10 Best Payroll Software for Small Businesses

If you have a small business, choosing a payroll software package should be at the top of your to-do list in 2023. The quicker you integrate this software into your business, the sooner you can streamline payments for team members, fulfill your tax responsibilities and generate valuable insights about your payroll processes.

So which are the best payroll software for small businesses? We've reviewed ten tools on the market based on features, capabilities, pricing and user reviews below. You'll also learn more about payroll software in general and get answers to commonly-asked questions about this technology.

Our Top Picks for Best Payroll Software for Small Business

• QuickBooks — Best for Startups
• SurePayroll — Most User-Friendly
• Gusto — Best for Automatic Tax Filing
• OnPay — Best for Straightforward Pricing
• Paycor — Best for Tax Compliance
• Patriot — Most Affordable
• Paychex — Best Mobile Option
• ADP — Best for Combining Payroll and HR
• Roll — Best for Fast Direct Deposits
• Rippling — Best for International Workers

Best Payroll Software for Small Business Reviews

Highlights

Why we chose it: QuickBooks is the best payroll for small business startups because it has plans specifically designed for new companies needing to automate taxes and pay their employees.

The Payroll Core and QuickBooks Simple Start bundle costs $75 per month plus $5 per employee. It covers basic payroll needs, such as issuing next-day direct deposits and e-filing 1099s. It includes general accounting features, such as tracking income and expenses, maximizing tax deductions, running general reports, and capturing and organizing receipts. This package is available for both QuickBooks Online and QuickBooks desktop users.

QuickBooks Essentials lets you track invoices and billing and includes all the features available in Payroll Core and QuickBooks Simple Start. This package costs $100 per month and $5 per employee and is also available for QuickBooks Online and Desktop users.

All of QuickBooks' payroll plans include unlimited payroll runs, automated taxes and forms, payroll reports and the ability to take deductions and garnishments from employees' wages. You also get customer support included with your plan and access to a library of resources for using the platform's features.

There are mixed online reviews for QuickBooks' customer support. Some users praised the service they received, while others were unable to resolve their queries with a representative. If you have trouble setting up or using this software, you can get support via live chat or by requesting a callback. You can't phone QuickBooks directly about a query.

Highlights

Why we chose it: With SurePayroll, you can set up and run payroll tasks within just a few minutes, making this all-in-one platform a good choice for those who may not be the most tech savvy.

SurePayroll's simple learning curve makes it a fantastic fit for businesses that are new to payroll and general accounting. You can use the platform on your computer or smartphone. Follow the simple prompts and set up payroll in just a few clicks or finger taps. After setting up payroll processes, you can save even more time with SurePayroll's auto payroll feature, which runs in the background and sends payments to employees at a predetermined time.

Other features include tax calculations and filing, direct deposit setups and advanced reporting capabilities. SurePayroll enables you to send payments to employees on the same day, ensuring your team members receive their wages quickly. However, it's difficult to compare SurePayroll with other payroll accounting software for small businesses on this list because the company doesn't publish its prices online or reveal how long its free trial lasts. If interested in this product, you will have to contact SurePayroll directly to obtain a quote based on your payroll needs.

Many customers on review websites love the user-friendly nature of SurePayroll. Several users talk about how easy the platform is to set up and commend the customer service they received. You can contact a customer representative from SurePayroll during business hours on Monday-Saturday.

Highlights

Why we chose it: Gusto is a good choice for automatic tax filing, allowing you to calculate and file taxes in a few clicks.

Gusto's software calculates and then files your taxes with the relevant authorities every time you run payroll. It has features for health insurance, workers' comp, 401(k)s and other HR functions that can help you provide a better benefits management service to your employees.

Gusto's software also has a user-friendly interface that lets you quickly submit and review payroll information before sending it to team members via direct deposit. Gusto then remembers this information for your next payday, removing the need to enter data manually. The platform claims it saves users an average of five hours a month on payroll and HR tasks.

Gusto's Simple package costs $40 per month and $6 per employee. However, you can only access basic support at this pricing tier and need to subscribe to a more expensive plan for full or dedicated support that meets your business needs. Basic support includes email, live chat from 7 a.m.-4 p.m. ET and callbacks from the customer service team during the hours of 9 a.m.-4 p.m. ET.

Highlights

Why we chose it: With OnPay, you always know how much you are paying for payroll services, with this platform costing $40 per month plus $6 per person for every user. It's that simple.

OnPay has a considerably streamlined pricing structure. No matter what features you need or how many people are on your payroll, you pay the same base price ($40) and $6 per employee every month. That differs from other best payroll software providers with multiple plans and price points. For this simple price, you get full support, unlimited payroll runs, tax filings and payments and reports.

While OnPay includes plenty of payroll features for small businesses, it has a 2-4 day direct deposit turnaround (depending on the company's risk assessment procedures), which is slower than some of the other companies on this list. Plus, you can only contact a customer representative by phone or mail, with no email or live chat options available.

OnPay also has an extensive resource section on its website, which provides more information about how to use its software and access features.

Highlights

Why we chose it: Paycor automates compliance with local and state taxes and the IRS, helping you adhere to legislation and avoid penalties.

Paycor is the best payroll software for tax compliance because it captures details from your records to ensure full compliance with the relevant authorities. With over 30 years of experience in payroll, the platform reduces risk by providing in-product compliance feedback about tax laws in your area.

Another benefit of this software is its ease of use. Several customers on review websites note how simple it is to set up and navigate Paycor, praising the payroll platform's customizable dashboard and easy access to payroll data.

Other features include expert support, W2 and 1099 processing, and the ability to manage workers' comp. However, Paycor doesn't publish prices on its website, making it difficult to know whether these features are good value for money. If you are interested in this product, you must contact the company to obtain a custom quote.

Highlights

Why we chose it: With plans starting from $17 per month, Patriot provides cost-effective payroll solutions for small businesses.

Patriot's affordable pricing plans provide value when managing payroll on a budget. Its Basic Payroll package costs $17 per month plus $4 per employee and includes features like unlimited payroll runs, time-off accruals, free employee portals and 401k integration.

For additional tax management capabilities, you can upgrade to the Full Service package, which costs $37 per month and $4 per employee. As well as all the features in the basic tier, Patriot will file and deposit federal, state and local taxes on your behalf on this plan.

With Patriot, you can also access a wide range of reports about your payroll processes. These include assigned deduction reports, W2 summary reports and check/deposit payment details. The payroll system’s interface makes accessing the information you need easy.

Highlights

Why we chose it: Paychex lets you manage payroll from your smartphone or tablet, which is great for when you or your employees are away from the office.

Paychex has three mobile apps that streamline the payroll experience. Its Flex App lets you enter, review and submit payroll on your smartphone or tablet and access data and reports whenever you need them. Employees can also access and update their information from the app. Touch ID and face ID authentication mitigate risk when accessing sensitive payroll information on your device.

Other features include 24/7 U.S.-based customer service support, workers' comp management, human resources analytics and the ability to submit payroll over the phone. Paychex also has an extensive knowledge base on its website that helps you get more value from this platform and speed up the payroll process.

Paychex offers three pricing plans, with the most basic one, Paychex Flex Essentials, costing $39 per month plus $5 per employee. This includes payroll processing, payroll tax administration and general ledger features. Paychex customizes its prices for its other two plans, Paychex Flex Select and Paychex Flex Pro, so you'll need to contact the company for a personalized quote.

Highlights

Why we chose it: ADP offers a wide range of HR support services to complement your payroll processes, such as compliance alerts, HR guidance and forms, and job description wizards.

Managing payroll is just one part of managing people in your business. Investing in ADP's Complete Payroll and HR package lets you streamline payroll administration alongside benefits administration, training and onboarding. This product includes all the features you need for payroll, such as direct deposit runs and W2 management. It simplifies HR duties like background-checking new hires, filling out HR forms and documents, and carrying out salary benchmarks.

ADP customizes the prices for all of its payroll plans, so you'll need to contact the company for a direct quote. However, the platform offers a generous trial, where you can try its payroll and HR features for free for three months.

Online reviews for ADP are generally positive, with many users noting how easy the platform is to use. ADP's point-and-click functionality will suit small businesses that don't have a lot of experience with payroll software.

Highlights

Why we chose it: Roll's same-day and next-day direct deposits enables employers to send mobile payments fast.

Roll is an ADP product that automates payroll responsibilities on your mobile device. Your employees can receive their wages as quickly as the same day you send them with the platform's fast direct deposit times.

Roll is a mobile-only payroll tool that lacks many of the capabilities of ADP's software products. While you won't find advanced analytics or other features, you can initiate payments quickly to team members from your mobile device. Employees can also use the app to check their payment dates and benefit information. Other features include payroll deadline reminders and integration with QuickBooks for improved accounting practices.

Roll costs $29 per month plus $5 per employee. You can use it alongside other ADP software or as a standalone product for payroll administration.

Highlights

Why we chose it: Rippling caters to modern small businesses that work with employees and contractors abroad, speeding up the time it takes to issue foreign payments.

Rippling claims that it can help companies pay international employees and contractors in just 90 seconds. The platform removes the need to make currency conversions or wait for bank transfers when paying international workers and helps you comply with financial laws around the world. Other features include instant tax calculations and filing for international workers.

Rippling has overwhelmingly positive reviews online, with users commending the platform for its easy-to-navigate interface and for reducing administrative tasks. However, a few customers claim Rippling didn't calculate or file the correct taxes for foreign employees and contractors.

Prices for Rippling start at $8 per month per user, but the company doesn't publish its monthly base cost. You will need to contact them for a personalized quote based on your international payroll requirements.

Other companies we considered

Alongside the payroll software providers above, we also considered these tools for small businesses:

Freshbooks

Freshbooks provides unlimited payrolls, automatic tax payments, automatic tax filings, W2 and 1099 management and more. However, it fails to make the list above because several customers complain about experiencing technical problems on the platform.

You can use this software to issue payments to workers on time and stay compliant with tax legislation in your area. Freshbooks' Select plan gives you access to a dedicated account specialist who can help you manage payroll in your business.

Paycom

Paycom lets you pay your employees on time with automatic payroll capabilities. This user-friendly platform also provides real-time analytics about payroll processes and HR and recruitment tools. Paycom didn't make the list above because it has a set-up fee of $500 for 15 employees and $1,200 for 40 employees, which is much higher than many other companies.

Payroll Software for Small Business Guide

Main things to know before choosing payroll software

Consider pricing, features, customer support and usability when looking for accounting payroll software for your small business. You should also review how long a payroll software provider takes to initiate payments to workers via direct deposit. Some of the best platforms allow employees to receive payments on the same day you send them. The best recruiting software can also be combined with payroll software for a fully integrated package.

What is the average cost of payroll software?

There are typically two costs associated with payroll tools: A monthly fee for the software itself and a cost for each employee who uses the software. The more employees you have in your organization, the more you will pay for a platform. Payroll software, on average, costs around $30 per month and around $4-8 per employee per month.

How does payroll software work?

Payroll software requires you to enter information about employees into these tools, such as the number of hours worked and the hourly pay rate. The software then calculates the amount of withholding taxes to be taken out from wages and other deductions before issuing payments to employees via direct deposit.

What are the benefits of payroll software for small businesses?

Payroll can involve time-consuming tasks such as entering employee hours and hourly rates, calculating withholding taxes, and complying with federal, state, and local tax legislation. The best payroll software for small businesses automates these tasks and allows you to send timely payments to workers. Payroll software can also reduce human error when calculating and processing wages and safeguard sensitive information like employees' Social Security numbers.

How We Found the Best Payroll Software for Small Businesses

We used these factors to find the best payroll companies:

• Customer review scores: We visited popular review websites like Trustpilot and G2 and looked at average user scores and comments about payroll software providers. We identified the features and service offerings customers liked or complained about the most.
• Pricing: We reviewed the base monthly price for payroll software and the monthly price for each employee, where this information was available.
• Features: We looked at the features provided by each software company, including direct deposit times, automatic tax filings and W2 management. We also assessed the pros and cons of each software tool and included this information at the top of each of our reviews.

Summary of the Best Payroll Software for Small Businesses in 2023

• QuickBooks — Best for Startups
• SurePayroll — Most User-Friendly
• Gusto — Best for Automatic Tax Filing
• OnPay — Best for Straightforward Pricing
• Paycor — Best for Tax Compliance
• Patriot — Most Affordable
• Paychex — Best Mobile Option
• ADP — Best for Combining Payroll and HR
• Roll — Best for Fast Direct Deposits
• Rippling — Best for International Workers