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Here are the payroll software providers that are highly rated and offer entrepreneurs peace of mind.
If you’re a small-business owner wearing many hats, payroll is one task you’ll be glad to outsource. The right software can make your life easier by calculating and sending paychecks and tax payments automatically, among other things, and making things smoother for your staff too.
“Where the rubber meets the road when it comes to payroll software is whether the employees are happy with the software as well,” says Logan Allec, a CPA and owner of the payroll comparison site Payroll Signal. Payroll software, he continues, should allow employees to track time, submit expenses, and update tax and banking information seamlessly.
No software is perfect for every business, but the payroll software that stands out offers entrepreneurs peace of mind, time-saving features that expand with their business, and quick help when issues arise.
Our top picks
- Gusto
- Intuit QuickBooks Workforce
- Patriot
- ADP
- OnPay
Best overall: Gusto
Gusto is one of the most easily navigable payroll systems on the market for small businesses. While some users report a slight learning curve during setup, the platform’s streamlined interface, automated and unlimited payroll runs, and add-on features like HR support and benefits administration prove it is both comprehensive and customizable for businesses of various sizes and types. It integrates seamlessly with top accounting software such as QuickBooks Online and Xero.
Plans start at $49 a month, plus $6 per employee, and cover single-state businesses that don’t need time tracking or expense reimbursement. The Simple plan offers customer support via phone or chat during business hours, and manages health insurance administration. For time tracking, expenses, multi-state filings, other benefits admin, or access to a dedicated service advisor for your account, you’ll need to upgrade or purchase an add-on.
None of Gusto’s plans require long-term contracts and you can upgrade or downgrade your selections at will. Gusto also offers strong, affordable plans for contractor-only businesses and solopreneurs.
More info: Gusto
Best for an all-in-one solution: Intuit QuickBooks Workforce
QuickBooks Workforce offers an all-in-one solution for small businesses seeking to simplify top-to-bottom employee management. A vast suite of accounting, payroll, and HR features are included in all plans, such as automated and unlimited payroll; next-day direct deposit; 1099 and W-2 e-filing for state and federal taxes; expense and income tracking; standard reports; and benefits integration for health insurance (Allstate), 401(k) plans (Vestwell), and workers’ comp (NEXT).
Additional features including advanced employee time tracking and scheduling, accountant access, hiring and onboarding tools, full benefits administration, e-filing for local taxes, and same-day direct deposit are available with an upgrade to one of two higher-tier plans.
While QuickBooks Workforce is among the pricier options for payroll software—monthly fees start at $88 plus $6.50 per employee—Intuit regularly runs promotions that bring the cost down considerably for the first few months of use.
More info: Intuit QuickBooks Workforce
Best for budget-conscious companies: Patriot
If you’re not ready to shell out for payroll software, you shouldn’t have to compromise on quality. Patriot offers two simple plan options—Basic and Full Service—with automated and unlimited payroll runs, two-day direct deposit, e-filing (some fees apply for Basic plans), payroll reports, and free setup/onboarding assistance. Both contractors and W-2 employees have access to employee portals and tools to support their unique needs. Integration with 401(k) plans (Vestwell), health insurance (SimplyInsured), and workers’ comp (NEXT) is included for free. Time and attendance software is charged separately.
Plans start with a 30-day free trial. Thereafter, a monthly fee of $17 for Basic or $37 for Full Service applies, plus $4 or $5 per worker paid, respectively, and $12 per state filing, though Patriot runs promotions regularly. Business owners who want federal, state, and local tax payments to be taken care of and year-end tax filing will need to spring for the Full Service plan, which comes with a reliability guarantee.
More info: Patriot
Best for customization: ADP
ADP handles essential payroll and tax compliance with ease, and offers numerous ways for small businesses to customize their service as they grow and evolve. ADP Run serves businesses with one to 49 employees, while ADP Workforce Now handles organizations with 50 to 1,000 employees. Both products start with basic services that include automated payroll and tax filing and level up from there to encompass comprehensive employee and benefits management, talent acquisition tools, and workplace insights for added costs. Round-the-clock customer support for payroll is offered with all plans.
You’ll need to enter some basic business and contact info online to get a fee quote for ADP products, or call for more detailed pricing.
More info: ADP
Best for companies with multi-state needs: OnPay
With just a single plan offered for small businesses, OnPay eliminates the risk of signing up for something that doesn’t offer all the tools you need—or one that offers too much. At a $49 base fee plus $6 per employee, the Payroll Essentials package handles all payroll and tax filing across states from a simple, streamlined interface. While our best overall payroll software, Gusto, can handle multi-state filings, it charges per state.
OnPay allows seamless, free integration with QuickBooks and Xero accounting software to keep your books in sync, as well as benefits admin, and multi-channel customer support.
More info: OnPay
How we chose the best business payroll software
To choose the best small-business payroll software, we consulted small business experts and bookkeepers who regularly work with payroll systems and advise clients on choosing the best option for their businesses.
We evaluated providers that offer a suite of core features essential to any small business, including (but not limited to): automated processing for both employee wages and payroll taxes, direct deposit, time and attendance tracking, accurate year-end tax reporting and filing, excellent usability for both employers and workers, clean integration with accounting software, automatic retroactive pay calculations, and reliable customer service. All of these features work together to make a business run smoothly.
As Cheri Joseph, a payroll operations consultant, describes it, “The right payroll software gives business owners confidence that payroll will be processed accurately while creating more efficient workflows across the organization.”
We emphasized providers with positive reputations based on public customer reviews and online small-business forums, and those with a range of subscription plans for businesses of different sizes and budgets.
Why you should trust us
We spent time comparing the fine print and nuanced features of top payroll software to identify which offer the best value for businesses with specific needs. Our evaluations are always editorially independent.
When you run a small business with employees, a good payroll system isn’t optional. Finding software that simplifies the process, without compromising accuracy, is more than a split-second decision.
Types of business payroll software
Basic payroll software is going to help you get employees paid accurately and on time and withhold and pay the correct amounts for state and federal taxes. This may or may not be an automatic process, depending on the software, but is calculated using time and attendance records that have been imputed either by the business owner or employees. Basic payroll software also generates payroll reports and produces tax forms like W-2s and 1099s to send to the IRS, employees, and contractors at year end.
Full-service payroll software generally automatically calculates and remits payments to employees and contractors and taxes to federal, state, and local agencies. It might also offer additional features such as next-day direct deposit, employee self-service portals for updating tax and banking information, and automated tax form generation for year-end compliance.
Bundled payroll software combines payroll, HR, and benefits administration to cover all bookkeeping, accounting, and employee management needs for a small business. Some software providers, like Intuit QuickBooks and ADP, offer these all-in-one solutions, while others offer integrations that allow users to bundle multiple services via a DIY approach.
How much business payroll software costs
It’s common for payroll software providers to charge small businesses a base monthly fee starting around $20, plus a nominal fee per employee. There are usually additional charges for add-on features, like multi-state filings or time and attendance tracking, as well as packages that include HR tools or benefits administration.
FAQ
What is small-business payroll software?
Small-business payroll software is a service that helps employers calculate and pay wages for all workers accurately and in compliance with federal, state, and local tax laws. The best software automates most of the payroll process for employers, and helps employees easily input their hours and attendance and quickly access their paychecks.
Can I do my own payroll for my small business?
Doing your own payroll for your small business usually means many hours spent every month on manual calculations, cutting checks, and paying all relevant tax agencies. The tedium and frequency of these tasks can introduce avoidable errors. If you want to save time on back-office work and reduce mistakes, payroll software is worth the investment.
What is the easiest payroll system to use?
The easiest payroll system to use depends on your business structure, size, and needs. “Most importantly, the system has to better assist the payroll team with their processing. Payroll software should fit the business, not the other way around,” Joseph, the payroll operations consultant, says, adding that too often software requires businesses to change how they operate, further complicating the transition. If your current accounting software doesn’t integrate with a potential payroll provider, switching could cause a major disruption. “You know you have the right software when it reduces manual work, supports compliance, and actually fits naturally into the existing workflows in the organization,” she says.
The bottom line
Payroll software should make life as a small-business owner easier by automating employee pay, sending tax payments to relevant agencies, generating payroll reports that can give you insight into business operations, and producing tax forms at the end of the year.
Remember that not all technology is perfect, so choose a provider that makes itself available to answer questions or troubleshoot via your preferred communication method, whether that’s phone or live chat. And do a little future-proofing: What does your business need today to thrive and what will it need in three to five years and beyond? If your budget allows it, aim for software that can grow with your business.
This post originally appeared at inc.com.
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