What Payroll Software is Best? Complete Buyer’s Guide

Introduction: Finding the Perfect Payroll Software

Managing payroll is one of the most critical tasks for any business. Mistakes can lead to unhappy employees, tax penalties, and legal issues. So, what payroll software is best for your business?

The answer depends on your company size, budget, features needed, and growth plans. In this comprehensive guide, we’ll review the top 10 payroll software solutions, compare their features, pricing, and help you make the best decision for your business.

Why You Need Payroll Software

Before diving into specific solutions, let’s understand why investing in payroll software matters:

Time Savings

Manual payroll processing takes hours or even days. Automated software completes the same tasks in minutes, freeing your team for more valuable work.

Accuracy and Compliance

Payroll software automatically calculates taxes, deductions, and withholdings accurately. It stays updated with changing tax laws, ensuring compliance and reducing penalty risks.

Employee Satisfaction

Employees receive timely, accurate payments with easy access to pay stubs, tax forms, and payment history through self-service portals.

Cost Efficiency

While there’s an upfront investment, payroll software typically costs less than hiring dedicated payroll staff or outsourcing to expensive services.

Security

Modern payroll systems use bank-level encryption and security measures to protect sensitive employee and financial data.

Reporting and Analytics

Generate detailed reports for tax filing, budgeting, labor cost analysis, and strategic decision-making.

Key Features to Look For

When evaluating what payroll software is best, consider these essential features:

Core Payroll Processing

• Automated wage calculations
• Salary and hourly employee support
• Overtime and bonus management
• Multiple pay schedules (weekly, bi-weekly, monthly)
• Direct deposit and paper check options

Tax Management

• Automatic tax calculations (federal, state, local)
• Tax form filing (W-2, 1099, 941, 940)
• Year-end tax reporting
• Multi-state tax support
• Tax penalty protection guarantees

Employee Self-Service

• Online access to pay stubs
• Tax form downloads (W-2, W-4)
• Personal information updates
• Time-off requests
• Benefits enrollment

Time and Attendance Integration

• Time clock integration
• Automatic timesheet import
• PTO tracking
• Overtime alerts
• Shift scheduling

Benefits Administration

• Health insurance deductions
• Retirement plan contributions (401k, IRA)
• Flexible spending accounts
• Garnishment processing
• Benefits enrollment management

Reporting and Analytics

• Payroll reports and summaries
• Labor cost analysis
• Tax liability reports
• Customizable report templates
• Export options (PDF, Excel, CSV)

Integrations

• Accounting software (QuickBooks, Xero)
• HR management systems
• Time tracking tools
• Applicant tracking systems
• Benefits providers

Mobile Access

• Mobile apps for managers
• Employee mobile self-service
• On-the-go payroll approvals
• Push notifications

Customer Support

• Phone, email, and chat support
• Support hours (24/7 vs business hours)
• Dedicated account managers
• Training resources and documentation

The Top 10 Best Payroll Software Solutions

1. Gusto – Best Overall Payroll Software

Best For: Small to medium businesses seeking comprehensive features with excellent user experience

Pricing: Starting at $40/month + $6 per employee

Key Features:

• Full-service payroll processing
• Automatic tax filing and payments
• Employee self-service portal
• Benefits administration (health insurance, 401k)
• Time tracking integration
• HR tools and compliance support
• Contractor payments
• Mobile app for employees and admins

Pros:

• Extremely user-friendly interface
• Excellent customer support
• Comprehensive benefits management
• Transparent pricing
• Great for first-time payroll users
• Strong integration ecosystem

Cons:

• Can be pricier than competitors for larger teams
• Limited customization options
• Some advanced features only in higher tiers

Verdict: Gusto offers the best balance of features, usability, and value. Perfect for growing businesses that want a reliable, all-in-one solution.

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2. ADP – Best for Large Enterprises

Best For: Large companies with complex payroll needs and multi-location operations

Pricing: Custom pricing (typically $50-$150+ per month depending on features)

Key Features:

• Scalable solutions for any company size
• Multi-state and international payroll
• Advanced reporting and analytics
• Dedicated account management
• Extensive integration options
• Compliance management
• Advanced HR features
• Industry-specific solutions

Pros:

• Highly scalable and robust
• Excellent for complex payroll scenarios
• Strong compliance support
• Reputation and reliability
• 24/7 customer support
• International payroll capabilities

Cons:

• Expensive for small businesses
• Complex setup process
• Less intuitive interface
• Hidden fees possible

Verdict: ADP is the gold standard for enterprise payroll, offering unmatched capabilities for large, complex organizations.

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3. QuickBooks Payroll – Best for Existing QuickBooks Users

Best For: Businesses already using QuickBooks for accounting

Pricing: Starting at $45/month + $5 per employee

Key Features:

• Seamless QuickBooks integration
• Automatic tax calculations and filing
• Same-day direct deposit
• Time tracking integration
• Benefits administration
• Workers’ compensation administration
• Employee portal
• Mobile app

Pros:

• Perfect integration with QuickBooks
• Easy for accountants to access
• Good value for existing users
• Comprehensive tax support
• Same-day direct deposit option
• Tax penalty protection

Cons:

• Requires QuickBooks subscription
• Less robust HR features
• Customer support can be slow
• Interface not as modern as competitors

Verdict: If you’re already using QuickBooks, this is your best option for seamless accounting and payroll integration.

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4. Paychex – Best for Full-Service Support

Best For: Businesses wanting comprehensive support and outsourced payroll management

Pricing: Custom pricing (typically $60+ per month plus per-employee fees)

Key Features:

• Full-service payroll processing
• Dedicated support team
• Tax filing and compliance
• HR outsourcing options
• Benefits administration
• Time and attendance
• Applicant tracking
• Employee onboarding tools

Pros:

• White-glove service approach
• Dedicated support representatives
• Comprehensive HR services
• Strong compliance support
• Flexible solutions
• Good for businesses lacking HR expertise

Cons:

• Higher cost than competitors
• Long-term contracts required
• Less user-friendly self-service
• Setup can be time-consuming

Verdict: Paychex is ideal for businesses that want hands-off payroll management with dedicated support.

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5. OnPay – Best Value for Small Businesses

Best For: Small businesses seeking affordable, full-featured payroll

Pricing: $40/month + $6 per employee (flat rate, no hidden fees)

Key Features:

• Unlimited payroll runs
• Automatic tax filing
• Employee self-service
• Time tracking integration
• HR tools and templates
• Benefits administration
• Multi-state support
• Mobile app

Pros:

• Transparent, affordable pricing
• No per-payroll-run fees
• Excellent value for money
• User-friendly interface
• Strong customer reviews
• Good customer support

Cons:

• Fewer advanced features than competitors
• Limited reporting customization
• Smaller integration ecosystem
• Less suitable for large businesses

Verdict: OnPay offers exceptional value for small businesses wanting comprehensive payroll without breaking the bank.

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6. Rippling – Best for Tech-Forward Companies

Best For: Growing companies wanting integrated HR, IT, and payroll

Pricing: Starting at $35/month + $8 per employee

Key Features:

• Unified HR and payroll platform
• IT management integration
• Automated onboarding/offboarding
• Benefits administration
• Time and attendance
• Device management
• App access management
• Global payroll capabilities

Pros:

• Modern, intuitive interface
• Powerful automation features
• All-in-one HR and IT solution
• Excellent for remote teams
• Fast implementation
• Strong integration capabilities

Cons:

• Can be complex for small teams
• Higher learning curve
• Some features require add-ons
• Relatively new compared to competitors

Verdict: Rippling is perfect for tech-savvy companies wanting to manage payroll, HR, and IT in one platform.

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7. Patriot Software – Best for Budget-Conscious Businesses

Best For: Very small businesses and startups on tight budgets

Pricing: Starting at $17/month + $4 per employee

Key Features:

• Basic payroll processing
• Tax filing services
• Direct deposit
• Employee portal
• Time and attendance add-on
• Accounting software integration
• Multi-state support
• Mobile access

Pros:

• Most affordable option
• Simple, straightforward interface
• No hidden fees
• Good for basic payroll needs
• Free trial available
• USA-based customer support

Cons:

• Limited advanced features
• Basic reporting capabilities
• Fewer integrations
• Not ideal for growing businesses

Verdict: Patriot Software is the best choice for micro-businesses needing basic payroll at rock-bottom prices.

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8. Square Payroll – Best for Retail and Restaurant Businesses

Best For: Retail shops, restaurants, and businesses using Square POS

Pricing: Starting at $35/month + $6 per employee

Key Features:

• Seamless Square POS integration
• Tip distribution management
• Automatic tax filing
• Time tracking integration
• Contractor payments
• Same-day direct deposit
• Employee portal
• Mobile app

Pros:

• Perfect for Square users
• Easy tip management
• Simple setup process
• Transparent pricing
• Good for hourly employees
• Industry-specific features

Cons:

• Limited HR features
• Best suited for specific industries
• Fewer customization options
• Limited reporting

Verdict: Square Payroll is unbeatable for retail and restaurant businesses already using Square’s ecosystem.

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9. Zenefits – Best for Benefits-Heavy Companies

Best For: Companies prioritizing comprehensive benefits administration

Pricing: Starting at $10 per employee per month (payroll add-on extra)

Key Features:

• Comprehensive benefits administration
• Payroll processing
• Time and attendance
• Performance management
• Compliance tools
• Employee onboarding
• Mobile app
• Extensive integrations

Pros:

• Excellent benefits management
• All-in-one HR platform
• User-friendly interface
• Good for benefits shopping
• Strong compliance tools
• Scalable solution

Cons:

• Payroll is an add-on (extra cost)
• Customer service issues reported
• Can be overwhelming for small teams
• Pricing can add up with add-ons

Verdict: Zenefits excels when benefits administration is a priority, offering comprehensive HR tools alongside payroll.

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10. Namely – Best for Mid-Sized Companies

Best For: Mid-sized businesses (50-1000 employees) needing comprehensive HR

Pricing: Custom pricing (typically $12-$15 per employee per month)

Key Features:

• Full-service payroll
• Comprehensive HR management
• Benefits administration
• Performance management
• Time and attendance
• Talent management
• Social news feed
• Robust reporting

Pros:

• Modern, social interface
• Excellent for mid-sized companies
• Comprehensive HR features
• Good customization options
• Strong reporting capabilities
• Dedicated account management

Cons:

• Expensive for small businesses
• Not ideal for very large enterprises
• Implementation can be lengthy
• Some features feel underdeveloped

Verdict: Namely is perfect for mid-sized companies outgrowing small business solutions but not needing enterprise complexity.

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Comparison Table: Quick Overview

Software	Best For	Starting Price	Tax Filing	Benefits Admin	Mobile App
Gusto	Overall best	$40/mo + $6/emp	✅ Yes	✅ Excellent	✅ Yes
ADP	Large enterprises	Custom	✅ Yes	✅ Excellent	✅ Yes
QuickBooks	QB users	$45/mo + $5/emp	✅ Yes	✅ Good	✅ Yes
Paychex	Full-service	Custom	✅ Yes	✅ Excellent	✅ Yes
OnPay	Value seekers	$40/mo + $6/emp	✅ Yes	✅ Good	✅ Yes
Rippling	Tech companies	$35/mo + $8/emp	✅ Yes	✅ Excellent	✅ Yes
Patriot	Budget-conscious	$17/mo + $4/emp	✅ Yes	⚠️ Basic	✅ Yes
Square	Retail/restaurants	$35/mo + $6/emp	✅ Yes	⚠️ Limited	✅ Yes
Zenefits	Benefits focus	$10/emp + add-ons	✅ Yes	✅ Excellent	✅ Yes
Namely	Mid-sized firms	Custom	✅ Yes	✅ Excellent	✅ Yes

How to Choose the Right Payroll Software

Step 1: Assess Your Business Size

1-10 Employees: Patriot Software, OnPay, or Gusto

10-50 Employees: Gusto, QuickBooks Payroll, or OnPay

50-200 Employees: Gusto, Rippling, or Namely

200+ Employees: ADP, Paychex, or Namely

Step 2: Determine Your Budget

Calculate total cost including:

• Base monthly fee
• Per-employee charges
• Tax filing fees (if separate)
• Add-on features
• Implementation costs
• Training expenses

Step 3: Identify Must-Have Features

Create a checklist of essential features:

• Basic payroll processing
• Tax filing requirements
• Benefits administration needs
• Time tracking integration
• Accounting software compatibility
• Reporting requirements
• Mobile access needs

Step 4: Consider Integration Needs

What other software do you use?

• Accounting software (QuickBooks, Xero)
• Time tracking tools
• HR systems
• Benefits providers
• Point-of-sale systems

Step 5: Evaluate Support Requirements

How much support will you need?

• Self-service capabilities
• Phone/email/chat support
• Support hours (24/7 vs business hours)
• Dedicated account manager
• Training resources

Step 6: Test Before Committing

Most payroll providers offer:

• Free demos
• Free trials (typically 30 days)
• Money-back guarantees

Take advantage of these to test the software with your actual data.

Common Payroll Software Mistakes to Avoid

1. Choosing Based on Price Alone

The cheapest option may cost more in the long run through:

• Hidden fees
• Time wasted on poor interface
• Compliance mistakes
• Inadequate support

2. Ignoring Scalability

Choose software that can grow with your business. Switching payroll providers is time-consuming and risky.

3. Overlooking Tax Compliance

Ensure your chosen software handles:

• All tax jurisdictions where you operate
• Automatic updates for tax law changes
• Guaranteed tax filing and payment
• Tax penalty protection

4. Not Checking Integration Capabilities

Verify the software integrates with your:

• Accounting system
• Time tracking tools
• Benefits providers
• Other critical business software

5. Neglecting Employee Experience

Consider the employee self-service portal:

• Is it user-friendly?
• Can employees easily access pay stubs?
• Is there a mobile app?
• How easy is it to update personal information?

6. Failing to Plan for Implementation

Allow adequate time for:

• Data migration
• Employee setup
• System configuration
• Testing
• Team training

7. Not Reading the Fine Print

Understand:

• Contract length and terms
• Cancellation policies
• What’s included vs. add-ons
• Support limitations
• Data ownership and portability

Implementation Best Practices

Before Implementation

1. Clean Your Data

• Review employee information
• Update addresses and tax withholdings
• Verify pay rates and classifications
• Organize historical payroll data

2. Prepare Documentation

• Gather tax ID numbers
• Collect banking information
• Compile benefits enrollment data
• Document current payroll processes

3. Set Clear Timeline

• Plan implementation during slow period
• Allow buffer time for issues
• Schedule training sessions
• Plan first live payroll date

During Implementation

1. Configure System Properly

• Set up company information
• Configure pay schedules
• Add earning and deduction codes
• Set up tax jurisdictions
• Connect bank accounts

2. Enter Employee Data

• Input employee information
• Set up direct deposit
• Configure tax withholdings
• Add benefits enrollments

3. Test Thoroughly

• Run test payrolls
• Verify tax calculations
• Check direct deposits
• Review reports

After Implementation

1. Monitor Closely

• Review first several payrolls carefully
• Check employee feedback
• Verify tax payments
• Monitor bank transactions

2. Gather Feedback

• Survey employees
• Document issues
• Request feature improvements
• Share best practices

3. Optimize Usage

• Explore advanced features
• Set up automated workflows
• Customize reports
• Integrate with other systems

Frequently Asked Questions

What payroll software is best for small businesses?

For small businesses (1-50 employees), Gusto and OnPay offer the best combination of features, ease of use, and value. Both provide full-service payroll with automatic tax filing at affordable prices.

What is the most affordable payroll software?

Patriot Software is the most affordable option, starting at just $17/month plus $4 per employee. However, for slightly more money, OnPay ($40/month + $6/employee) offers significantly more features and better value.

Can payroll software handle multi-state taxes?

Yes, most modern payroll software handles multi-state payroll and taxes. Gusto, ADP, QuickBooks Payroll, and Paychex all offer excellent multi-state support with automatic tax calculations and filing.

Do I need separate software for time tracking and payroll?

Not necessarily. Many payroll solutions include time tracking or integrate seamlessly with popular time tracking tools. Gusto, Rippling, and QuickBooks Payroll all offer integrated time tracking options.

How much does payroll software typically cost?

Payroll software typically costs $40-$150 per month as a base fee, plus $4-$12 per employee. Total cost depends on company size, features needed, and provider chosen. Budget $50-$100/month for a 10-employee company.

What’s the difference between payroll software and a payroll service?

Payroll software is a tool you use to process payroll yourself. A payroll service (like ADP or Paychex full-service options) handles everything for you. Most modern solutions offer a hybrid approach with software plus optional full-service support.

Can payroll software integrate with QuickBooks?

Yes, most major payroll providers integrate with QuickBooks. QuickBooks Payroll offers the tightest integration since it’s made by the same company. Gusto, OnPay, and Paychex also integrate well with QuickBooks.

How secure is payroll software?

Reputable payroll software providers use bank-level encryption, secure data centers, and regular security audits. They’re generally more secure than managing payroll manually with spreadsheets or local software.

Can I switch payroll software mid-year?

Yes, you can switch payroll providers anytime, though it’s easier at year-end. Mid-year switches require careful data migration to maintain accurate year-to-date totals for tax reporting. Most providers offer migration assistance.

What happens if payroll software makes a tax mistake?

Most reputable providers offer tax penalty protection guarantees. If their software causes a tax filing error, they’ll pay the penalties and interest. This protection is a key feature to look for when choosing payroll software.

Final Recommendation: What Payroll Software is Best?

After extensive research and comparison, here are our top recommendations by use case:

Best Overall: Gusto

For most businesses, Gusto offers the perfect balance of features, usability, support, and value. It’s powerful enough for growing businesses but simple enough for first-time users.

Best for Large Companies: ADP

If you’re running a large enterprise with complex needs, ADP’s scalability, features, and support are unmatched.

Best Value: OnPay

Small businesses wanting full-featured payroll at an affordable price can’t beat OnPay’s transparent pricing and comprehensive features.

Best for QuickBooks Users: QuickBooks Payroll

If QuickBooks is your accounting foundation, QuickBooks Payroll integrates seamlessly for smooth financial management.

Best for Budget: Patriot Software

Micro-businesses and startups on tight budgets should consider Patriot Software for basic payroll at the lowest price point.

Take Action: Getting Started

Now that you know what payroll software is best for different scenarios, here’s how to move forward:

1. Shortlist 2-3 Providers Based on your business size, budget, and needs, create a shortlist of potential providers.

2. Request Demos Schedule demos with your shortlisted providers to see the software in action and ask specific questions.

3. Start Free Trials Take advantage of free trials to test the software with your actual data and team.

4. Compare Total Costs Calculate the complete cost including base fees, per-employee charges, and required add-ons.

5. Check References Read reviews, talk to other businesses in your industry, and verify the provider’s reputation.

6. Make Your Decision Choose the provider that best meets your needs, fits your budget, and feels right for your team.

7. Plan Implementation Work with your chosen provider to plan a smooth implementation with adequate testing and training.

Conclusion

So, what payroll software is best? The answer depends on your specific situation:

• Most businesses will find Gusto offers the best overall experience
• Large enterprises need ADP’s robust capabilities
• Budget-conscious small businesses should choose OnPay or Patriot Software
• QuickBooks users will love QuickBooks Payroll’s seamless integration
• Tech-forward companies will appreciate Rippling’s modern approach

The most important factors are:

1. Does it handle your tax compliance needs?
2. Is it within your budget?
3. Does it integrate with your existing systems?
4. Is it easy for your team to use?
5. Does it support your growth plans?

Don’t rush this decision. Take time to demo different options, involve key stakeholders, and choose software that will support your business for years to come. The right payroll software will save time, reduce errors, keep you compliant, and help your business run more smoothly.

Start your research today, and you’ll soon have a payroll system that makes one of your most critical business functions easier, more accurate, and less stressful!

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Ready to transform your payroll process? Choose your ideal payroll software and take the first step toward easier, more efficient payroll management today!