Managing payroll is one of the most critical yet time-consuming tasks for small business owners. From calculating employee wages to ensuring tax compliance, the whole process can get overwhelming fast. That’s where payroll software comes in to save the day.
With so many tools on the market, how do you choose the best one? Don’t worry — we’ve done the legwork for you. Here’s a list of the top 7 payroll tools that small business owners absolutely love for their ease of use, features, and affordability.
1. Gusto – The All-in-One HR & Payroll Champion
Why small businesses love it:
Gusto is more than just payroll. It’s a full-service HR platform designed for small teams. It automates everything from direct deposit to tax filings, and it’s super user-friendly.
Key Features:
- Full-service payroll for all 50 states
- Automatic tax calculations and filings
- Benefits management
- Onboarding and employee self-service portal
- Integrates with accounting tools like QuickBooks and Xero
Pricing: Starts at $40/month + $6 per person
Gusto is ideal for small businesses that want to combine HR and payroll in one powerful platform.
2. QuickBooks Payroll – Perfect for QuickBooks Users
Why small businesses love it:
Already using QuickBooks for accounting? Their payroll system is the perfect add-on. It’s seamlessly integrated and super easy to use.
Key Features:
- Same-day direct deposit
- Automatic tax calculations
- Syncs perfectly with QuickBooks Online
- Mobile app for on-the-go payroll processing
- HR support and 401(k) plans available
Pricing: Starts at $45/month + $6 per employee
QuickBooks Payroll is a no-brainer for QuickBooks users looking to streamline their finances.
3. ADP RUN – Enterprise Power, Small Biz Friendly
Why small businesses love it:
ADP has been a leader in payroll for decades, and their RUN platform is tailor-made for small businesses.
Key Features:
- Automated tax filing and compliance
- Direct deposit and checks
- Employee onboarding and background checks
- Integrations with many accounting software
- 24/7 customer support
Pricing: Custom quote
ADP RUN is ideal for small businesses with growth ambitions that want enterprise-level support.
4. Paychex Flex – Scalable and Feature-Rich
Why small businesses love it:
Paychex Flex is flexible (as the name suggests) and offers a wide range of features for growing businesses.
Key Features:
- Payroll and tax automation
- Time tracking and scheduling
- Hiring and onboarding tools
- Benefits and retirement management
- Mobile-friendly dashboard
Pricing: Custom quote, but usually starts at around $39/month + per-employee fees
If you need robust HR tools in addition to payroll, Paychex Flex has you covered.
5. Patriot Payroll – Budget-Friendly and Straightforward
Why small businesses love it:
Patriot is a no-frills payroll software that’s both affordable and effective for small teams.
Key Features:
- Simple setup and navigation
- Two plans: Basic (you handle taxes) and Full Service (they handle taxes)
- Free direct deposit
- Time-off tracking
- USA-based customer support
Pricing:
- Basic Payroll: $17/month + $4/employee
- Full Service Payroll: $37/month + $4/employee
Perfect for startups or solo entrepreneurs looking for affordability without compromising compliance.
6. Square Payroll – A Dream for Hourly Teams
Why small businesses love it:
If you run a retail store, café, or any hourly-based business, Square Payroll is built just for you. It even integrates with Square POS, making it a top choice for small businesses in the service sector.
Key Features:
- Seamless integration with Square POS
- Pay hourly and salaried employees, plus contractors
- Mobile-friendly with employee self-service
- Automatic tax filings
- Health insurance and benefits integration
Pricing:
- Employees: $35/month + $5 per person
- Contractors Only: $6 per contractor/month
Square Payroll is a go-to solution for service-based businesses with hourly workers and contractors.
7. OnPay – Simple Yet Comprehensive
Why small businesses love it:
OnPay offers all the essential features of payroll and HR in a clean, easy-to-use package. It’s perfect for busy business owners who want to “set it and forget it.”
Key Features:
- Automated tax payments and filings
- Unlimited monthly payroll runs
- Pay employees and contractors
- Benefits and PTO tracking
- HR tools and new hire reporting
Pricing: Flat rate of $40/month + $6 per employee
OnPay delivers serious value with transparent pricing and full-featured functionality.
✅ How to Choose the Right Payroll Tool for Your Business
Every business has different needs, so the best payroll software for you depends on several factors:
- Size of your team – Some tools are more contractor-friendly, while others shine with larger teams.
- Budget – Are you looking for the cheapest tool or one with premium HR features?
- Integration needs – Do you use other tools like QuickBooks or Square POS?
- Support and compliance – Make sure your tool helps with tax filings and keeps you legally compliant.
Pro tip: Take advantage of free trials or demos before committing to any payroll service.
🚀 Final Thoughts
Payroll doesn’t have to be a headache. With the right tool, you can automate repetitive tasks, avoid costly tax mistakes, and keep your employees happy with timely, accurate paychecks. Whether you’re a solopreneur or managing a growing team, one of these 7 tools will surely fit your needs.
To recap, the top payroll tools small business owners swear by are:
- Gusto – All-in-one payroll and HR
- QuickBooks Payroll – Best for QuickBooks users
- ADP RUN – Scalable and powerful
- Paychex Flex – Great for growing businesses
- Patriot Payroll – Affordable and easy
- Square Payroll – Best for hourly teams
- OnPay – Full features at a flat rate
Start your payroll journey with one of these trusted tools and save time, money, and stress!