How to choose payroll software for your business

Payroll is one of those business functions you can't afford to get wrong. Literally. 

Run it manually to save money, and you risk late payments, errors, and tax penalties. Invest in proper payroll software, and you'll save hours every pay cycle while staying compliant.

Whether you're upgrading from spreadsheets or switching from your current payroll provider that no longer scales, this guide will help you make a buying decision you won't lose sleep (and money) over.

What does payroll software do?

Payroll software streamlines the process of paying your workers and keeps your business compliant with tax laws. Some common features of payroll solutions include:

Payroll processing

Modern payroll software calculates wages, overtime, and payroll deductions so your employees and contractors are paid accurately and on time, via their preferred method.

Tax compliance and automatic tax filing

Full-service payroll providers can keep you compliant with federal, state, and local taxes by automating tax calculations, making withholdings, conducting new hire reporting, and even filing forms like 1099s or W-2s on your behalf.

Direct deposits

Many payroll services now offer direct deposit capabilities, meaning that your workers receive their pay directly into their bank accounts rather than having to cash a physical check.

Non-traditional compensation

Aside from the base pay payroll, payroll providers should be able to handle bonuses, workers’ compensation, wage adjustments, and other types of payment.

Recordkeeping and reporting

Want to see where your money’s going? A solid payroll software gives you reporting tools that track wages, taxes, budgets, and labor costs.

Software integrations

Payroll software doesn't work in a silo. Platforms like Rippling plug right into time tracking, benefits, expense management, and even accounting software for fewer manual entries and fewer errors.

Must-have payroll software features to consider

Here are the features I'd keep an eye out for if I were picking a new payroll solution for my business.

Support for a distributed workforce

Your payroll provider should keep you compliant, whether you’ve got staff across different states or employees working abroad.

Automated tax compliance

Manual tax math = payroll mistakes. Full-service payroll providers save you time and reduce risk by automating tax filing, keeping payroll tax compliance up to date, and generating the right forms (W-2s, 1099s).

Flexible payment options

Your payroll service providers should offer direct deposit, off-cycle pay runs, bonuses, reimbursements, and other non-standard compensation.

Strong integrations

Integration prevents duplicate data entry and keeps your financial reporting accurate. Pick a payroll solution that plays nice with the rest of your stack: accounting software, time tracking, and expense tools.

Robust reporting and analytics

Choose a payroll vendor that lets you generate customizable reports on wages, deductions, and labor costs.

Scalability

You don’t want to switch payroll software six months from now. Confirm that your payroll service provider won’t nickel-and-dime you with hidden fees as your headcount increases.

Reliable customer support

Look for a provider with responsive support and clear escalation paths so your payroll responsibilities aren’t left hanging.

Quick comparison: Best payroll software at a glance

Methodology: How I chose the best payroll software

To figure out which payroll providers actually deserve a spot on this list, here’s what I did:

• Started with the source: I pulled facts straight from each payroll vendor’s own product and pricing pages—things like monthly subscription fees, whether they support global payroll, and what kind of integrations they advertise.

• Checked the fine print: Tax filings, direct deposit, off-cycle pay runs. If a vendor promises “full service payroll,” I made sure they back it up in their own docs.

• Read the reviews: I combed through G2, Capterra, and Trustpilot to see what actual customers were saying in the last 6–12 months. To keep things fair, I only counted complaints or compliments that came up at least five times. That way, you’re seeing patterns, not one-off rants.

• Labeled the models: Some tools (like Rippling) run payroll natively in one system. Others are “aggregators” that lean on third parties to get the job done. Knowing the model is the difference between one-click compliance and waiting on a local partner to update a file.

• Scored what matters most: Every provider got weighed on:

  • Coverage (how many states/countries they actually support)

  • Payroll model (native vs aggregator vs hybrid)

  • Compliance automation (taxes, filings, reporting)

  • Integrations (with HR, time tracking, and accounting software)

  • Analytics (If you can pull the reports you need)

Rippling editorial policy: Rippling puts our customers (and prospective customers!) first. The Rippling team is committed to providing information supported by product data, insights, and customer feedback to inform our content.

The 7 best payroll software

1. Rippling

G2 Rating: 4.8/5 stars (#1 software solution for Core HR and Workforce Management)

What Rippling is known for

Rippling is the only platform on this list that brings HR, IT, and Finance together in one place. Beyond payroll, it handles global hiring, device management, benefits, and expense tracking—all under a single login.

Why Rippling stands out

First, it’s fast and automated. You can run payroll in 90 seconds, with wages, deductions, and tax filings calculated automatically. 

Rippling also supports pay runs in 185+ countries and handles employees, contractors, and even Employer of Record (EOR) in 80 countries. That global coverage is rare among payroll providers, especially in a single system.

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Where Rippling can fall short

With so many features, smaller businesses sometimes find Rippling's setup more complex than lightweight payroll-only tools. 

Is Rippling right for you?

Yes, if you want a payroll solution that scales as you grow, handles global workers, and connects payroll with benefits, time tracking, and IT.

Feature snapshot

2. ADP RUN

What ADP RUN is known for

ADP is one of the oldest and most recognized names in payroll. Its RUN product is built for businesses with <50 employees that want a trusted brand handling their pay cycles, filings, and compliance.

Why ADP RUN stands out

RUN automatically calculates and withholds payroll taxes, generates and files forms like W-2s and 1099s, and keeps up with federal, state, and local tax law changes. 

ADP takes responsibility for late filings or penalties, which is a major peace-of-mind feature for small business owners. You can also schedule payroll ahead of time.

Where ADP RUN can fall short

• RUN doesn't support payments for contractor-only employees.

• Customer support can be subpar, according to reviews.

• Reviews flag add-on costs (multi-state payroll, HR features, benefits) that quickly increase the bill.

• You'll be charged per payroll run.

Is RUN right for you?

For companies that want brand recognition, ADP carries weight. If you care more about functionality, scalable pricing, and ease of use than legacy, another payroll provider may be a better fit.

Feature snapshot

3. Paylocity

What Paylocity is known for

Paylocity is popular with companies that have grown past simple SMB tools but don’t yet need a full enterprise suite.

Why Paylocity stands out

Paylocity bundles more HR functions than SMB-focused providers. It offers time & attendance, benefits administration, and a mobile app that employees use to view pay stubs and request time off.

Where Paylocity can fall short

• Global payroll coverage exists via their Blue Marble acquisition, but reporting is still siloed and separated from Paylocity.

• Though users praise its reports, it is still limited. For example, you can’t create a single report that ties together payroll, benefits, and time tracking.

• You can't automate security permissions, time off policy assignments, dimension assignments, or break & overtime rules.

• Implementation can be time-consuming.

Is Paylocity right for you?

If you're a mid-sized business looking for HR depth, Paylocity works. If you have global expansion in the works and you don't want to depend on a partner network, look for a payroll provider with native coverage.

Feature snapshot

4. Gusto

What Gusto is known for

Gusto is a go-to payroll service provider for small businesses. It built its reputation on a clean interface, transparent pricing, and making payroll easy for first-time employers.

Why Gusto stands out

For U.S.-based small businesses that want an online payroll software solution without hidden fees, Gusto offers predictability and simplicity. Setup is straightforward, the interface is modern, and you can even get payroll up and running quickly without HR staff.

Where Gusto can fall short

• Their Simple Plan only supports one state. You'll need a Plus or Premium plan for multi-state compliance.

• Reporting is basic compared to Rippling. You can’t combine payroll, location, and expenses into a single custom report.

• Gusto does not support payments for US citizens working in other countries.

• It doesn’t run its own global payroll engine; instead, it resells Remote.com’s EOR services.

Is Gusto right for you?

Yes, if you’re a small business that wants modern, automated payroll with predictable pricing. If you plan to expand across states or countries or need advanced reporting, you'll quickly outgrow Gusto.

Feature snapshot

5. Justworks Payroll

What Justworks is known for

Justworks is a professional employer organization (PEO) designed for small teams that want access to enterprise-level perks without building an in-house HR team.

Why Justworks stands out

What really differentiates Justworks is access to benefits like health insurance and 401(k) plans. By joining the PEO, small businesses can often secure better rates and coverage than they could negotiate on their own.

Where Justworks can fall short

• With the PEO model, payroll runs under Justworks’ EIN, so claiming tax credits or leaving the platform can be tricky.

• Limited advanced HR features beyond core payroll and benefits.

• Justworks Payroll is only available in U.S. states. You'll need their EOR service to pay your international workforce.

Is Justworks right for you?

Justworks is a solid option if you’re comfortable with the PEO model and want compliance handled for you. If you prefer more control or need global scalability, a non-PEO provider may be a better fit.

Feature snapshot

6. OnPay

What OnPay is known for

OnPay is a budget-friendly payroll provider built for small businesses. Every plan comes with unlimited payroll runs, automated tax filing across all 50 states, and tailored support for different industries.

Why OnPay stands out

Unlike many entry-level providers, OnPay includes tax filing, garnishments, and multi-state payroll under one flat monthly rate, with every customer getting full access to all features.

Where OnPay can fall short

• Payroll is browser-based only; no dedicated mobile app for admins or employees.

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

• Limited third-party integrations compared to competitors.

• Customer support earns high marks but is limited outside U.S. business hours.

Is OnPay right for you?

Yes, if you're a small U.S. business under 100 employees that doesn't need the bells and whistles of a full-service payroll provider.

Feature snapshot

7. Deel

What Deel is known for

For startups and mid-sized companies hiring abroad, Deel offers a quick, compliant way to pay contractors and employees.

Why Deel stands out

With Deel, your contractors can be paid in their local currency, and employees are onboarded with localized contracts that reflect local labor laws.

Where Deel can fall short

• Deel occasionally relies on in-country partners for global payroll. That means support quality may vary depending on which party is responsible for your service.

• YTD payroll reports must be manually requested and may incur additional fees.

Is Deel right for you?

If you're only looking to pay contractors or quickly hire through an EOR in multiple countries, Deel may be a fit. Compare Rippling if you want one platform with native payroll, HR, IT, and finance, and fewer partner handoffs.

Feature snapshot

Let's now get into some of the questions you should ask to ensure you select the right payroll provider for your business.

How to choose the right payroll software for you: 3 questions to ask

1. Does the payroll service meet your business needs?

Assessing your specific business needs. It’s not just about what the payroll software can do generally, but what it can do for you. It should align with your company's size, budget, types of workers, and locations. This way, it scales with you as you grow.

Company size

Do you have a small team of two employees or a workforce of 2,000? A very small business may get by with basic payroll processing, but larger companies need full-service payroll systems that can handle hourly employees, complex pay periods, and remote workers.

Using a payroll system primarily designed for medium or large businesses when you run a small business can lead to higher costs and leave you with unnecessary features. However, think about your growth potential. Will your business expand in the coming years? If so, choose a payroll provider that can scale with you, so you don’t find yourself switching systems quickly to meet your growth needs.

Budget

Your payroll provider should be able to tell you about the base fee as well as add-on fees for tax support and compliance, pay run fees, or set-up fees. Do they charge a flat monthly fee, or do they charge per pay run? With information like this in hand, you should be able to calculate your costs from the outset.

Keep in mind that cheap is not always better. True cost savings come from reducing admin, not just picking the least expensive software.

Types of workers

What does your workforce look like? Do you have full-time employees, part-timers, contractors, or a mix? Are they salaried or hourly? Your chosen payroll solution should handle a mix of salaried, hourly employees, contractors, and remote workers. If you’re outsourcing payroll, make sure the provider supports flexible pay schedules and different worker types.

With payroll software like Rippling, you can pay employees and contractors in a single pay run—perfect for businesses seeking a seamless, all-in-one payroll solution.

Business locations

If your workforce is spread across different cities, states, or countries, you need to account for the complexities of federal, state, and local payroll tax regulations. You also need software that is compliant everywhere you plan to hire.

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2. Does the payroll software have all the features you need?

Now that you've assessed your business’s high-level needs, it's time to consider the specific features you require in a payroll provider. 

Integrations

Choosing a payroll solution that fits seamlessly with your existing accounting, benefits administration, or time and attendance systems can reduce manual data entry and the risk of errors.

Payment methods

What payment processing methods do your employees prefer? According to PayrollOrg, 93% of employees are paid through direct deposit. However, some prefer paper checks, prepaid debit cards, or even more modern options like Venmo, Zelle, or cryptocurrency. 

Ensure that your chosen payroll system can handle the payment methods that will best accommodate your workforce's needs.

Payment types 

In addition to regular salaries, good payroll software handles various payment types: expense reimbursements, vacation pay, commissions, bonuses, and retirement contributions.

Pay run timelines 

Do you process payroll several days in advance, or do you prefer to do it closer to the actual pay date? Some providers require you to submit payroll up to 25 days in advance of your next pay run—that’s a no-go for many employers. 

If you have tight pay run timelines, you’ll want to look for a provider that offers flexibility. 

Off-cycle pay runs

Final checks, bonuses, or corrections often require off-cycle runs. Think about how often you need to process them for paychecks issued outside of the normal pay period. 

If your answer is "quite often”, avoid payroll software that charges per pay run. Conversely, if you rarely need off-cycle runs, this may not be a significant concern. 

Rippling charges a flat monthly fee for payroll services, so you never have to worry about meeting your ever-changing needs.

Additional payroll capabilities

You may need a payroll system that can handle additional tasks like paid time off (PTO) management, workers' compensation administration, unemployment insurance, and other HR-related functions.

If your company offers health plans or retirement benefits, you may also want to ensure that the software can accommodate the implementation of those benefits.

3. Is the payroll platform easy to use?

A user-friendly system can make payroll processing a breeze and reduce the learning curve for your payroll administrators. Here are some aspects to consider:

Cloud-based system

A cloud-based payroll platform offers accessibility from anywhere, at any time, and on any device. Whether you're using a web browser or a mobile device, you should be able to access your payroll information and make updates in real time. This flexibility is particularly important for businesses with remote or distributed teams.

Automation

Look for software that automates repetitive payroll tasks to save you time and reduce the risk of errors. For example, with Rippling, you can build alerts and approvals so you won’t have to set payout reminders or waste time chasing approvals.

Compliance

A full-service provider should keep you compliant with labor laws, tax regulations, and updates.

Complying with security standards should be another top concern. After all, your payroll provider handles sensitive employee data like addresses and bank account information. Check if the payroll service offers encryption, two-factor authentication, and other security measures to protect your employee data.

User interface

A smooth, intuitive interface makes it easy for you to add new employees to the system, run payroll quickly and accurately, and generate any necessary payroll reports. Consider whether the payroll provider offers interface customization options to meet your specific needs. 

Payroll software isn’t just for finance and HR teams—everyone needs to access it in some form. You’ll want to make sure that the platform is straightforward for employee self-service. A mobile app can be helpful for employees who want to see their pay stubs, request time off, or view their tax forms.

Customer support

Consider the level of customer support you require. Who will be responsible for managing payroll within your organization? What is their level of experience and expertise? 

Look for a payroll provider that can help you troubleshoot, especially if you have a relatively new admin on your team. A self-service portal is helpful, but some payroll providers even offer dedicated customer support representatives who can assist you whenever you encounter issues.

Rippling: the best payroll software for any business

Other payroll software offers may handle basic payroll processing, but they fall short once you factor in business operations, growth, and compliance complexity. 

With Rippling’s payroll software, you don’t just cut checks—you run payroll as part of a bigger, automated system that drives cost savings, accuracy, and growth.

Rippling is best for:

• Small businesses that want to replace manual payroll with a scalable, automated solution.

• Growing companies that need advanced features like retirement contributions, PTO tracking, and compliance automation without switching providers.

• Global teams hiring remote workers who need compliant payroll and benefits across borders.

You get:

• Global payroll coverage in 185+ countries, including contractor payments and EOR support.

• Payroll runs in 90 seconds, with tax withholdings, filings, and compliance handled automatically.

• Employee self-service portals where staff can access pay stubs, tax forms, and benefits anytime.

• Seamless integration with 600+ tools, from time tracking software to accounting software.

• Built-in payroll accuracy and data security without relying on a third-party company.

• Support for every type of worker—salaried, hourly, contractor, or global hire—so you never need to juggle multiple payroll companies.

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Frequently asked questions