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7 Best Payroll Software for Small Business Users

Aside from being affordably priced, the best payroll software for small business users calculates employee wages and deductions accurately and pays and files payroll taxes automatically. Most offer unlimited pay runs, paid time off (PTO) tracking, two-day direct deposits, employee self-service portals, and access to employee benefits.

In this guide, I compiled a list of the top seven payroll systems for small business owners.


The Fit Small Business editorial process follows strict standards to ensure that our best answers are founded on the basis of accuracy, clarity, authority, objectivity, and accessibility.

To create this guide, I compared popular small business payroll software and evaluated each using the same scoring method based on payroll functionalities, HRIS and reporting, pricing, customer support, and overall system performance. I reviewed product walkthroughs and leveraged free trials or free plans, if available, to test the system’s different features.

In addition to the scoring rubric, my recommendations are based on more than eight years of experience writing about and evaluating HR solutions for small to mid-sized businesses (SMBs). I also have 10 years of expertise in handling different facets of human resources, including managing HR software. These allowed me to provide insights to help business owners determine which platform best fits their needs.

See my full methodology below.

Robie Ann FerrerRobie Ann Ferrer

Payroll & HR Software Expert at Fit Small Business


Best Payroll Software for Small Business Compared

Looking for more than just payroll tools? Consider a professional employer organization (PEO) service like Justworks. It tops our list of best PEOs for small businesses and covers everything from recruiting to retiring. For $79 per employee monthly, it handles payroll, assumes tax liability, and takes HR worries off your hands.

Visit Justworks

Gusto: Best Overall Small Business Payroll Software

Gusto logoGusto logo

Pros

  • Unlimited and automatic pay runs
  • Access to Gusto brokered health plans with zero administration fees (pay only for premiums)
  • Financial wellness tools available via Gusto Wallet
  • Offers international contractor payments and Employer of Record (EOR) services to hire and pay global employees

Cons

  • Garnishment service isn’t available in South Carolina
  • Time tracking, next-day direct deposits, performance reviews, and multistate payroll are available only in higher tiers
  • No dedicated payroll specialist

Overview

Who should use it: 

Choose Gusto if you want to run payroll, offer employee benefits, and handle basic HR tasks from one system. It works well for small teams that want to simplify payroll compliance and reduce manual admin.

Why I like it: 

Learning how to run Gusto payroll is easy, even if you have minimal knowledge of using pay processing tools. It calculates wages, remits and files payroll taxes, offers benefits plans, and gives workers self-service access without adding separate HR tools.

I also like that it offers more built-in HR support than QuickBooks Payroll or Square Payroll. If you need payroll plus benefits and onboarding tools, Gusto has all the essential features you need. While Rippling goes further on automation and customizable workflows, Gusto is easier to manage.

The main downside is that some useful features cost extra or require a higher plan. Multistate payroll, time tracking, next-day direct deposit, and stronger support aren’t included at the entry level, so the total cost can rise as your team grows or payroll gets more complex.


Plans

  • Simple: $49 base fee monthly + $6 per person/month
  • Plus: $89 base fee monthly + $14 per person/month
  • Premium: $180 base fee monthly + $22 per person/month
  • Contractor-only payroll plan: $35 base fee + $6 per person/month (for businesses that only pay contract workers)

Add-ons for all plans

  • Global contractor payments: $15 per payment to US-based bank accounts; foreign exchange rates may vary
  • Gusto Global: $699 per person/month; EOR services (powered by Remote)
  • R&D tax credits: 15% of identified tax credits
  • State tax registration: Pricing varies by state
  • Same-day pay: $90 per payroll; lets you pay employees within hours
  • Instant pay: $100 per payroll; lets you pay employees in minutes
  • Workers’ compensation: Pay only for premiums
  • Health insurance and retirement plans: Pricing varies depending on the plan
  • Health insurance broker integration: $6 per eligible employee/monthly
  • Gusto Money Plus: $19 per month; tools to manage and organize company funds

Add-ons for the Simple plan (included free in the Simple & Plus tiers)

  • Next-day pay: $15 base fee monthly + $3 per person/month
  • Time & Attendance Plus: $6 per person/month
  • Performance reviews: $3 per person/month

Add-ons for the Simple and Plus plans

  • Priority support: $30 base fee monthly + $3 per person/month; priority positioning when accessing phone and chat support
  • HR resources: $30 base fee monthly + $3 per person/month; access to certified HR experts, compliance alerts, and an online HR resource center


  • Simple-to-use payroll interface: You can process payroll in three steps and view or edit employee hours, time off and overtime details, deductions, and earnings on one page.
  • Financial management tools: The free Gusto Wallet app lets your employees track finances, identify budgets for expenses, split paychecks into different accounts, and automatically set aside money every payday for savings. Few payroll platforms in this guide offer a built-in financial wellness tool with this much employee-side functionality.
  • Net-to-gross pay calculations: Gusto can calculate the gross pay needed to deliver a specific net amount after taxes. This is useful for off-cycle payments and bonuses, where you want an employee to receive an exact payout without manually working backward through tax deductions.
  • Automated payroll and tax filings: Gusto supports automatic payroll and multiple pay schedules, which helps reduce repeat admin work each pay period. It also calculates, withholds, files, and pays federal, state, and local payroll taxes automatically.
Gusto lets you add employee time data and additional earnings.Gusto lets you add employee time data and additional earnings.

Gusto lets you add employee time data and additional earnings like bonuses directly into its payroll solution. (Source: Gusto)


Want to see how Gusto compares with its competitors and other HR software? Check out these articles:

Square Payroll: Best for Small Restaurants & Retail Shops

Square logoSquare logo

Pros

  • Offers flat pricing with an affordable contractor plan
  • Connects easily with Square POS.
  • Has two- and four-day direct deposits, including an instant payment option via the Cash App

Cons

  • Instant payments require you to store funds in an online Square balance account
  • Limited HR tools
  • Two-day direct deposits are available only to qualified businesses

Overview

Who should use it: 

I recommend Square Payroll if you run a restaurant or retail shop. The software works best for businesses already using Square POS to track sales and employee hours.

Why I like it: 

What stands out to me is how easy Square Payroll is to manage. The pricing is simple, payroll runs are unlimited, and you don’t have to deal with the setup complexity that can come with more customizable platforms like Rippling.

I also like that it stays focused on core payroll tasks instead of trying to be a full HR suite. That makes it easier to use than broader platforms like Paychex and ADP if your main priority is paying employees accurately and on time.

The tradeoff is that it has less depth outside payroll. If you need stronger HR tools, more advanced reporting, or broader workforce management features, you’ll likely get more value from Gusto or Rippling.


Plans

  • Full-service payroll: $35 base fee monthly + $6 per person/month
  • Contractor-only payroll: $6 per person/month

Add-ons

  • Mail paper copies of W-2s/1099s: $3 per mailed form/year
  • Health insurance and retirement benefits: Pricing varies depending on the plan
  • Payroll amendment service: Call for a quote


  • Smooth integration with Square products: It integrates well with Square POS, allowing the direct tracking of employee work hours and tips on its dashboard and easy importing of attendance and tip data into Square Payroll to pay workers. You can even get money from your Square balance account to fund payroll.
  • Tax amendment services: While this is a paid service, Square helps you fix payroll tax filing errors, such as worker classification mistakes or adding missing payroll history from a previous payroll provider that was not submitted on time. This is crucial if you need help managing the intricacies of amending payroll reports submitted to local authorities.
  • Online forum or community: You get access to Square’s online community, where you can meet other Square users, ask them questions about the payroll platform or other Square products, and even solicit advice on how to tackle small business operations, like launching a digital marketing campaign.
  • Simple payroll automation with unlimited pay runs: Square lets you automate payroll and run it as often as needed without additional fees. While Gusto also offers unlimited payroll runs, Square’s advantage is how closely payroll ties into POS-driven workflows.
Square Payroll main dashboard shows your pay run history and an overview.Square Payroll main dashboard shows your pay run history and an overview.

Aside from letting you run payroll, Square Payroll’s main dashboard shows your pay run history and an overview of your total labor costs. (Source: Square Payroll)


Rippling: Best for Payroll Automation

Rippling logo.Rippling logo.

Pros

  • Modular HR, payroll, expense management, and IT features integrate with each other
  • It offers global payroll, EOR services, and a professional employer organization (PEO) solution if you want to outsource day-to-day HR and payroll tasks
  • PEO services can be easily switched on and off
  • Integrates with over 600 business software

Cons

  • Pricing isn’t all transparent; difficult to find on its website
  • You have to purchase its core Rippling Platform before you can buy other modules
  • HR help desk option with phone and email support costs extra
  • Can get pricey as you add more features

Overview

Who should use it: 

Rippling fits businesses that want more control over how payroll connects to HR, IT, and basic finance tasks. It’s a better fit for those handling frequent employee changes and approval workflows, and want those actions tied to payroll automatically.

Why I like it: 

What makes Rippling a good payroll option for small businesses is its payroll automation and highly customizable workflow tools. It streamlines the process by eliminating manual steps, such as calculating wages and taxes and going through all pay details to check for errors. Rippling also provides compliance alerts, which help ensure that you’re always up-to-date with federal regulations and labor laws.

I like that its platform has more room to grow than Square Payroll or QuickBooks Payroll. Gusto may be easier to manage, but Rippling gives you broader admin capabilities and a wider suite of HR tools.

The downside is that it can get pricey once you start adding modules. For small teams with simple payroll needs, Rippling can feel heavier than necessary because of its full-featured HR platform.


Rippling works with you to create a custom package that fits your needs. Monthly fees start at $8 per employee plus a $40 base fee, according to Rippling’s small business page. Note that you have to purchase the core Rippling Platform before getting any of its modules.

Here are some of its custom-priced add-on tools and services:

HR modules

  • Global payroll
  • EOR services
  • PEO services
  • Recruiting
  • Scheduling
  • Time & attendance
  • Benefits administration
  • Headcount planning
  • Learning management
  • Performance reviews
  • HR help desk: HR advisory services via phone and email

IT modules

  • Identity & access management
  • Device management
  • Inventory management

Finance modules

  • Expense management
  • Corporate cards
  • Bill pay


  • Easy-to-use workflows: Customizable workflows require no coding experience, as they come with if-then logic to automate processes. For example, you can set up a workflow that automatically notifies applicable employees to prepare items that new hires need based on their position and job levels, such as company laptops or corporate credit cards.
  • Modular tools: Rippling lets you choose the HR and payroll tools you want, and you can easily add other features as your employee management needs grow. It even has an expense management module, as well as IT tools to monitor business software access and company computer devices.
  • Pay run comparisons: Rippling pulls your last payroll numbers automatically when you begin processing a new payroll cycle, so you can compare the two easily. It helps you identify any obvious errors quickly to prevent you from having to backtrack to correct them later.
Rippling claims that it can run payroll in as fast as 90 seconds.Rippling claims that it can run payroll in as fast as 90 seconds.

Rippling claims that it can run payroll in as fast as 90 seconds. (Source: Rippling)


QuickBooks Payroll: Best for QuickBooks Users and Contractor Payments

QuickBooks logo.QuickBooks logo.

Pros

  • Integrates seamlessly with QuickBooks accounting software
  • Next-day deposits are included in the starter plan; a same-day option available in higher tiers
  • Low-cost plan for processing contractor payments
  • Tax penalty protection covers all tax filing mistakes, regardless of who made the error.

Cons

  • Automated local tax filings and time tracking are available only in higher plans
  • Limited HR tools
  • Tax penalty protection only for the Elite plan; lower tiers get an accuracy guarantee that only covers mistakes made by QuickBooks representatives

Overview

Who should use it: 

Businesses already using QuickBooks for accounting. It’s a good option if you want payroll and accounting data to stay in sync without manual entry or special integrations.

Why I like it: 

QuickBooks Payroll fits naturally into an accounting workflow. Payroll expenses, taxes, and employee data flow directly into your books, making payroll reconciliation and reporting easier than using a separate payroll system.

It also stands out on payment speed and contractor pricing. The base plan includes next-day direct deposit, which is faster than what Gusto typically offers at the same tier, and its contractor plan is more cost-effective than Square Payroll for businesses paying multiple contractors.

Where it falls short is outside payroll. It doesn’t offer the same HR tools as Gusto, Rippling, ADP, or Paychex, and features like local tax automation and time tracking require upgrades. If you need payroll plus broader employee management, other platforms in this guide will give you more coverage.


  • Payroll Core: $50 per month + $6.50 per employee monthly
  • Payroll Premium: $88 per month + $10 per employee monthly
  • Payroll Elite: $134 per month + $12 per employee monthly
  • Contractor payments package: $15 monthly for 20 workers + $2 for each additional contractor


  • Low-cost contractor-only payroll: QuickBooks Payroll contractor payments package is the cheapest among our list of best payroll software for small business owners. For $15 per month, you can process payments for up to 20 workers — with Square Payroll, paying 20 contractors will cost $120 per month (computed as $6 × 20 workers = $120).
  • Additional tax penalty protection: On top of its tax accuracy guarantee that only covers mistakes that its representatives make, QuickBooks has tax penalty protection. This will cover the penalty and interest for any payroll tax error for up to $25,000 a year, regardless of who made the mistake. Note that you must purchase its Elite plan to have this protection.
  • Online community: Similar to Square, it has an online forum where you can connect with other QuickBooks users if you have queries about using QuickBooks Payroll or need advice on how to run a small business.
QuickBooks Payroll’s main dashboard.QuickBooks Payroll’s main dashboard.

Aside from a “to-do” list, QuickBooks Payroll’s main dashboard contains shortcuts for running payroll and adding employees. (Source: QuickBooks Payroll)


RUN Powered by ADP: Best for Growing Businesses

ADP Run logoADP Run logo

Pros

  • Built-in compliance tools that flag pay errors
  • Has a wide range of HR features
  • Offers PEO services and global payroll tools

Cons

  • Pricing isn’t transparent
  • Applicant tracking, salary benchmarks, and learning management reserved for higher plans.
  • Benefits, time tracking, and workers’ compensation are paid add-ons

Overview

Who should use it: 

Businesses that expect to grow and want payroll software that can scale with them. It’s a good fit if you plan to move into more advanced HR tools or outsourced services over time.

Why I like it: 

ADP RUN is built with growth in mind. You can start with basic payroll and move into more advanced HR features, recruiting tools, and outsourced services without switching providers. That upgrade path is something you don’t get as easily with QuickBooks Payroll or Square Payroll.

Its higher tiers include extra HR support and more advanced tools like ZipRecruiter job postings, applicant tracking, and salary benchmarks to help you assess the competitiveness of your employee compensation package. Compared with Gusto, ADP offers more structured compliance features and service-backed options, which can be useful as payroll gets more complex.

The downside is in pricing. Costs aren’t transparent, and features like time tracking, benefits, and recruiting tools often require upgrades or extra fees. If you want predictable pricing and fewer upsells, Square Payroll will feel more straightforward.


Plans

  • Essential Payroll: Call for a quote
  • Enhanced Payroll: Call for a quote
  • Complete Payroll & HR: Call for a quote
  • HR Pro Payroll & HR: Call for a quote

Add-ons

  • Time and attendance: Call for a quote
  • Retirement plans: Call for a quote
  • Workers’ compensation: Call for a quote
  • Health insurance plans: Call for a quote


  • Multiple payment options: Pay your employees via direct deposit, paychecks, and through the Wisely Direct Debit Card. It also offers check signing and stuffing services and will even deliver the envelopes to your office before payday. Unlike Paychex, ADP provides secure paychecks with 10 advanced fraud protection features.
  • Certified payroll reporting: ADP supports certified payroll, which is required for government-funded projects. This is a key advantage over Gusto, Square Payroll, and QuickBooks Payroll, which do not offer the same level of support for this requirement.
ADP Run payroll dashboard sample.ADP Run payroll dashboard sample.

ADP Run’s dashboard shows payroll analytics, important notifications, and pay processing tasks. (Source: ADP)


Patriot Payroll: Best for Affordability

Patriot logo.Patriot logo.

Pros

  • Offers a full-service payroll plan and a basic tier with do-it-yourself (DIY) tax filings
  • Connects easily with other Patriot products, such as accounting, time tracking, and an HR module with document management, compliance, and reporting tools

Cons

  • Multistate tax filings and time tracking costs extra
  • Lacks benefits options.
  • Standard lead time for direct deposits is four days; two-day direct deposits are reserved for qualified clients

Overview

Who should use it: 

Patriot Software offers an inexpensive solution for paying employees and contract workers. If you prefer to handle payroll tax filings yourself, you can use Patriot Payroll’s basic tier, which costs only $17 monthly + $4 per employee—a viable option if you have a handful of employees. And even if you sign up for its full-service plan, it’s slightly cheaper than Square ($37 + $5 per employee monthly vs $35 + $6 per employee monthly).

Why I like it:

Patriot Payroll offers a flexible option that others in this guide don’t: a choice between full-service payroll and a more affordable DIY version. Both come with unlimited payroll runs, multiple pay rates, automated PTO accrual calculations, and customizable deductions and contributions. You can pay employees through direct deposit or manual checks, and if you choose its full-service plan, Patriot will pay and file all federal, state, and local taxes.

I gave it a 3.35 out of 5 because of its efficient payroll tools and affordable pricing. However, Patriot Payroll only offers its two-day direct deposit feature to qualified clients. If you want fast direct deposits, try QuickBooks Payroll (its basic plan comes with next-day options) or Square Payroll (its Cash App feature lets you pay employees instantly). And while Patriot can handle multistate pay runs, it charges a $12 fee for each additional state tax filing. If you don’t want to pay extra, consider the other providers on my list (except Gusto as it offers multi-state pay runs in higher tiers).


Patriot Payroll plans

  • Basic Payroll with DIY tax filings: $17 base fee + $4 per employee monthly
  • Full Service Payroll: $37 base fee + $5 per employee monthly

Add-ons

  • Multistate tax filings: $12 monthly for each additional state
  • 1099 e-filings (for Basic Payroll subscribers only): $20 for up to five 1099 e-filings; an additional $2 per 1099 is required for six to 35 filings (no additional charge for 36 or more)
  • Time tracking: $6 base fee + $2 per employee monthly
  • HR/employee data management tools: $6 base fee + $2 per employee monthly
  • Accounting: $20 monthly for the basic option; $30 monthly for the premium version


  • Easy pay rate changes: Patriot allows employee hourly pay changes during pay runs. You don’t need to cancel the payroll or leave the system’s pay processing page to make the salary updates.
  • Net-to-gross payroll tool: With this feature, you simply input the bonus amounts you want your employees to receive, and Patriot Payroll will automatically gross it up for taxes. This saves you time and helps prevent errors from manually calculating grossed-up bonus data for payroll tax processing.
Patriot has a three-step pay run process.Patriot has a three-step pay run process.

Patriot Payroll has a three-step pay run process. (Source: Patriot Payroll)


Paychex Flex: Best for Payroll Services and Support

Paychex logoPaychex logo

Pros

  • Offers dedicated payroll support
  • Has a wide suite of HR tools, such as recruiting, time tracking, and learning management
  • Payroll services include a PEO solution, tax management across multiple states, and tax credit claims assistance

Cons

  • Pricing isn’t transparent
  • Many HR tools (pre-employment screening, time tracking, HR consulting) cost extra
  • Can get pricey depending on add-on features selected

Overview

Who should use it: 

Paychex Flex fits businesses that want payroll software backed by real service support. It’s a strong option for those who would rather have help available for pay processing, compliance questions, and related HR tasks instead of handling everything on their own.

Why I like it: 

What I like about Paychex Flex is that it gives businesses more ways to get payroll done. You can run payroll yourself in the platform, start it in the mobile app, or work with a payroll specialist if you need extra help. That makes it a better fit than Gusto, QuickBooks Payroll, or Square Payroll for teams that want more direct support.

I also appreciate the range of services available as your needs grow. Paychex covers payroll, HR tools, benefits, and tax credit support, which gives it similar breadth to ADP. The difference is in how those services are delivered. Paychex leans more into guided support, while ADP focuses more on structured tiers and scaling into larger platforms.


Plans

  • Paychex Flex Select: Call for a quote
  • Paychex Flex Pro: Call for a quote

Add-ons for all plans

  • Time and attendance: Call for a quote
  • Talent management: Call for a quote
  • HR analytics: Call for a quote
  • Health insurance and retirement plans: Call for a quote
  • Workers’ compensation: Call for a quote
  • HR consulting: Call for a quote
  • Enhanced support: Call for a quote; includes phone and email access to customer support
  • Premium support: Call for a quote; includes access to customer support advisors and a Paychex payroll specialist who can enter and submit payroll on your behalf

Add-ons for the Select plan (included free in the Pro tier):

  • Garnishment payment services: Call for a quote
  • State unemployment insurance service: Call for a quote
  • Workers’ compensation report service: Call for a quote
  • General ledger service: Call for a quote
  • Pre-employment screening: Call for a quote
  • Employee handbook builder: Call for a quote


  • Dedicated payroll support: Paychex gives you access to dedicated payroll specialists who can assist with processing pay runs. This level of support is not available in Gusto, QuickBooks Payroll, or Square Payroll, which rely more on self-service tools.
  • Paychex Voice Assist: Paychex offers a voice-activated tool that lets you start, review, and submit payroll using a Google Assistant-compatible device. You can start a new pay period, make adjustments, or continue a pay run that’s already in progress without having to log in to your Paychex Flex account manually.
  • Pre-check payroll previews: Paychex Pre-check lets employees review pay details before payroll is finalized, helping catch errors early. This adds an extra layer of accuracy compared to Gusto, Square Payroll, and QuickBooks Payroll, which rely more on admin-side review.
Analytics and Reports from Paychex Flex dashboard.Analytics and Reports from Paychex Flex dashboard.

Paychex Flex’s dashboard provides easy access to reports, pay runs, and employee lists. (Source: Paychex)


For more payroll software options, check out our buyer’s guide on the best payroll services to help you find a payroll software or service that fits your business’s needs.

How to Choose the Best Small Business Payroll Software

When searching for the best payroll system for your small company, you should consider the following factors:

  • Business needs: Take a look at what your business needs in paying employees. This includes considering your location, the size of your workforce, and the complexity of your payroll requirements to determine the features and payroll system to get.
  • Budget: It’s important that the payroll software fits your budget. I suggest looking for those that offer unlimited pay runs. This can save you money especially if you pay employees several times a month or have plans to increase the size of your workforce.
  • Scalability: Look for a flexible payroll platform that can handle basic to complex payroll. It should also have HR tools to help you manage employee attendance, benefits, hiring, and performance reviews—features you will likely need as you add more employees. While these functionalities may likely cost extra, you should already take note of them for future budget plans.
  • Compliance: Choose a payroll software that offers compliance solutions like automated alerts, tax filing assistance, and HR advisory services.
  • Automation: Check the system’s workflows and automation tools as these can help reduce payroll errors and minimize processing time. Are they customizable? Does it allow you to assign specific users to specific tasks?
  • Reviews: Don’t forget to look at what other users are saying about the product. You can do this by reviewing feedback that actual users left on popular sites like G2, Capterra, and Reddit.

Methodology: How I Evaluated the Best Payroll Software for Small Business

To evaluate the top payroll systems for small businesses, I collaborated with Irene Casucian, one of our expert research analysts, where we used a new rubric with several criteria to compare seven payroll software, as follows:

  • Gusto
  • Rippling
  • QuickBooks Payroll
  • Square Payroll
  • Patriot Payroll
  • Paychex Flex

We looked for unlimited pay runs, automatic tax filings and remittances, and other features to help streamline the payroll process. We also checked pricing, user reviews, customer support options, reporting functionalities, integration options, and basic HR information system (HRIS) features for easy onboarding and staff data management.

I also added my expert rating to each criterion, where I looked at the general effectiveness of that feature. While I wasn’t able to test all of the software on my list, I looked for key payroll features, watched video tutorials if available, and checked user reviews for feedback about the system’s overall ease of use and functionality.

To view the full evaluation criteria, click through the tabs in the box below.

15%

Platform and Interface

25% of Overall Score

We gave priority to those that offer multiple pay schedules, two-day direct deposits, wage garnishments, tax payment and filing services, and year-end reporting (W-2s and 1099s). We also checked if it supports multiple payment types, contractor payroll, and pay processing in all US states.

25% of Overall Score

We looked for transparent pricing, free trial and discount offers, unlimited payroll, and each platform’s “value for money,” which determines whether the number of features in the basic plan is competitive with other vendors in the space. We also gave points to software that only cost up to $350 monthly to run payroll for 50 employees.

20% of Overall Score

We looked for HRIS functionalities to help with employee data storage, recordkeeping, onboarding and offboarding, and new hire reporting. We also gave points to software that offer employee self-service portals, customizable reports and payroll templates, benefits plans that are available in all US states, and org charts or a company directory that employees can access online

15% of Overall Score

In this criterion, we considered the platform’s mobile app functionality, including its time tracking and benefits administration features. We also checked the system’s data security protocols, permission, and access controls, and whether it integrates with an accounting system.

10% of Overall Score

We looked for payroll services and the support options available, such as the support hours and if customer representatives can be reached via phone, email, or chat. We also checked the types of help resources offered, such as an online knowledge base and a community forum.

5% of Overall Score

We considered user reviews from third-party review sites like Capterra, G2, and TrustRadius. We also checked the ratings and the number of reviews, wherein those with 500 or more reviews got higher points.

*Percentages of overall score

Meet the Experts

The experts who contributed to this article’s rubric assessment include:

Frequently Asked Questions (FAQs) About Small Business Payroll


A payroll system can accurately calculate employee wages (such as salaries, overtime, and deductions for required payroll taxes) and pay workers either through direct deposits, pay cards, or paychecks. Many payroll providers also offer tax payment and filing services. Others even provide access to basic HR tools like time and PTO tracking, allowing you to easily capture employee attendance data for pay processing.



The best payroll software for small business users should meet your budgetary needs while providing the essential tools you need to compute and process employee payments and payroll taxes.



A payroll software can cost anywhere from $30 to $50 per employee monthly. Note that this includes the base software and per-employee fees. You should expect to pay more if you want additional functionalities like time tracking, employee benefits, and HR advisory services.



Basic HR tools like employee data management, PTO and time tracking, and new hire onboarding are essential as these help small businesses streamline day-to-day HR tasks. Having access to benefits plans and benefits administration tools is also important. These allow you to manage workers comp, health insurance, and other employee benefits through your payroll software.



Aside from calculating earnings and deductions, payroll processing software for small business users help automate processes given its workflow and compliance tools. This helps you save time, enables you to manage payroll easily, and ensures you remain compliant with federal regulations and labor laws.



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