Paying employees and contractors is the most complex element of accounting. You can incur stiff penalties and fines from the IRS and state tax agencies if you get it wrong. The best payroll applications automate this onerous process, enabling you to compensate your workers accurately and on time. They also calculate and file your payroll taxes, and set up any withholding and company contributions for HR benefits and the like. The sites do all this for a reasonable price, too. We've been reviewing small business payroll software for almost 20 years, so you can trust our recommendations. Gusto is our Editors’ Choice winner because it offers the best combination of payroll and HR tools, an exceptional user experience, and smart AI features. However, you should explore all of our top picks below to find the one that's best for you, followed by everything you need to know about payroll applications.
Overview
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![Gusto]()
Best OverallGusto
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![ADP RUN]()
Best for Small Businesses That Plan to GrowADP RUN
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![Intuit QuickBooks Workforce]()
Best for QuickBooks UsersIntuit QuickBooks Workforce
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![OnPay]()
Best ValueOnPay
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![Patriot Software Payroll]()
Best Low-Cost Payroll ServicePatriot Software Payroll
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![Square Payroll]()
Best for Square POS UsersSquare Payroll
You Can Trust Our Reviews
Deeper Dive: Our Top Tested Picks
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Credit: Gusto
![Gusto]()
Best OverallGusto
Pros & Cons
Why We Picked It
Gusto offers four subscription levels for payroll processing, making it more scalable than most of its competitors. You can start with Gusto Simple, which offers everything you need to run payroll, and then upgrade as you need more features (such as more HR options and time-tracking tools). A contractor-only version is also available. A new, separate application, Gusto Solo, is designed strictly for S corporations. Gusto's user experience is outstanding, and it almost makes the payroll process pleasant.
Who It's For
Novice payroll managers: Gusto is ideal for new payroll managers, thanks to its excellent help resources, understandable workflow, and usability. It can also easily support your business as it grows.
Experienced payroll managers who need in-depth HR tools: Gusto excels at providing tools for managing compliance issues and other HR tasks.
Global businesses: Gusto supports payroll for contractors and employees in roughly 120 countries.
Specs & Configurations
1099s HR Add-Ons Mobile Admin Access App Submits Federal, State, Local, and Payroll Taxes Time Tracking W-2s Learn More Gusto Review -
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Credit: ADP
![ADP RUN]()
Best for Small Businesses That Plan to GrowADP RUN
Pros & Cons
Bottom Line:
Bottom Line:
The ADP RUN family of payroll solutions provides access to all the tools you need to compensate workers and stay HR-compliant for companies of any size, even if it's set to grow.Specs & Configurations
1099s HR Add-Ons Mobile Admin Access App Submits Federal, State, Local, and Payroll Taxes Time Tracking W-2s Learn More ADP RUN Review -
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![Intuit QuickBooks Workforce]()
Best for QuickBooks UsersIntuit QuickBooks Workforce
Pros & Cons
Why We Picked It
QuickBooks Online is the best overall small business accounting service, and it integrates seamlessly with QuickBooks Workforce, which can also operate as a standalone application. Its strengths include user setup and support, a thorough payroll process, exceptional Human Capital Management (HCM) tools and data, a wide range of reports, and excellent customization options.
Who It’s For
Engaged employees: Workforce is a great tool for workers. With it, employees can clock in and out, view past pay stubs and historical data charts, track their time off, edit personal information, see scheduled shifts, and more.
QuickBooks Online users: If you use QuickBooks Online, Workforce is the best option for integrating payroll capabilities. Yes, it's pricey, but the deep, smooth integration justifies the expense if you're looking for the best all-in-one system.
Specs & Configurations
1099s Free Trial HR Add-Ons Mobile Admin Access App Submits Federal, State, Local, and Payroll Taxes Time Tracking W-2s Learn More Intuit QuickBooks Workforce Review -
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Credit: Onpay
![OnPay]()
Best ValueOnPay
Pros & Cons
Why We Picked It
The flexible OnPay serves both general and specialized businesses, including those in agricultural, medical, and professional service industries. It's easy to use thanks to its clean interface and navigation tools. OnPay also has a reasonable price of $49 per month, plus $6 per employee per month. (Additional HR resources are available for $15 per month, plus $2 per employee per month).
Who It's For
Budget-conscious payroll managers: The service doesn't pile on extra fees the way some others do, so it's good if you are trying to keep your budget in check. Of course, you now have to pay extra for additional HR features.
Novices and specialized businesses: OnPay’s usability, excellent payroll tools, and solid support help you get up to speed quickly, no matter your level of previous experience. It can easily scale to support hundreds of employees across various specialized companies as well.
Specs & Configurations
1099s Free Trial HR Add-Ons Mobile Admin Access Responsive Site Submits Federal, State, Local, and Payroll Taxes Time Tracking W-2s Learn More OnPay Review -
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Credit: Patriot Software
![Patriot Software Payroll]()
Best Low-Cost Payroll ServicePatriot Software Payroll
Pros & Cons
Why We Picked It
There's something almost charming about the flexible and inexpensive Patriot Software Payroll. The information it shows you is, for the most part, easily accessible, though its simplicity is deceptive. Behind those modest, friendly pages lies an efficient, intuitive payroll processing engine. The availability of an affordable, simple, and integrated accounting application (Patriot Software Accounting) adds to the appeal.
Who It's For
Payroll beginners: Thanks to its exceptional setup wizard, user guidance, and ubiquitous support, Patriot Software Payroll is well-suited for new payroll managers. Everything is straightforward and easy to understand.
Small businesses that don't plan to grow: If you run a business that isn't likely to grow tremendously and requires more sophisticated tools and HR resources, Patriot Software Payroll is a good choice. It works well for companies with 10 employees or fewer, but can handle hundreds.
Specs & Configurations
1099s Free Trial HR Add-Ons Mobile Admin Access Responsive Site Submits Federal, State, Local, and Payroll Taxes Time Tracking W-2s Learn More Patriot Software Payroll Review -
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Credit: Square
![Square Payroll]()
Best for Square POS UsersSquare Payroll
Pros & Cons
Why We Picked It
Square offers an excellent ecosystem of financial services and tools that work well together. Its payroll piece, Square Payroll, integrates especially well with Square Point of Sale (POS). The combination supports hourly workers and payroll administrators as they record hours, schedule shifts, and complete other compensation-related tasks. Square Payroll makes the list primarily because of those powerful connections.
Who It's For
Users of Square labor management applications: Square Payroll works best with Square POS and other related apps, so we recommend it only if you intend to use both.
Specs & Configurations
1099s Free Trial HR Add-Ons Mobile Admin Access App Submits Federal, State, Local, and Payroll Taxes Time Tracking W-2s Learn More Square Payroll Review -
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Best For | Best Overall | Best for Small Businesses That Plan to Grow | Best for QuickBooks Users | Best Value | Best Low-Cost Payroll Service | Best for Square POS Users | Best Overall | Best for Small Businesses That Plan to Grow | Best for QuickBooks Users |
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Buying Guide: The Best Payroll Services for 2026
What Is Payroll Software?
We use the term payroll software to describe do-it-yourself applications that enable you to run payroll, even if you don't have a background in finance. These web-based apps process your organization's payroll and distribute the correct amount of money to employees every payday. They calculate and submit payroll taxes and filings, and track other withholdings, such as those for health insurance and retirement plans. They provide templates for comprehensive employee records and enable you to create policies for additional benefits, such as time off. These apps also comply with industry standards and best practices.
You can often connect payroll websites to small business accounting applications, such as Intuit QuickBooks Online, so that the payroll data becomes a part of a company’s overall finances. Within payroll apps, you can view such data in preformatted reports and customize the output to suit your specific needs. Although our focus is on the payroll process itself, we also examine the HR tools these services provide.
In addition to automatically submitting payroll taxes and filings, the payroll software we review also calculates, prepares, and sometimes distributes W-2s and 1099s. The companies that develop them also provide mobile apps that allow you to perform most tasks that you can on the desktop web versions, including processing payroll. Workers can access a lot of their payroll information via employee apps, too.
How We Test Payroll Software
When we test and review payroll software, we focus on the best options for small businesses with 10 or fewer workers. (Of course, some of these applications can handle hundreds of employees.) We run payrolls using sample payroll data and evaluate the depth and usefulness of features, such as employee records and HR tools. We also look at each payroll app’s history, reputation, and security practices.
How Much Does Payroll Software Cost?
Every payroll website we reviewed charges a base price, averaging around $50 per month, and a per-worker (employee or contractor) monthly charge of usually just a few dollars. Some, like ADP RUN and Gusto, have additional fees for some services.
If you’re on a budget and want full-service payroll at the lowest cost, Patriot Software is your best choice. It costs $37 per month, plus $5 per month per worker. Square Payroll works especially well for hourly workers in the Square labor management ecosystem. It costs $35 per month, plus $6 per worker per month. (Its contractor-only version waives the monthly base fee.)
You pay a lot more for three of the other payroll websites we reviewed. ADP RUN, Gusto, and Intuit QuickBooks Workforce are among the most expensive. Their equivalent tiers start at around $80 per month, and you must also factor in per-worker fees. Of course, these applications provide more depth and flexibility than the less expensive ones.
Why Do You Need Payroll Software?
If you process payroll manually, you know it's complex, deadline-driven, and exacting. Your employees count on you to dispatch their paychecks and authorize direct deposits on scheduled paydays. They expect you to know how much to withhold for all the taxes they owe and the benefits you offer—and to pay them.
This creates an enormous amount of detail to track, especially if you try to do it all on paper. Employees generally don't tolerate mistakes well. Tax agencies can assess stiff fines and other penalties if you don't get payroll filings and taxes in on time, too. Benefits providers might cut off services such as health insurance if you fall behind on payments.
Payroll applications help you run accurate, timely payrolls. They count on you to provide correct information about your payroll configuration and employees. And they won't let you complete a payroll if you're missing any required inputs.
Most of these applications make supporting data, such as employee profiles, available as you prepare to pay your workers. They also offer special assistance and error-checking in many areas. For example, Gusto can complete your state registration for you (for a fee), and OnPay is especially good at error-checking pay runs.
Payroll software has been gradually rolling out AI-driven capabilities to enhance error-checking. They’ve also incorporated AI into their help systems, allowing you to ask a question and get a direct answer in some cases, though they more often provide step-by-step instructions for getting there. Some also use AI to help you move worker hours into payroll worksheets, for example.
These apps can save you an enormous amount of time, which is usually in short supply for business owners. They minimize the frustration and headaches that come with payday, ultimately promoting goodwill with your employees because of their accuracy, flexibility, and timeliness. And they might even save you money you would otherwise pay in penalties.
In short, there really aren't any downsides to paying your employees and contractors via payroll software.
What Does Setting Up Payroll Software Entail?
Although each payroll service has a unique user experience, they all have similar structures. They begin with the setup process, which is the most detail-oriented and time-consuming aspect of paying your staff.
Though the exact order varies, some apps walk you through pages of questions in a step-by-step fashion. Others provide partial setup wizards and leave the rest to you, using the Settings menu. These setup wizards ask for information about your company, such as your address and Employer Identification Number (EIN). You select your payroll schedule, which is usually weekly or biweekly, and you connect the application to your payroll bank account.
If your business offers employee benefits such as health insurance and retirement plans, you can specify the cost to employees and any company contributions. If this is the case, you need to ensure that you pay benefits providers on time. Some companies, such as ADP and OnPay, function as benefits brokers, while others, such as Intuit and Square, allow you to work with third-party providers. These services then deduct the required amounts during the payroll process.
As part of the setup, you must also create thorough records for each employee, including their contact information, date of birth, number of allowances from Form W-4, salary or hourly pay rate, and Social Security number.
If you compensated employees in the past year, you need to enter any existing payroll history. This process can be arduous and may require assistance from a site's onboarding specialists, as absolute accuracy is critical. Some sites, such as ADP RUN, include tools to automate the import of payroll history from competitors.
If you offer additional payroll types, such as paid time off and sick pay, you can define the policies for accruing these benefits. The services then keep track of them for you. You can also pay bonuses and commissions during a regular pay run or issue them by creating an off-cycle payroll. Need to include garnishments like child support on paychecks? Payroll software can do that, too. Most also let you create custom pay types, sometimes even when you're in the middle of a pay run.
Once you complete the setup process, you generally can't return to the dedicated setup wizards, so it's essential to get everything right the first time. That said, every payroll app we tested has a comprehensive settings section where you can add to and modify the payroll information you already entered.
Setup takes time and might require you to consult many resources. But in the end, it lets you run your payroll so much faster than you could manually.
How Long Does It Take to Run a Payroll?
Running payroll is the easy part. Though the exact process may differ, payroll applications generally work similarly during the pay run. When you launch a payroll, they show you a list of hourly and salaried employees (and possibly contractors; you might run them separately) and their pay rates. You first check to make sure the pay period and pay date are correct. After that, you simply enter the number of hours worked, where applicable, in the appropriate pay type boxes (such as regular, overtime, vacation) or import them.
Every application has more than one way to import hours from a mobile app, a time clock, or time sheets, all of which are more likely to be accurate than manual entry methods. Sometimes, you pay extra for this capability, such as with ADP RUN, which lets you turn a tablet into a time clock for punching in and out.
After you enter all the necessary details, you preview your payroll. You can see each employee's gross and net pay, withholding for taxes and benefits, and any company contributions. The payroll apps then show you the total amount of money they will withdraw from your bank account for direct deposits, benefits, taxes, and other withholdings, as well as the exact date of the withdrawal. And they usually provide a link to any checks you must print.
After you approve a payroll, the services can generate additional tables or reports with the details of the pay run. Many allow you to edit, cancel, or void a payroll after you approve it, but before a certain deadline.
If you have few employees or a very simple payroll, the process shouldn't take more than a few minutes. Depending on which application you use, you might be able to let payroll process automatically (assuming there are no changes from the previous run). Some even offer next-day payroll and paycheck advances.
Do Payroll Applications Have Special HR Tools?
In larger companies, separate departments usually handle payroll and HR. In your small business, though, both of those responsibilities might land on your desk or that of another employee. There's so much overlap between payroll and HR that you will do HR tasks even if you're strictly running your payroll through payroll software. Every app also includes numerous customizable preformatted reports for both payroll and HR—even powerful custom reports in some cases.
Most of the payroll apps we review offer basic HR components, such as document storage, document templates, new hire reporting, and online W-4 and W-9 forms. Some offer extras, such as background checks, compliance alerts, performance reviews, and recruitment and talent management. We primarily evaluate each site’s payroll processing capabilities, and we consider good HR tools a bonus.
Are Payroll Sites Safe?
The thought of using a payroll application might leave you wondering whether it's safe to put all your business's payroll data online. All the payroll services we review come from reputable companies with years or even decades of experience. They make every effort to keep your sensitive payroll data safe, as you can read about in our reviews. All support multi-factor authentication, too.
Can You Conduct Payroll from Your Phone?
It's possible to run payroll on your phone, though it’s easier on your PC. Many mobile versions let you view employee records and, in some cases, even reports. Some payroll sites are accessible via mobile browsers, while others offer dedicated apps. They don’t all replicate absolutely every feature of their desktop counterparts, but some do.
As mentioned, you can invite employees to create login credentials and enter their personal information in their worker portal, available on desktop or mobile. In most cases, they can do much more than that, such as punch in and out, request time off, see pay stubs, and view benefits.