Best Payroll Software for Small Business: Real Pricing & Honest Reviews

You're here because you need to pay employees without screwing up taxes, and you don't want to overpay for software. Let's cut to the chase.

I've dug into the actual pricing, features, and limitations of the top payroll providers. No fluff, no "it depends" cop-outs. Here's what you need to know to pick the right tool.

Quick Comparison: Payroll Software Pricing

Before we dive deep, here's what you'll actually pay:

ProviderBase PricePer EmployeeBest For
Gusto$49/mo$6/personGrowing teams, benefits
OnPay$49/mo$6/personSimple, budget-conscious
ADP RUN$39/mo$5/personScalability, enterprise path
QuickBooks Payroll$50/mo$6.50/personExisting QuickBooks users
Paychex$39/mo$5/person24/7 support, larger teams
SurePayroll$29/mo$7/personBudget option

Gusto: The Popular Choice (For Good Reason)

Gusto has become the default recommendation for small businesses, and honestly, it deserves most of that reputation.

Gusto Pricing Breakdown

For a 10-person team on the Simple plan, you're looking at $109/month. That jumps to $200/month on Plus.

What's Actually Good

What Sucks

Who Should Use Gusto

For most small businesses with 5-50 employees who want a set-it-and-forget-it solution, Gusto is hard to beat. The interface is legitimately good, and their benefits marketplace is genuinely useful. It's especially strong for tech companies, creative agencies, and service-based businesses that need clean HR tools and benefits administration without complexity.

Try Gusto Free →

Want the full breakdown? Check out our Gusto pricing guide and detailed Gusto review.

OnPay: Best Value for Budget-Conscious Businesses

OnPay doesn't get the press that Gusto does, but it probably should. Here's why it's my top pick for cost-conscious small businesses.

OnPay Pricing

Simple: $49/month + $6/person. That's it. One plan includes everything.

No tiered pricing games. No "upgrade to unlock multi-state." You get the full feature set for one price.

What Makes OnPay Stand Out

The Downsides

OnPay Customer Support Reality

OnPay consistently receives top marks for customer service. Phone support is available weekdays from 9 a.m. to 8 p.m. ET, and they also offer ticket submission for non-urgent issues. Many users report that support staff are knowledgeable and actually solve problems rather than just reading scripts.

If you're running payroll for a small team and don't need fancy HR bells and whistles, OnPay gives you more value per dollar than anyone else.

ADP RUN: The Enterprise Gateway

ADP is the 800-pound gorilla of payroll. Their small business product, RUN Powered by ADP, is solid but comes with some caveats.

ADP Pricing Reality

ADP doesn't publish complete pricing online - they want you to call. But here's what we know:

For their mobile-first product Roll by ADP, pricing is $39/month + $5/employee with a three-month free trial available.

Why Consider ADP

Why ADP Might Not Be For You

ADP makes sense if you're planning to scale significantly or need the credibility of a big-name provider. For a 5-person team that'll stay small, it's overkill.

We've done a detailed comparison in our Gusto vs ADP breakdown.

QuickBooks Payroll: Best for Existing QuickBooks Users

If you're already running your books on QuickBooks, their payroll add-on is a no-brainer integration. But if you're not? There are better standalone options.

QuickBooks Payroll Pricing

The Integration Advantage

QuickBooks Payroll syncs directly with QuickBooks Online. Payroll data flows into your accounting automatically. No exports, no manual entries, no reconciliation headaches.

They also offer bundled pricing if you need both accounting and payroll together.

QuickBooks AI Features

QuickBooks has introduced a Payroll Agent powered by AI that proactively collects time and attendance data, identifies anomalies in hours, and generates ready-to-approve payroll drafts. Administrators can receive text notifications and approve payments remotely without logging into the platform.

Where It Falls Short

Paychex: The Support-First Option

Paychex Flex Essentials starts at $39/month + $5/employee, making it price-competitive with ADP. But the real differentiator is support.

What Paychex Does Well

The Catch

Paychex makes sense if support availability is your top priority. For pure value, OnPay or Gusto still win.

See how it stacks up in our Gusto vs Paychex comparison.

SurePayroll: The Budget Pick

SurePayroll (owned by Paychex) offers a no-frills option at $29/month + $7/employee. It's the cheapest full-service option for small teams.

Good for: Businesses that just need basic payroll done right without extras.

Not good for: Anyone needing robust HR features, benefits administration, or extensive integrations.

Patriot Software: The DIY Budget Option

Patriot offers two payroll tiers:

This is the cheapest per-employee rate you'll find. The tradeoff? Fewer features, limited HR tools, and you're trading support quality for savings.

Patriot works for very small businesses (1-5 employees) with simple payroll needs and owners comfortable managing some tax responsibilities themselves.

What Actually Matters When Choosing Payroll Software

Tax Filing

Every option here handles federal taxes. The differences show up with state and local taxes:

If you have employees in cities with local income taxes (NYC, Philadelphia, many Ohio cities), confirm your provider handles them.

Direct Deposit Speed

Next-day is fine for most businesses. Same-day matters if you're frequently running last-minute payroll.

Contractor Payments

If you pay 1099 contractors, check:

Integrations

Your payroll should talk to your other tools:

OnPay and Gusto have the broadest integration options. ADP and Paychex lean toward their own ecosystem.

Understanding Payroll Compliance: Why It Matters

Choosing payroll software isn't just about convenience - it's about avoiding expensive compliance mistakes. Understanding the stakes helps you appreciate why investing in good software matters.

The Real Cost of Payroll Mistakes

The numbers are sobering. Approximately 40% of small businesses are fined each year for payroll tax mistakes, with penalties averaging $845 per incident. But that's just the surface.

Here's what payroll errors actually cost:

Common Payroll Compliance Mistakes

Employee Misclassification: Treating employees as independent contractors to avoid paying employer taxes is the most costly foundational error. If caught, you'll owe back taxes, penalties, and potentially years of benefits you should have provided. The IRS can assess the Trust Fund Recovery Penalty - 100% of unpaid trust fund taxes - on individuals responsible for the misclassification.

Missing Tax Deposit Deadlines: Federal payroll tax deposits follow strict schedules (monthly, semi-weekly, or next-day depending on your payroll size). Missing deadlines triggers escalating penalties: 2% for 1-5 days late, 5% for 6-15 days late, 10% for 16+ days late, and 15% if unpaid 10 days after IRS notice.

Incorrect Tax Calculations: Using outdated tax tables, miscalculating withholdings, or applying wrong tax rates can result in 20% penalties for negligence or substantial understatement. Even small calculation errors compound over multiple pay periods.

Late or Incorrect Form Filing: W-2s and 1099s must be distributed by January 31. Late filing penalties start at $60 per form (up to $630,000 annually for large businesses). Filing incorrect forms requires corrections and additional penalties.

Poor Record Keeping: The FLSA requires maintaining three years of payroll records. Failure to produce required documentation during audits can result in fines up to $10,000, plus you lose the ability to defend against employee claims.

Ignoring State and Local Tax Obligations: Many small businesses register federally but forget state unemployment insurance, workers' compensation, and local tax registrations. This creates cascading compliance failures.

How Payroll Software Prevents These Mistakes

Good payroll software isn't just a convenience tool - it's compliance insurance:

Industry-Specific Payroll Considerations

Not all businesses have the same payroll needs. Your industry creates unique requirements that affect which software works best.

Restaurants and Hospitality

Special needs:

Best options: Gusto handles tip calculations and FLSA tip credit adjustments automatically. QuickBooks integrates with Square and other POS systems for seamless tip importing. Homebase offers free scheduling that connects with payroll.

Construction and Contractors

Special needs:

Best options: ADP and Paychex offer construction-specific features and certified payroll reporting. OnPay handles 943 agricultural filings and complex multi-state scenarios common in construction.

Professional Services

Special needs:

Best options: QuickBooks Payroll for seamless accounting integration. Gusto for clean professional interface and benefits administration to attract talent.

Retail

Special needs:

Best options: Paychex scales well across multiple locations. QuickBooks integrates with retail POS systems. Gusto handles seasonal workers efficiently.

Nonprofits

Special needs:

Best options: OnPay specifically accommodates nonprofits with specialized reporting. ADP offers nonprofit-specific solutions. Both handle complex allocation needs.

Features That Actually Matter (And Ones That Don't)

Marketing materials list hundreds of features. Here's what actually impacts your daily operations:

Must-Have Features

Unlimited Payroll Runs: You need flexibility to run bonuses, corrections, and off-cycle payments without per-run fees. Gusto, OnPay, QuickBooks, and Patriot offer this. Paychex charges per run on some plans.

Automatic Tax Filing: Non-negotiable. The software should calculate, file, and pay all federal, state, and local taxes automatically. All major providers do this, but verify they cover your specific localities.

Direct Deposit: Paper checks are expensive and create delays. Ensure direct deposit is included, not an add-on.

Employee Self-Service: Employees need to access pay stubs, W-2s, and update their information without bothering you. This reduces administrative burden significantly.

Mobile Access: Either through an app or mobile-responsive site. You'll need to run payroll from your phone eventually.

Very Useful Features

Time Tracking Integration: If you have hourly employees, seamless time-to-payroll flow eliminates manual entry errors. Gusto Plus includes this. Others integrate with third-party time tracking.

PTO Management: Tracking vacation, sick time, and holiday pay manually is tedious. Automated accrual and calendar syncing saves hours.

Benefits Administration: Managing health insurance, 401(k), HSA/FSA through your payroll system ensures deductions are always correct. Gusto and OnPay excel here.

Multi-State Support: If you have or might have remote employees, ensure your base plan covers multi-state payroll without upgrades.

New Hire Reporting: Automatic reporting to state agencies saves you tracking down requirements for each state.

Nice-to-Have Features

Applicant Tracking: Useful if you hire frequently, but standalone tools often work better.

Performance Reviews: Basic performance tools are helpful but rarely replace dedicated HR software.

Document Storage: Convenient for I-9s and employee files, but not essential if you have another system.

Features You Probably Don't Need

Advanced Analytics: Small businesses rarely need deep workforce analytics. Basic reporting is sufficient.

Learning Management: Unless you're in a heavily regulated industry requiring tracked training, separate LMS tools work better.

Recruitment Marketing: Job posting to multiple boards sounds great but adds cost without much benefit for small teams.

Real Cost Examples

Let's make this concrete. Here's what you'd actually pay monthly:

5-Person Team

ProviderPlanMonthly Cost
OnPayStandard$79
GustoSimple$79
ADP RUNEssential~$64
PaychexEssentials~$64
QuickBooksCore$82.50
PatriotFull Service$57

15-Person Team

ProviderPlanMonthly Cost
OnPayStandard$139
GustoSimple$139
ADP RUNEssential~$114
PaychexEssentials~$114
QuickBooksCore$147.50
PatriotFull Service$97

30-Person Team

ProviderPlanMonthly Cost
OnPayStandard$229
GustoPlus$440
ADP RUNEssential~$189
PaychexEssentials~$189
QuickBooksPremium$355

Note: ADP and Paychex prices are estimates based on published starting prices. Your actual quote may vary. Gusto Plus pricing reflects the jump required for multi-state payroll and time tracking.

Implementation: What to Expect

Switching payroll providers isn't as painful as you might fear, but it's not instant either.

Timeline

What You'll Need

Provider Setup Support

Common Payroll Software Questions

Can I Switch Payroll Providers Mid-Year?

Yes, but timing matters. Best practices:

What If I Have Employees in Multiple States?

You need software that handles multi-state payroll, which means:

OnPay includes multi-state at no extra charge. Gusto requires the Plus plan ($80/mo + $12/employee). ADP and Paychex include it. QuickBooks Core includes state but verify local tax handling.

Do I Need Workers' Comp Insurance?

Almost certainly yes if you have W-2 employees. Requirements vary by state, but most mandate workers' comp coverage. Gusto and OnPay can help you get coverage. ADP and Paychex offer pay-as-you-go workers' comp that adjusts with your actual payroll.

What About Retirement Plans?

Several states now mandate retirement plan access for employees (California, Oregon, Illinois, others coming). Gusto partners with Human Interest for 401(k) administration. OnPay offers retirement plan access. These integrate with payroll for automatic contributions but typically involve additional fees.

Can Payroll Software Handle Garnishments?

Yes. All major providers handle wage garnishments for child support, tax levies, and court-ordered payments. They calculate the correct amount, deduct it from paychecks, and often remit payments directly to the appropriate agency (except South Carolina for some providers).

Red Flags: When to Avoid a Provider

Watch out for these warning signs:

My Recommendations

Best Overall: Gusto

For most small businesses, Gusto hits the sweet spot of features, usability, and price. The interface is genuinely good, benefits administration is strong, and it scales reasonably well to 50+ employees.

Try Gusto →

Best Value: OnPay

If you want solid payroll without paying for features you won't use, OnPay is the answer. One price, full features, excellent support.

Best for QuickBooks Users: QuickBooks Payroll

The integration alone is worth it if you're already in the QuickBooks ecosystem. Don't switch accounting software just for payroll.

Best for Scaling: ADP

Planning to grow from 10 to 500 employees? ADP gives you a path to enterprise-grade payroll without switching providers.

Best Support: Paychex

Need 24/7 availability and dedicated support? Paychex is the only major player offering round-the-clock help.

Best Budget Option: Patriot Software

For micro-businesses with very simple needs (1-5 employees, one state, no complexity), Patriot's $37/month full-service plan is hard to beat.

The Hidden Costs of Doing Payroll Yourself

Before you decide to "save money" by doing payroll manually, consider the real costs:

At typical small business owner hourly values of $50-150/hour, you're spending $4,800-$28,800 annually in time alone. Even expensive payroll software costs a fraction of that.

Bottom Line

Don't overthink this. For a typical small business:

  1. Already using QuickBooks? Get QuickBooks Payroll.
  2. Want the best overall experience? Go with Gusto.
  3. On a tight budget? OnPay gives you more for less.
  4. Planning rapid growth? Consider ADP for the scalability path.
  5. Need 24/7 support? Paychex has you covered.
  6. Micro-business with simple needs? Patriot Software offers the lowest cost.

All of these handle the fundamentals well: calculating pay, withholding taxes, filing forms, paying employees. Pick based on your specific needs and budget, not feature lists you'll never use.

The most important decision is to stop doing payroll manually. The compliance risk, time investment, and error potential aren't worth the savings. Even the cheapest payroll software pays for itself in avoided penalties and reclaimed time.

Start with a free trial. Most providers offer 30 days to test the platform. Set up your business, run a test payroll, and see if the interface makes sense. If it doesn't click immediately, try another option. The right payroll software should make your life easier, not create another headache.

Need help with related tools? Check out our guides on CRM software for small business and project management tools.