What is the best payroll software for small business” is a question that I’ve been asked a lot in my career. When it comes to payroll, there are many solutions you can opt for but none of them are great. I know this because most of my clients started with a free payroll software and then switched over to something else.
To save you the time and money, I’ll show you which payroll software is best for small businesses.
OnPay is the best payroll for new employers
Best for new employers with one employeeOnPay
4.0
- Starting at $36.00/mo. + $5.00/payee/mo.
Automatic payroll tax administration
Affordable insurance add-ons (in-house brokers)
Direct deposit, check, and debit card payment options
Data as of 11/5/21. Offers and availability may vary by location and are subject to change.
Like Gusto, OnPay is a straightforward payroll and HR program with a beautiful, easy-to-use platform. If you ask, OnPay can tailor its payroll services to your industry at no additional cost. And if you just hired your first employee and are still a little unclear on the payroll process, OnPay is a great fit. Its interface is extremely intuitive—but its experts also set up the software for free, then talk you through your first run.
OnPay further stands out from the crowd by offering key payroll services for free, namely automatic tax filing and end-of-year paperwork. Plus, thanks to its in-house team of insurance brokers, you pay just the premium with no integration fees.
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 ($36) and per-employee price ($4) never change—but neither do the features. If you’re hoping for scalable, comprehensive HR packages, you might consider Paychex or Gusto instead.ProsExtremely affordable full-service payroll
Comprehensive payroll tax administration at no additional cost
Solid employee benefits and insurance optionsCons
One plan only (limited scalability)Get Started with OnPayRead Our OnPay Review
ADP is the best payroll + HR provider
Best payroll with HR add-onsADP
3.5
- Starting price: Contact for quote
Automatic payroll tax administration (additional fee for some services)
Workers compensation and health insurance add-ons (additional fee)
Direct deposit, check, and debit card payment options
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 system 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? Unfortunately, we don’t know, since ADP doesn’t list its payroll cost online. You have to contact the company directly to get a quote—useful if you want to build a custom package, but less useful if you’d rather not deal with a pushy sales rep.ProsDedicated HR and payroll assistance
Multiple customizable plans
Heavy focus on human resources supportCons
Additional fee for payroll tax administration
Additional fee for insurance add-ons
No transparent pricingGet Started with ADPRead Our ADP Review
Gusto
Easy to use and compatible with requirements in all 50 states, Gusto makes payroll management easy. This software for payroll comes fully loaded with a number of important features. It can handle benefits, healthcare plans, taxes, 401(k) plans, and time tracking. It’s also fully compatible with most accounting software platforms, including the big names like FreshBooks, QuickBooks, and Xero. Small businesses can opt for the most basic Core plan when just starting off, levelling up to the more full-service options as your business grows. At the higher Concierge level, Gusto’s plan includes HR features including onboarding and surveys.
Square
You might associate Square with the portable square-shaped credit card reader, but this company has grown to include full-service payroll software as well. Like Gusto, Square’s services are customizable so you can adapt the plan to suit your company’s needs. The software can accommodate full-time employees as well as part-time workers and freelance contractors, paying both hourly rates and monthly salaries. It can also manage health benefits, which employees can see when they log in to their own Square accounts.
Intuit QuickBooks
Intuit quickbooks is a great payroll software solution. With QuickBooks you can easily manage expenses, send invoices, and even track inventory. Managers can even set payroll to run automatically so they can focus on the bigger picture.
Key Features:
Activity dashboard
Automatic billing
Billing and invoicing
Budgeting/forecasting
Expense tracking
Payroll management
Inventory tracking
Pros & Cons
Easy to use
Nice user interface
Poor customer service
Pricing:
Their most popular plan costs $80/month and includes 5 users.
Free trial: 30-day free trial
Free plan: Yes
Connecteam’s time and attendance software can integrate with QBOP.
Gusto
Nothing affects the length of time spent on payroll management like the application user experience. The word on the bookkeeping street is that Gusto is the most user-friendly solution available on the market right now, which makes Gusto one of the front-runners in the category. This is one of the reasons we expect to see Gusto grow its share on the market.
Key Features:
Benefits management
Check printing
Direct Deposit
Electronic forms
Employee database
Document management
Pros & Cons
Great user experience
Users complain the customer support is unresponsive
Pricing:
The Core plan has a $39/month base fee with an additional $6/user per month.
Free trial: No
Free plan: No
Paychex Flex
Paychex is one of the most popular payroll software for small businesses but also one of the more expensive solutions, mostly due to public demand. Rumor around the accounting department’s water cooler is that Paychex is robust but not simple, easy to use, or set up.
That can be a huge factor for small businesses when they’re looking for the best payroll software. Paychex requires a lot of personal information to get started and running reports comes with its share of red tape and added costs.
Key Features:
Check printing
Benefits management
Compensation management
Direct deposit
Employee database
Pros & Cons
Great import and export capabilities
Desktop, mobile, kiosk access
Difficult to implement
Poor customer service
Pricing:
You must speak to a sales representative in order to receive a price quote.
Free trial: No
Free plan: No
The solutions offered by ADP, and specifically their small-business oriented RUN, are very similar to those offered by above mentioned Paychex – expensive but popular. This solution is for you if you prefer to send employees physical paychecks rather than direct deposit as ADP can (for an additional fee) print, sign, and mail paychecks on your behalf.
Key Features:
Benefits tracking
Check printing
Compensation management
Direct deposit
Employee database
Payroll reporting
Pros & Cons
Mobile access
Easy to use
Can be expensive for large teams
Pricing:
In order to receive a price quote you must speak to a representative.
Free trial: Yes
Free plan: No
BambooHR
Payroll goes hand in hand with HR, so it’s worth looking at HR software when seeking your payment solutions. BambooHR covers all your bases, providing a separate payroll platform to sync with its main talent management software. This makes it super easy to onboard new employees, tracking hours right from the start. Additional features include staff databases, applicant tracking, time-off tracking, and digital signatures.
Zenefits
Another HR platform that includes comprehensive small business payroll software is Zenefits. It builds time-off tracking, hour tracking, salary upgrades, and benefits into a single one-size-fits-all platform. If your HR and payroll departments are intertwined, it makes it much easier to avoid making double entries. For example, your HR administrator only needs to input a salary change once for it to sync with payroll. As with other software on this list, there are multiple subscription packages to choose from, each with its own features.
QuickBooks
You’re probably familiar with QuickBooks already, but this accounting software also includes an easy auto-pay feature. Perhaps the biggest benefit of using this platform is that it is designed to run automatically, so theoretically, you only need to set up your payroll once. The program will handle taxation, payments, and other issues without manual input.
Paychex
Finally, Paychex is a major payroll software provider dating back to 1971. This comprehensive program is a great choice if you’re interested in boosting employee retention, because it includes a built-in learning management system allowing employees to upgrade their skills. When it comes to payroll, Paychex automatically calculates both state and federal taxes and integrates fully with 401(k). It also includes a free mobile app for management on the go.
Conclusion
Free payroll software for small business – Taking care of employees’ salaries and computing their deductions is a tiresome job for employers. But it’s even worse when the employer has to spend a great deal of money in order to hire an experienced payroll clerk.