How we make this list: we compare pricing pages, product documentation and public user reviews. Rankite is independent; if a vendor ever pays for a featured spot, that listing is clearly labeled Partner.
Key takeaways
- Best overall: Gusto, ideal for startups that want payroll plus HR in one friendly app: easy employee onboarding.
- On price transparency, OnPay stands out at $49 per month plus $6 per worker, which makes budgeting straightforward.
- QuickBooks Payroll suits businesses already running QuickBooks accounting, while ADP RUN fits small businesses that want a big-brand payroll safety net.
- Shortlist two or three tools and trial each with real work before signing anything longer than monthly.
- Justworks is worth a look as a specialist alternative if the mainstream picks do not fit your workflow.
Quick comparison
| Tool | Best for | Starting price | Free plan |
|---|
 Gusto | Startups that want payroll plus HR in one friendly app | See website | No |
 QuickBooks Payroll | Businesses already running QuickBooks accounting | See website | No |
 ADP RUN | Small businesses that want a big-brand payroll safety net | See website | No |
 Rippling | Startups that want payroll, HR and IT in one system | See website | No |
 OnPay | Small businesses that want one flat payroll price | $49 per month plus $6 per worker | No |
 Patriot | Tiny businesses that want the cheapest full-service payroll | From $17 per month plus $4 per worker | No |
 Square Payroll | Businesses already using Square for payments or POS | $35 per month plus $6 per person | No |
 Wave | Freelancers and micro-businesses that want free accounting | See website | Yes |
 Paychex | Growing businesses that want HR guidance with payroll | See website | No |
 Justworks | Startups that want PEO-level benefits without the hassle | See website | No |
Is your product missing or out of date?
We review this list regularly. Vendors can request a listing, send updated pricing or ask about featured placement.
The Best Small Business Payroll Software for Startups
#1
Gusto
Best for: Startups that want payroll plus HR in one friendly app
Visit gusto.com
Starting priceSee website
Free planNo
Gusto made payroll pleasant, which sounds impossible until you use it. Onboarding, direct deposit, tax filings and benefits admin flow through an interface your team will not dread. Startups adopt it because employees can self-serve.
The HR layer grows with you: offer letters, time tracking, performance tools and benefits all connect to the same employee record. Support is consistently praised.
Costs rise as you add modules and contractors, and international payroll is limited. But for US startups wanting payroll and HR without the enterprise feel, Gusto is the favorite.
What we like- Easy employee onboarding
- Benefits administration built in
- Good customer support
Watch out for- Pricier as features stack up
- Limited international payroll
Starting priceSee website
Free planNo
QuickBooks Payroll exists for one reason: payroll that posts itself to your QuickBooks books. If you already run QuickBooks accounting, the integration removes reconciliation work entirely. Tax filings and payments are handled.
Same-day direct deposit options help cash-flow planning, and the data stays in one system your accountant already knows.
Outside the QuickBooks ecosystem the value case weakens, and support reviews are mixed. But for QuickBooks shops, native payroll is the path of least resistance.
What we like- Tight QuickBooks integration
- Tax filings included
- Same-day direct deposit options
Watch out for- Best value only with QuickBooks
- Support quality varies
#3
ADP RUN
Best for: Small businesses that want a big-brand payroll safety net
Visit adp.com
Starting priceSee website
Free planNo
ADP RUN brings big-company payroll infrastructure to small businesses. Tax compliance across states, wage garnishments, new-hire reporting: the regulatory machinery just works. For owners who worry about payroll mistakes, the brand is reassuring.
The platform scales from a handful of employees to hundreds without switching vendors, which suits growing companies planning ahead.
Pricing is quote-based and the sales process includes upsells, so negotiate carefully. But as the safety-first payroll choice, ADP RUN's compliance depth is unmatched.
What we like- Trusted, established brand
- Compliance expertise
- Scales from small to large
Watch out for- Pricing not transparent
- Upsells are common
#4
Rippling
Best for: Startups that want payroll, HR and IT in one system
Visit rippling.com
Starting priceSee website
Free planNo
Rippling unifies HR, IT and finance around the employee record: payroll runs, devices ship, and app access provisions from one onboarding flow. For startups, that consolidation removes whole categories of admin work.
The integration library is vast and the automation is genuinely deep. New hires go from offer letter to fully provisioned without manual tickets.
Modular pricing means the bill grows with each capability, and support is still scaling. But for startups that want one system for the entire employee lifecycle, Rippling is the modern answer.
What we like- Unified employee platform
- 500+ integrations
- Fast, automated onboarding
Watch out for- Costs grow with each module
- Support team still maturing
#5
OnPay
Best for: Small businesses that want one flat payroll price
Visit onpay.com
Starting price$49 per month plus $6 per worker
Free planNo
OnPay keeps payroll pricing radically simple: $49 a month plus $6 per worker, with tax filings included. No tiers, no quotes, no surprises. For small businesses tired of opaque payroll pricing, that clarity is refreshing.
The product covers the essentials well: unlimited payroll runs, direct deposit, contractor payments and filings across all 50 states. Support gets strong reviews.
HR features are thinner than Gusto or Rippling, so growing teams may eventually need more. But as straightforward, fairly priced payroll, OnPay is excellent.
What we like- Simple, transparent flat pricing
- Tax filings included
- Good customer support
Watch out for- Fewer HR extras than rivals
- No free trial advertised
Starting priceFrom $17 per month plus $4 per worker
Free planNo
Patriot is the budget champion: full-service payroll from $17 a month plus $4 per worker, with a 30-day trial. Micro-businesses get tax filings, direct deposit and contractor payments at a price competitors cannot touch.
The interface stays simple and US-based support is a plus. For businesses with a handful of employees, it covers everything needed.
Integrations and HR depth are basic, so scaling companies will graduate to bigger platforms. But as the cheapest credible full-service payroll, Patriot is the value pick.
What we like- Very affordable pricing
- 30-day free trial
- Simple interface
Watch out for- Fewer integrations
- Basic HR features
#7
Square Payroll
Best for: Businesses already using Square for payments or POS
Visit squareup.com
Starting price$35 per month plus $6 per person
Free planNo
Square Payroll fits businesses already running on Square: POS sales, team hours and tips flow straight into payroll. At $35 a month plus $6 per person with published pricing, it is transparent and tidy.
Restaurants, retailers and service businesses benefit most, since time tracking and tip handling connect natively. Contractor payments are simple.
Outside the Square ecosystem the appeal fades, and HR tools are light. But for Square users, native payroll beats bolting on a third party.
What we like- Integrates with the Square ecosystem
- Easy contractor payments
- Published, clear pricing
Watch out for- Limited value outside Square
- Fewer dedicated HR tools
#8
Wave
Best for: Freelancers and micro-businesses that want free accounting
Visit waveapps.com
Starting priceSee website
Free planYes
Wave's free accounting and invoicing make it the starting point for freelancers and micro-businesses. Send invoices, track expenses and manage receipts at no cost, then add payroll as a paid module when you hire.
The simplicity suits non-accountants. Everything essential is visible without training, and the price of the core product cannot be beaten.
Payroll costs extra and advanced features are limited, so growing businesses eventually move on. But as the free foundation for tiny operations, Wave is unmatched.
What we like- Free accounting and invoicing
- Simple to start
- Good for very small businesses
Watch out for- Payroll is a paid add-on
- Limited advanced features
#9
Paychex
Best for: Growing businesses that want HR guidance with payroll
Visit paychex.com
Starting priceSee website
Free planNo
Paychex pairs payroll with genuine HR guidance: dedicated specialists, compliance help and scalable plans that grow from startup to mid-size. Businesses that want a partner, not just software, find the service model reassuring.
The compliance support covers the regulatory details that trip up growing companies: multi-state tax, benefits rules and reporting requirements.
Pricing is quote-based and buying runs through sales, which slows evaluation. But for companies wanting payroll plus human HR expertise, Paychex delivers.
What we like- Deep HR expertise
- Scalable plans
- Strong compliance support
Watch out for- Pricing not published
- Sales-led buying process
#10
Justworks
Best for: Startups that want PEO-level benefits without the hassle
Visit justworks.com
Starting priceSee website
Free planNo
Justworks gives startups Fortune 500-style benefits through its PEO model: health insurance, 401(k), compliance and payroll in one package. Small teams compete for talent with benefits they could never negotiate alone.
Pricing is refreshingly transparent for the PEO world, and support is built for founders rather than HR departments. Onboarding is smooth.
The PEO structure means less control over plan design, and it is not the right model for every company. But for startups wanting big-company benefits without big-company HR, Justworks is compelling.
What we like- Access to big-company benefits
- Simple, transparent pricing
- Good customer support
Watch out for- PEO model is not for everyone
- Less control over benefit plans
Payroll mistakes that cost startups real money
Misclassifying workers tops the list. Treating employees as contractors, or vice versa, triggers penalties that dwarf any software savings. When in doubt, get a professional determination.
Missing tax deadlines is second. Late filings and deposits accrue penalties automatically. Good payroll software files for you, but only if you set it up correctly and keep it funded.
Ignoring state rules is third. Each state has its own withholding, unemployment insurance, and leave laws. Multi-state teams need software that handles every jurisdiction, not just the home state.
How we chose
Each tool was assessed from its vendor pricing page, product docs, and public user feedback on G2, Capterra, and Reddit. We compared how well each serves the category's main use cases, how transparent the pricing is, and which team size each fits best. We did not accept vendor payments for inclusion or ranking.
What to check before choosing payroll software
Confirm tax filing coverage for every state where you have employees. Multi-state compliance is where cheap payroll tools fail, and penalties cost more than any subscription. Ask specifically about local tax jurisdictions.
Compare the all-in price. Base fees plus per-employee charges plus add-ons for contractors, benefits, or time tracking add up. Run your exact headcount through the pricing before deciding.
Check the support model. When payroll breaks, you need a human fast, not a chatbot. Ask about support hours and response times, and read reviews specifically about payroll issue resolution.
Frequently asked questions
When should a startup switch from spreadsheets?
As soon as you have employees beyond the founders, or operate in more than one state. Tax complexity and penalty risk grow fast. Most startups switch within their first year of hiring.
How much does payroll software cost for a startup?
From $17 a month plus $4 per worker with Patriot to $49 plus $6 per worker with OnPay. Expect $40 to $150 monthly for a team under ten. Enterprise options like ADP and Paychex are quote-based.
Does payroll software file taxes for me?
Full-service payroll providers calculate, file, and pay federal, state, and local payroll taxes for you. Confirm filing coverage for every state where you have employees before buying.
Can I pay contractors with payroll software?
Yes. All the tools in this guide handle contractor payments, though some charge extra per contractor. If you work mostly with contractors, compare contractor pricing specifically.
What is the difference between payroll software and a PEO?
Payroll software processes pay and taxes while you remain the employer of record. A PEO like Justworks co-employs your team, providing benefits and HR compliance. PEOs cost more but remove more admin.
Sources we checked (10)
- https://gusto.com/
- https://quickbooks.intuit.com/payroll/
- https://www.adp.com
- https://www.rippling.com/
- https://onpay.com/
- https://patriotsoftware.com/
- https://squareup.com/us/en/payroll
- https://waveapps.com/
- https://paychex.com/
- https://www.justworks.com/
Is your product missing or out of date?
We review this list regularly. Vendors can request a listing, send updated pricing or ask about featured placement.
Shihab Mia · Founder, Rankite
Shihab has spent more than a decade helping SaaS and e-commerce brands grow through search. He writes Rankite's software buying guides from pricing pages, documentation and public user reviews. More about Shihab.