9 best payroll software for small businesses in 2025

Hiring your first employee was simple. By the time you started paying ten, twenty, or fifty, payroll became a second business you never asked for. More states meant more tax forms. More headcount meant more rules to track. You don't even recognize your to-do list anymore.

This is where payroll software starts to pay for itself. The right one tracks hours, calculates wages, files taxes, delivers paychecks, and gives employees self-service access — all with minimal effort from you.

Let's review nine of the best payroll software for small businesses so you can stop drowning in admin and get your weekends back.

Why payroll software matters for small businesses

Doing manual payroll means losing hours to spreadsheets, late nights checking tax forms, and constant fear of mistakes that cost money. For small business owners, every wasted hour is time not spent on running the business.

Here’s why payroll software makes a difference:

• Time back: Whether it’s you or a bookkeeper, no one should spend days on repetitive tasks like approving timesheets and chasing down signatures. Automation handles the repetitive work.

• Lower costs: Hiring extra staff or outsourcing payroll eats into thin margins. Payroll software keeps it lean: one system instead of multiple providers.

• Built-in compliance: Federal, state, and local tax rules change constantly. Good payroll software stays updated, files taxes automatically, and reduces the risk of penalties.

• Better employee experience: Self-service portals in payroll software mean your team can grab pay stubs, update their info, or check benefits without waiting on you.

Quick comparison: Best payroll software for small businesses at a glance

Here's a quick peek at the payroll software we'll be reviewing in this guide.

Methodology: How I chose the best payroll software

To put this roundup together, I didn’t just Google “best payroll software” and call it a day. 

I sourced data from official payroll provider websites, compared features side-by-side, watched any product demos I could find, read through support docs, and dug into thousands of reviews on G2, Capterra, and TrustPilot. All to show you how these platforms actually perform for real small business owners, not just what the marketing copy promises.

What I evaluated:

Pricing

So you know what to expect before committing, I only included platforms where the base fee and per-employee pricing — or a clear note that it’s quote-based — were confirmed directly on vendor sites.

Core payroll features

I looked for payroll must-haves: automated calculations, tax filing, employee self-service portals, and direct deposit.

HR tools and benefits administration

Since you might want more than just paycheck processing, I weighted platforms that also cover health benefits, workers’ comp, or retirement plans like 401(k). These extras make a big difference once you’re past your first payroll.

Ease of use

Clean dashboards, intuitive flows, and minimal effort to run payroll were non-negotiables.

Integrations with accounting software

Platforms scored higher if they sync smoothly with QuickBooks, Xero, or other business software that small teams already rely on.

Rippling editorial policy: Rippling puts our customers (and prospective customers!) first. The Rippling team is committed to providing information supported by product data, expert insights, and real customer feedback to inform all of our content. All of our content is reviewed by product experts for accuracy and freshness.

Top 9 payroll software for small businesses in 2025

1. Rippling

What Rippling is known for

Rippling is known for unifying payroll, HR, Finance, and IT in one platform, built on a single employee record. Instead of bouncing between apps for payroll processing, benefits administration, time tracking, and onboarding, you do it all from one dashboard with fewer logins, fewer integrations, and fewer mistakes. And as your team grows across states (or countries), it scales with you.

Why Rippling stands out

Most payroll tools patch one problem at a time: cutting checks, filing taxes, or managing benefits. Rippling combines everything: time tracking, scheduling, payroll processing, benefits administration, and HR tools. Hours flow straight into payroll, taxes are filed automatically, and compliance rules are enforced before payday.

Pay on time, every time

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Where Rippling can fall short

If you want ultra-basic payroll services, Rippling isn’t a fit. You get the most value when you use it as a full payroll solution with HR, Finance, and IT.

Is Rippling right for you?

Rippling is best for small business owners who want fewer systems, faster payroll close, and to eliminate the hassle of juggling multiple platforms. 

Feature snapshot

2. QuickBooks Payroll

What QuickBooks Payroll is known for

QuickBooks is a popular accounting software. Many small business owners who already use it choose it for payroll because data flows straight into their books without extra steps. 

Why QuickBooks Payroll stands out

It offers automated tax filing, Auto Payroll for salaried staff, and same-day direct deposit on Premium and Elite plans. The Elite tier includes tax penalty protection if the system makes a filing mistake.

Where QuickBooks Payroll can fall short

• Free multi-state payroll tax filings are only available on the Elite plan.

• No built-in hiring, onboarding, performance management, PTO tracking, or scheduling; you’ll need other HR tools.

• QuickBooks offers healthcare and 401(k), but lacks HSA, FSA, commuter benefits, or 529 savings found in competitors like Rippling or Gusto.

• File size and transaction limits can slow performance as headcount and departments grow.

• While it connects to many apps, maintaining payroll, CRM, and e-commerce integrations can become an IT burden.

• Report templates and workflows are locked down, forcing workarounds for complex projects or accounting structures.

• QuickBooks Online struggles with heavy transaction volumes and large general ledgers.

Is QuickBooks Payroll right for you?

It’s a fit if your business already runs on QuickBooks accounting and you want payroll services that sync. If not, you may find better value elsewhere.

Feature snapshot

3. Wave Payroll

What Wave Payroll is known for

Wave Payroll is a low-friction payroll solution built for freelancers and very small businesses. It plugs directly into Wave’s free accounting software, so you can manage invoicing, bookkeeping, and payroll processing in one place.

Why Wave Payroll stands out

For teams of just one or two employees (or contractors only), it keeps costs predictable. You get core features like automated tax filing, direct deposit, and basic payroll compliance without needing to buy a full HR suite. You can also connect bank and credit card accounts and scan receipts at no extra cost.

Where Wave Payroll can fall short

• Features like payroll processing or accepting payments sit behind Wave’s paid plans.

• It can be limiting once your needs expand beyond simple accounting.

• No built-in onboarding, performance, or PTO management.

• Beyond Wave Accounting, you won’t find the wide integration ecosystem that other payroll platforms support.

• You'll need another provider for benefits administration.

Is Wave Payroll right for you?

Wave Payroll is best for freelancers, sole proprietors, or very small businesses paying just a handful of employees or contractors. 

Feature snapshot

4. Square Payroll

What Square Payroll is known for

Square Payroll is known for serving retail, restaurant, and appointment-based businesses already using Square’s POS system. It pulls timecards, tips, and shift data directly into payroll, removing the need to re-enter numbers.

Why Square Payroll stands out

It’s designed for hourly and tipped workers. Employees can clock in through Square POS, track breaks, and have tips reported automatically. Square Payroll then handles federal and state tax filing, direct deposit, and generates year-end tax forms.

Where Square Payroll can fall short

• Limited advanced HR features and depth for large teams than full HR suites.

• Offers health insurance and retirement options through partners, but not as broad as Rippling.

• Great for restaurants and retailers, less compelling for professional services or remote-first teams.

• Scheduling beyond POS/timecard basics or more sophisticated shift/roster planning may also be limited.

• Covers only basic compliance and lacks advanced features such as employee-level minimum wage tracking and support for required holidays or sick leave.

Is Square Payroll right for you?

Square Payroll is best if you're in food service or retail, already run Square POS, and need payroll that auto-syncs with timecards and tips. If you need full HR management, you'll have to rely on third-party integrations.

Feature snapshot

5. Gusto

What Gusto is known for

Gusto built its reputation on clean design, simple setup, and a modern approach to small business payroll processing. It is one of the most user-friendly payroll platforms on the market.

Why Gusto stands out

Every plan includes unlimited payroll runs, automated tax filing, and basic HR tools like onboarding checklists. Higher-tier plans add same-day direct deposit, time tracking, and an HR support center with resources for compliance.

Where Gusto can fall short

• The entry “Simple” plan only supports one state; you need Plus or Premium for multi-state compliance.

• Large or multi-location businesses often outgrow it quickly. Gusto itself runs HR on other systems, which says a lot about its scalability.

• Pricing adds up quickly as headcount grows.

• Year-end filings like W-2s may come with added fees, creating cost uncertainty.

Is Gusto right for you?

Gusto is best for businesses with a small number of employees who want intuitive payroll software that “just works.” If you’re scaling quickly across multiple states, you may want to look at other providers.

Feature snapshot

Run your next payroll in 90 seconds

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6. Justworks

What Justworks is known for

Instead of just running payroll, Justworks co-employs your team as a professional employer organization (PEO) and takes on much of the legal and administrative risk.

Why Justworks stands out

With Justworks, you get automated payroll processing, tax filing, access to large-group health insurance, 401(k) retirement plans, workers’ comp, commuter benefits, and even wellness perks. It's a way to get enterprise-level benefits as a small business, without building an in-house HR team.

Where Justworks can fall short

• Because it’s a PEO, you give up some autonomy. Payroll is run under Justworks’ EIN, which can complicate tax credits or make leaving the platform harder.

• Primarily focused on U.S. co-employment and not suitable for global payroll or cross-border compliance.

Is Justworks right for you?

If you’re comfortable with a PEO model, Justworks is a reliable way to stay compliant. If you’d rather keep more control (or want the option to scale globally), consider a non-PEO payroll provider.

Feature snapshot

7. OnPay

What OnPay is known for

Unlike many entry-level payroll software, OnPay includes tax filing, garnishments, and multi-state payroll in one flat monthly price with full-feature access for all users.

Why OnPay stands out

Regardless of your company size, every plan includes unlimited payroll runs, automated tax filing in all 50 states, and industry-specific support. 

OnPay also includes onboarding checklists, PTO tracking, org charts, and support for both W-2 and 1099 workers.

Where OnPay can fall short

• You can run payroll from a browser, but employees and admins don’t get a dedicated mobile app.

• Reviews often praise support quality but note limited availability outside U.S. hours.

• Companies with over 100-200 workers may find it too basic.

• OnPay struggles with complex payroll scenarios like weighted overtime and blended rates.

• Limited third-party integrations compared to competitors.

Is OnPay right for you?

OnPay is a great fit if you’re a U.S. small business looking for affordable payroll without extra complexity.

Feature snapshot

8. Patriot Payroll

What Patriot Payroll is known for

Patriot offers a bare-bones Basic plan for U.S.-based businesses that want to handle their own tax filing, and a Full-Service plan that automates filings for a small premium.

Why Patriot Payroll stands out

For budget-sensitive small businesses, it’s one of the cheapest ways to run compliant payroll. Patriot offers free setup assistance, and the platform includes direct deposit, employee portals for pay stubs, and integrations with QuickBooks and Xero.

Where Patriot Payroll can fall short

• Add-ons like time tracking, HR software, or accounting are either billed separately or require another vendor, which can erode the “low cost” advantage if you need more than payroll.

• Patriot offers workers’ comp integration, but not health, dental, vision, or 401(k).

• Once you scale past 25–50 employees, limitations show quickly.

• You'll need separate systems for HR tools like hiring workflows or scheduling.

• Strictly U.S.-only. No support for global payroll; paying international employees or contractors.

• Reports are available, but customization is limited.

• Reviews note that the dashboard looks basic and can be less intuitive than modern competitors.

Is Patriot Payroll right for you?

Patriot Payroll works for microbusinesses and small business owners running payroll on tight budgets. If you’re comfortable with their HR and benefits limitations, it’s an inexpensive way to stay compliant. If you expect to scale or need deeper features, you’ll quickly outgrow it.

Feature snapshot

9. ADP RUN

What ADP is known for

ADP RUN is the small business arm of ADP, one of the biggest names in global payroll services worldwide. It’s designed for companies with under 50 employees, offering payroll processing plus federal, state, and local tax filing, with compliance support.

Why ADP RUN stands out

RUN includes automated tax filing, direct deposit, new-hire reporting, customizable payroll reports, and access to add-ons like benefits administration. You can schedule payroll in advance, too.

Where ADP RUN can fall short

• Once you reach 50 employees, you’ll need to transition to ADP Workforce Now, which requires a separate implementation.

• Despite the range of integrations, many products operate in silos and are managed by separate teams.

• It doesn’t support payroll for contractor-only employers.

• ADP RUN charges per payroll run, so if you run weekly payroll, it can become quite expensive. 

• According to reviews, the platform can feel overwhelming and unintuitive.

• Payroll isn’t synced to other HR data like time and attendance unless you add on extra features (and pay additional fees). 

Is ADP RUN right for you?

It works if you’re a small business that wants the backing of a trusted enterprise provider with compliance muscle. However, the pricing, add-on structure, and scaling hurdles may outweigh the benefits.

Feature snapshot

See how simple payroll can be

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What should you look for in small business payroll software?

Here’s what to look for:

Ease of use

Your payroll system should be simple enough to navigate right out of the box and only require minimal training. A clean interface saves time and reduces admin. With employee self-service, your staff can grab pay stubs and manage employee benefits on their own, reducing HR tasks for you. 

Strength of integrations

Your payroll provider should connect to the accounting software you already use, like QuickBooks Online or Xero. This way, payroll reports and tax forms flow directly into your books, cutting manual entry. Look for platforms that also sync with benefits administration tools so deductions update automatically.

Scalability

Good small business payroll software should grow with you by handling multiple states, complex local regulations, and even global payroll (if you expand abroad). For example, OnPay covers multi-state filings at no extra cost, while Rippling can run payroll in 185+ countries. Scalability reduces the risk of errors, missed tax filings, or tax penalties as you grow.

Automation

Finally, look for robust automation features. Modern payroll solutions handle direct deposit, contractor payments, PTO, and workers' comp automatically. This saves time, minimizes human error, and helps you stay compliant with federal, state, and local rules.

Customer support

Look for a payroll provider with responsive, knowledgeable HR support, especially around payroll tax deadlines or compliance issues.

Which payroll company is best for you?

This depends on who you are, your company stage, and what primary problem you're solving. Here's some information to help you make an informed decision.

Based on your persona

Based on your company's stage

Get the best payroll software for small businesses: Rippling

If you want payroll so powerful it runs itself, you want Rippling.

Rippling Payroll has everything we’ve discussed in this article so far, plus even more — it’s built on top of a single source of truth for employee data. That means your employee data isn’t tied to one specific app —it’s the same across payroll, time and attendance, onboarding, performance management, and any other apps you use within our unified platform.

What does that mean for you and your team? For starters, you have a single source of truth for up-to-the-minute employee information.

It also means that your team doesn’t have to re-enter information across systems when an employee gets promoted or moves to a different city to work remotely. From changing security permissions to updating PTO policies, Rippling triggers automatic updates to employee information in a single flow.

This is especially beneficial for small businesses. It allows you to do more with less — less money, less headcount, and less time.

Your business is complex. Payroll software shouldn’t be.

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Frequently asked questions about payroll software for small businesses

Still have questions about payroll software? Learn more in the FAQ below.