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10 Best Payroll Software for Small Businesses in 2023

The Best Payroll Software for Small Businesses List

Here’s the list of the best payroll software for small businesses that I’ll cover in this article, with detailed summaries below:

  1. 1. Deel — Best for managing global payments and compliance for growing international teams
  2. 2. Papaya Global — Best payroll software for small businesses looking to hire globally
  3. 3. Paychex Flex — Best payroll software for automatic tax calculations & cyber liability insurance
  4. 4. RUN Powered by ADP — Best payroll software for automatically calculating deductions
  5. 5. OnPay — Best full-service payroll software for entrepreneurs or startups
  6. 6. Patriot Software — Best basic payroll software and tax services for US companies
  7. 7. Gusto — Best payroll software for customizable reminders and notifications
  8. 8. Ceridian Dayforce — Best payroll software for a user-friendly payroll dashboard
  9. 9. Zenefits — Best full-service payroll solution for small businesses
  10. 10. FinancePal — Best payroll management outsourcing for small businesses

Growing a small business is not easy. As a manager, you’re responsible for making sure everything runs smoothly. That includes everything from keeping your employees happy to managing your business strategy. The good news is, payroll software can simplify the one thing your employees care about the most: getting paid on time.

There are endless amounts of payroll software on the market, but I've done the research to help you cut through the noise. This article covers my top 10 selections for the best payroll software for small businesses on the market today. I've summarized each system's best features and explained why it's a good fit for a small business owner like you. I've also included a comparison chart below to help you analyze the key details — like prices, demos, and free trials — side-by-side.

What is Payroll Software?

Payroll software solutions help businesses manage their employee compensation and related financial tasks. They work by automating the standard, yet time-consuming, processes related to paying employees. That includes calculating employee wages and deductions, generating pay stubs, and processing direct deposits.

Other helpful features include automated compliance management and integrated time-tracking. The former eliminates the need for your payroll staff to decipher complex payroll regulations to stay compliant. And the latter — one of my favorite features — reduces the need to manually transfer employee work hours from one system to another. Lastly, among other features, payroll software can also be used to generate reports and analytics from your workforce data.

Overviews of the 10 Best Payroll Software for Small Businesses

Here’s a brief description of each payroll software for small businesses to showcase each tool’s best use case, some noteworthy features, and screenshots to give a snapshot of the user interface. 

1

Deel

Best for managing global payments and compliance for growing international teams

Deel is a payroll platform designed for businesses of all sizes. For small businesses looking for additional help, Deel lets you hire and pay freelancers and full-time employees from anywhere in the world without having to figure out local laws, tax systems, or international payroll. You also get access to Deel’s HR suite for free, allowing you to manage your entire team with professional and automated tools.

The Deel platform includes various elements that make it simple to pay employees and contractors without having to juggle several tools. The user-friendly interface incorporates features such as contract and stock option management, expense reimbursements, and compliance tracking for every client.

Employees and contractors can self-manage their pay and personal data, which reduces admin load. Deel uses major payment providers like Wise, PayPal, Payoneer, and Revolut to offer flexible withdrawal options and reduce unnecessary international transfer fees.

Deel has positive online reviews from clients and their workers. The company offers 24/7 online chat support.

Integrations are available natively with Ashby, BambooHR, Expensify, Greenhouse, Hibob, Netsuite, Okta, OneLogin, Quickbooks, SCIM, Xero, Workday, and Workable.

This is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.
4.6 679

Free demo available

Flat rate user pricing, with a free version for businesses with up to 200 people

2

Papaya Global

Best payroll software for small businesses looking to hire globally

Papaya Global is a payroll software for small businesses that helps companies remove barriers to global hiring. Papaya’s automated, SaaS platform provides an end-to-end global workforce management solution, from onboarding to cross-border payments in 160+ countries.

The platform supports all employee options (payroll, EoR, contractors), integrates with all management tools, and uses smart technology to ensure compliance and eliminate errors. It creates a highly visible system for tracking payroll spending and real-time business intelligence (BI). Papaya Global can help any company simplify global people management. Businesses can access Papaya’s state-of-the-art automation, security, and BI without replacing their existing payroll system.

Papaya Global integrates with most financial tools, as well as with BambooHR, Expensify, NetSuite, SAP SuccessFactors, and Workday.

This is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.
4.3 5

Free trial available

EOR from $770/employee/month or $25/contractor/month; Global payroll from $3 to $12/employee/month

3

Paychex Flex

Best payroll software for automatic tax calculations & cyber liability insurance

Paychex Flex is an online platform that helps small businesses manage payroll and other HR functions. It allows employers to manage everything from calculating employee paychecks to managing employee health benefits and tracking time off requests. Users can access their accounts from anywhere, ensuring they always have access and control over their data. The platform offers features such as tax filing and compliance services, paperless onboarding tools, and employee self-service options.

Paychex Flex makes it easy for employers to track employees' hours worked and leave taken through its automated time-tracking feature. This ensures that employees are paid accurately according to the hours worked each week or day and any applicable overtime rates or vacation days taken off work. The software supports multiple payment methods for both direct deposit and paper checks. Additionally, it allows users to quickly generate reports on employee wages, salaries, overtime payouts, and deductions taken from wages, enabling businesses to stay compliant with local laws and regulations.

Paychex Flex helps simplify the filing process by automatically calculating all federal (IRS) and state tax requirements to ensure accuracy when filing returns. It also allows small businesses to make timely payments while avoiding late fees or penalties due to delayed filings or incorrect data entry.

The employee self-service portal feature allows employees to access their account information securely online without contacting HR for assistance. Employees can log into their accounts to view pay stubs, update personal information such as address changes, or view the status of benefits enrollment.

Paychex Flex integrates with popular accounting software like QuickBooks Online so employers can sync their payroll data across multiple systems for greater accuracy and convenience.

Paychex Flex protects users against online negligence resulting in a data breach, such as a hacker accessing confidential employee or customer information. Its cyber liability insurance helps small business owners protect themselves from potential public relations or litigation costs from the incident.

This is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.
4.2 1339

Free demo available

From $39/month + $5/employee/month

4

RUN Powered by ADP

Best payroll software for automatically calculating deductions

RUN by ADP is a small business payroll provider that helps you automate recurring payroll and file payroll taxes. The software also calculates benefits and retirement deductions, and flags potential errors to make sure you remain compliant when filing federal or local taxes.

Thanks to its automation features, RUN enables you to process invoices and run your payroll in a timely manner, so you can focus on your growing business. You can also set schedules for your team, see when they clock in and out of work and attach notes to shifts.

One of the good things about using this solution is that the system automatically keeps track of your team’s work and calculates everything for you. The automated payroll system ensures that you pay employees and file taxes on time, so you can save time managing this aspect of the business.

RUN by ADP integrates with many popular software systems, including Absorb LMS, Avionte, ClearCompany, Clockshark, Deputy, Dolce, FinancialForce, Infor, JazzHR, Oracle, PayActiv, PlanSource, QuickBooks, Replicon, Sage Intacct, SAP SuccessFactors, Sapling, TempWorks, Wave, When I Work, Workday, Xero, ZipRecruiter, 7shifts Restaurant Scheduling, and many more.

Free demo available

Pricing upon request

5

OnPay

Best full-service payroll software for entrepreneurs or startups

OnPay’s full-service payroll software helps entrepreneurs manage payroll, HR functions, and benefits all in one place. Their software includes a full suite of payroll services and compliance settings for all 50 states. For no additional cost, they also offer special payroll services for certain industries like restaurants, farms and agriculture, churches and clergy, and nonprofits. As well, OnPay offers great customer service, with platform specialists available to help you set up your payroll process and automate your taxes, even if you don’t have any previous experience with this kind of software.

To get your business up and running as fast as possible, new business owners will appreciate the free employee handbook and HR templates that are included in the platform. Essential HR tools such as automated onboarding flows, employee personnel files, document storage with e-sign capabilities, compliance audits, paid time-off tracking and task management features are also included.

Their team of licensed in-house insurance brokers also help small businesses set up health, dental and vision plans with top providers such as Humana, Cigna, Blue Cross / Blue Shield, Aetna and UnitedHealthcare. Once in place, benefit costs are synced with payroll, which means you won’t have to worry about capturing any cost fluctuations yourself. Another interesting feature is their 401k integration that automatically supports employer matching and profit sharing options, and can garner small businesses extra tax credits.

OnPay integrates with Deputy, Magnify, Mineral, PosterElite, QuickBooks, When I Work, Xero, and with the 401k retirement platforms America’s Best 401k, Guideline, and Vestwell.

30-day free trial

From $6/employee/month + $40/month base fee

6

Patriot Software

Best basic payroll software and tax services for US companies

Patriot Payroll is an online payroll service provider that helps small businesses grow on a budget. Their software includes free payroll setup, free 2-day direct deposits, and free USA-based customer support. They also offer an add-on for time & attendance tracking, which links employee work hours directly to your payroll processing module, plus an add-on for HR software if you don’t already have a digital employee database.

Patriot’s full-service payroll platform acts as a concierge for US-based businesses and takes care of their local, state and federal taxes. The company’s customer service team also reaches out if they need more information to file your taxes, so you don’t have to worry about them yourself. Their system also includes a whole host of easy-to-access payroll reports covering tax credits, tax filings and deposits, payroll registers, paycheck histories, time off reports, W-2 summaries, payroll tax liabilities, and more.

The highlight of using this payroll service provider is its effectiveness. The tool is simple to navigate and use. Their information database is comprehensive, so you can get a detailed guide on how to complete your tax files, and their customer support service is always there.

Patriot integrates with Intuit QuickBooks Online, GoCo, Plaid, Workforce.com, and WorkforceHub Time & Attendance.

30-day free trial

From $4/employee/month + $17/month base fee

7

Gusto

Best payroll software for customizable reminders and notifications

Gusto is a top payroll processing and HR solution that covers most of your workforce-related business needs. The platform has a simple design that makes it easy to use and its training materials are comprehensive, so you don’t need a payroll specialist or HR support to run it.

This software makes payroll and benefits administration a breeze. With automatic tax reporting, scheduled reminders, and a documents database, the platform helps you manage all your HR, accounting, legal, and taxes problems without hiring a specialist, making it ideal for early-stage startups.

Gusto stands out from its competition thanks to its ease of use and affordable pricing plans. The solution takes care of your W-2s and other tax items, it withholds money for health insurance and retirement plans, all while providing a great user experience.

Gusto integrates with many accounting and performance management platforms, including Xero, QuickBooks, Hubstaff, 7Shifts, Ardius, Box, Clover, Google Workspace, and others.

This is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.
4.3 609

30-day free trial

From $6/employee/month + $40/month base fee

8

Ceridian Dayforce

Best payroll software for a user-friendly payroll dashboard

Ceridian Dayforce is a human capital management platform that helps small business owners manage their employees. The solution simplifies a lot of the problems managers encounter on a regular basis, such as payroll processing, employee onboarding, approving time off requests, managing employee benefits, and tax calculations.

This tool has a mobile app that acts as an employee self-service portal. The app helps your employees update their personal information, schedule time off, check their benefits, review earnings, and receive questionnaires or company news. Managers can also use the app to review requests in real-time and approve time sheets.

Dayforce’s dashboards help you make informed business decisions. The dashboards organize the data in actionable reports you can access at any time. Review your workers’ compensation, run payroll, and download tax forms with ease.

One of the great things about using this solution is that it offers flexibility in how you pay your employees with payment cards. The cards remove the hassle of paper checks and offer the convenience of a bank account without the monthly service fees.

Ceridian Dayforce integrates with other solutions, such as DATABASICS, Beekeeper, Microsoft 365, QuickBooks, CIBC SmartBanking, and others.

This is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.
4.2 637

60-day free trial

Pricing upon request

9

Zenefits

Best full-service payroll solution for small businesses

Zenefits is a human resources platform that helps you run payroll and stay compliant. The software has a clean interface that makes it easy to navigate, and its automation features enables you to save time on repetitive tasks.

This tool can help you coordinate benefits, create a database for important documents, send offer letters, oversee paid time off, and do payroll taxes. The payroll processing features enable small business owners to set up payment via direct deposit and create all the documents you need for tax filing.

The highlight of using this software is that it increases your organization’s transparency regarding payment. Employees can keep track of their worked time, clock in and out, and track their PTO. The platform’s time tracking capabilities make it a good solution for businesses that collaborate with freelancers or contractors for their work.

Zenefits offers integrations with tons of accounting, communication, and productivity tools, including Spark, Microsoft Office, Slack, G Suite, Salesforce, Hive, Zapier, T-Sheets, Betterment, and others.

This is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.
4.1 436

14-day free trial

From $10/user/month

10

FinancePal

Best payroll management outsourcing for small businesses

FinancePal is a flexible payroll outsourcing software solution that can encompass one or all of accounting, bookkeeping, payroll, payroll taxes, and custom projects. It comes with a free mobile app and personalized, a la carte pricing to suit both your business needs and your budget. It’s designed to save time by outsourcing repetitive or complicated payroll tasks.

FinancePal employs CPAs that they assign to clients so that your finances are handled by a dedicated team that will know the answers to every question you may raise or issue you may encounter. FinancePal can also help with customized financial reporting including expected and actual revenue, financial planning, and business growth.

FinancePal is a virtual bookkeeper, accountant, and tax prep associate so it’s not appropriate for companies looking to employ payroll software in-house for their own dedicated accounting team. Instead, FinacePal can be used as accounting and payroll support in addition to the HR tools you already use.

FinancePal integrates with QuickBooks, TSheets, ADP, Gusto, Hubdoc, and Bill.com.

Free trial + free demo

From $99/month

Need Expert Help Selecting The Right Payroll Management Software?

We’ve joined up with Crozdesk.com to give all our readers (yes, you!) access to Crozdesk’s software advisors. Just use the form below to share your needs, and they will contact you at no cost or commitment. You will then be matched and connected to a shortlist of vendors that best fit your company, and you can access exclusive software discounts!

The 10 Best Payroll Software for Small Businesses Comparison Chart

Here’s a comparison chart that summarizes basic details about each of my top payroll software selections for small business owners. You can view pricing details and the availability of free trials or demos side-by-side to help you find the best payroll software for your budget.

Tool Free Option Price
1
Deel

Best for managing global payments and compliance for growing international teams

Free demo available

Flat rate user pricing, with a free version for businesses with up to 200 people Visit Website
2
Papaya Global

Best payroll software for small businesses looking to hire globally

Free trial available

EOR from $770/employee/month or $25/contractor/month; Global payroll from $3 to $12/employee/month Visit Website
3
Paychex Flex

Best payroll software for automatic tax calculations & cyber liability insurance

Free demo available

From $39/month + $5/employee/month Visit Website
4
RUN Powered by ADP

Best payroll software for automatically calculating deductions

Free demo available

Pricing upon request Visit Website
5
OnPay

Best full-service payroll software for entrepreneurs or startups

30-day free trial

From $6/employee/month + $40/month base fee Visit Website
6
Patriot Software

Best basic payroll software and tax services for US companies

30-day free trial

From $4/employee/month + $17/month base fee Visit Website
7
Gusto

Best payroll software for customizable reminders and notifications

30-day free trial

From $6/employee/month + $40/month base fee Visit Website
8
Ceridian Dayforce

Best payroll software for a user-friendly payroll dashboard

60-day free trial

Pricing upon request Visit Website
9
Zenefits

Best full-service payroll solution for small businesses

14-day free trial

From $10/user/month Visit Website
10
FinancePal

Best payroll management outsourcing for small businesses

Free trial + free demo

From $99/month Visit Website

Other Options

Here are a few more worthwhile options that didn’t make the best small business payroll software shortlist:

  1. QuickBooks Payroll

    Best hassle-free accounting and payroll software for small businesses

  2. Humi

    Best payroll software for Canadian small businesses

  3. Knit People

    Best payroll software for startups

  4. Rippling

    Best payroll software for combining domestic and international payments

  5. Buddy Punch

    Best for integrated time-tracking and employee self-service features

  6. BambooHR

    Best payroll software for employee self-service

  7. Eddy

    Best full-service payroll software for local, US businesses

  8. Paycor

    Best payroll software for flexible payment options, including pay on-demand

  9. Remofirst

    Best payroll software for small businesses wanting 24/7 payroll support

  10. PrimePay

    Best for managing employee payroll, tax compliance, and benefits administration

How I Selected the Best Payroll Software for Small Businesses

Curious how I built this top 10 list of the best payroll software for small business owners? I'm happy to explain my process.

First, I evaluated and compared a long list of payroll systems with positive user ratings from human resources professionals. Next, I dug deeper into the details to ensure each system really covered the basics a small business would need, without a hefty price tag. Finally, I compared each remaining payroll provider in more detail using my selection criteria below to see how each one stacked up to the next.

Selection Criteria

Here’s a summary of the selection criteria I used to build this small business payroll software top 10 list: 

  1. User Interface (UI): I look for software that offers clean interfaces. The person who oversees the payroll process should be able to find the solution’s functions with ease.  
  2. Usability: I look for tools that are easy to use. Your accountant or bookkeeper should be able to learn how to handle the payroll process with speed and efficiency after a short training period. 
  3. Software integrations: I look for solutions that integrate with other tools, such as conferencing tools, resource management platforms, or your HR software
  4. Value for Price: I look for platforms that help you complete multiple payroll-related processes with ease, so you get the most out of your investment.

People Also Ask

Here are some answers to popular questions we often receive about payroll software for small businesses:

Simplify Your Payroll Process With Software Solutions 

Running a small business is complicated. There are a lot of things an owner should look out for. But one of the most complicated aspects of being a small business owner is running the numbers and filing your taxes. 

Payroll software solutions can help you simplify this aspect of your business. Thanks to modern automation, you can set up the payroll and run it in the background, so you can focus on growing your business. 

Delegation is important for business managers. Beth Schneider, president of Process Prodigy, said “Delegation is about handing over authority, and for many small-business owners, that's a scary concept because you don't know what will happen when you give up control. But the good news is, delegating doesn't have to be scary-you have more control than you think”. 

And when you delegate your payroll process to a software solution that helps you avoid costly mistakes, you increase the effectiveness of your business. 

Other Resources for Small Business Owners

To help you in your journey to run a successful and profitable small business, here's a collection of our other top resources you should also check out:

You can read more about How To Manage Payroll for Small Businesses on our blog.

For tips on how to improve your business processes from top thinkers in the industry, subscribe to our newsletter too.

For even more help on choosing the best HR software, check this out: The 10 Best HR Software Companies

Related List of Tools: Payroll Companies To Modernize Your Payroll Processes

By Kim Behnke

Kim Behnke is an HR Tool Expert & Writer for People Managing People. She draws on her 9 years of human resources experience and her keen eye for systematic processes to support her analyses of the top HR tools on the market. She is passionate about maximizing efficiencies and streamlining workflows to ensure internal systems run smoothly. Kim's HR experience includes recruitment, onboarding, performance management, training and development, policy development and enforcement, and HR analytics. She also has degrees in psychology, writing, publishing, and technical communication. When away from her desk, she can usually be found outside tending to her ever-expanding garden.