Best Payroll Software for Small Business: 2024 Buying Guide (2024)

After putting the top options to the test, we found that Rippling is the best payroll software for small business because of its customizable HR packages, stand-out payment and reporting features, and impressive payroll expertise.

However, growing businesses may be better off opting for ADP Run, a software that offers unbeatable scalability and live training sessions, while Paychex is ideal if you’re looking to pay your employees in real-time.

As the high cost of outsourcing payroll becomes increasingly unaffordable for small businesses, payroll software offers a reliable way to manage HR processes for less. To help connect you with your perfect solution, we’ve independently tested, evaluated, and narrowed down the five best payroll software systems for small businesses.

This guide will also shed light on our research method and explain why some major names like QuickBooks and Square didn’t make the list, to give you full transparency over our decision-making process. Scroll down to read our reviews, or let us do the hard work for you by taking our free payroll quiz.

We’ll match you with suitable payroll software providers, who’ll offer no-obligation quotes that have been carefully tailored to your small business, so you can compare your options easily and see how much payroll costsin your specific use case.

In this guide:

• Top Payroll Software Providers
• Buying Guide: How to Choose the Best Payroll Software for Your Small Business
• Methodology: How We Test Payroll Software
• Verdict: What Is the Best Payroll Software?

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Top Payroll Software Providers for Small Businesses

Now that you’ve got a better idea of what kind of providers are available when it comes to payroll software, let’s take a deep dive on some of your options to help you make the right decision for your business.

The top providers of payroll software for small businesses are:

1. Rippling – Best Overall Payroll System
2. ADP – Best for Growing Businesses
3. Paychex – Most Flexible Payment Options
4. Gusto – Great for Maintaining Compliance
5. Zenefits – Excellent Data Security

Some of the most well-known and searched-for providers — like QuickBooks Payroll and Square Payroll for instance — haven’t been included in our list of the best payroll software. This is because while these solutions are some of the biggest names in the industry, our research found they fall majorly short when it comes to versatility and scalability.

Unlike the options that made our top five, payroll providers like QuickBooks and Square offer extremely limited HR capabilities, and their packages are geared exclusively toward smaller businesses without much room for growth. This makes the providers much less capable of scaling alongside businesses as their needs evolve, and ultimately, caps their potential.

This being said, scroll down to learn more about the payroll providers that did make the cut.

1. Rippling – Best Overall Payroll Software for Small Businesses

After putting the best payroll software through its paces, Rippling rose to the top of our ranking because of its advanced features, wealth of payroll expertise, and impressive scalability – all core needs for managing payroll in-house.

Rippling’s user-friendly platform has the versatile tools you’ll need to handle a complicated payroll just as easily as a straightforward one. These payment features include automatic payroll runs and advanced reporting options, including a payroll register, tax reports, and individual employee reports. It also offers change reports, which allow employees to compare their upcoming payroll against their previous one, and which many payroll services do not offer.

However, Rippling doesn’t integrate with large-scale HCM platforms like Oracle or SAP. This might lead to a clunky, less-streamlined tech stack for businesses that grow large enough to require a major all-in-one employee management system. Plus, Rippling takes either two or four days to deliver payments to your staff. Therefore, if you want to pay your staff in less time, we’d recommend opting for ADP or Paychex instead.

Check out our full Rippling reviewto learn even more.

Rippling’s features

Rippling offers everything you’d expect from a quality payroll software. Businesses can use the app to automatically calculate sick pay, pay employees outside their normal payroll, track precise hours worked, and even send payments to non-employees. These smart payment features are so granular that Rippling is near-perfect for customizing to your needs: In this regard, we rated it second only to Paychex, which delivers real-time payments, rather than delaying them for two or four days.

Unlike our runners-up Paychex and Zenefits, Rippling sends automatic alerts when you breach US federal and state labor laws, helping business owners stay compliant. Rippling also has strong data security protocols including role-based user accounts, which ensure that each employee only accesses data relevant to their role.

Rippling’s support options include “Implementation Managers” who can help you get up and running on the platform, along with written instructions and recorded training videos. Live support options include email, phone, and live chat, although users will need to seek support during business hours, since Rippling doesn’t offer 24/7 live support.

Even though Rippling is our top-rated payroll software for small businesses, it won’t be right for everyone. The provider’s lack of ready-made integrations with HMC platforms like Sap and Oracle makes it less suitable for businesses looking to scale to a full HR platform in the future – though Rippling has an open API, which means a software engineer can build a custom integration for you. Plus, Rippling’s comparatively slow payment times will deter it from businesses that prioritize prompt payments.

If you’re able to look over these hitches, we break down its pricing structure and scalability below.

Rippling’s pricing

Rippling’s pricing structure is a little complex. Users can get started on the provider’s Unity Plan for $35 per month, plus an additional $8 per user, per month. Businesses can bundle extra features like administration or applicant tracking (ATS) into their packages, although this will increase the total cost by an amount that Rippling does not make publicly available.

Its relatively steep base rate makes Rippling slightly less suited to smaller companies operating on a shoestring budget. However, if you run a larger company or have precise payroll requirements, Rippling’s modular pricing system will come in handy by allowing you to pay for everything you need and nothing more.

Rippling’s scalability

Rippling’s unique pricing system means that it’s able to morph and evolve alongside growing businesses. The platform offers just about every payroll feature imaginable too. This makes it near impossible to outgrow as your needs develop.

However, as we’ve already noted, unlike providers like ADP and Paychex, Rippling lacks integrations with major HCM solutions like SAP and Oracle. Because of this, Rippling falls slightly short of our most scalable solution, ADP, even though it offers great tools scaling tools aside from HCM integrations.

Rippling is also our pick for the best HR solution, displaying its impressive versatility. See how it compares to the competition in our guide to the best HR software.

2. ADP – Best for Growing Businesses

ADP is an extremely capable payroll solution with excellent data security and one of the best knowledge centers we’ve reviewed. While it isn’t quite strong enough to top our charts, its variety of HR integrations and open API makes it the most scalable piece of software we’ve reviewed, suggesting that it’s especially useful for small businesses set on future expansion.

In contrast to vendors like Zenefits, ADP provides live training sessions to help users develop a solid understanding of the product. ADP cuts no corners when it comes to data security, either. From TLC encryption to ISO 27001 certification, the software takes a number of measures to keep threats at bay – enough to make it our top pick for data security.

Check out our full guide to the top ADP Payroll competitors to learn more about how it compares to other software.

ADP’s features

ADP offers an advanced suite of payroll features that lend themselves to startups as well as fast-growing companies: Its range of payment controls includes time-tracking, 24-hour payments, PTO calculations, automatic salary deductions, multiple pay rates, off-cycle payments, non-employee payments, and an employee app that workers can use to clock in and out if needed. Together, these tools help businesses deliver fast and accurate payments at all times.

ADP makes it easy for businesses to keep tabs on their financial status too, with reporting features that cover taxes, payroll registers, individual employee reports, and custom report builders. Applied correctly, this wealth of data offers small businesses paths towards the best cost-saving measures. However, unlike Rippling and Paychex, ADP lacks change reports, making it impossible for you to track differences between current and previous payroll runs.

ADP lacks email support options too, making it less suitable for businesses that prefer resolving their queries using this format, and meaning its customer support provision is only okay overall.

ADP’s pricing

ADP’s pricing is fairly opaque. The provider offers four packages for smaller businesses: Essential, Enhanced, Complete, and HR Pro.

Since ADP charges custom prices, it will be less suitable for businesses looking for straightforward, transparent pricing plans. However, if you’re after powerful payroll capabilities, ADP will be worth the investment as it offers just about every feature under the sun. You don’t need to sign up blindly either, as ADP lets you trial the service for three months before committing to a contract, which is a pretty great deal.

Check out our guide to ADP’s pricing for even more details.

ADP’s scalability

If you’re after a scalable payroll solution, look no further than ADP. Its pricing packages offer escalating capabilities, so you can simply upgrade to a different plan when your needs evolve. ADP also supports international payments, giving your company the functionality it needs to expand into new countries and markets.

ADP offers two tiers that combine payroll with HR features: Complete and HR Pro. This, along with ADP’s seamless integrations with large-scale HCM platforms like SAP and Oracle, makes it ideal for those looking to streamline wider scale HR operations in the future. If this wasn’t impressive enough, ADP also offers an open API that lets you develop your own integrations with the service, stretching its potential even further. On the whole, ADP offers the best scalability of any provider in this guide.

3. Paychex Flex – Most Flexible Payment Options

Paychex is a user-friendly tool that gives you a granular level of control over your payroll processes. It offers customizable packages so you can find a solution that best fits your budget and needs, and it offers some of the best payment features we’ve reviewed.

Our research team found that this provider also offered the best help and support: The Paychex support center is extremely versatile, letting small businesses resolve queries over the phone, by email, and via live chat. This variety enables small businesses to resolve queries in the way that suits them best.

Paychex isn’t strong across the board, though. It lacks some features: It doesn’t support international payment features, making it a poor choice for small businesses with global ambitions, and it has no labor law compliance alerts to notify businesses of labor law violations, meaning it’s not so hot on compliance.

Paychex’s features

Compared to other top providers, Paychex boasts the best payment controls, letting you manage your payroll processes to your precise needs. In addition to payment controls such as automatic salary deductions, off-cycle payments, and time tracking, Paychex offers a real-time payment option called Paychex Real-Time Payments. This service allows employers to send payments to their employees’ bank accounts instantly – a feat that no other provider on this list is able to achieve.

Paychex has its own web portal, self-service mobile app, and self-service options for your employees too, and is dedicated to making it as easy as possible for workers to access useful payroll data. The service’s in-depth training materials and live training sessions also offer hands-on help that can reduce the learning curve as your team gets used to the payroll software.

However, while Paychex offers flexible payment options for managers paying staff in the US, it doesn’t offer international payment features. The service also lacks automatic compliance alerts, and offers a weaker tax and payroll knowledge base than its rivals Rippling and ADP.

Paychex’s pricing

Paychex’s base rate of $39 per month is fairly typical of a payroll service of its kind. However, the solution lets you add users for $5 a pop, which is cheaper than any other software on this list.

This makes Paychex a great option for businesses with growing teams that are looking to keep payroll costs to a minimum. Paychex doesn’t offer a free trial though, so if you want to test the product out, you’ll need to commit to a 12-month contract.

Learn more about the provider’s different plans in our Paychex pricing guide.

Paychex’s scalability

Paychex scales very well, since two of its pricing packages, Select and Pro, can be customized to your business’s specific needs. These modular options make Paychex a great option for small businesses with their gaze set on expansion, as they only need pay for the features they need as they grow. Paychex also offers ready-made accounting integrations, making it a flexible option for integrating with financial software.

However, since it lacks certain HR integrations and does not include an open API, its scalability falls slightly short of our scalable frontrunner, ADP.

4. Gusto – Best for Maintaining Compliance

Company benefits are one of the most frequent deductions to pop up when operating a payroll. The problem is, these can be really tricky to wrangle when dealing with multiple types of benefits, like healthcare and dental. This goes double for a small business without a dedicated benefits manager.

That’s where Gusto Payroll comes in handy. The software offers attachments that help with many types of benefit system: From 401(k)s to commuter aid, there is a wide array of benefits on offer. Gusto also offers health insurance help, by partnering with companies like BlueCross and UnitedHealthcare to help provide company-wide coverage.

Gusto features

Benefits management is just one of the jewels in Gusto’s crown, as it also offers a comprehensive amount of other features that you’d want in a payroll software. Security tools include an employee app that workers can use to clock in and out, and two-factor authentication to ensure that only employees with the correct authorization can access sensitive information.

Other highlights include an open API, automated payroll and tax filing, and, on the highest tier, full HR functionality.

The service is not perfect. Gusto doesn’t offer advanced functions including change reports and international payments. Plus, while Gusto does offer training resources including live setup support sessions, it doesn’t offer the 24/7 support you’ll find with Paychex. There’s also no mobile app, so you’ll only be able to operate it from a computer. In the end, Gusto is a solid pick for a scrappy company that prioritizes benefits, great data security and a smooth payroll process.

Gusto’s pricing

Gusto’s pricing is fairly run-of-the-mill for payroll software. The provider offers three plans: Simple, Plus, and Premium.

• Simple – Gusto’s cheapest tier is available at $40 per month plus an additional $6 per user, per month. It includes a host of basic payroll features including dedicated payment features, employee profits, and hiring and onboarding tools.
• Plus – Gusto Plus costs businesses $60 per month plus an extra $9 per user, per month. It offers everything in the Simple tier plus next-day direct deposits, time tracking and project tracking, and access to the provider’s full support suite.
• Premium – Finally, Gusto Premium offers the provider’s full range of features including an HR resource center, compliance alerts and performance reviews, and employee insights. Prices for the Premium plan are custom, based on the needs of each business.

While Gusto’s prices are slightly steeper than solutions like Rippling and Paychex, its packages do offer bang for your buck. And for smaller businesses that only require basic functions, Gusto’s Simple plan is more than equipped to help you manage your payroll processes.

Check out our guide to Gusto’s payroll pricingfor additional information.

Gusto’s scalability

While Gusto does not impose a strict limit on the number of employees that can be enrolled on its software, it was built specifically for small businesses. Therefore, if your business is rapidly growing, you might want to consider other software, as you don’t want to hit an unexpected wall down the line.

Like Paychex, Gusto does offer ready-made third-party accounting integrations, and thanks to its open API, those with technical savvy can create additional integrations if needed. However, it doesn’t offer international payroll support.

5. Zenefits – Best for Excellent Data Security

Zenefits is a reliable piece of payroll and HR software that excels when it comes to payment features, onboarding solutions, and small business data security. With SOC II certification, end-to-end encryption, and no evidence of a security breach in the last two years, you can rest assured knowing your company data will be safe in Zenefits’ hands.

Zenefits’ features

Zenefits makes it quick and easy for small businesses to automate their payroll processes, leaving you with more time to focus on other matters.

From time tracking and scheduling to salary updates and benefits deductions, the platform handles a range of tasks, negating the need for managers to enter information more than once. Like many other providers on this list, Zenefits offers its own app for employees too, making it easy for workers to clock in and out of shifts on their own terms.

In terms of its wider software offering, Zenefits boasts learning management, benefits management, and applicant tracking systems. However, if you employ international staffers, you’d be better off going for a software like Rippling or ADP, as Zenefits can’t manage wages for global workers. (Alternatively, you can expand into other countries through an Employer of Record: Check out our guide to the best EOR services to learn more.)

What’s more, while Zenefits provides users with in-depth training material and helpful resources to aid with paying taxes, it lacks live training courses and 24/7 live support channels, so its help and support provision is fairly mediocre overall.

Zenefits’ pricing

The three Zenefits pricing packages can be a little confusing. The plans start at $10 per user, per month for the Essentials package, but this is just for HR. Adding basic payroll functions is an additional $6 per user, per month, bringing total starting costs to $16 per user, per month.

Secondly, you can opt for the Zenefits Growth plan, which costs $20 per user, per month, plus the same additional $6 per user, per month add-on for a total cost of $26 per user, per month. This unlocks advanced payroll-related HR features like compensation and performance management.

Finally, the most pricey and advanced plan is Zen, which costs $33 per user, per month. but doesnot require an add-on in order to run payroll. This adds support for Employee Engagement Surveys and a People Hub that includes task-tracking and a company feed with posts and comments.

All Zenefits plans have a five-employee minimum. This makes the software somewhat inaccessible to micro-businesses and freelancers, even before adding in its$100 one-time implementation fee.

What’s new for Zenefits: As of our March 2024 update, Zenefits has increased the price of its base plans. Essentials increased from $8 to $10 per month, Growth increased from $16 to $20 per month, and Zen increased from $21 to $33 per month. These prices are still below industry averages, but not by quite as much.

Zenefits’ scalability

Zenefits’ modular pricing system is a great fit for growing businesses because they can add on extra services as they expand. The platform has an open API too, allowing users to create custom integrations with a seemingly endless array of third-party apps. It also offers built-in accounting integrations.

Because of these perks, Zenefits is a highly scalable software, and almost as good as our scalability champ, ADP – it just lacks the international payroll support that ADP has to offer.

Buying Guide: How to Choose the Best Payroll Software for Your Small Business

A small business faces certain constraints that a large business or a franchise doesn’t need to deal with. If your small business has just a dozen or fewer employees, you’ll need a cheap solution that’s easy to understand and handles all your payroll needs.

Here’s our checklist of what to look for in a small business payroll solution:

• Cost – Typical price ranges for payroll software include a base monthly cost of between $35 and $50, along with a per-employee cost that might be between $4 and $10 per month, per employee. Some providers may offer bundles or custom deals that can lower this cost, as well.
• Support – Small businesses may not have as much institutional knowledge about the ins and outs of payroll, compared to a large operation with a dedicated payroll team. As a result, good customer support options are key. The best payroll software offers 24/7 email, phone, and live chat support to their customers. For your own business, however, you simply need a provider with a support team that can share practical payroll advice during your operating hours.
• Ease of use – Just as small businesses may be more likely to need support, they’re more likely to benefit from an intuitive interface with a short learning curve.
• Customizability and flexibility – Different businesses need different tools. For example, time tracking is one of the features that some payroll services don’t support, but many businesses care about. Other tools include automatic sick day and vacation calculations, off-cycle payments, and non-employee payments. If these tools are important to you, be sure to check that your payroll software supports them.
• Tax calculations – Tax season can be a nightmare for small businesses, but the right tax preparation can make a world of difference. Your payroll software should be able to calculate and withhold all the needed taxes, and can generate a tax report when needed. This might be an extra cost, depending on the provider.
• Data security – Your business’s payroll process makes use of incredibly sensitive employee data, so you’ll need a service that offers security measures such as role-based accounts, encryption, and certifications. Looking for a software provider with a track record of very few data breaches is a good place to start.
• Scalability – Your business will grow over time, so you should opt for a software that can scale up as needed, offering the comprehensive functions you’ll need at a price that remains fair.

Finally, different industries require different features, so your business might require a little extra legwork to ensure a payroll software has what you need.

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