Best Payroll Software 2021

Need to pay employees? Here are our top payroll picks in 2021 for small businesses.

Best overall
Starting at $39/mo.
Pro Bullet Employer-facing app
Pro Bullet In-depth reporting
Con Bullet No online pricing apart from Go plan
Starting at $19/mo.
Pro Bullet Most affordable starting price
Pro Bullet Automatic tax filing with every plan
Con Bullet Customer support limited to weekdays
Starting at $59/mo.
Pro Bullet Unlimited payroll runs
Pro Bullet Basic HR features in every package
Con Bullet No online pricing apart from Core plan
Starting at $36/mo.
Pro Bullet Simplest setup
Pro Bullet Easy PTO tracking
Con Bullet One plan only
Starting at $10/mo.
Pro Bullet Superb customer service
Pro Bullet Full-service tax filing
Con Bullet No international support
Starting at $45/mo.
Pro Bullet Most user-friendly interface
Pro Bullet Accounting syncing
Con Bullet Tax penalty guarantee with priciest plan only
Pro Bullet Best mobile app for on-the-go capabilities
Pro Bullet Employee onboarding & management
Con Bullet Payroll is an add-on to HR software

Payroll is one of the most time-consuming and expensive aspects of running a business. Fortunately, plenty of payroll providers can take the task off your plate, some of them for as little as $19 a month. If you’re in the market for a solid payroll solution, Business.org reviews the year’s best payroll software for small businesses.


Paychex: Best overall

5 out of 5 stars
5
Paychex
If you want to keep a finger on the pulse of your business's success, Paychex's reporting, HR, and payroll features can help you out.
Pros
Cons

Paychex offers three main payroll plans, all of which include these essential features:

  • Automatic payroll tax filing
  • Automatic new-hire reporting (required by your state for W-2 employees and 1099 contractors)
  • Thorough mobile app for running payroll on the go
  • Direct deposit payment options
  • Employee self-service access
  • 24/7 customer service access via phone or online chat


Paychex charges you according to your pay schedule, whether you pay employees weekly, biweekly, or monthly. We couldn't verify if these prices are just for one payroll run per period or more than one, but we suspect it covers only one payroll run per period.

The Paychex Flex dashboard is incredibly intuitive and easy to read, and Paychex is one of the only payroll companies with an employer-facing mobile app. (In our opinion, Paychex also has the best payroll app of the extremely limited options—most payroll companies still lag in the mobile app game.)

Paychex payroll is also super scalable. If you start out with a basic payroll plan, you can add HR services to your initial plan with minimal hassle.


Gusto: Most Affordable Starting Price

4.5 out of 5 stars
4.5
Gusto
Gusto is a comprehensive, intuitive payroll service with plenty of impressive HR extras.
Pros
Cons

Gusto functions on a simple premise: when your employees are happy, your business is better equipped for growth. And one of the best ways to help employees stay jazzed about their jobs is to pay them the correct amount—on time, in the method they prefer, and with the right amount deducted so they don’t have to scramble to make income tax payments at the end of the year.

How does Gusto make sure your employees are satisfied with your business’s pay processes? By automating as many payroll tasks as possible to drastically reduce the chance of human error:

  • Automatic state, local, and federal payroll tax filing
  • Automatic W-2 and 1099 form filing
  • Automatic new hire reporting
  • Automatic payroll runs
  • Automatic child support garnishments (not available in South Carolina)

Worried you won’t remember to run payroll on time? Set up automatic payroll processing so your employees get punctual pay without you lifting a finger. Nervous about distributing child support wage garnishments to the right parties? Gusto makes sure it happens. Not sure how to juggle hourly and salaried employees working on different pay schedules? Customize payroll runs to your team’s needs.

Of course, Gusto payroll services aim to make you happy too. With a clear interface, affordable pricing, and a full spectrum of tax filing assistance, Gusto ensures you have more time for your business while worrying less about potential payroll (and payroll tax) mistakes.


ADP: Best HR add-ons

4.5 out of 5 stars
4.5
ADP
ADP's comprehensive HR features and full-service payroll tax filing make it a good fit for businesses that want to fully automate the most time-consuming aspects of human resources. But its higher cost and frustrating lack of transparent pricing puts ADP's software out of reach of many small-business owners.
Pros
Cons

With more than 800K customers in 140 countries, ADP is one of the most popular payroll software companies in the world.1 And unlike most of its competitors, ADP has spent decades perfecting its process: Automatic Payrolls, the future Automatic Data Processing (ADP), was founded in the '40s and now runs payroll for one in six US employees.2

ADP's main perk is its thorough HR focus: even its cheapest plan includes onboarding help and new-hire reporting.

All four RUN plans take care of full-service payroll basics like direct deposit, automatic payroll tax filing, and W-2 submissions. Even the cheapest plan, Core Payroll, includes HR perks like employee onboarding, health care compliance forms, and a regular HR checkup.

Need more than the HR basics? ADP’s more expensive plans include employee background checks and ZipRecruiter assistance plus more comprehensive payroll help, like wage garnishments and state unemployment tax deductions.


OnPay: Simplest setup

4 out of 5 stars
4
OnPay
Don’t want to set up your new payroll plan on your own? Turn it over to OnPay’s experts; they’ll take care of it at no additional cost.
Pros
Cons

OnPay covers the payroll basics that some major players charge more for, such as garnishing wages, withholding state unemployment insurance, and giving employees multiple payment options (including paper checks). We particularly like that they’ll tailor their payroll services to specific industries—nonprofits, restaurants, and agricultural businesses, to name a few—at no extra cost.

But the main area where OnPay stands out is its setup. OnPay’s experts will set up your software for you for free, so if you’re looking for custom help at the reasonable starting price of $36, OnPay is a great place to start.

Looking for more reasons to try OnPay? Here are a few more perks of its cloud-based payroll software:

  • Multi-state payroll at no extra cost
  • Time-tracking and accounting software integration
  • Tax filing accuracy guarantee
  • Employee onboarding
  • Employee self-service portal (available even if employees leave your company—they can still access tax documents and pay stubs for tax purposes)

Patriot Payroll: Best for budget conscious businesses

4 out of 5 stars
4
Patriot Payroll
Patriot Software’s payroll offering is a splendid choice for businesses operating exclusively in the United States with fewer than 100 employees. We particularly love the platform’s low costs, full-service tax filing perks, and dedication to customer service.
Pros
Cons

Patriot Software makes its family-owned, small-business roots abundantly clear. The Ohio-based company boasts about its 30+ years in business that have been chock full of challenges and averted failures. And in an unusual move for enterprise software, founder and CEO Michael Kappel uses the company’s official website to explicitly lay out his personal religious beliefs.

While we don’t recommend relying on a backstory to justify a large purchase, people often gravitate towards brands they can relate to on a deeper level. If this sounds like you, Patriot Software delivers a compelling, highly unique personal appeal.

Mobile-friendly interface

One of the most common complaints we hear from business owners is that their enterprise software titles are superb, but corresponding mobile apps fall short. This makes it an uphill battle to manage their operations on the go.

Luckily, Patriot Software takes a different approach to solve this problem. Rather than create a mobile app, the company provides an exceptionally mobile-friendly interface for its payroll platform, which is cloud-based and accessible via any internet browser. Not only does this grant access to every feature available on a desktop computer, but you’ll also never have to deal with glitchy or outdated apps on your smartphone.


Quickbooks: Best interface

4 out of 5 stars
4
Quickbooks
Try QuickBooks Payroll if you want powerful, feature-rich, and secure software that easily integrates with your existing QuickBooks Online account.
Pros
Cons

QuickBooks’ payroll software has a lot of perks. It allows you to make unlimited payroll runs, simplifies 24-hour direct deposit, and helps you deal with pesky end-of-year tax forms. But its main perk? It integrates seamlessly with QuickBooks Online, one of the most popular pieces of accounting software in the world.

If you already use QuickBooks Online, love the interface, and just hired your first employee, adding a QuickBooks Payroll plan to your accounting software subscription just makes sense. Plus, when you’re dealing with something as complicated as payroll, it helps to use an interface you already know and love with next to no learning curve—you have enough to deal with as it is.

QuickBooks scores big on user friendliness—the software’s point is to simplify accounting for non-accountants. It doesn’t matter how good (or . . . bad) you are at math: every small-business owner, from a freelance copywriter to a neighborhood grocer, can adjust to QuickBooks Online’s platform without much stress, and the same holds true for QuickBooks Payroll.

If you’re already using QuickBooks Online to calculate expenses, generate invoices, run reports, produce financial statements, and accept payments, setting up payroll for QuickBooks is the next logical move. If you choose the self-service plan, payroll numbers will automatically sync with your QuickBooks Online account, making e-filing taxes about as easy as possible.


Zenefits: Best mobile app

3.5 out of 5 stars
3.5
EasyShip
Zenefits lets you automate many payroll functions, so you can spend less time running it.
Pros
Cons

For small businesses with a few employees, we favor Zenefits. The Essentials plan starts at $8 per month per employee and includes a core HR program, complete with hiring, onboarding, and employee documents. To get compensation and performance management, you’ll want the Growth plan, which costs $14 per month per employee, or try the Zen plan for $21 per month per employee if you’d like built-in well-being assessments.

If you work with a Zenefits broker, benefits administration is included free in the monthly base price for all of the above plans. If you’d rather use your own broker, you can add benefits administration to any plan for $5 per month per employee.


How can payroll software help small businesses?

Once you have employees, you’ll quickly learn how important it is for payroll to be accurate and efficient. Paying your employees, managing benefits, and filing payroll taxes can be difficult and time-consuming. And payroll-related mistakes and delays are potentially costly and damaging to your business.

Both full-service and self-service payroll help ease the burden of having to handle the minutiae of payroll yourself. And although you have to pay for payroll software, the return on your investment is worth it. By freeing up resources and avoiding legal pitfalls, you can focus your time and energy on growing your business and hiring great employees.

Is there free payroll software?

Yes, but the options are pretty limited. Our preferred free payroll software provider is Payroll4Free, which lets you run payroll for up to 25 employees, and there are a handful of other trustworthy choices out there.

In general, we don't recommend free payroll software for employers with more than one or two employees. Paying your employees the right amount—and withholding the right amount in taxes—is a big, complicated deal, and paid software is more secure and effective than free options.

Recap: What is the best payroll software?

Unless you’re willing—and can afford—to pay an in-house bookkeeper, we recommend most small businesses outsource at least some of their payroll tasks to a third party. Payroll software providers remove much of the hassle, cost, and risk from managing payroll and free you to do what you’re meant to be doing: growing a successful business.