Best Payroll Software for Small Business 2023

The bottom line: The best payroll software for many small businesses is Gusto. With comprehensive payroll features, automated payroll tax administration, and scalable plans, Gusto works nicely for small and midsize businesses in many industries.

But even though we love Gusto, it’s not the only payroll software on the market.
The cheapest, most budget-friendly software is SurePayroll, which has affordable self-service and full-service plans. 
We also recommend Paychex and ADP for more thorough HR management.
OnPay is good for comprehensive-but-affordable payroll.

The heartily named Gusto is our favorite payroll software for small businesses. Its beautifully designed, full-service payroll system includes plenty of payroll and HR features:

• Automatic local, state, and federal payroll tax filing
• Automatic end-of-year tax-form filing, including W-2s and 1099s
• Automatic state new-hire form filing
• Health benefits administration and workers compensation administration
• Employee benefit options like HSAs, FSAs, commuter benefits, and college savings plans
• Employee self-service portal for pay stub, direct deposit, and W-2 access

Even better, Gusto includes these features for free when many payroll providers charge extra. For instance, Gusto’s in-house insurance brokers ensure that if you sign up for employee medical insurance and workers compensation insurance through Gusto, you’ll pay the premium only.

In contrast, ADP, which outsources its insurance integrations, charges an extra fee on top of the premium. Ditto Paychex, which does have an in-house insurance team but still charges extra for insurance add-ons. ADP also charges extra for end-of-year tax-form filings. Gusto doesn’t.

Gusto's customer service reviews took a hit during the COVID-19 pandemic. Fortunately, according to reviewers, Gusto's customer service has steadily improved over the course of 2022. For instance, in March 2022, Gusto's rating on consumer review site Trustpilot was just 2.6 out of 5. But as of 2023, its rating is up to a much more encouraging 3.7. We're pleased to note that current user reviews call out helpful tech support, though a few customers are still dealing with tax-filing issues.

Additionally, while Gusto has more employee add-ons than many other online payroll systems, it’s not a total HR management solution. Our Gusto HR review can tell you more, but if you need more than the most basic HR, you’ll want to look elsewhere—like Paychex, ADP, or even an HR-focused service like Zenefits.

SurePayroll’s customer service, affordable self-service, and easy HR add-ons make it a good payroll option for small-business owners who prioritize saving money without sacrificing customer service.

With self-service online payroll software starting at $19.99 a month and full-service software starting at $29.99 a month, SurePayroll is one of the most affordable payroll systems in our top 10. Its extended customer service hours on weekdays and Saturdays are perfect if you want (nearly) round-the-clock assistance for payroll problems, which can cause major issues for your employees if they aren’t resolved ASAP.

SurePayroll is cheap, but it has a few additional costs. For instance, multi-state payroll tax filing costs an extra $9.99 a month. And SurePayroll lacks the expansive employee benefits, scalable plans, and HR perks you’ll get with Gusto or Paychex—another reason it works best for the smallest of small businesses.

SurePayroll also has a household employer payroll option for individuals who employ nannies, tutors, gardeners, cleaners, and other in-house workers. DIY software like NannyPay is cheaper than SurePayroll, but it does quite a bit less—which is why we prefer SurePayroll's nanny pay over other options.

No matter what type of payroll you need, if you have just a few employees and want to offer good benefits without going all-in on expensive add-ons, SurePayroll’s online payroll system is perfect.

ADP is the biggest name in the world of PEOs, or professional employer organizations. But if your business isn't big enough to warrant a PEO, RUN Powered by ADP distills ADP’s decades of HR expertise into an easy online payroll service with thorough HR add-ons.

All of ADP’s payroll plans include direct deposit, automatic payroll tax filing, and W-2 submissions. It also goes heavy on the HR help. Even the cheapest plan, Core Payroll, includes HR perks like employee onboarding, health care compliance forms, and a regular HR checkup. And if you want more than the HR basics to support your growing team, ADP’s more expensive plans include employee background checks, ZipRecruiter assistance, and dedicated HR assistance.

In contrast to Gusto, OnPay, and QuickBooks Payroll, some of ADP’s basic payroll services cost extra, namely W-2 form filing. So how much does ADP payroll cost? For a 1-person business, the starting price is $79.00 per month plus $4.00 per payee. You have to fill out a form online with your information to get a quote. 

Does your business need thorough HR assistance without full-on HR outsourcing? Paychex Flex combines cloud-based payroll management and human resources software for small and midsize businesses that want thorough, affordable HR management.

All Paychex payroll programs include new-hire state reporting, payroll tax filing, and an employee financial wellness program. And with three customizable packages, Paychex is one of the most scalable payroll options on our list. Growing businesses won’t have to look elsewhere for plans that support additional employees—growth is built into Paychex’s model.

Even though Paychex’s cheapest plan has a lower per-employee fee than Gusto, Paychex’s add-on fees can dramatically increase your monthly payroll costs. Unlike Gusto and other top payroll options, Paychex may charge additional fees for payroll tax administration, time and attendance software integration, accounting software integration, and workers comp and employee benefits administration. With all the extra fees, Paychex is better suited to midsize businesses that care more about built-in scalability than cost.

OnPay's payroll software program offers more value for its price than any other payroll provider on our list. Yes, its base price and per-payee fee are notably low—though not as low as Patriot's or SurePayroll's. However, OnPay is much more comprehensive than either of those two options, especially in terms of HR: 

• Medical and dental insurance plans (all 50 states)
• Vision, disability, and life insurance add-ons
• Workers compensation plans
• Custom PTO policy creation with built-in automatic accrual tracking and approval
• Detailed, customizable organization charts
• ACA compliance plus dedicated COVID-19 business assistance and resources
• Thorough HR resource library

Thanks to OnPay's in-house team of insurance brokers, you pay just the premium with no integration fees. And just like Gusto, OnPay can help you find unique employee perks like education savings plans, commuter benefits, and even fertility benefits—a rarity among payroll providers.

Other notable OnPay benefits? OnPay tailors its payroll services to certain industries (farming and nonprofits, among others) at no additional cost. And if you recently hired your first employee and are still a little unclear on the payroll process, OnPay is a fantastic fit. Its interface is extremely intuitive, and its experts set up your software for free before talking you through your first payroll run.

While we love OnPay (as do its users), it’s not the best fit for businesses that want more perks and support as they grow. The base price ($40) and per-employee price ($6) never change—but neither do the features. If you’re hoping for scalable, comprehensive HR packages, you might consider Paychex or Gusto instead.

Enter some basic information about your business's payroll needs and expectations, and we'll pair you with quotes from payroll services we think will work for you. 

We gave you our top recommendations above, but the payroll software market is a crowded one. Here are more small-business payroll solutions worth considering.

QuickBooks Online, known best for its high-quality accounting software, also offers three full-service payroll plans—and they're some of the best payroll systems you can find. The cheapest starts at $37.50 a month and includes automatic payroll runs, employee health care options, next-day direct deposit, and 1099 contractor management.

That starting base price looks high, but the cheapest plan's per-employee fee is just $5 per payee per month. Thanks to that lower fee, Intuit QuickBooks Payroll actually has one of the lowest payroll starting prices on our list, as long as you have more than one employee. 

But its best feature might be its ease of use. QuickBooks Payroll’s interface has next to no learning curve, and its well-reviewed employer-facing mobile app makes on-the-go payroll easier. Plus, syncing QuickBooks Payroll with your existing QuickBooks Online account doesn't cost anything—which instantly sets Intuit QuickBooks Payroll apart from providers like Paychex, ADP, and SurePayroll, which charge an extra monthly fee for accounting software integration. 

Unfortunately, while you’ll enjoy full-service payroll management with every QuickBooks Payroll plan, only the two more expensive plans include workers compensation insurance options, mobile time tracking, and HR support.

If your business is based in the US and you want to pay employees in Canada and Indonesia, Rippling should be one of your top picks. Why? Because Rippling the only payroll system on our list that offers international payroll processing. 

Rippling's national and international payroll features include direct deposit and payroll tax administration. You can also use Rippling to track PTO, have employees clock in and out, and generate customized reports that break down expenses by time worked.

You can use Rippling payroll on its own, but to get the most out of Rippling, you'll want its comprehensive employee management platform. You get thorough benefits management, time and attendance tracking, and app consolidation for employees. And again, Rippling's add-on talent management is a bit pricy—but it's still one of the best online payroll software for international employers.

If you're not sure how to start searching for a new payroll provider, we can help! Let us match you a payroll solution personalized to your business and location. Enter some basic business information to get started.

Do you only employ freelancers and other 1099 contractors? Square Payroll’s contractor-only plan skips the typical monthly base fee. Instead, you pay just $6 per month per payee with unlimited payroll runs.

If you employ a mix of 1099 workers and W-2 employees, Square Payroll’s base fee is a perfectly reasonable $35 a month. And since Square Payroll includes multi-state payroll at no additional cost, it’s even cheaper than SurePayroll if you have two or three W-2 employees working in separate states.

However, Square Payroll has some of the same drawbacks as other single-plan payroll providers. If you’re planning to hire more workers and expand locations, Square is probably too simple for your business’s future needs. A payroll provider with scalable plans, thorough employee benefits, and HR add-ons could work better.

If payroll pricing is your top priority, we can’t recommend Patriot Payroll highly enough. With a monthly base price of just $17 plus $4 per employee, Patriot Payroll’s self-service plan is one of the cheapest out there. If you want a few more features, you can add HR assistance starting at $6 a month and time and attendance integration at the same price.

On top of its $17 basic payroll price, Patriot's payroll software offers affordable add-ons, including HR assistance for $6 a month and time and attendance tracking for the same price. (Both plans also charge $2 per user per month.)

So if you have four employees and want both HR and time and attendance tracking, you'll add $28 to your monthly base price. In other words, the add-ons up Patriot's price by quite a bit without adding as many features as Gusto, which includes more features than Patriot in its base pricing.

If you want the full-service option, the cost bumps up to a $37 base price plus $4 per payee.

Wave Payroll's $20 self-service plan has all the basics, including self-service employee portals, contractor payments, and direct deposit. And its $40 full-service plan (currently available in 14 states) includes federal, state, and local payroll tax filing plus end-of-year tax forms.

Honestly, you'll get more features with SurePayroll's self-service payroll at a lower per-user cost. So why do we recommend Wave at all? Because Wave Accounting, Wave Payroll’s sister product, is a completely free accounting solution. (In our opinion, it’s the best free accounting solution for many small businesses.) For now, Wave Accounting only syncs with Wave Payroll—so if you’re already benefiting from Wave Accounting’s free software and just hired an employee, Wave Payroll is a perfectly serviceable, affordable payroll system.

If you aren’t using Wave’s accounting program, though, most of the other picks on this list will give you more payroll and HR features for less.

Unless you can afford to pay an in-house bookkeeper, we recommend most small businesses use software for payroll so they can pay employees and calculate tax deductions. The right payroll software provider should remove much of the hassle, cost, and risk from managing payroll and free you up to do what you’d rather be doing: growing a successful business.

Still wondering which of our top payroll software options is right for you? Here's a quick recap:

• For all-in-one automatic payroll with built-in HR tools, it’s hard to beat Gusto.
• For supremely affordable self-service and full-service plans with notably outstanding customer support, SurePayroll is the best solution.
• If you own a midsize business and need more comprehensive HR management, ADP or Paychex could fit nicely.
• For ease of use, affordability, and useful benefits for business owners with one or more employees, we recommend OnPay.

Looking for great accounting software to complement your new small-business payroll application? We can help: read through our list of the year’s best accounting software for small businesses.

To generate our star ratings and rank payroll software, we looked at 20 of the most popular payroll programs in the US. We then assessed those programs in five key areas:

• Pricing, such as the balance between cost and features, additional fees, and more
• Payroll and HR features, such as employee benefits options, automatic payroll tax filing, tax compliance, workers compensation insurance integration, and more
• Scalability, such as the number of plans and payroll features
• Customer service, including customer service hours, overall company reputation, user reviews, and more
• Ease of use, including mobile payroll app access, employe self-service features, interface, learning curve, and more

We also weighed our own expert opinion when deciding which payroll features and HR software factors to prioritize. Please note that star ratings are reviewed frequently and are subject to change.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.