Best Payroll Software for Small Businesses

Running payroll is one of the most time-consuming and compliance-critical tasks for small businesses in the United States. Choosing the wrong payroll software can lead to tax filing errors, penalties, and hours of wasted time every month.

We reviewed the leading payroll software options for small businesses based on pricing, ease of use, tax compliance features, and overall value. Below is a side-by-side comparison to help you quickly identify the best payroll solution for your business.

SoftwareBest ForStarting PriceKey Strength
Gusto1–50 employeesFrom ~$40/monthSimple all-in-one payrollCheck Price
ADP RunGrowing businessesCustom pricingScalable compliance supportCheck Price
Paychex FlexCompliance-heavy SMBsCustom pricingStrong tax & HR toolsCheck Price
OnPayBudget-focused SMBsFrom ~$46/monthFlat pricing, no add-onsCheck Price
QuickBooks PayrollQuickBooks usersFrom ~$45/monthAccounting integrationCheck Price

Gusto Payroll

Gusto is a popular payroll software choice for small businesses that want a clean interface and straightforward setup. It combines payroll processing, tax filings, and basic HR features in one platform.

Pros

  • Easy setup and navigation
  • Automatic federal and state tax filings
  • Employee self-service portal

Cons

  • Cost increases as staff grows
  • Limited customization for complex payroll needs

Best for:
Small businesses with straightforward payroll needs that want an easy-to-use system.

ADP Run

ADP Run is designed for small to mid-sized businesses that expect to grow and need scalable payroll and compliance support. It offers payroll processing, tax filing services, and access to HR tools backed by ADP’s long-standing expertise.

Pros

  • Scales well as businesses grow
  • Strong payroll tax compliance support
  • Access to HR and benefits tools

Cons

  • Pricing is not transparent
  • Can be more expensive than simpler options

Best for:
Businesses that anticipate growth and want a well-established payroll provider with robust compliance support.

Paychex Flex

Paychex Flex is a payroll and HR platform suited for small businesses operating in compliance-heavy industries. It provides payroll processing, tax administration, and HR features with flexible service tiers.

Pros

  • Strong tax filing and reporting tools
  • Multiple service levels available
  • HR and benefits management options

Cons

  • Pricing varies by plan and features
  • Interface may feel complex for very small teams

Best for:
Small businesses that require strong compliance tools or operate in regulated industries.

OnPay

OnPay is a straightforward payroll solution that focuses on simplicity and transparent pricing. It includes payroll processing, tax filings, and basic HR tools without add-on fees.

Pros

  • Flat, transparent pricing
  • No extra fees for standard features
  • Simple setup and operation

Cons

  • Fewer advanced HR features
  • Limited customization options

Best for:
Budget-conscious small businesses that want predictable pricing and simple payroll management.

QuickBooks

QuickBooks Payroll integrates directly with QuickBooks accounting software, making it a convenient option for businesses already using the QuickBooks ecosystem. It handles payroll processing, tax filings, and employee payments.

Pros

  • Seamless integration with QuickBooks
  • Familiar interface for existing users
  • Automated tax calculations and filings

Cons

  • Best value only for QuickBooks users
  • Costs increase with additional features

Best for:
Small businesses already using QuickBooks that want payroll tightly integrated with their accounting system.

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