ZenBusiness reviews its own products and services and compares them to others in the industry.
Compare the best payroll software as reviewed by ZenBusiness, or start your dream business today.
scroll for more
Ready to form an LLC? Starts at $0 + state fees and only takes 5-10 mins
Last Updated: August 11, 2025
If you’re a brand-new small business, then the payroll process probably isn’t top of your mind, and finding the best payroll software probably isn’t at the top of your to-do list.
And that’s understandable. Odds are, you don’t have a bunch of employees on your payroll yet. You may not even have any — and that’s okay. But if you plan to hire employees, then it’s easier to pick and implement payroll software before you need it to save yourself time and hassle. Payroll setup is simpler to manage when you don’t have an employee patiently (or not-so-patiently) waiting for their paycheck.
But what’s the best software for small business payroll processing? If you search “payroll software” on Google, you’ll see that there are dozens of options, and no two options are exactly alike. Picking one can feel like a daunting prospect.
That’s where this guide comes in. We’ll discuss some of the best payroll service providers so you can find the best choice for your unique business and manage payroll with ease.
Old-school methods for payroll tracking were incredibly time-consuming. Even small businesses needed to invest way too much time into things like calculating payroll manually, tracking hours, writing checks, and making tax calculations. Thankfully, technology has simplified this process significantly.
A good small business payroll software helps your company manage employee compensation accurately and efficiently. It automates tasks like calculating wages, withholding taxes, issuing paychecks or direct deposits, and filing payroll taxes with federal, state, and local agencies. Many payroll tools also generate year-end tax forms like W-2s and 1099s, track paid time off, and manage employee benefits and deductions.
As an added plus, automating these tasks can actually help reduce the number of payroll errors that happen. It’s very common for entrepreneurs to make the occasional math error or omission when they run payroll manually, which means spending time (and maybe money) to correct the error later on. Software is more likely to handle these calculations correctly and consistently.
With that in mind, let’s talk about some of the best payroll services for small businesses.
Patriot Software offers an excellent blend of basic payroll features for an affordable price. No matter what software tier you choose, you’ll receive unlimited payroll runs, free two-day direct deposit, the ability to make both employee and contractor payments, the ability to calculate time off accrued, and more.
Some small business pros will appreciate that the software is mobile-friendly. Plus, if you’re managing payroll for multiple businesses, Patriot allows you to use an umbrella login for multiple businesses.
The basic payroll plan costs $17 a month (plus $4 per worker). But if you upgrade to the full-service payroll plan, then Patriot will file and deposit federal, state, and local payroll taxes on your behalf. Full service currently costs $37 a month (plus $5 per worker).
There are two types of small business owners who will love Square Payroll: retailers that already use Square’s point-of-sale system and businesses that primarily pay contractors rather than W-2 employees.
If you’re only paying contractors, then Square Payroll is one of the most affordable options you’ll find: just $6 per month per worker with no base monthly fee. This service allows you to pay by check, direct deposit, or even Cash App and make unlimited pay runs.
If you’re paying traditional employees, your payroll costs go up to $35 a month (plus $6 per employee). That’s more expensive than some options, but Square offers a variety of features to justify that price, including next-day direct deposit, time tracking through the Square POS or Square Team App, and automatic tax filing for state and federal payroll taxes on your behalf. You can even go inactive for free, which is helpful if you’re a seasonal seller.
The payroll software integrates seamlessly with the Square suite, so if you’re using their point-of-sale tools already, then adding Square Payroll is an easy pick.
If you first glanced at OnPay’s pricing structure, you might hesitate at the monthly price point: $49 a month, plus $6 per person. While that’s higher than some competitors, it’s not without reason: OnPay includes HR software with its payroll software at no extra cost. So, you’re essentially getting two platforms for one bundled price. Many competitors make you pay extra for HR features, so this is a nice perk.
OnPay includes all of the essentials: W-2 and 1099 payments, unlimited pay runs, and even automatic tax filing for your federal, state, and local taxes for workers’ compensation and payroll taxes. Their platform also integrates with a variety of applications, including QuickBooks, TurboTax, Xero, and more.
If you have plans to grow your business aggressively and you’d like an all-in-one service provider, Gusto may be a good option for you. Gusto offers three different service tiers, starting at $49 a month (plus $6 per person) for Simple and maxing out at $180 per month (plus $22 per person) for the Premium plan.
Gusto’s Simple offering includes full-service payroll for a single state, including direct deposit in two days, unlimited runs, and automated tax filing. The software also includes a variety of HR features, including time off requests and automatic new hire reporting.
If you need multi-state payroll or more robust features, you’ll need to upgrade to Gusto’s Plus or Premium plans. While these plans are on the pricier side, you’ll get access to more extensive tools, including time tracking, employee requests for expense reimbursements, shift scheduling, job posting and onboarding perks, and even a dedicated service advisor (Premium only).
Like Square, Gusto also offers a solution for those who only pay contractors: $35 per month plus $6 per contractor.
Now owned by Paychex, SurePayroll offers two simple subscription tiers. Their recommended offering costs $29 per month (plus $7 per employee), which gives you the option to schedule automated payroll runs, unlimited runs, and automatic filing of your federal and state taxes. You can add on local tax filing if you need it. Plus, their Android and Apple apps let you run payroll on the go if you need to, and direct deposit payments are included for free.
SurePayroll also offers a cheaper plan, which costs $20 per month (plus $4 per employee). With this plan, you’ll get all of the same features as the main plan except for automatic tax filing. This simpler plan would require you to file those taxes yourself. Depending on how many employees you have, you may not mind handling this task. But for many entrepreneurs, it’s worth an extra few dollars every month to have these taxes handled for you.
If you’re already using QuickBooks for your accounting and bookkeeping, then adding QuickBooks Payroll to your account can help you streamline your payroll, too. QuickBooks Payroll plans all include next-day or same-day direct deposits, which is helpful for businesses that make frequent direct deposits to employees or contractors.
QuickBooks software is very easy to use, and no matter what plan you choose, you’ll get auto payroll. Plus, the software will calculate, file, and pay your payroll taxes on your behalf. QuickBooks can also help make employee benefits administration easier; the program seamlessly integrates with a variety of health insurance providers and 401(k) providers.
While QuickBooks is a truly full-service payroll solution with tax management, it does come at a higher price point. The basic plan, Payroll Core, starts at $50 a month (plus $6.50 per employee). The most expensive option, Payroll Elite, costs a whopping $134 per month (plus $12 per employee). The users who pair the payroll system with the bookkeeping system by QuickBooks will probably get the most value for their money, but it’s possible to use just the payroll software, if you prefer.
Long story short, there are lots of different payroll provider options, each with its pros and cons. You’ll have to evaluate which features are most important to you, whether that’s speedy direct deposit, automatic tax filing, automating payroll tasks, or even sheer affordability. Thankfully, there are different software choices designed for specific needs, so you’re sure to find the right fit. We hope this guide has helped you find the right software for your unique business. Good luck!
Yes, QuickBooks offers a payroll add-on that integrates directly with its accounting software; you can also use its payroll software as a standalone option. Their platform allows you to run payroll, pay employees, and handle taxes all within your QuickBooks dashboard.
It’s an especially convenient option if you already use QuickBooks for bookkeeping, but it does come with an additional monthly fee. The integration can save time and reduce manual data entry.
ADP is a well-known payroll provider with a full range of features, including automated payroll processing, tax filing, and employee self-service tools. It’s used by many businesses of all sizes and is known for scalability.
However, ADP has received a large number of negative reviews on Trustpilot — currently rated 1.6 out of 5 stars across more than 2,800 reviews — with complaints about billing issues and customer service. Given these concerns, we think other options offer better value and a smoother experience for small businesses.
The best payroll software depends on your business’s size, needs, and budget, but top-rated choices include Gusto, OnPay, and Patriot Software. These platforms offer automated tax filing, employee self-service portals, and scalable features tailored for small businesses. OnPay offers a variety of features at a flat price, while Gusto includes strong choices for growing businesses, and Patriot is one of the most affordable full-service options. Each is easy to use and well-reviewed by small business owners.
Technically, yes. There are a few brands that offer free payroll software, but their features are usually limited, and most don’t support a large number of employees. For example, Payroll4Free is one free software option you might encounter. It offers payments for both employees and contract workers and automatic calculations for payroll taxes. However, automatic payment of your payroll taxes costs extra, and the free plan only supports 10 employees. The software is also supported by ads, which many users would find annoying. The software also has less-than-stellar reviews.
While good free payroll software can be hard to find, it’s worth noting that contractor-only plans from providers like Square Payroll have no base fee and low per-contractor costs, which can be close to free for very small teams. For reliable and compliant payroll processing, investing in a paid solution is usually worth the cost.
Yes, most full-service payroll software automatically calculates, withholds, and files federal, state, and local payroll taxes for you. This includes quarterly filings, year-end forms like W-2s and 1099s, and direct payments to tax agencies. Some platforms even offer tax penalty protection to ensure compliance.
Some cheaper options will automatically calculate and withhold payroll taxes for you, but they won’t file these taxes on your behalf. When you’re reviewing a software option, be sure to confirm whether it includes automatic tax filing and payment before you purchase, so you know what to expect.
Payroll Software Reviewed
Compare Products
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
ZenBusiness is a financial technology company and is not a bank. Banking services provided by Thread Bank, Member FDIC. The ZenBusiness Visa Debit Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used anywhere Visa debit cards are accepted. FDIC insurance is available for funds on deposit through Thread Bank, Member FDIC. *Your deposits qualify for up to a maximum of $3,000,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program at https://thread.bank/sweep-disclosure/ and a list of program banks at https://thread.bank/program-banks/. Please contact customerservice@thread.bank with questions regarding the sweep program.
Written by Team ZenBusiness
ZenBusiness has helped people start, run, and grow over 850,000 dream companies. The editorial team at ZenBusiness has over 20 years of collective small business publishing experience and is composed of business formation experts who are dedicated to empowering and educating entrepreneurs about owning a company.
Ready to Start Your LLC?
Open Your Business Bank Account