Payroll software for small businesses can be the difference between success and stress. Paying your employees on time and correctly keeps your company filled with happy staff. The best payroll system is one you don’t have to fix. It does not require many updates. Fits the size of your company. Gives you and your employees accurate information.
What is the best way to do payroll for a small business like yours? Usually, it’s a payroll software that handles tax-related issues, comes with a variety of payment options, and supports you and your employees with accurate records.
The best payroll for a small business can be found in a software program. What is the best program to use for payroll? List the needs of your company. This is a great place to start. Ask what you will get by purchasing an in-house payroll system. Without first addressing the size and capacity first you will not know what is actually the best payroll software for small business.
Please note that none of the following payroll software in this article is free as there are no free options.
What Is The Best Payroll Software For Small Business?
Here is a list of the 8 best payroll software for small businesses in 2023. Each comes with its own unique strengths that can work for a variety of companies. Take a look and see what is the best payroll software for your small business:
- Gusto: The best payroll software for small businesses to do everything payroll related.
- QuickBooks Payroll: Best payroll software for quick direct deposits.
- Paychex Flex: Best payroll software for a small staff or a solo employee.
- Rippling: Best payroll software for HR and IT combo.
- Wave Payroll: Best payroll software for independent contractors.
- ADP RUN: Best payroll software for startups that are growing quickly.
- Square Payroll: Best payroll software for small restaurants and boutique retailers.
- OnPay: Best payroll software for unique small businesses with specific needs.
| Payroll Software | Base Price Per Month | Contractor Payments | Free Trial | Forbes Rating |
| Gusto | $40.00 | Yes | No | 4.4 / 5 Stars |
| QuickBooks Payroll | $45.00 | Yes | Yes | 4.5 / 5 Stars |
| Paychex Flex | $39.00-plus, depending on size and needs | Yes | Yes | 4.2 / 5 Stars |
| Rippling | $35.00 | N/A | No, but does offer free online demos | 4.5 / 5 Stars |
| Wave Payroll | Based on state | Yes | Yes | 3.9 / 5 Stars |
| ADP RUN | $39.00-plus, depending on size and needs | Yes, with certain terms attached | No | 4.3 / 5 Stars |
| Square Payroll | $35.00 | Yes | No | 4.1 / 5 Stars |
| OnPay | $40.00 | Yes | Yes | 4.4 / 5 Stars |
8 Best Payroll Software for Small Businesses
As your company searches for the best payroll software for a small business weigh all your options first. You’ll find that there are no free options. Take time to ask questions. Is your company large? How many employees do you have? What is the amount of contractors you can hire? All of these questions are key to finding the best payroll for your small business
As you sift through your options you will want to take into account the cost of the payroll software and what you get for the price you pay. Here is a breakdown of the pros and cons for each of the best small business payroll software.
Gusto: Best For Small Businesses To Do Everything Payroll Related
The best choice to handle all the ins and outs of your small business’ payroll is Gusto. From HR issues to booking time off there is nothing Gusto cannot do. That means you’ll have more time to run your business and focus on building your small company. Leave all the other work to Gusto!
Gusto can take care of payroll and taxes for your employees and contractors. The helpful interface lets small businesses easily calculate accrued PTO, pay dates, and birthdays. When you want the all-in-one, can-do-it-all payroll software, choose Gusto.
Pros:
- Automatic tax filing.
- Payroll for employees and contractors.
Cons:
- Lacks accounts receivable and invoicing.
- No free trial.
QuickBooks: Best Payroll Software For Quick Direct Deposits
QuickBooks is a well-known name in the payroll game. They have been around for decades and secured a legacy that rivals other payroll companies. Reliability is what QuickBooks is known for so you don’t have to put anything to chance. When you need to pay people QuickBooks takes care of it in a flash.
The software is available to use all over the United States. QuickBooks comes with unlimited runs of payroll, which includes contractor and employee payments. To top it all off, QuickBooks’ direct deposits are the fastest when it comes to the best payroll software for a small business.
Pros:
- Unlimited runs of payroll.
- Contractor payments available.
- Provided in all 50 states.
Cons:
- Can cost more.
- 24/7 customer service available only with Elite plan.
Paychex Flex: Best Payroll For A Small Staff Or Solo Employee.
One of the best payroll softwares for small businesses is Paychex Flex. Lots of small businesses have only a few staff members or one operator. That still means they — or for many, you! — still need to get paid. Having Paychex Flex take care of the payroll on your schedule ensures everyone’s happy at payday.
Paychex Flex is the best payroll software with customized plans that are easy to use for a lower amount of employees. You might not be a payroll wizard, but Paychex Flex is able to teach you as you go. Give it a spin with their free trial. You might be surprised just how easy Paychex Flex is to use.
Pros:
- Plans can be customized.
- Easy to use for staff payroll.
- Free trial.
Cons:
- Payroll tax includes an extra filing fee.
- W-2 and 1099 include an extra filing fee.
Rippling: Best Payroll Software For HR And IT Combo.
The best payroll software to pair Human Resources and IT is Rippling. Nothing comes without IT these days. Make sure your HR is as up to date with Ripping. Their software’s customizable plans and ready-to-use HR package make it easy to use.
It’s a new age for business. You need to make sure that not only are you getting payroll done, but that all the legalities of doing it are in place as well. Take the worry off your plate with Rippling. Paying staff has never been easier using IT. Rippling is one of the best payroll software that blends the human and technological parts of a small business so you can take your company to the next level.
Pros:
- Plans can be customized.
- Easy to use for staff payroll.
- HR all-in-one package.
Cons:
- Can cost more.
- Requires custom quote.
- No free trial.
Wave Payroll: Best Payroll Software For Independent Contractors.
Independent contractors need payroll systems, too. Just because you do not officially have an office does not mean you should skimp on payroll. The best payroll software for independent contractors — whether you are one or hiring one — is Wave Payroll.
Wave offers an employee portal and perks that are designed to get independent contractors paid quickly. With so much on-the-go work and invoicing to keep track of, you’ll need a reliable system. Independent contractors can set up their own portal so they know when they are getting paid. That’s one less email you have to send and one less paycheck you have to worry about.
Pros:
- Free trial.
- Employee portal.
- Three-day direct deposit.
Cons:
- No automated payroll.
- 36 states do not have auto tax filing.
- Manual data migration.
ADP RUN: Best For Startups That Are Growing Quickly
Getting ADP RUN for a small business is turning into a big business. ADP RUN lets your team hit the ground running, and they are with you every step of the way. It’s hard to change over from legacy software, including payroll. Why not have a payroll software that adapts as your business does?
One of the best payroll software for growing companies to ensure no payments are lost during expansion. ADP RUN is flexible to adapt to all the changes your staff and business will experience during growth. Their software allows you to handle taxes in no time and pay your staff on time.
Pros:
- Plans can be customized.
- Automatic tax filing.
- Easy to use for staff payroll.
Cons:
- Additional cost for tax form filing.
- Additional cost for benefits administration.
- One W2 employee at minimum required for contractor payments.
Square Payroll: Best Payroll For Small Restaurants And Boutique Retailers.
Your company might be in a state where other payroll companies are not. What do you do if you have business out of town and need to pay workers in other states? Luckily, Square is available across the United States. This payroll system is able to handle both employee and contractor payroll.
Square is designed for smaller restaurants and independent shops. You might have temporary or seasonal employees who need to be on the payroll as you find your legs. Square makes it easy to set up payments no matter how you staff your company. If you are a small business that knows exactly what it is then Square is the right fit for you.
Pros:
- Contractor payments available.
- Provided in all 50 states.
Cons:
- No free trial.
- Limited to one plan for employees.
OnPay: Best For Unique Small Businesses With Specific Needs
If your small business has specific needs then you need OnPay to handle all the details. With so many niche businesses on the market today, you might have certain payroll criteria that only unique software can fulfill. OnPay simplifies the process so you can tackle the bigger issues.
OnPay is the best small business payroll software for hard-to-define companies. Make payroll easy for all your employees and contracts by using OnPay. With their unlimited runs of payroll your small business will not feel locked in, making the process as refined and unique as your company. OnPay assures accuracy and timeliness, which is a must for any business, including your own.
Pros:
- Unlimited runs of payroll.
- Easy to use for staff payroll.
- Contractor payments available.
Cons:
- No free trial.
- Fully automated payroll approval unavailable.
Methodology
Our list is composed of payroll software for small businesses with a Forbes rating of 3.9 or higher. Pricing was considered for payroll software for small businesses that were under $50 a month. Payroll software that allowed contractor payments was considered a top priority. The best payroll software for small businesses that made the list typically had free trials or demos unless otherwise noted.
The Bottom Line
The best small business payroll software is one that fits you and your employees’ needs the best. Are you a slightly larger company that needs the best small business payroll software to handle lots of employees’ paychecks? Or are you running a slightly smaller operation? Either way you need an efficient and effective way to do payroll.
Whatever the status of your company might be you should take the time to discuss the benefits and disadvantages with your staff and employees. The best payroll for your small business is one that you research. Paying your employees and workers who are contracted is always going to need to be done correctly.
Having the best payroll software for your small business makes sure that everyone is paid on time, every time, all the time. Dig into the details of the companies on this list of the best free payroll software for small business in 2023 and decide what is the right fit for your company. Check out our blog on how to calculate payroll to know more about importance of payroll in businesses.
