The 7 Best HR Payroll Software for Small Businesses (2025 Review)
Important Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Payroll and tax laws are complex and change frequently. We strongly recommend consulting with a qualified accountant or legal professional to ensure compliance for your specific business needs.
Payroll is the most critical financial operation in your business. Getting it wrong means unhappy employees, incorrect paychecks, and potentially severe penalties from the IRS. For a small business, the complexity of calculating wages, withholding taxes, and staying compliant can be a nightmare. This is where HR payroll software becomes an absolute necessity.
A modern payroll platform automates these critical tasks, ensuring your team is paid accurately and on time, and that all your payroll taxes are filed correctly. But it’s more than just a paycheck calculator; it’s an HR hub for onboarding, benefits, and time tracking. After extensive research and hands-on testing of the leading platforms, we’ve identified the 7 best solutions designed to save you time and keep your business compliant.
How to Choose the Right HR Payroll Software
Selecting a payroll provider is a serious decision. Here are the key criteria we used to evaluate our top picks:
- Full-Service Payroll: Does the platform handle everything? This includes automatically calculating, filing, and paying federal, state, and local payroll taxes on your behalf. This is a non-negotiable feature.
- Core HR Features: A great platform goes beyond payroll. We looked for features like employee self-onboarding, benefits administration (health insurance, 401k), and paid time off (PTO) management.
- Ease of Use: The software should be intuitive for both administrators and employees. A clean dashboard and a simple, guided process for running payroll are essential.
- Pricing Structure: Payroll software is typically priced with a monthly base fee plus a per-employee-per-month (PEPM) cost. We looked for transparent pricing without hidden fees for critical services like W-2 generation.
- Integrations: The ability to sync with your accounting software (like QuickBooks or Xero) and time-tracking tools is crucial for maintaining accurate financial records.
- Compliance & Support: The provider should guarantee the accuracy of their tax calculations and filings. We also assessed the quality and availability of their customer support.
1. Gusto
Best Overall for Small BusinessesGusto has earned its top spot by creating a payroll and HR platform that is both powerful and genuinely delightful to use. It offers full-service, multi-state payroll with a strong focus on automation and an exceptional user experience for both admins and employees. With integrated benefits, onboarding tools, and transparent pricing, Gusto provides a comprehensive, all-in-one solution that feels custom-built for modern small businesses.
Key Features:
- Full-service automated payroll, including tax filing and year-end forms (W-2s/1099s).
- Employee self-service for onboarding, pay stubs, and personal information updates.
- Integrated benefits administration (health, dental, vision, 401k).
- Time tracking, PTO management, and HR compliance tools.
Pros
- Beautiful, modern, and incredibly easy-to-use interface.
- Excellent automation features, including “autopilot” payroll.
- Strong set of integrated HR and benefits tools.
- Transparent, all-inclusive pricing tiers.
Cons
- Phone support is not available 24/7.
- Can be pricier than basic payroll-only providers.
Our Hands-On Experience
Running a sample payroll in Gusto was a remarkably simple, three-step process. The platform’s dashboard provides clear reminders for deadlines and highlights any necessary actions. We were most impressed by the employee onboarding workflow; you simply enter a new hire’s name and email, and Gusto guides them through the entire process of filling out I-9s, W-4s, and direct deposit forms. It’s a huge time-saver.
Pricing: Starts with the Simple plan at $40/month + $6/employee/month.
2. Rippling
Best for IT & HR IntegrationRippling is more than just an HR and payroll platform; it’s a “compound” system designed to be the central nervous system for all employee data. It unifies payroll, benefits, HR, and IT (like app provisioning and device management) into one system. When you hire someone, Rippling can run payroll, enroll them in benefits, *and* automatically set up their Google Workspace, Slack, and laptop. This all-in-one approach is incredibly powerful for tech-savvy businesses that want to automate their entire employee lifecycle.
Key Features:
- Full-service global payroll (U.S. and international).
- Unified platform for HR, benefits, and IT management.
- Powerful workflow automation for onboarding and offboarding.
- Integrates with over 500 third-party applications.
Pros
- Unmatched automation across HR and IT.
- Modern, highly capable platform that scales well.
- Excellent for managing a distributed or remote workforce.
- Strong reporting and analytics capabilities.
Cons
- Pricing is a la carte and can become complex and expensive.
- May be overkill for businesses with very simple needs.
Our Hands-On Experience
Testing a demo of Rippling felt like using a next-generation tool. We explored its automation “recipes,” building a workflow where hiring a new “Sales” employee automatically added them to the Salesforce app, the “Sales” Slack channel, and the correct payroll group. This deep integration between HR and IT is Rippling’s killer feature, eliminating dozens of manual administrative tasks.
Pricing: Starts at $8/user/month, but is highly modular. You pay for the specific services you need.
3. QuickBooks Payroll
Best for QuickBooks UsersFor the millions of small businesses that already run their finances on QuickBooks Online, QuickBooks Payroll is the logical and most convenient choice. The seamless integration between accounting and payroll is its greatest strength, automatically syncing payroll expenses and eliminating the need for manual data entry. It offers a reliable, full-service payroll solution with multiple tiers to fit different business needs.
Key Features:
- Full-service payroll with automated tax filing.
- Deep, seamless integration with QuickBooks Online accounting.
- Options for same-day direct deposit.
- Integrated time tracking and HR support (on higher tiers).
Pros
- Flawless integration saves time and reduces errors for QuickBooks users.
- User-friendly interface is familiar to those in the Intuit ecosystem.
- Tax penalty protection guarantee up to $25,000 (on certain plans).
- Competitive pricing.
Cons
- Less valuable if you don’t use QuickBooks for accounting.
- Some HR features require upgrading to more expensive plans.
Our Hands-On Experience
We tested QuickBooks Payroll within a QuickBooks Online account. After running a payroll, the wage expenses, tax liabilities, and net pay were instantly and automatically recorded in the chart of accounts. This perfect sync is a massive workflow improvement, creating real-time financial reports without any extra work. The convenience factor for existing QuickBooks users cannot be overstated.
Pricing: Core plan starts at $45/month + $6/employee/month (often discounted).
4. Paychex Flex
Best for Scalability & SupportPaychex is a long-standing leader in the payroll industry, offering a powerful and highly scalable platform called Paychex Flex. While it can serve the smallest of businesses, its true strength lies in its ability to grow with a company, offering a vast array of services from basic payroll to advanced HR, recruiting, and employee benefits. Many plans come with a dedicated support specialist, providing a high-touch service level that many businesses value.
Key Features:
- Scalable platform that serves businesses of all sizes.
- Full-service payroll with multiple ways to pay (direct deposit, paper checks, paycards).
- Robust HR services including employee screening and onboarding.
- Strong reporting and analytics.
Pros
- Extremely scalable solution that you won’t outgrow.
- Dedicated support specialists provide expert help.
- Comprehensive suite of HR and financial services.
- Excellent mobile app for admins and employees.
Cons
- Pricing is not transparent and requires a custom quote.
- The interface can be complex for very small businesses.
Our Hands-On Experience
In our demo of Paychex Flex, the depth of its reporting was a key highlight. We could generate over 160 standard reports, from payroll summaries to detailed labor cost analyses. The platform feels enterprise-grade in its capabilities, offering a level of control and data insight that is a step above many simpler SMB-focused tools. The emphasis on dedicated support was also a clear selling point.
Pricing: Custom quote-based. Essentials plan typically starts around $39/month + $5/employee/month.
5. ADP Run
Best for Brand Recognition & ReliabilityADP is arguably the most recognized name in payroll, serving businesses from one employee to multinational corporations. RUN Powered by ADP is their solution designed specifically for small businesses (under 50 employees). It’s a proven, reliable, and compliant platform backed by decades of experience. For business owners who want the peace of mind that comes with using an established industry leader, ADP Run is a rock-solid choice.
Key Features:
- Full-service payroll backed by industry-leading expertise.
- Automated tax filing with compliance guarantees.
- Integrated HR tools for hiring, onboarding, and compliance.
- Strong customer support available 24/7.
Pros
- Trusted brand with an unmatched reputation for reliability.
- Robust compliance features and proactive alerts.
- 24/7 expert support is a major advantage.
- Scales easily into ADP’s more advanced platforms as you grow.
Cons
- Pricing requires a custom quote and can be less transparent.
- The user interface feels less modern than newer competitors like Gusto.
Our Hands-On Experience
The ADP Run platform is comprehensive and professional. During our product tour, the emphasis on compliance was clear. The system has built-in checks and proactive alerts to help businesses avoid common errors. We also noted the depth of its HR resources, including a library of job descriptions and access to an HR helpdesk, which provides immense value for businesses navigating complex employment issues.
Pricing: Custom quote-based, with four main packages available for small businesses.
6. OnPay
Best for Simple, All-Inclusive PricingOnPay’s main selling proposition is its simplicity, especially when it comes to pricing. They offer a single, comprehensive plan with a flat monthly fee that includes all of their payroll and HR features. There are no confusing tiers or hidden fees for things like tax filings or W-2s. This straightforward approach makes it an excellent choice for businesses that want full functionality without a complex bill.
Key Features:
- Full-service payroll for W-2 employees and 1099 contractors.
- Automated tax payments and filings in all 50 states.
- Includes basic HR tools like offer letters, onboarding, and PTO tracking.
- Specialized payroll services for industries like restaurants and farms.
Pros
- Simple, transparent, flat-fee pricing.
- One plan includes all features, no upsells.
- Great for businesses that operate in multiple states.
- Strong customer support.
Cons
- Lacks some of the advanced HR and automation features of competitors.
- The user interface is functional but less polished.
Our Hands-On Experience
OnPay is refreshingly straightforward. We were able to set up a new employee, run an off-cycle bonus payment, and view all associated tax calculations with ease. The platform doesn’t have the bells and whistles of a Rippling or Gusto, but it executes the core payroll functions perfectly. The all-inclusive pricing model provides significant peace of mind, as you know exactly what you’ll pay each month.
Pricing: A simple flat fee of $40/month + $6/employee/month.
7. Deel
Best for Global & Remote TeamsIn the age of remote work, Deel has emerged as a leader in global payroll and compliance. It’s designed for businesses that hire anyone, anywhere—whether they’re a full-time employee in another country or a contractor across the world. Deel handles international payroll, contracts, benefits, and local labor law compliance, abstracting away the immense complexity of managing a global workforce.
Key Features:
- Payroll and compliance for employees and contractors in over 150 countries.
- Acts as an Employer of Record (EOR) to legally employ people on your behalf.
- Automated invoicing and payments in multiple currencies.
- Manages country-specific benefits and compliance.
Pros
- The best-in-class solution for hiring internationally.
- Simplifies the legal complexity of global employment.
- Streamlines payments to a distributed team.
- Modern, easy-to-use platform.
Cons
- Can be expensive, especially for EOR services.
- Primarily focused on international teams, may be overkill for U.S.-only businesses.
Our Hands-On Experience
We explored Deel’s process for hiring a contractor in Canada. The platform provided a location-specific contract template that was compliant with local laws. We could then fund the payment in USD, and Deel would handle the currency conversion and payment to the contractor. For any business looking to hire beyond its borders, Deel’s ability to manage this complexity is a game-changer.
Pricing: Starts at $49/contractor/month. EOR services start at $599/employee/month.
At a Glance: Feature Comparison
| Provider | Best For | Starting Price (Base + PEPM) | Auto Tax Filing | Integrated HR | Free Trial? |
|---|---|---|---|---|---|
| Gusto | Overall for SMBs | $40 + $6 | ✓ | ✓ | No |
| Rippling | IT & HR Integration | Starts at $8 (Modular) | ✓ | ✓ | No |
| QuickBooks Payroll | QuickBooks Users | $45 + $6 | ✓ | ✓ | ✓ |
| Paychex Flex | Scalability | Quote-Based | ✓ | ✓ | No |
| ADP Run | Reliability | Quote-Based | ✓ | ✓ | No |
| OnPay | Simple Pricing | $40 + $6 | ✓ | ✓ | ✓ |
| Deel | Global Teams | $49/contractor | ✓ | ✓ | No |
How We Tested These Payroll Platforms
Our evaluation process was designed to test the core functionality and user experience of each platform from the perspective of a small business owner.
- Onboarding & Setup: We signed up for trials or demos to assess the process of setting up a company account and adding sample employee data.
- Payroll Run Simulation: We ran a simulated payroll for a small team of both salaried and hourly employees, testing for ease of use, clarity of calculations, and confirmation steps.
- HR Feature Exploration: We walked through the employee self-onboarding process, requested time off, and explored the benefits administration dashboard to evaluate the platform’s HR capabilities.
- Compliance & Reporting Review: We analyzed the platforms’ tax dashboards and generated standard payroll reports to assess the visibility and control they provide over this critical data.
Frequently Asked Questions (FAQ)
What is “full-service payroll”?
Full-service payroll means the software provider handles all critical aspects of the payroll process for you. This includes calculating employee wages and tax withholdings, paying your employees via direct deposit, and most importantly, filing and paying your federal, state, and local payroll taxes to the correct government agencies on time. It also includes generating and distributing year-end forms like W-2s and 1099s. For most businesses, this is an essential, non-negotiable feature.
What’s the difference between an employee (W-2) and a contractor (1099)?
This is a critical legal distinction. An employee (W-2) is someone for whom you withhold income taxes, Social Security, and Medicare from their paycheck, and you also pay employer-side taxes. You control how and when they do their work. A contractor (1099) is self-employed; you pay them their gross earnings without withholding taxes, and they are responsible for their own tax payments. Misclassifying an employee as a contractor can lead to severe penalties. Most modern payroll systems can handle payments to both types of workers correctly.
Can I switch payroll providers in the middle of the year?
Yes, you can, but it requires careful planning. Switching at the beginning of a quarter (e.g., April 1, July 1) is often easiest. You will need to provide your new provider with all of your year-to-date payroll data for each employee to ensure accurate tax calculations and year-end W-2s. Most reputable providers have dedicated specialists to help make this transition as smooth as possible.
