Running a small business is a juggling act—especially when payday rolls around.
Payroll isn’t just about cutting checks. It’s about taxes, compliance,
reporting, and making sure everyone gets paid accurately and on time. That’s
where good payroll software comes in.
But with so many options out there, how do you know which one fits your needs
(and budget)? Whether you're wondering “Do I need payroll software?” or just
want to compare what’s out there, we’ve got you covered.
Let’s dive into the 7 best payroll software options for small businesses—and
answer all those lingering questions along the way.
Gusto has become a go-to for small business owners, and it's easy to see why.
It's user-friendly, packed with features, and doesn’t try to sell you on a bunch
of stuff you don’t need.
Gusto automates payroll processing, calculates taxes, handles direct deposit,
and even takes care of W-2s and 1099s. It supports health benefits and lets
employees self-onboard through a clean online portal.
If you’re managing a small team and want something that just works—without
needing a degree in accounting—Gusto’s a strong choice. It’s also great for
those asking, “How to choose payroll software that’s easy to use but still
powerful?”
Bonus: They offer a payroll software trial so you can test it out before
committing. It’s not the cheapest, but the value is high.
Already using QuickBooks for accounting? Then QuickBooks Payroll might be the
natural extension you need.
It syncs seamlessly with your books, automates tax filings, and keeps everything
tidy. It’s also backed by Intuit’s long-standing reputation for helping small
businesses with their finances.
QuickBooks Payroll includes same-day direct deposit, automated tax calculations,
and HR support, depending on the plan. You can scale up or down as your business
grows, which is a huge plus.
If you’re looking into how much is payroll software, QuickBooks falls into the
mid-tier range. It’s not cheap payroll software for small business use, but the
integration with accounting tools might save you time and headaches.
If your budget is tight and you just want something that handles payroll without
fuss, Wave Payroll is worth a look.
It’s basic, sure, but it covers the essentials: paying employees and
contractors, calculating taxes, and generating the forms you need. If you
already use Wave for accounting, the integration is seamless.
Wave offers some free tools for accounting, but its payroll features aren’t
totally free. That said, it's on the cheaper end and is often listed in cheap
payroll software small business reviews.
It’s clean, it works, and it won’t blow your budget. For very small teams, it
might be exactly what you need.
Looking for affordable but robust software? Patriot is often mentioned in
payroll software reviews for punching above its weight.
Square is known for payment processing, but its payroll offering is a hidden
gem—especially for teams with hourly workers or contractors.
Square Payroll simplifies time tracking and integrates with the Square POS
system. It’s ideal for restaurants, salons, and other shift-based businesses.
Square is one of the best cloud payroll software that works wherever you are.
You can run payroll from your phone, set up automatic tax filings, and handle
benefits like health insurance and workers' comp.
OnPay isn’t as well-known, but it regularly scores high in payroll software
reviews—and for good reason.
It offers payroll, tax filing, HR tools, and benefits management. It supports
multiple pay rates and job types, which makes it great for hybrid teams. This is
another budget friendly Payroll software for accountants too.
OnPay offers accountant-specific dashboards, making it easier to manage multiple
clients from one place. If you work with an accountant or are one, this is a big
win.
Pricing is straightforward and affordable, and there's a payroll software trial
so you can see what it’s like in action.
Here’s where things get international. If your team spans borders, you’ll need
software that handles global compliance and multi-currency payments. That’s
where Remote shines.
Which payroll software handles multiple countries the best? Remote is a strong
contender. It handles compliance, local laws, taxes, and even employee
onboarding in dozens of countries.
Not just payroll, Remote also helps you hire legally across the world, manage
benefits, and stay compliant. It’s more than payroll—it’s global HR.
Pricey, but powerful! This isn’t cheap payroll software for small business use,
but if you have international contractors or employees, it may be the smartest
investment.
1. Gusto: Friendly, Flexible, and Built for Small Teams
2. QuickBooks Payroll: A Natural Fit for QuickBooks Users
3. Wave Payroll: Simplicity at Its Finest
4. Patriot Payroll: Budget-Friendly and Surprisingly Powerful
Core features
Direct deposit, W-2s, tax filing, and a solid reporting suite. It’s also cloud-based, so you can run payroll from anywhere. Patriot is ideal for businesses that need something dependable but don’t have a big budget. It offers full-service or self-service payroll, depending on how much control you want. Is there any free payroll software option here? No, but the pricing is very competitive—and they offer a 30-day payroll software trial to get started.5. Square Payroll: Built for Hourly and Gig Workers
Square Payroll Flexible pricing
You pay a base rate plus a per-employee fee. That makes it a solid option for those trying to keep payroll expenses under control.6. OnPay: A Hidden Gem for Growing Teams
7. Remote: For Global Teams That Need More Than Just Basics
A Quick Word on Free Payroll Software
Is there any free payroll software that’s actually worth using? Technically, yes—but there’s usually a catch. Most free tools are extremely limited in features or require manual processing. Free payroll software for small business use might make sense if you have only one or two employees, don’t mind some manual work, and want to avoid upfront costs. Options like Payroll4Free or Excel-based templates exist, but be careful with compliance and tax accuracy. If you're thinking about how to choose payroll software and tempted by “free,” ask yourself how much time you’re willing to trade for money.Cloud Payroll Software: Why It’s the New Normal
Most of the tools on this list are cloud payroll software—and that’s a good thing. Why go cloud-based? You can run payroll from anywhere, updates happen automatically, and you get better security and backups. Plus, employees can access their own info without bugging you. Cloud = Convenience: With automatic tax calculations, direct deposit, and report generation, cloud-based software makes payroll a background task, not a weekly fire drill. Still unsure? Almost every cloud payroll tool offers a payroll software trial so you can try before you buy.How to Choose Payroll Software That Fits You
There’s no one-size-fits-all answer, but here’s a quick checklist:- Budget: Know your limit. Some tools are more affordable than others. Look at how much is payroll software across different tiers.
- Team size: Solo contractors need less than a team of 10 with multiple pay rates.
- Do you work internationally? If so, you’ll want something like Remote.
- Need accounting integration? QuickBooks and Patriot shine here.
- Want full HR features? OnPay and Gusto offer more than just paychecks.
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