Introduction: Why Small Businesses Need Payroll Software
Managing employee payroll can be complex and time-consuming. Payroll software simplifies the process by automating:
✔️ Employee salary calculations
✔️ Tax deductions & filings
✔️ Direct deposit & payment processing
✔️ Compliance with labor laws
✔️ Payroll reports & tracking
To help you choose the best payroll software for your small business, we’ve compared top-rated payroll solutions for 2025 based on features, pricing, and ease of use.
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Top 7 Payroll Software for Small Businesses in 2025
1. Gusto – Best Overall Payroll Software
⭐ Best for: Small businesses needing all-in-one payroll & HR solutions.
💰 Pricing: Starts at $40/month + $6 per employee
🔹 Key Features:
✔️ Automated payroll processing
✔️ Tax filings & compliance support
✔️ Employee benefits & insurance integration
✔️ Direct deposit & contractor payments
📌 Why Choose It? Gusto offers a complete payroll & HR solution with easy setup and great customer support.
📌 Best Alternative: QuickBooks Payroll
2. QuickBooks Payroll – Best for QuickBooks Users
⭐ Best for: Businesses using QuickBooks for accounting.
💰 Pricing: Starts at $45/month + $6 per employee
🔹 Key Features:
✔️ Automated payroll & tax filings
✔️ Same-day direct deposit
✔️ 401(k) & health benefits integration
✔️ Seamless QuickBooks integration
📌 Why Choose It? If you already use QuickBooks for accounting, this is the best payroll add-on.
📌 Best Alternative: Gusto
3. ADP Run – Best for Growing Businesses
⭐ Best for: Businesses that need scalable payroll & HR services.
💰 Pricing: Custom pricing
🔹 Key Features:
✔️ Payroll automation & compliance
✔️ Employee benefits & retirement plans
✔️ 24/7 customer support
✔️ Hiring & onboarding tools
📌 Why Choose It? ADP is trusted by millions and scales with your business growth.
📌 Best Alternative: Paychex
4. Paychex – Best for Compliance & HR Support
⭐ Best for: Small businesses needing compliance & HR features.
💰 Pricing: Starts at $39/month + $5 per employee
🔹 Key Features:
✔️ Payroll tax calculations & filings
✔️ Time tracking & HR support
✔️ Benefits administration
✔️ Mobile payroll processing
📌 Why Choose It? If you need HR support with payroll, Paychex is a great option.
📌 Best Alternative: ADP Run
5. Rippling – Best for Automation & Integrations
⭐ Best for: Businesses looking for advanced automation.
💰 Pricing: Starts at $8 per employee/month
🔹 Key Features:
✔️ Fully automated payroll processing
✔️ Employee benefits & tax compliance
✔️ Global payroll capabilities
✔️ IT & device management integration
📌 Why Choose It? Rippling offers the most automation & integrations, making it ideal for tech-savvy businesses.
📌 Best Alternative: OnPay
6. OnPay – Best Budget-Friendly Payroll Software
⭐ Best for: Small businesses looking for affordable payroll solutions.
💰 Pricing: Flat $40/month + $6 per employee
🔹 Key Features:
✔️ Unlimited payroll runs
✔️ Tax filings & direct deposits
✔️ Workers’ compensation & benefits
✔️ Easy employee self-service portal
📌 Why Choose It? If you need cost-effective payroll with all essential features, OnPay is the best choice.
📌 Best Alternative: Square Payroll
7. Square Payroll – Best for Paying Contractors & Gig Workers
⭐ Best for: Businesses hiring contractors & gig workers.
💰 Pricing: Starts at $35/month + $5 per employee
🔹 Key Features:
✔️ Contractor payments & tax filings
✔️ Automatic tax withholdings
✔️ Seamless integration with Square POS
✔️ Health & retirement benefits options
📌 Why Choose It? Square Payroll is perfect for businesses paying freelancers & contractors.
📌 Best Alternative: OnPay
Comparison Table: Best Payroll Software for Small Businesses
| Payroll Software | Best For | Starting Price | Key Features |
|---|---|---|---|
| Gusto | Best Overall | $40/month + $6/employee | All-in-one payroll & HR |
| QuickBooks Payroll | QuickBooks Users | $45/month + $6/employee | Seamless QuickBooks integration |
| ADP Run | Growing Businesses | Custom Pricing | Scalable payroll & HR services |
| Paychex | Compliance & HR | $39/month + $5/employee | HR support & tax compliance |
| Rippling | Best for Automation | $8/employee | Fully automated payroll |
| OnPay | Best Budget Option | $40/month + $6/employee | Unlimited payroll runs |
| Square Payroll | Best for Contractors | $35/month + $5/employee | Contractor payments & gig worker support |
How to Choose the Best Payroll Software for Your Business
✅ 1. Consider Your Business Size & Needs
✔️ Need comprehensive payroll & HR? → Gusto
✔️ Paying contractors & gig workers? → Square Payroll
✔️ Need automated tax filings & compliance? → ADP or Paychex
✅ 2. Check for Accounting Integration
✔️ Using QuickBooks for accounting? → QuickBooks Payroll
✔️ Need POS system integration? → Square Payroll
✅ 3. Compare Pricing & Features
✔️ Budget-friendly payroll? → OnPay
✔️ Advanced automation? → Rippling
Conclusion: Choose the Best Payroll Software for Your Needs
The best payroll software depends on your business size, budget, and payroll needs. Whether you need a simple payroll tool or full HR integration, there’s a perfect solution for you.
📌 Ready to get started? Try Gusto, QuickBooks Payroll, or OnPay today!
🔗 Related Resources:
✔️ Best Accounting Software for Small Businesses
✔️ How to Prepare a Profit & Loss Statement
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