What Is the Best Way to Do Payroll for Small Businesses?

Most small businesses will be satisfied with an all-in-one software solution that is affordable and can do most of the heavy lifting for you, especially if you don’t have an internal team of experts to process payroll on your behalf. This simplifies payroll without breaking the bank. There are also outsourced services, such as a personal employer organization ( PEO ), that will take care of all payroll activities but unless you have a significant amount of employees, they can be expensive or difficult to work with.

Can I Do My Own Payroll for My Small Business?

If you have a good handle on employee laws, taxes, and accounting for your business, then you could do payroll yourself, but the potential cost and liability of missing deadlines or paying people incorrectly could end up costing you a lot more than the price of a simple payroll service or software. Other types of software will offer payroll services as an add-on to a program you’re already purchasing, but we still recommend getting your own service provider. The add-ons don’t typically have all of the features that make the best payroll services so great, and they can cost about the same or more than the ones on this list.

How Much Do Payroll Services Cost Small Business?

Payroll services typically require a base cost of $20 to $100 per month plus an additional cost per employee or independent contractor that ranges from $4 to $10. Some services might have a per-pay or per-check fee, but if you’re planning on pushing direct deposit for employees then you can rely on the costs above, which typically will include weekly pay periods, if desired.

Is There a Free App for Payroll?

Yes, there are free apps for running payroll, but they may not have the full suite of features you're looking for. If you have even one employee then paid payroll services are typically worth the cost just for the amount of time and risk they will save you and your business.

Best Payroll Services for Small Businesses of 2024

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Payroll services do all of the hard work for you and handle any legal requirements for your state so you can focus on running your business. The best payroll services for small businesses offer an automated solution that records employees' time, calculates and processes payroll, and includes free end-of-year tax filings.

"Payroll services" is an all-encompassing term that includes both payroll software that will help you process your payroll yourself and also outsourced services that will handle all of the payroll on your behalf. Each takes away the worry about whether you’re doing payroll correctly and helps you handle payroll without a large team to complete the work.

We researched and reviewed more than two dozen payroll services and chose the best seven based on pricing, features, ease of use, customer service, and more. Here are our top picks.

Best Payroll Services for Small Businesses of 2024

Best Overall: Gusto
Runner-Up for Best Overall: Intuit QuickBooks Payroll
Best for Pricing: Wave Payroll
Best for Outsourcing Payroll: Justworks
Best for Growing Businesses: ADP Run
Best for Software Integrations: OnPay
Best for Paying Household Workers: SurePayroll

Best Overall : Gusto

Cost: Starting at $46/month
Additional features: Hiring, onboarding, benefits management
Free trial period: No

Why We Chose It

Gusto is our best overall payroll service because it is easy to use and provides an all-in-one solution that works for most businesses. The pricing is competitive, and it features everything businesses without an internal payroll team will need. You can automate your entire payroll, file your payroll taxes automatically, and integrate health insurance, retirement plans, time tracking, paid time off, and more. Gusto is a great option for any business but really tops the other options for small businesses that need the most help.

Pros & Cons

Pros

Full-service payroll services
Easy-to-use interface
Benefits support available

Cons

Non-responsive customer service
Users report issues with tax filing

Overview

In business since 2012, when it launched as ZenPayroll, Gusto is an integrated payroll services platform that aims to be easy to use and easy to switch to.

Gusto's customer service is available by phone, chat, and email. Phone hours are between 7 a.m. and 6 p.m. MST. Monday through Friday. Businesses that opt for the Premium plan even get access to a dedicated team that intimately knows their account.

Runner-Up for Best Overall : Intuit QuickBooks Payroll

Cost: Starting at $50/month
Additional features: Bill paying, profitability tracking, workers comp administration
Free trial period: Yes—30 days

Why We Chose It

QuickBooks Payroll is our runner-up for best overall because of how well-rounded its offerings are combined with the ability to connect so seamlessly with QuickBooks, the most widely used accounting software for small businesses. Intuit's QuickBooks Payroll offers a competitive price, a solid service, and overall is a good fit for just about anyone, especially if your company already uses QuickBooks.

Pros & Cons

Pros

Competitive pricing
Connects seamlessly with QuickBooks accounting products
Employee benefits support available

Cons

Technical problems with direct deposits
Customer reviews point to problems filing payroll taxes
Some users complain that they were unable to cancel their plans

Overview

Intuit is a global financial services company that started in 1983 and now serves millions of customers around the world. Its products include Quickbooks, Mint, Credit Karma, and TurboTax.

Intuit has a strong customer support system built around all of its products. Its payroll service isn’t the most popular part of its business, but the support is the same as QuickBooks accounting. Support is available from 6 a.m. to 6 p.m. Pacific Time via both phone and live chat. QuickBooks also offers a payroll support center online where you can get additional help through various guides, FAQs, and other curated resources.

Best for Pricing : Wave Payroll

Cost: Starting at $26/month (without tax service)
Additional features: Invoicing and payment tracking
Free trial period: Yes—30 days

Why We Chose It

Wave Payroll is our best option for pricing because it charges a flat rate, instead of offering pricing tiers based on features. Wave also offers free accounting and invoicing software you can combine with Payroll, making it even more of an affordable option. Its payroll software is easy to use, and you can try it free for 30 days.

However, a major drawback is that the free tax filings are only available in 14 states. Tax service states include Arizona, California, Florida, Georgia, Illinois, Indiana, Minnesota, New York, North Carolina, Tennessee, Texas, Virginia, Washington, and Wisconsin.

Customers in all other 36 states must file and pay state payroll taxes themselves.

Pros & Cons

Pros

Very affordable
Integrates with both Wave Accounting and QuickBooks
30-day free trial

Cons

Only automatically files and pays payroll taxes in 14 states

Overview

Wave launched in 2011 as Wave Accounting, providing accounting services to small businesses. Two years later it started offering payroll services as its customer base grew; by 2019 it was acquired by H&R Block.

Wave has average customer service reviews online. Many users feel like Wave was not very helpful when they called into the team, but most reviews seem to be related to their payments product. For support, Wave offers customers options including filing a ticket, live chat, chatbots, and a help center with articles and tutorials.

Best for Outsourcing Payroll : Justworks

Cost: Starting at $59/month
Additional features: Access to employee benefits, COBRA administration
Free trial period: No

Why We Chose It

We chose Justworks as our best outsourcing payroll service because of its ease of use and the number of HR functions you can outsource with payroll.

The company's pricing structure is a bit different from other payroll services on our list, but because your employees are technically employed by the PEO, this makes sense. The cost is substantially higher than most of the other providers on our list with most others offering a flat rate and a nominal per-employee monthly charge.

Pros & Cons

Pros

Full-service payroll and benefits outsourcing
24/7 customer support via phone, email, Slack, chat, or SMS

Cons

Very expensive
Professional employer organizations (PEOs) lease out employees to companies, giving those companies less control if something goes wrong

Overview

Justworks is a professional employer organization (PEO) that will completely outsource all of your payroll and handle it for you. PEOs lease employees to companies, thereby sharing liabilities and responsibilities for those employees while also giving those companies less control when something goes wrong.

Justworks has a strong online reputation in regard to its customer support. It offers 24/7 support via phone, email, Slack, chat, or SMS. It also offers a lot of helpful content that might help your employees through any issues they’re having with the service.

Best for Growing Businesses : ADP Run

Cost: Contact ADP for a quote
Additional features: Live HR support, business advice, legal support
Free trial period: No

Why We Chose It

ADP is the most experienced payroll service option on our list. It serves businesses of all sizes so it's equipped to handle small businesses as well as those with hundreds of employees. That’s why we chose ADP Run as our best payroll service for growing businesses, particularly those planning to grow to more than 100 employees.

Pros & Cons

Pros

Wide range of payroll and HR services available
Well-known company with longevity

Cons

Pricing is not transparent, and you'll have to contact ADP for quotes
Customer service is lackluster

Overview

Although ADP offers a wide range of payroll and HR services, it's not very transparent with its pricing. The other providers on our list provide pricing information clearly on their website, but you'll have to go through ADP to get a quote for each of their plans.

Also, ADP isn’t known for great customer service, but it has mostly good reviews online. Customer service is available 24/7.

Best for Software Integrations : OnPay

Cost: Starting at $46/month
Additional features: Employee self-service, workers comp and benefits
Free trial period: Yes—one month

Why We Chose It

OnPay’s API makes it easy to integrate even if it doesn't currently offer direct integration. That’s why we chose OnPay as the best option if you’re looking for integration. OnPay is also very quick to process payroll, and you can run the entire process easily right on your mobile device. OnPay offers a flat pricing structure that’s affordable and easy to understand.

Pros & Cons

Pros

Easily integrate accounting software
Run payroll on your mobile device
One affordable plan

Cons

Problems with unresponsive tech support

Overview

OnPay is a solid payroll service that offers integrations for not only most accounting software options but also with most time tracking software.

OnPay has mostly positive customer reviews, particularly for its customer service. It offers both phone and email support, available Monday to Friday from 9 a.m. to 8 p.m. Eastern Time. If customer support is one of the most important things to you, then this is a great option.

Although its reviews are mostly positive, some third-party customer reviews note problems with responsiveness when it comes to tech issues. Others report some inaccuracies with payroll numbers.

Best for Paying Household Workers : SurePayroll

Cost: Contact SurePayroll for a quote
Additional features: Pre-employment screening, white label services for accountants
Free trial period: Yes—up to six months for small businesses

Why We Chose It

SurePayroll is our pick for household workers because it provides payroll services for niche industries. The company provides a host of payroll and HR options for small businesses, as well as nannies and household service providers, and even churches and clergy members.

Pros & Cons

Pros

Payroll and HR services for niche industries

Cons

No transparent pricing

Overview

SurePayroll was founded in 2000 and in 2011 became a wholly-owned subsidiary of Paychex. Its focus is on small businesses and household employees.

The downside to SurePayroll is that the company does not offer transparent pricing. Like with ADP, you'll have to reach out to the company for a quote. Pricing varies depending on your industry.

Customer support has a good, but not great, reputation across third-party review sites. The company does offer support six days a week, Monday to Friday from 7 a.m. to 8 p.m. Central Time, and Saturday from 9 a.m. to 1 p.m.

Compare the Best Payroll Services for Small Businesses

Company	Cost	Features
Best Overall: Gusto	Simple: Starting at $40/month +$6/month per employee	Full-service, single-state payroll, including W-2s and 1099s; employee profiles and self-service; basic hiring and onboarding tools; Gusto-brokered health insurance administration; employee financial benefits; payroll and time-off reports; custom admin permissions; integrations for accounting, time tracking, expense management, and more; basic support
	Plus: $80/month +$12/month per employee	Everything in the Simple plan plus full-service, multi-state payroll, including W-2s and 1099s; next-day direct deposit; advanced hiring and onboarding tools; PTO management; time and project tracking; workforce costing and custom reports; team management tools; full support
	Premium: Contact for pricing	Everything in the Plus plan plus HR resource center; compliance alerts; access to certified HR experts; full-service payroll migration and account setup; health insurance broker integration; R&D tax credit discount; waived fees and exclusive pricing; performance reviews; employee surveys and insights; dedicated support
Runner-Up for Best Overall: Intuit QuickBooks Payroll	Payroll Core + QuickBooks Simple Start: $37.50/month + $5/month per employee	Full-service payroll, including automated taxes and forms; auto payroll; 1099 E-File and pay; next-day direct deposit; 401(k) and health benefits; track income and expenses; accepts invoices and payments; maximize tax deductions; run general reports; capture and organize receipts; track miles; manage cash flow; track sales and sales tax; send estimates; manage 1099 contractors; 1 user
	Payroll Core + QuickBooks Plus: $65/month + $5/month per employee	Everything in the Payroll Core + QuickBooks Simple Start plan plus 1-5 users, manage and pay bills, track time, track inventory, track project profitability
	Payroll Premium + QuickBooks Plus: $80/month + $8/month per employee	Everything in the Payroll Core + QuickBooks Plus plan plus expert review, on-the-go time tracking, an HR support center, workers' compensation administration
Best for Pricing: Wave Payroll	$35/month + $6/month per employee or contractor for tax service states*, $20/month + $6/month per employee or contractor	One-click employee pay; see breakdown of payroll expenses by employee, expense type, and more; employee access to pay stubs and tax forms; W-2 and 1099 form generation; automatic tax filing and payments; time and accrual tracking; integrated invoicing and payment tracking; customer support Monday through Friday
Best for Outsourcing Payroll: Justworks	Basic: $59/month per employee; $49/month for 50th employee onwards	Payroll for salaried and hourly employees; off-cycle payments; vendor and contract payments; employer payroll tax filing; W-2 and 1099 filing; unemployment insurance filing; 24/7 customer support; HR consulting; harassment prevention and inclusion training; employee onboarding; PTO management; calendar, doc center, and directory; accounting software integrations; reporting; commuter benefits; plan setup; access to workers' compensation, life and disability insurance, health and wellness perks, fitness memberships, and 401(k)
	Plus: $99/month per employee; $89/month for 50th employee onward	Everything in the Basic plan plus COBRA administration; health advocacy services; One Medical, where available; access to medical, vision, and dental insurance; access to HSA/FSA accounts
Best for Growing Businesses: ADP Run	Essential Payroll: Contact ADP	Payroll, taxes, and help with compliance
	Enhanced Payroll: Contact ADP	Payroll, garnishment payment service, SUI management, background checks, and job posting through ZipRecruiter®
	Complete Payroll & HR+: Contact ADP	Payroll, HR tools such as live HR support, employee handbook wizard, proactive compliance alerts, HR guidance and forms, and a job description wizard
	HR Pro Payroll & HR: Contact ADP	Payroll, comprehensive suite of HR tools such as a proactive HR support team, employer/employee training, business advice, and legal assistance from Upnetic Legal Services®
Best for Software Integrations: OnPay	$40/month + $6/month per employee	Cloud-based payroll, automated taxes, built-in HR and benefits, expert support, free setup
Best for Paying Household Workers: SurePayroll	Varies; contact SurePayroll	Payroll, workers' compensation, 401(k), health insurance, pre-employment screening

Final Verdict

Gusto took our top spot as best overall payroll service provider for small businesses because it is competitively priced, easy to use, and features just about everything a small business needs to manage its HR and payroll functions. But every business is different. Our list will help you choose the right payroll service.

Frequently Asked Questions

What Is the Best Way to Do Payroll for Small Businesses?

Most small businesses will be satisfied with an all-in-one software solution that is affordable and can do most of the heavy lifting for you, especially if you don’t have an internal team of experts to process payroll on your behalf. This simplifies payroll without breaking the bank. There are also outsourced services, such as a personal employer organization (PEO), that will take care of all payroll activities but unless you have a significant amount of employees, they can be expensive or difficult to work with.
Can I Do My Own Payroll for My Small Business?

If you have a good handle on employee laws, taxes, and accounting for your business, then you could do payroll yourself, but the potential cost and liability of missing deadlines or paying people incorrectly could end up costing you a lot more than the price of a simple payroll service or software.
Other types of software will offer payroll services as an add-on to a program you’re already purchasing, but we still recommend getting your own service provider. The add-ons don’t typically have all of the features that make the best payroll services so great, and they can cost about the same or more than the ones on this list.
How Much Do Payroll Services Cost Small Business?

Payroll services typically require a base cost of $20 to $100 per month plus an additional cost per employee or independent contractor that ranges from $4 to $10. Some services might have a per-pay or per-check fee, but if you’re planning on pushing direct deposit for employees then you can rely on the costs above, which typically will include weekly pay periods, if desired.
Is There a Free App for Payroll?

Yes, there are free apps for running payroll, but they may not have the full suite of features you're looking for. If you have even one employee then paid payroll services are typically worth the cost just for the amount of time and risk they will save you and your business.

Methodology

We researched nearly two dozen of the best payroll services based first on the combination of features and pricing. At a minimum all payroll services needed to offer a way to automatically track time, calculate payroll and taxes, direct deposit your employee’s pay, and provide end-of-year tax documents. Beyond that, we also considered ease of use, additional features, and customer service.

Woman working at a laptop doing payroll for small business

Article Sources

Gusto. "What is Gusto?"
Intuit. "About."
Wave Apps. "State Availability."
Wave Apps. "About Wave."
SurePayroll. "About SurePayroll."