Best Payroll Software: What Actually Works for Small Businesses
Let's cut to the chase. You need to pay your employees correctly, on time, and without the IRS breathing down your neck. The right payroll software handles the tedious stuff—tax calculations, filings, direct deposits—so you can focus on actually running your business.
I've dug into the leading options and put together this guide based on real pricing, actual features, and honest assessments of what works and what doesn't. No fluff, just the information you need to make a decision.
Quick Comparison: Top Payroll Software
| Software | Starting Price | Best For | Watch Out For |
|---|---|---|---|
| Gusto | $49/mo + $6/employee | All-around small business | Add-ons can increase cost significantly |
| OnPay | $49/mo + $6/employee | Budget-conscious simplicity | 2-4 day direct deposit turnaround |
| ADP RUN | $39/mo + $5/employee | Scalable enterprise needs | Opaque pricing, quote-based |
| Paychex Flex | $39/mo + $5/employee | Large businesses, 24/7 support | Advanced HR features cost extra |
| Patriot | $17/mo + $4/employee | Bare-bones budget option | Basic plan requires manual tax filing |
1. Gusto – Best Overall for Small Businesses
Gusto consistently ranks at the top for small business payroll, and for good reason. It handles the core stuff well—unlimited payroll runs, automatic tax calculations and filings, direct deposits—while also bundling in useful HR features that most competitors charge extra for.
Over 300,000 businesses use Gusto, and customers report saving an average of 4 hours per month on payroll tasks after switching. The interface is genuinely easy to use, which matters when you're not a payroll expert.
Gusto Pricing Breakdown
- Simple Plan: $49/month + $6/employee – Single-state payroll, basic hiring tools, two-day direct deposit
- Plus Plan: $80/month + $12/employee – Multi-state payroll, next-day direct deposit, time tracking, advanced onboarding
- Premium Plan: $180/month + $22/employee – Dedicated support manager, HR resource center, compliance alerts
- Contractor Only: $35/month + $6/contractor – For businesses that only pay 1099 contractors
Note: Gusto increased its Simple plan from $40 to $49 in March 2025. The Plus plan has gone up 25% since early 2023 when it was $60/month + $9/employee.
What Gusto Does Well
- Unlimited payroll runs included on all plans
- Automatic federal, state, and local tax calculations and filings
- Health insurance administration at no extra cost if you use Gusto as your broker
- W-2 and 1099 processing included
- Employee self-service portal for pay stubs and tax forms
- Solid integrations with QuickBooks, Xero, and other accounting software
Where Gusto Falls Short
- Add-ons can quickly inflate your bill—time tracking, next-day direct deposit, and HR support often require upgrades
- Not ideal for international payroll (EOR services cost $599-$699/employee/month)
- Some users report customer service can be slow during peak times
- No 24/7 support (even Paychex offers this)
For most small businesses under 50 employees, Gusto hits the sweet spot of features, usability, and price. It's our top pick.
Want more details? Check out our in-depth Gusto review or see the full Gusto pricing breakdown.
2. OnPay – Best Budget Option with Full Features
OnPay takes a refreshingly simple approach: one plan, one price, no upsells. At $49/month + $6/employee, you get everything—multi-state payroll, unlimited pay runs, all tax filings, and basic HR tools. No feature is locked behind a higher tier.
This transparent pricing model makes OnPay particularly attractive for businesses that hate surprises on their monthly bill. What you see is what you pay.
OnPay Pricing
- Single Plan: $49/month + $6/person
- Includes unlimited payroll runs, all tax filings, multi-state support, HR tools, and 1099 processing
OnPay has received recognition as "Best for Combined HR, Benefits and Payroll" by USA Today and earned PCMag's Editors' Choice award. On G2, it scores 9.7/10 for payroll entry and 9.5/10 for quality of support—both higher than QuickBooks Payroll.
OnPay Strengths
- No hidden fees or add-on charges
- Strong customer support with phone hours Monday-Friday 9am-8pm ET
- Error-free guarantee (they'll handle any tax agency issues if they make a mistake)
- Integrates with QuickBooks, Xero, and popular time-tracking apps
- 401(k) and health insurance administration available
OnPay Limitations
- Direct deposit takes 2-4 days (no next-day or same-day option)
- Fewer integrations than Gusto or QuickBooks
- May not scale well for businesses over 50 employees
- No dedicated mobile app (web-based only)
If you want straightforward payroll without worrying about which features you're missing, OnPay delivers.
3. ADP RUN – Best for Growing Companies
ADP is the 800-pound gorilla of payroll, serving over 900,000 small business clients. Their small business product, RUN Powered by ADP, offers the enterprise-level infrastructure and compliance expertise that comes from processing payroll for decades.
The biggest catch? ADP doesn't publish transparent pricing. You'll need to talk to a sales rep to get a quote, which makes comparison shopping harder.
ADP RUN Pricing (What We Know)
ADP's basic plan starts at $39/month + $5/employee for simple payroll and tax filing. However, the actual cost varies based on your business size, payroll frequency, and selected features. ADP uses a quote-based model, so your price may differ.
ADP offers four RUN packages:
- Essential: Basic payroll, tax filing, compliance help
- Enhanced: Adds ZipRecruiter, SUI management, background checks
- Complete: Adds basic HR support
- HR Pro: Enhanced HR support and employee perks
Why Choose ADP
- Available in all 50 states plus 140+ countries internationally
- AI-powered error detection catches mistakes before they become expensive
- Scales seamlessly from 1 employee to 1,000+
- Strong compliance support with SmartCompliance technology
- More than 200 standard payroll reports
ADP Drawbacks
- Non-transparent pricing makes budgeting difficult
- Time tracking and benefits administration often cost extra
- Can feel overly complex for very small businesses
- Some reviews cite hidden fees and long hold times for support
ADP makes sense if you're planning significant growth and want a platform that can handle enterprise needs down the road. For a 10-person business with no growth plans, it's probably overkill.
See how they stack up in our Gusto vs ADP comparison.
4. Paychex Flex – Best for 24/7 Support
Paychex has been in the payroll game for over 50 years and now serves around 740,000 companies. Like ADP, it's built for businesses that want full-service payroll with compliance expertise baked in.
The standout feature? Paychex offers 24/7 customer support by phone and chat—the only major payroll provider with truly around-the-clock help. If you run payroll at odd hours or need help during a crisis, this matters.
Paychex Pricing
- Flex Essentials: $39/month + $5/employee – For businesses with 1-19 employees
- Flex Select: Custom pricing – Adds learning management system
- Flex Pro: Custom pricing – Previous pricing was ~$47/month + $3/employee
- Flex Enterprise: Custom pricing – Previously ~$95/month + $3/employee
Paychex also owns SurePayroll, which offers a simpler $29/month + $7/employee full-service plan for basic needs.
Paychex Advantages
- 24/7/365 customer support
- Real-time payments (no other major provider offers this)
- Strong compliance support and tax expertise
- Integrates payroll, HR, time tracking, and benefits in one platform
- Can serve businesses up to 1,000+ employees
Paychex Disadvantages
- Advanced HR features require paid upgrades
- Quote-based pricing on higher tiers makes comparison difficult
- Can be more expensive than Gusto for comparable features
- Some users find the interface less intuitive than newer competitors
Compare them directly in our Gusto vs Paychex breakdown.
5. Patriot Software – Best Budget-Friendly Option
If you're running a tight ship and need bare-bones payroll at the lowest possible price, Patriot delivers. Their Basic Payroll starts at just $17/month + $4/worker—the cheapest option on this list.
The catch? The Basic plan means you handle your own tax filings. If you want full-service payroll with automated tax filing, you'll need the Full Service plan at $37/month + $4/employee. Still cheaper than most alternatives.
Patriot Pricing
- Basic Payroll: $17/month + $4/worker – You file your own taxes
- Full Service Payroll: $37/month + $4/worker – Tax filings included
What Patriot Offers
- Unlimited payrolls
- Direct deposit included
- W-2 and 1099 preparation
- Employee mobile app for viewing paystubs
- Optional accounting software that integrates seamlessly
Patriot Limitations
- Significantly fewer features than Gusto or OnPay
- Limited HR tools
- Basic plan requires manual tax filing knowledge
- Fewer integrations with third-party software
Patriot is ideal for very small businesses (under 10 employees) that don't need bells and whistles and want to keep costs as low as possible.
How to Choose the Right Payroll Software
Here's a decision framework based on your situation:
Choose Gusto if:
- You want the best balance of features, usability, and price
- You have under 50 employees
- You value HR features like onboarding and benefits administration
- You're okay with slightly higher prices for a polished experience
Choose OnPay if:
- You want simple, predictable pricing with no surprises
- You don't need next-day direct deposit
- You appreciate excellent customer support
- You want full features without paying for premium tiers
Choose ADP or Paychex if:
- You're planning significant growth
- You operate in multiple states or countries
- Compliance and tax expertise are top priorities
- You need 24/7 support (Paychex specifically)
Choose Patriot if:
- Budget is your primary concern
- You have a very small team
- You don't mind fewer features
- You're comfortable handling some tax tasks yourself (Basic plan)
What About QuickBooks Payroll?
If you're already using QuickBooks for accounting, QuickBooks Payroll integrates seamlessly. But it's not automatically the best choice. QuickBooks charges extra for 1099 filings and doesn't handle local taxes automatically—you'll need to do those yourself in many cases.
QuickBooks also doesn't include built-in HR functionality; you'd need to upgrade for HR advisor access. For pure payroll with tight QuickBooks integration, it works. For comprehensive HR and payroll, Gusto or OnPay often deliver more value.
Bottom Line
For most small businesses, Gusto is the right choice. It's not the cheapest, but it hits the sweet spot of automation, features, and user experience that makes payroll genuinely painless.
If budget is tight and you don't need every feature, OnPay gives you full-service payroll without the price games. And if you're building something bigger or need enterprise-grade compliance, ADP or Paychex have the infrastructure to grow with you.
Looking for more specific comparisons? Check out these guides: