Payroll may be chaotic and complex for a small business to manage, but it can be made easy, free of errors, and payroll-compliant through the appropriate payroll software. Payroll software must process salaries automatically, tax payments, direct deposits, and employee details in order to reduce the possibility of costly mistakes. All these applications are particularly important to small business owners, HR professionals, accountants, and even solo freelancers or small startups with constrained resources.
In this article, we are listing the top 10 payroll software for small business. They are selected on the basis of ease of use, tax functionality, cost, scalability, customer service, integration options, and employee self-service. Whether you’re a software developer with a small software business, a retailer with variable seasonal employees, or a marketer with a growing agency, this guide will help you choose the payroll system that best meets your individual needs and offers hassle-free, mistake-free payroll processing every time.
Criteria for Selecting the Best Payroll Software for Small Business
The following are the main criteria for choosing the most appropriate payroll software for small business:
- Ease of use: The software must be user-friendly and time-saving to learn by a non-professional; the owner of the small business or an employee has to be able to handle payroll without lengthy training.
- Compliance and tax filing: It is supposed to take care of taxes, the taxation rates, and taxation filing naturally with local, state, and federal tax laws being automatically updated and reduced in terms of error possibility or predisposed fines.
- Pricing and scalability: Small businesses should find this software to be affordable and transparent. It must also be able to provide scalable plans when the business expands or when it recruits more workers.
- Employee self-service features: Admin load is reduced by tools that enable employees to view their pay stubs, and tax forms and update personal information.
- Integration capabilities: The payroll software is recommended to be incorporated with accounting software, time tracking software, and HR software to make the procedures smoother and share data.
- Support and customer service: Customer support chat, phone, or email should be reliable in ensuring that payroll problems are resolved easily and fast.
- Direct deposit and payment flexibility: The capability to pay workers through direct deposits, checks or prepaid cards makes it flexible and convenient to meet the various needs of workers.
- Security and data protection: Payroll and employee data are sensitive data that the software should encrypt and have best practices adhered to.
Comparison Between Payroll Software for Small Business
Here is a comparison table summarizing the features, pricing, use cases, and websites of the 10 payroll software for small business:
| Software | Key Features | Pricing (Starts At) | Best Use Case | Website |
| Gusto | Automated payroll, tax filing, benefits, onboarding | $54/month + $7/user/month | All-in-one HR and payroll for growing small businesses | gusto.com |
| QuickBooks Payroll | Full-service payroll, tax compliance, QuickBooks integration | $8.50/month + $6/employee/month | Best for QuickBooks users needing integrated accounting | quickbooks.intuit.com |
| Patriot Payroll | Unlimited payroll runs, basic or full-service options | $8.50/month + $2/employee/month | Budget-friendly payroll with simple tax options | patriotsoftware.com |
| OnPay | Flat-rate pricing, all tax filings, W-2/1099 support | $49/month + $6/employee/month | Simple, affordable payroll with HR add-ons | onpay.com |
| Zoho Payroll | Indian compliance, Zoho suite integration, EPF/ESI/PT handling | ₹1250/organisation/month + ₹50/employee/month | Small Indian businesses using Zoho ecosystem | zoho.com/payroll |
| SurePayroll | Full payroll automation, household & nanny payroll, tax services | $29/month + $7/employee | Small employers or households needing easy tax filing | surepayroll.com |
| Paychex Flex | Payroll + HR tools, benefits, scalable platform | Custom pricing | Growing businesses needing scalable HR and payroll | paychex.com |
| Square Payroll | Contractor + employee payroll, Square POS integration | $35/month + $6/person | Small retail/gig businesses using Square products | squareup.com |
| ADP Run | Tax filing, onboarding, HR resources, compliance | Custom pricing | Established small businesses needing enterprise reliability | adp.com |
| Wave Payroll | Simple payroll, Wave accounting integration, basic tax support | $40/month + $6/employee | Solopreneurs and microbusinesses using Wave accounting | waveapps.com |
List of Top 10 Payroll Software for Small Business
1. Gusto
Gusto is an excellent-reviewed payroll software for small business that focuses on small businesses in the United States. It also makes complicated payroll procedures, automated tax filing, direct deposits, and employee onboarding. Gusto also offers such features as management of benefits, timekeeping, and compliance assistance. Its user-friendly interface is even simple such that non-professionals in HR could run payroll effectively.
Gusto provides a top-quality customer experience and is particularly helpful to startups and new companies with limited staff and needs an HR and payroll package. Gusto has tiered prices and flexibility which makes it suitable for use by businesses who desire to use scalable, modern payroll with extra HR assistance.
Key Features:
- Full-service payroll in all 50 states
- Automatic tax filing
- Employee self-service portal
- Benefits administration
- Time tracking and PTO management
Pros:
- Easy to use for beginners
- Includes HR tools beyond payroll
Cons:
- Pricing may be high for very small teams
- Limited international support
Pricing:
Starts at $54/month + $7 per employee
Who should use it?
U.S. small businesses needing a full-featured, user-friendly payroll and HR solution
2. QuickBooks Payroll
QuickBooks Payroll, by Intuit, is a product that fits perfectly in QuickBooks Online with automated market bookkeeping payroll, tax filings, and direct deposit. It has federal and state tax compliance and has options that allow same-day or next-day payroll. The platform also offers health benefits and retirement plans.
The fact that it is integrated with QuickBooks accounting is also its most notable strength, perfecting it for the businesses that have already introduced QuickBooks accounting to their system. Although it might require some time to familiarise oneself with the interface, when set, it offers stable and efficient payroll processing. It is also a good option among small business fans who wish to have their accounting and payroll centralized.
Key Features:
- Automated payroll and tax filings
- Same-day direct deposit
- Integration with QuickBooks
- HR support center
Pros:
- Seamless sync with QuickBooks
- Fast direct deposit options
Cons:
- Limited features in lower-tier plans
- Less intuitive interface for non-QuickBooks users
Pricing:
Starts at $8.50/month + $6 per employee
Who should use it?
Businesses already using QuickBooks for accounting
3. Patriot Payroll
Patriot Payroll is an affordable payroll software for small businesses that is suitable for small businesses in the U.S. It has the basic and the full-service payroll giving an option to companies either to file their own taxes or get Patriot to do the tax filing. It has functions such as unlimited online payroll operations, direct currency, employee interface, and comprehensive reporting.
It has a reputation for having clear prices, a convenient interface, and supportive customer service. It does not bring all HR tools included in more expensive apps, but it is an excellent choice in case a business requires a stable payroll service that can be purchased cheaply. Patriot is especially effective with small firms that need simple payroll management with low overhead expenditure.
Key Features:
- Two payroll options: Basic and Full-Service
- Federal, state, and local tax filing
- Free direct deposit
- Time and attendance add-on
- Employee portal access
Pros:
- Very affordable
- Transparent pricing
Cons:
- Limited HR tools
- Basic user interface
Pricing:
Starts at $8.50/month + $2 per employee
Who should use it?
Budget-conscious U.S. small businesses seeking simple payroll
4. OnPay
OnPay Wage is a simplified payroll and human resource tool with a flat per-month subscription that is attractive to cost-saving small businesses. It has unlimited payroll processing, covers all tax submissions, and includes W-2 and 1099 employees. Other specialties of OnPay are benefits administration, onboarding tools, and the employee self-service portal.
Although it does not have a mobile app, it has its cloud which is tangible and usable on any device. OnPay is simple and affordable and has many features that normally come with more expensive platforms. It is ideal when employed in a small group that requires stable pricing and the balance of payroll and fundamental functions of HR.
Key Features:
- Unlimited payroll runs
- Federal/state tax filings
- HR tools and checklists
- Benefits administration
- Support for W-2 and 1099 workers
Pros:
- Flat pricing for all features
- Great customer support
Cons:
- No mobile app
- May lack deep customization
Pricing:
$49/month + $6 per employee
Who should use it?
Small teams that want predictable pricing and integrated HR
5. Zoho Payroll
Zoho Payroll is designed to fit the needs of Indian small businesses and it works fully integrated with the rest of the Zoho business apps. It automates calculations of the salary, tax deduction, and EPF, ESI, and Professional Tax over the Indian labor laws. It has features such as self-service of employees, payslips, bank integrations, and Zoho book synchronization.
The platform can easily be used and is Indian market compliant and convenient to use. It is quite cheap and perfectly fits startups and other businesses that are out to develop in India and would like to manage their payroll on their own but yet enjoy the larger Zoho platform.
Key Features:
- Automated salary calculation and TDS
- Statutory compliance (EPF, ESI, PT)
- Direct bank transfers
- Employee self-service portal
- Integration with Zoho Books
Pros:
- Seamless integration with Zoho ecosystem
- Designed for Indian regulatory needs
Cons:
- Limited to India
- Fewer features compared to global tools
Pricing:
₹1250/organisation/month + ₹50/employee/month
Who should use it?
Indian small businesses using other Zoho products
6. SurePayroll
SurePayroll is a payroll application that is trusted by small corporations as well as households that employ nannies or caretakers. It automates the processing of payroll, direct deposit, and federal, state, and local tax filing. It also has provisions of such features as 401(K) integration, employee self-service, and mobile access. The SurePayroll is particularly famous for the issue of nanny payroll support and ease.
The interface may be in need of modern updates, but its low prices and feature customization also make it an immediate choice for small employers who require quality but not a full-featured service. Small business owners or families seeking simplified ways of handling their payroll and taxes should use it best.
Key Features:
- Automated tax calculations and filings
- Mobile-friendly access
- Workers’ comp integration
- Support for nanny payroll
- Benefits management
Pros:
- Specialized nanny payroll option
- Easy to use and mobile-compatible
Cons:
- Fewer HR tools
- Dated user interface
Pricing:
Starts around $29/month + $7 per employee
Who should use it?
Small businesses or families needing household or nanny payroll
7. Paychex Flex
Paychex Flex is a custom-scale payroll software for small businesses planning to expand. It provides automated time tracking, benefits administration, tax compliance, and payroll. The portal contains access to HR professionals and a self-service portal that employees can use.
The addition of powerful HR, recruiting, and compliance tools as companies grow is also a selling point. It may be more costly than certain substitutes, but Paychex Flex has too many features to count and is too deep of a trusted brand to not consider it as the right choice when companies are looking to grow long-term and need something flexible that can accommodate their future expansion.
Key Features:
- Automated payroll processing
- HR, hiring, and onboarding tools
- Employee self-service
- Time tracking and scheduling
- Benefits integration
Pros:
- Scalable for business growth
- Extensive HR support
Cons:
- Pricing not transparent
- Setup can be complex for small teams
Pricing:
Custom quotes only
Who should use it?
Small to mid-sized businesses planning to scale operations
8. Square Payroll
Square Payroll is a product directed at small companies and, in particular, those that accept Square-based POS payments or deal with contractors. It permits fast and effortless payments, tax returns, benefits administration, and employee or contractor categorizations. The interface is clean and fits in closely with the other services that Square offers. Square Payroll precisely excels among companies that have W-2 and 1099 employees.
It lacks HR functionality compared to some of its competitors, but it is simple and well-integrated, and thus, ideal to use in small retail, food service, or even gig organizations. It is a cost-effective measure for those employers who are already using Square products in their everyday activities.
Key Features:
- Easy contractor and employee payments
- Tax filings included
- Timecards and attendance tracking
- Direct deposit
- Integrates with Square POS
Pros:
- Great for contractor payments
- Seamless POS integration
Cons:
- Limited HR features
- U.S.-only support
Pricing:
$35/month + $6 per employee
Who should use it?
Businesses using Square POS or hiring contractors
9. ADP Run
ADP Run is a payroll software for small businesses provided by ADP which is a small business payroll system that brings to start-ups and small developing companies enterprise-level reliability. It covers payroll automation, direct depositing, filing of taxes, onboarding, and compliance assistance. It also provides companies with employee benefit choices and human resource practices. ADP Run has a simple interface and a high rating of customer support.
Although it is not so transparent about prices and they can add charges with add-ons, it is a good choice for the company which also needs a reliable and well-established provider. ADP Run is ideal for small businesses that expect to grow and require a professional full-service payroll solution.
Key Features:
- Payroll processing
- Compliance and tax support
- Hiring and HR features
- Direct deposit and mobile access
- Employee self-service
Pros:
- Trusted industry name
- Advanced compliance features
Cons:
- Can be pricey
- Add-ons may increase total cost
Pricing:
Custom pricing
Who should use it?
Small businesses that want a trusted provider with advanced capabilities
10. Wave Payroll
Wave Payroll is a low-cost, easy-to-learn payroll tool and it is especially designed for use by freelancers and very small businesses. It is directly integrated with Wave Accounting and makes it easy to manage payroll and finances. Some of the varied features are direct deposit, tax filing in some states, and also employee self-service. It would be perfect for supporting solopreneurs and microbusinesses that do not require complex HR infrastructure.
Although it does not offer wider HR and benefit functionalities, like other platforms, it is more cost-effective since it is simple to use and easy to adopt, especially when one is starting out. Wave Payroll is especially attractive to those individuals who already use the free accounting products of Wave.
Key Features:
- Direct deposit
- Tax filings in select states
- Employee self-service
- Integration with Wave Accounting
- Affordable pricing
Pros:
- Great for freelancers and small teams
- Simple and affordable
Cons:
- Limited support for all states
- Fewer HR tools
Pricing:
$40/month + $6 per employee
Who should use it?
Freelancers and microbusinesses using Wave for accounting
Conclusion
Payroll software for small businesses choice is based on the size of the company, type of industry, and custom requirements. For full HR and payroll, Gusto is an excellent solution for small-sized growing businesses. QuickBooks Payroll is best for companies that use QuickBooks as their accounting software since it integrates flawlessly.
OnPay and Patriot are budget-friendly solutions with great core capabilities ideal for start-up firms and very small teams.
For Indian businesses, Zoho Payroll is regionally compliant and ideal for businesses already on the Zoho platform. Square Payroll is ideal for retail and gig-based businesses as it integrates with point-of-sale systems. ADP Run and Paychex Flex are ideal for business-class businesses with growth aspirations in the future. Wave Payroll is ideal for freelancers or micro businesses with a requirement for a lean solution. They all automate payrolls, remain compliant, and save time, hence making them a treasure for effective workforce management in small to mid-size organizations.
FAQs
1. What is payroll software and why do small businesses need it?
Payroll software enables one to automate payment, calculation of taxes, and reporting of employees. Small businesses can save time using payroll software, reduce errors, and adhere to tax compliance.
2. How much does payroll software typically cost small businesses?
Cost varies, but most payroll software has a fixed fee and an annual fee per employee. It usually runs between $20 and $100+ monthly, depending on service level and services provided.
3. Will the payroll software handle tax filings and compliance?
Yes, most modern payroll computer programs will calculate, file, and pay federal, state, and local payroll taxes automatically, allowing businesses to avoid penalties and stay legal.
4. Is payroll software appropriate for very small businesses with only a few employees?
Certainly. Some payroll packages are tailored for extremely small businesses and lone consultants, with easy-to-use solutions at very low prices.
5. Can payroll software be integrated with HR or accounting systems?
Yes, top payroll software integrates with other widely used accounting software such as QuickBooks, Xero, and Zoho Books, and also with HR and time tracking software for streamlined workflows.
