.
ADP
$79.00 $4.00 ✕ ✓ 6 mos.
Paychex
$39.00 $5.00 ✕ ✓ 2 mos.
onpay
$40.00 $6.00 ✓ ✓ 1 mo.
Gusto: The Best Overall Payroll Software for Small Businesses

Gusto: The Best Overall Payroll Software for Small Businesses

  • Starts at $40.00 + $6.00/payee
  • Automatic payroll tax administration
  • Affordable insurance options (in-house brokers)
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This is what makes Gusto different—from most payroll services that charge extra for additional services like those listed above, while Gusto includes them at no extra cost. For example, Gusto offers in-house insurance brokers who help employees source medical and workers' compensation insurance, while ADP and Paychex charge additional fees to integrate insurance.

I must point out though, during the COVID-19 pandemic, Gusto's customer support faced significant challenges, leading to a low rating of 2.6/5 on Trustpilot in March of 2022. However, by 2023, the rating improved to 3.7. Today, reviews praise Gusto for its friendly tech support, although some users still report tax filing issues.

Gusto offers a solid set of HR capabilities, but it is not a comprehensive HR system. If your business has more advanced HR needs, you may want to consider other options like Paychex, ADP, or dedicated HR software such as Zenefits.

Pros

  • Unique employee benefit options
  • No extra fee for payroll tax filing
  • No extra fee for insurance add-ons

Cons

  • Third-party customer service based outside the US
  • High monthly per-payee fee
  • Limited HR management
QuickBooks Online: Most User-Friendly Accounting Software

QuickBooks Online: Most User-Friendly Accounting Software

  • Starts at $3.25/mo. (Regular price starts at $13/mo.)
  • Extensive accounting features and reporting
  • Up to 25 users (depending on the plan)
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QuickBooks is one of the most widely used and trusted financial, tax, and accounting solutions in existence today. Although QuickBooks Desktop still remains a great option—especially with the well-rounded yet affordable QuickBooks Pro Plus—QuickBooks Online is Intuit's equivalent cloud solution, offering much greater flexibility and accessibility.

One feature that stands out in QuickBooks is the mobile accounting app, which most would consider the best in the industry. The app nearly provides the same functionality as the desktop version, a rare feature for any software. If you're always on the move, perhaps QuickBooks' mobile app—which includes mobile mileage tracking—could be the ideal solution for managing finances on the move.

However, QuickBooks Online comes with a cost: the entry-level small-business plan starts at $30 per month and is limited to one user plus an accountant. For larger teams, QuickBooks' most expensive plan, supporting up to 25 users, starts at $200 per month.

Pros

  • Extremely comprehensive accounting features
  • Excellent tax categorization
  • A+ mobile app

Cons

  • Above-average starting price
  • Users limited by plan
  • Poor customer service reputation
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ADP: The Best Payroll and HR Provider

ADP: The Best Payroll and HR Provider

  • Starts at $79.00 + $4.00 per payee
  • Automatic payroll tax administration (additional fee for some services)
  • Workers compensation and health insurance add-ons (additional fee)
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Among the largest payroll and HR companies, ADP provides an accessible payroll service with decades of expertise in HR, offering a robust set of add-ons for businesses that are not large enough to need the full-fledged Professional Employer Organization, or PEO.

All of its payroll plans include core features, such as direct deposit, automatic payroll tax filing, and W-2 submission. Its strong HR support makes ADP quite different from other providers. Even the basic plan, Core Payroll, comes with tools for hiring, forms for healthcare compliance, and an annual checkup by an HR professional. ADP provides more HR features, including background checks, ZipRecruiter support, and dedicated HR help to small businesses through its more advanced plans.

However, ADP does charge extra for some basic payroll services, including W-2 filing, which differentiates it from competitors like Gusto and QuickBooks Payroll. The starting price for a one-person business is $79 per month, plus $4 per payee, though you’ll need to submit a quote request to get exact pricing details.

Pros

  • Dedicated HR and payroll assistance
  • Multiple customizable plans
  • Heavy focus on human resources support

Cons

  • Additional fee for payroll tax administration
  • Additional fee for insurance add-ons
  • No transparent pricing
Paychex: The Best Payroll Company for Growing Businesses

Paychex: The Best Payroll Company for Growing Businesses

  • Starts at $39.00 + $5.00 per payee
  • Automatic payroll tax administration
  • Workers comp & health insurance add-ons
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This comprehensive HR support alternative to full HR outsourcing is especially designed for small and mid-size businesses that need efficient, affordable HR management. Paychex Flex combines cloud-based payroll management with HR software and provides services to its customers.

The basic features of every Paychex payroll plan include new-hire state reporting, payroll tax filing, and an employee financial wellness program. With three customized packages, Paychex is one of the scalable options in the market and ensures that businesses can scale appropriately to meet their growth.

Paychex has a top-rated payroll app for employers who run payroll frequently on the go. It carries a 4.8-star rating on Apple's App Store and 3.8 stars on Google Play, making Paychex Flex one of the best mobile payroll apps available.

Paychex tends to have a lower per-employee fee than rivals like Gusto, but the levies for payroll tax filing, software connectivity with integrations for such applications as time and attendance or accounting, and insurance add-ons can cause payroll costs to jump pretty suddenly. Given this context, Paychex is best suited for growing businesses which require scalability and do not mind paying extra for a comprehensive solution.

Pros

  • Combined HR and payroll plans
  • Affordable starting per-payee price
  • Customizable plans for growing businesses

Cons

  • Additional fees for payroll tax administration
  • Additional fees for third-party software integration
  • Pricier plans with limited pricing transparency
OnPay: Best Value Full-Service Payroll Software

OnPay: Best Value Full-Service Payroll Software

  • Starts at $40.00 + $6.00 per payee
  • Automatic payroll tax administration
  • Affordable insurance add-ons (in-house brokers)
  • Direct deposit, check, and debit card payment options
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OnPay shines as the best value for your hard-earned money in our list, providing an affordable price while providing a comprehensive payroll service that rivals the expensive providers.

OnPay's in-house team of insurance brokers allows you to only pay for the insurance premiums, with no integration fees, which makes its insurance offerings very affordable. Additionally, OnPay offers benefits to the employees such as education savings plans and commuter, fertility benefits-that is quite rare with payroll providers.

A big plus with OnPay is that its services are tailored to specific industries like farming and nonprofits, available at no additional cost. New businesses will appreciate OnPay's easy-to-use interface and free software setup assistance. Experts will walk you through your very first payroll run to get you up and running right.

Pros

  • Extremely affordable full-service payroll
  • Comprehensive payroll tax administration at no additional cost
  • Solid employee benefits and insurance options

Cons

  • One plan only (limited scalability)
  • Recently increased price
Best Financial Software

More Payroll Software Solutions for Small Businesses

Compare Top Payroll Features: Honorable Mentions

Compare Top Payroll Features: Honorable Mentions

Payroll Provider Monthly Fee Employee Limit Tax Filing Direct Deposit Customer Support Apply Now
$25.00/mo. Up to 100 employees ✔ Yes ✔ Yes ✔ 24/7
$35.00/mo. Up to 200 employees ✔ Yes ✔ Yes ✔ 24/7
$45.00/mo. Unlimited ✔ Yes ✔ Yes ✔ 24/7
$50.00/mo. Up to 500 employees ✔ Yes ✔ Yes ✔ 24/7
Rippling: Best for International Payroll

Rippling: Best for International Payroll

  • Starts at $8.00/payee*
  • Automatic payroll tax filing and legal compliance
  • Global payroll for international companies
  • Comprehensive employee management
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Rippling is the one app a United States-based business uses to pay employees anywhere in the world. It is the sole payroll application on our list that allows for international payroll processing, making it an overall best bet for companies with a global workforce. When you need to pay contractors or employees based in Canada, the UK, or even Indonesia, Rippling streamlines everything.

In addition to international payroll features, such as direct deposit, payroll tax filing, and global compliance, Rippling also offers exceptional features for employee management. It provides tools for benefits management, PTO tracking, time and attendance, and more detailed reporting. Even though the full-service employee management platform in Rippling might incur extra costs, its integrated package will be perfect for an organization that needs to manage both U.S. and international teams in an easy-to-access location.

Pros

  • Easy international payroll
  • Reasonable per-employee fee
  • Built-in PTO tracking

Cons

  • Confusing pricing structure
  • Lack of transparent costs on the website
  • Limited HR features at a high price
Square Payroll: Best for Contract Work

Square Payroll: Best Payroll for Contract Work

  • Starts at $6.00/contractor*
  • Automatic payroll tax administration
  • Health insurance add-ons
  • Direct deposit, Cash App, and check payment options
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Monthly base price waived with contractor-only plan. Employee plans start at $35.00 per month.

There's an excellent choice in Square Payroll for businesses hiring only freelancers and independent contractors. Because Square has its contractor-only plan, it does not charge the normal base monthly fee; rather, it charges just $6 per contractor for each month with unlimited payroll runs. This makes Square Payroll one of the most affordable solutions for businesses that only pay 1099 contractors.

Square Payroll charges a reasonable base fee of $35 for businesses that also have W-2 employees. It's great if you are working across multiple states since Square Payroll offers multi-state payroll without extra fees, potentially making it cheaper than even SurePayroll on small multi-state teams.

It is also quite simple, which may be great for a small business. If it's coming in the future, for instance, if it expands the workforce to more employees and it needs complicated or complex HR and employee benefits management, Square's plain platform might not be enough for growth. Businesses in need of scalability and other HR services along with professional management for employees should consider alternatives like Gusto or Paychex.

Pros

  • No base for contractor-only plans
  • Low per-payee price
  • Easy integration with Square suite of products

Cons

  • Limited HR administration
  • One plan only (limited scalability)
Patriot Payroll: Most Affordable Self-Service Payroll

Patriot Payroll: Most Affordable Self-Service Payroll

  • Starts at $17.00 + $4.00/payee
  • Automatic payroll tax administration (full-service plan only)
  • Direct deposit and paper check payment options
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To be paid as little as possible on payroll, Patriot Payroll should be highly considered, especially for its starting fee of only $17 per month added with $4 per employee. For add-ons, such as HR support and even time tracking, Patriot payroll starts at a minimal fee of $6 per month.

While the basic cost is only $17, you can add HR and time tracking. These are going to increase your monthly costs by $28 if you have four employees-a $2 per user fee. This combination of extra add-ons makes Patriot more pricey, but it is cheaper compared to its competitors: Gusto, for example, offers a lot more in its base plans.

Pros

  • Extremely affordable self-service plans
  • Affordable HR add-ons
  • Responsive customer service

Cons

  • Limited HR administration
  • Two plans only (limited scalability)
Wave Payroll: Best Accounting and Payroll Integration

Wave Payroll: Best Accounting and Payroll Integration

  • Starts at $20.00 + $6.00/payee
  • Automatic payroll tax administration (full-service plan only)
  • Direct deposit only
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Wave Payroll provides a strong accounting and payroll integration for small businesses, starting at $20 a month, plus $6 per employee for its self-service plan. This plan comprises the most important features: self-service employee portals, contractor payments, and direct deposit. For $40 a month, Wave's full-service plan provides federal, state, and local payroll tax filing plus year-end tax forms in 14 states.

Even though other payroll services, such as SurePayroll, boast more features with a lower per-user cost, Wave's high integration with Wave Accounting, a free accounting tool, makes it stand out. If you're already using Wave Accounting and need a payroll service, this can be an incredibly cost-effective solution. Again, if you're not using Wave Accounting, some of these payroll providers on this list may boast more comprehensive features for less.

Pros

  • Straightforward integration with Wave's free accounting software
  • Affordable starting price
  • No additional charge for payroll tax administration (full-service plan only)

Cons

  • Basic HR features only
  • Limited third-party integrations
  • One plan only (limited scalability)

Frequently Asked Questions

Gusto offers exceptional value for small businesses, starting at $40 per month plus $6 per employee. It handles payroll tax calculations, filings, and year-end tax paperwork without extra fees, unlike competitors such as ADP and Paychex. Gusto also integrates with most accounting software and provides various employee benefits.

However, your ideal payroll software depends on specific business needs, including employee count and required benefits. For extensive HR tools, consider Paychex or ADP. If cost efficiency is key, Patriot Software's $17 self-service plan may be suitable. Explore our detailed guide to find the best fit for your business.

When selecting payroll software, evaluate your payroll and HR needs by:

  • Pricing: Consider base fees and per-employee costs within your budget.
  • Features: Decide between a payroll-only or combined payroll and HR system.
  • Level of involvement: Opt for self-service or full-service plans based on your comfort with managing payroll taxes.
  • Customer support: Ensure reliable service, particularly for tax-related inquiries.

For further details, review our Ultimate Payroll Guide.

Full-service payroll software simplifies payroll management. Systems like Gusto automate recurring payroll processes, requiring minimal input. If ease of use is a priority, QuickBooks Payroll or OnPay is recommended. QuickBooks integrates seamlessly with its accounting counterpart, while OnPay offers free setup assistance.

Payroll4Free is a top free choice for small businesses with up to 25 employees. Alternatively, use payroll calculators or templates for manual calculations. However, free software may lack essential tax features. Paid options like Patriot Software, starting at $14/month, provide more reliable and secure solutions.

Yes, Excel or Google Sheets with payroll templates can manage payroll for businesses with fewer than 15 employees. While cost-effective, this approach requires precision to avoid tax errors. For better accuracy and efficiency, consider affordable payroll tools like Wave or Patriot Software.

QuickBooks Payroll, OnPay, and Gusto are excellent for accountants managing multiple clients. Look for dedicated portals, like those in OnPay and QuickBooks Payroll, to streamline workflows and enhance client management.

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