Top 10 Best Payroll Software for Small Businesses [2026]

Running payroll manually means hours lost to spreadsheets, tax calculations, and compliance checks that pull you away from strategic work.

The best payroll software helps eliminate these risks while automating the entire process from wage calculation to tax filing. Quality software saves time through payroll automation and AI-powered features, such as expense management integration. It reduces errors with built-in audits that catch mistakes before they reach employees or tax agencies. 

We’ve put together a list of the top 10 platforms that empower employees and HR team members with features such as self-service hubs, time and labor synchronization, and compliance checks. We also break down the cost, so you can choose one that’s right for your budget.

Best Payroll Software of 2026

Here are the leading payroll solutions on the market today. These platforms are listed for comparison, not ranked in any particular order. 

Best for: All-in-one HR, payroll, and expense management 

Paylocity unifies HR, Finance, and IT together on one platform designed to simplify payroll tasks while maintaining accuracy. With payroll, time tracking, benefits, expenses, and employee data combined in a single system, payroll managers gain complete visibility into labor costs without needing to juggle separate tools or reconcile disconnected data.  

Paylocity's payroll system software is ideal for companies seeking efficient payroll processing combined with deep HR capabilities. It handles complex scenarios, such as multi-state payroll, varied pay structures, and integrated expense reimbursements, while scaling with you so you never have to migrate to a new provider as your business grows or evolves.  

Key features: 

• Time and labor sync: Time and attendance data flows directly into payroll calculations without manual entry. Clock-ins from mobile devices, kiosks, or biometric systems automatically update employee hours and apply overtime rules based on federal, state, and local regulations. 
• Automatic payroll audits: The platform runs pre-processing audits that flag variances, unexpected pay spikes, missing deductions, and policy violations before you submit payroll. These checks catch errors that typically slip through manual review and reduce the risk of costly corrections. 
• Payroll rules and reports configuration: Configure custom pay rules for bonuses, commissions, shift differentials, and PTO accruals that align with your policies. Custom reporting provides real-time visibility into labor costs by department, location, or project, enabling better budget management. 

Pricing: Custom

2. Gusto

Best for: Benefits administration 

Gusto delivers a straightforward approach for small business owners who need essential payroll features without enterprise complexity.  

The platform handles payroll processing, tax filing, and benefits administration from a single interface. Gusto aims to provide software that's user-friendly for small businesses in need of payroll solutions with a minimal learning curve and transparent pricing. 

The platform has a variety of integration capabilities. Gusto connects with popular accounting tools like QuickBooks, Xero, and FreshBooks, making it a solid fit for businesses that already rely on these systems. Some reviews note limited customization for complex payroll scenarios and fewer workflow automations compared to enterprise platforms.G2 - Gusto review

Key features: 

• Automated tax filings: Gusto calculates federal, state, and local payroll taxes, then files forms like W-2s, 1099s, and I-9s automatically with the appropriate agencies. The platform stays current with changing tax laws to help users avoid penalties and maintain compliance. 
• Unlimited payroll runs: Run payroll as many times as needed each month without extra fees. This includes off-cycle runs for bonuses, corrections, or terminations, giving you flexibility to handle one-time payments without worrying about per-run charges. 
• Benefits and onboarding tools: Integrate health insurance, 401(k) retirement plans, FSAs, HSAs, and commuter benefits directly into payroll. New hires complete digital onboarding through offer letter templates, document storage, and employee self-service portals where they enter their payroll details. 

Pricing: Plans start at $49/month + $6/employee/month Gusto - Pricing page

3. OnPay

Best for: Strong compliance tools 

OnPay positions itself as a compliance-first payroll management system with built-in reminders, multi-state support, and transparent pricing. The platform handles federal, state, and local tax filing backed by an error-free guarantee, making it a fit for companies that operate across state lines or face complex compliance requirements. OnPay is ideal for businesses that want comprehensive features without tiered pricing.

The service includes unlimited payroll runs, multiple pay schedules, and benefits administration support from licensed brokers in all 50 states. OnPay offers dedicated onboarding support and phone assistance during extended hours. Some users note the limited time-tracking capabilities and integrations.G2 - OnPay review

Key features: 

• Multi-state payroll support: Process payroll for employees in all 50 states without additional costs. OnPay handles jurisdiction-specific tax calculations, withholdings, and compliance requirements automatically, applying the correct rates based on where employees live and work. 
• Built-in compliance reminders: Custom personnel checklists track certifications, licenses, and required documents with expiration dates. The system alerts administrators when employees are out of compliance, helping users avoid penalties and maintain proper documentation for audits. 
• Transparent flat pricing: One subscription tier includes all features with no hidden fees or required upgrades. Pay $49 per month base fee plus $6 per person for unlimited runs, tax filing, benefits support, and integrations with accounting and time-tracking software.OnPay - Pricing page

Pricing: Plans start at $49/month + $6/employee/month 

4. ADP

Best for: Multi-entity payroll support 

ADP brings a long record of expertise to companies that need scalable payroll processing software across multiple locations. The platform offers several tiers for everything from small businesses to enterprise organizations. ADP suits businesses that require robust tax compliance, dedicated support, and the ability to scale as headcount grows. 

The vendor handles automated payroll processing, full federal, state, and local tax filing, and integrations with time-tracking and benefits platforms. ADP provides 24/7 customer support and can manage complex scenarios like wage garnishments and multi-state taxation. It also integrated with earned wage access programs.  

While ADP offers 24/7 support, some reviewsG2 - ADP review report certain issues taking longer to resolve than expected.

Key features:  

• Native global payroll: ADP manages international payroll through its own proprietary infrastructure in over 140 countriesADP - Global Payroll, providing direct local expertise and compliance.  
• Full-service PEO model: Through ADP TotalSource, the company offers a co-employment model where it handles high-level HR tasks, taxes, and compliance as a legal employer of record.  
• Integrated health and benefits brokerage: ADP acts as a licensed insurance broker, allowing businesses to purchase and manage health benefits directly through the ADP ecosystem. This provides a unified experience by serving as both the benefits administrator and the broker of record. 

Pricing: Custom

5. Square Payroll

Best for: Businesses using Square POS systems 

Square Payroll integrates directly with Square's point-of-sale (POS) ecosystem, making it ideal for retail, restaurant, and service businesses that already use Square for payments.  

The platform automatically captures employee hours, eliminating manual data entry and ensuring accurate payroll calculations based on actual shifts worked. 

Square Payroll handles automated tax calculations and offers same-day direct deposit available for hourly and salaried employees. The system includes workers' compensation insurance administration and time-tracking features built into the Square ecosystem.  

Some reviews note that there are sometimes tax overpayment issues and unexpected changes with user settings.G2 - Square Payroll review

Key features:  

• POS integration: Square Payroll connects directly with Square POS, Square Appointments, and Square for Retail. It automatically imports employee hours, tips, and commissions into payroll.  
• Automated tax compliance: Square calculates federal, state, and local payroll taxes, then files and pays them on your behalf with guaranteed accuracy. The platform monitors changing tax laws, registers your business in new states when you hire remote employees, and provides penalty protection if Square makes a filing error. 
• Contractor payments: Pay both W-2 employees and 1099 contractors through the same platform with automatic 1099-NEC generation and filing at year-end. It tracks contractor payments throughout the year and handles all required tax documentation, simplifying payments for businesses with mixed workforces. 

Pricing: Custom 

6. QuickBooks Payroll

Best for: QuickBooks accounting users 

QuickBooks Payroll integrates directly with QuickBooks Online, making it a useful payroll software for accounting professionals. The software syncs employee wages, tax payments, and expense data into your general ledger automatically, eliminating duplicate entry and reconciliation work. QuickBooks works well for companies that prioritize accounting integration over standalone payroll capabilities. 

The platform handles automated tax calculations, same-day direct deposit, and workers' compensation administration. They even offer tax penalty protection up to $25,000. Some users note that QuickBooks can be more expensive than other options, and its customer service is sometimes not up to par.G2 - QuickBooks review

Key features:  

• QuickBooks accounting sync: Run payroll and accounting in the same QuickBooks ecosystem, with payroll transactions and payroll tax information automatically synced into QuickBooks Online. This removes manual imports and double entry to keep your books current after each payroll run. 
• Same-day direct deposit: Submit payroll as late as the morning of payday, and employees receive funds the same day. This flexibility helps businesses with variable schedules or last-minute adjustments maintain employee satisfaction without planning days ahead. 
• Automatic tax payments: QuickBooks calculates, files, and pays your federal and state payroll taxes for you, with automated local tax filings available in select plans. It can also prepare W-2s and 1099s and e-file them with the IRS and Social Security Administration when you enable Automated taxes and forms. 

Pricing: Plans start at $88/month + $6.50/employee/monthQuickBooks - Payroll product pricing 

7. Deel

Best for: Global workforce management 

Deel specializes in international payroll and contractor management, providing HR and payroll software that handles compliance, contracts, and payments in over 150 countries. Deel functions as an employer of record (EOR) in countries where you lack a legal entity, handling local contracts, tax compliance, and benefits administration while you maintain operational control. 

The platform processes payments in multiple currencies, manages visa and work permit requirements, and ensures compliance with local labor laws. Deel also provides automatic HRIS sync, creating a single source of truth for employee records. Users note that Deel's fees are high for employers operating in non-US countries, and the platform isn’t intuitive to set up.G2 - Deel review

Key features:  

• Global payroll and compliance: Process payroll for employees and contractors in 150+ countries with automated tax calculations, local labor law compliance, and multi-currency payments. Deel handles country-specific requirements, including mandatory benefits, severance rules, and notice periods, reducing legal risk when operating across borders. 
• Employer of record services: Hire full-time employees in countries where you don't have a legal entity through Deel's EOR service. Deel becomes the legal employer, handling contracts, payroll, taxes, and benefits administration while you manage day-to-day work assignments and performance. 
• Contractor management: Create compliant independent contractor agreements, process payments in local currencies, and generate tax forms automatically. The platform includes invoice tracking, milestone-based payments, and classification guidance to maintain proper contractor relationships by avoiding misclassification penalties. 

Pricing: Plans start at $15/employee/month 

8. Insperity

Best for: PEO payroll  

Insperity operates as a professional employer organization (PEO), meaning Insperity becomes the employer of record for tax and benefits purposes while you maintain day-to-day management of employees.  

PEO payroll works for small to mid-sized companies that want to offload HR administration, access better benefits rates, and get dedicated HR guidance on compliance matters. 

Through the PEO arrangement, Insperity handles payroll processing, tax filing, benefits administration, workers' compensation, and HR compliance. The service includes detailed reports on employee performance, helping employers make informed decisions as well. Some user reviews report a lack of customization on the platform.G2 - Insperity review

Key features: 

• PEO co-employment services: Insperity becomes the legal employer for tax, benefits, and compliance purposes through a co-employment agreement. This structure provides liability protection, regulatory compliance support, and access to enterprise-grade benefits. 
• Benefits administration: Access health insurance, retirement plans, and supplemental benefits at rates negotiated for larger groups. Insperity handles enrollment, premium collection through payroll deductions, carrier communications, and compliance with ACA, COBRA, and HIPAA requirements. 
• HR compliance guidance: Work with assigned HR specialists who provide advice on employment law, workplace policies, investigations, terminations, and regulatory filings. The service includes document templates, training resources, and support during audits or legal disputes. 

Pricing: Custom

9. FRIDAY

Best for: Easy setup 

FRIDAY emphasizes speed to implementation with a setup process that takes under 15 minutes from account creation to the first payroll run. The platform targets small businesses that need basic payroll management software without extensive configuration or complex feature sets. FRIDAY works for companies with straightforward payroll needs who want to start processing immediately. 

The service includes built-in time tracking, tax filing and compliance, and employee self-onboarding. FRIDAY handles direct deposit and allows for specified roles and permissions. The platform offers fewer advanced features than enterprise solutions, and some reviews say they’d like reminders for legal holidays that affect payroll.G2 - FRIDAY review

Key features:  

• Under 15-minute setup: Create an account, add employee information, and run your first payroll in one sitting without implementation specialists or lengthy onboarding. The guided setup walks you through basic company details and employee records using a streamlined interface. 
• Built-in time tracking: Employees clock in and out through web or mobile apps with geolocation verification and photo capture to prevent buddy punching. Time data flows directly into payroll calculations with automated overtime rules based on federal and state requirements. 
• Auto tax filings: FRIDAY calculates federal, state, and local payroll taxes, then files all required forms, including quarterly returns and year-end W-2s and 1099s. The service monitors tax law changes and updates calculations automatically to maintain compliance. 

Pricing: Plans start at $9/employee (billed annually)FRIDAY - Pricing 

10. Patriot

Best for: Year-end payroll tax filings

Patriot delivers affordable payroll management software designed specifically for small businesses with straightforward payroll needs. Serving more than 60,000 customers, the platform assists with year-end tax filings with automated W-2 and 1099 generation, submission to federal agencies, and state-level distribution at no additional cost. 

The software features a simplified, three-step payroll process, and offers free direct deposit and integrates with its own accounting software or QuickBooks.  

Some reviewers note limitations in advanced HR features and slower direct depositG2 - Patriot review processing compared to competitors, but most praise the exceptional value and customer service. 

Key features: 

• DIY or full-service tax filings: Choose between Basic Payroll, where you handle tax filings yourself, or Full Service Payroll, where Patriot calculates, deposits, and files all federal, state, and local payroll taxes on your behalf. The Full Service option includes year-end W-2 and 1099 filing at no additional charge, with Patriot assuming liability for penalties caused by their errors. 
• 1099 contractor payments: Process W-2 employees and 1099 contractors in the same Patriot payroll run instead of separate platforms. Patriot creates 1099-NEC and 1099-MISC forms from year-end data and lets you e-file them with the IRS and participating states directly from the software.
• Free payroll setup assistance: Receive complimentary setup help from USA-based support representatives who walk you through employee data entry, tax configurations, and first payroll processing. The setup checklist guides you through required information, and ongoing phone, email, or chat support remains free regardless of your subscription tier.

Pricing: Plans start at $17/month + $4/employee/monthPatriot - Pricing

Features to look for when choosing the best payroll software

The right payroll management system should improve accuracy, simplify tax handling, and cut manual work across HR and finance. Use the features below as a checklist while you compare vendors and run demos.  

Configurable pay rules and accruals 

Look for payroll administration software with pre-processing dashboards that summarize gross pay, taxes, and deductions before you commit to a run.  

Strong payroll reports let reviewers compare current totals to prior periods, drill into variances, and confirm changes like new hires or rate adjustments. Multi-step approval flows then route payroll for signoff so you catch errors before money moves. 

Comprehensive review and submission flows 

Pre-processing dashboards show total costs, tax withholdings, and deductions before you submit payroll. Multi-step, automated workflows create checkpoints where reviewers verify hours, catch anomalies, and approve payroll before funds transfer.  

Strong review tools include side-by-side comparisons with previous periods and variance reports that highlight unusual changes. 

Payroll readiness and audits 

Payroll auditing and error reporting should work before you ever click submit, not after paychecks go out. Readiness checks flag missing tax IDs, inactive bank accounts, or terminated employees who still appear on a run.  

Built-in pre-submit audits also surface anomalies, like duplicate pay, unexpected spikes, or unapproved retro pay, so you can correct them in advance. 

Tax compliance and geolocation 

Quality payroll processing software tracks where each employee lives, works, and travels, then applies the correct federal, state, and local tax rules. Built-in tax tables update automatically as rates change, removing manual calculations and keeping deductions accurate.  

Some providers automate tax filing, generate W-2s, and offer compliance dashboards and penalty protections so your team is not stuck chasing notices and amendments. 

Pricing and total cost 

Pricing for payroll system software usually combines a base platform fee with per-employee charges, but that is only part of the cost picture. Factor in implementation, data migration, support tiers, and paid add-ons for time tracking, benefits, or HR modules.  

Vendors should itemize fees, outline any annual increases, and explain which features require upgrades so your budget math matches reality.