Best Payroll Software for Small Business with Comparison

Ask any small business owner in the USA what keeps them up at night, and payroll is usually somewhere on the list. Getting it wrong — even once — can mean late employee payments, tax filing errors, IRS penalties, or compliance issues that cost far more to fix than they would have to prevent.

In the early days of a business, handling payroll manually or through spreadsheets might work. But the moment you hire your second or third employee, things get complicated fast. Federal taxes, state taxes, Social Security, Medicare, garnishments, PTO tracking, year-end W-2s — the list grows with every person you bring on board.

That's exactly what payroll software is built to handle. The right platform runs payroll automatically, files taxes on your behalf, stays current with changing regulations, and gives your employees a clean way to access their pay stubs and benefits information. It takes a genuinely stressful task off your plate and turns it into something that largely runs itself.

For small business owners in the USA in 2026, the payroll software market has never been more competitive — or more accessible. Whether you have 2 employees or 50, there's a solution built for your size, your budget, and your industry. This guide covers the top four platforms — Gusto, ADP, Paychex, and QuickBooks Payroll — with honest reviews, real pricing, and a clear breakdown of who each one is best for.

Let's get into it.

Payroll Software Comparison Table

Individual Payroll Software Reviews

Gusto Review

Best for: Small businesses and startups in the USA that want a modern, all-in-one payroll and HR platform.

Gusto is the name that comes up most often when small business owners start looking for payroll software in the USA — and it earns that reputation. It was built from the ground up with small businesses in mind, and that shows in everything from the clean dashboard to the step-by-step setup process that gets you running payroll in under an hour.

On the core payroll side, Gusto handles automatic federal, state, and local tax filing, direct deposit, contractor payments, and year-end W-2 and 1099 forms. Beyond payroll, it also manages employee benefits (health insurance, 401k, commuter benefits), PTO tracking, onboarding documents, and offer letters — making it a genuine HR platform, not just a payroll tool.

The Simple plan starts at $40/month plus $6 per employee per month. The Plus plan ($80/month + $12/employee) adds multi-state payroll, next-day direct deposit, and advanced HR tools. For businesses that need more, Gusto also offers a Premium tier with dedicated support.

Pricing Summary:

• Simple: $40/mo + $6/employee

• Plus: $80/mo + $12/employee

• Premium: Custom pricing

Pros:

• Extremely beginner-friendly setup and interface

• Automatic tax filing included on all plans

• Solid built-in HR tools — benefits, onboarding, PTO

• Transparent, predictable pricing

Cons:

• Monthly base fee plus per-employee cost adds up for growing teams

• Customer support response times can vary

• Some HR features only available on higher plans

Verdict: Gusto is the best payroll software for most small businesses in the USA that want something modern, easy, and comprehensive without needing a payroll specialist to run it.

ADP Run Review

Best for: Small to mid-sized businesses in the USA that need a scalable, compliance-heavy payroll solution with room to grow.

ADP has been in the payroll business longer than most of its competitors have existed. It's the most recognized name in business payroll in the USA, and its small business product — ADP Run — brings enterprise-level reliability to teams of 1 to 49 employees.

ADP Run covers the full payroll spectrum: automatic tax filing and deposits, direct deposit, garnishment management, new hire reporting, workers' comp administration, and detailed reporting. It also integrates with popular accounting tools, time-tracking software, and HR platforms. For businesses operating across multiple states, ADP's compliance engine is one of the strongest in the industry — it automatically stays current with changing tax laws so you don't have to.

The downside is pricing transparency. ADP doesn't publish its rates publicly — you have to call for a quote, which some business owners find frustrating. Industry estimates put the starting price around $59/month plus a per-employee fee, but your actual cost will depend on your team size, plan level, and add-ons.

Pricing Summary:

• Custom pricing (estimated: $59/mo base + per-employee fee)

• Plans: Essential, Enhanced, Complete, HR Pro

Pros:

• Extremely strong compliance and tax tools

• Trusted by millions of businesses across the USA

• Highly scalable from small teams to larger organizations

• Extensive integration library

Cons:

• No transparent public pricing — requires a sales call

• Setup and onboarding can take longer than competitors

• Interface is functional but not the most modern-looking

Verdict: ADP Run is the right call for small business owners in the USA who prioritize compliance, reliability, and a platform they can stick with as their team scales beyond 20 or 30 people.

Paychex Flex Review

Best for: Small businesses that need strong customer support, multi-state payroll capabilities, and flexible plan options.

Paychex has been processing payroll in the USA for over 50 years, and its cloud-based platform Paychex Flex brings that experience into a modern, mobile-friendly package. It's a particularly strong choice for businesses that operate across multiple states or need a partner they can actually pick up the phone and talk to.

Paychex Flex handles payroll processing, tax filing and compliance, direct deposit, benefits administration, time and attendance tracking, and HR document management. One of its standout features is 24/7 customer support — you can reach a payroll specialist any time of day, which is a big deal when something goes wrong right before payday.

The platform also has a solid mobile app that lets employees view pay stubs, request time off, and update their personal information without going through HR. That kind of employee self-service reduces the small administrative tasks that eat into a small business owner's day.

Like ADP, Paychex doesn't list prices publicly. Estimates start around $39/month plus a per-employee fee, but the actual cost depends on your plan and add-ons. Getting a real number requires contacting their sales team.

Pricing Summary:

• Custom pricing (estimated: $39/mo base + per-employee fee)

• Plans: Go, Flex Select, Flex Pro, Flex Enterprise

Pros:

• 24/7 customer support — available whenever you need it

• Strong multi-state payroll and compliance tools

• Good employee self-service portal and mobile app

• Decades of experience handling USA payroll regulations

Cons:

• Pricing is not publicly available — requires a quote

• Interface feels a bit dated compared to Gusto or QuickBooks

• Some advanced features only available on higher-tier plans

Verdict: Paychex Flex is the best payroll software for small business owners in the USA who value reliable human support and need strong multi-state compliance without a lot of technical setup on their end.

QuickBooks Payroll Review

Best for: Small businesses already using QuickBooks accounting software who want payroll built directly into their existing workflow.

If your business already runs on QuickBooks Online, adding QuickBooks Payroll is one of the smoothest decisions you can make. Everything lives in one place — your books, your expenses, your invoices, and your payroll — which means no double data entry, no syncing issues, and a cleaner picture of your overall business finances at all times.

QuickBooks Payroll covers automated payroll runs, same-day and next-day direct deposit, automatic federal and state tax filing, contractor payments, and year-end W-2 and 1099 processing. On the Premium and Elite plans, you also get time tracking, HR support, and a tax penalty protection guarantee — meaning QuickBooks will pay any penalties caused by errors on their end, up to $25,000.

The Core plan starts at $45/month plus $6 per employee, which is very competitive for what you get. The Premium plan ($80/month + $8/employee) adds same-day direct deposit and the HR support center. Elite ($125/month + $10/employee) includes tax penalty protection and a dedicated payroll expert.

Pricing Summary:

• Core: $45/mo + $6/employee

• Premium: $80/mo + $8/employee

• Elite: $125/mo + $10/employee

Pros:

• Perfect integration with QuickBooks accounting — no extra setup

• Same-day direct deposit available on higher plans

• Tax penalty protection on Elite plan

• Automatic payroll runs with minimal manual input

Cons:

• Best value only if you're already a QuickBooks user

• Can feel redundant and expensive if you don't use QuickBooks

• Customer support quality has been inconsistent based on user reviews

Verdict: QuickBooks Payroll is the top choice for small businesses in the USA already in the QuickBooks ecosystem. If that's you, it's a no-brainer. If you're not, Gusto or Paychex may serve you better.

How to Choose the Right Payroll Software for Your Small Business

With four solid options on the table, here's how to cut through the noise and pick the one that actually fits your business.

Start With Your Team Size How many employees you have today — and how many you expect to hire in the next year — matters a lot. Gusto and QuickBooks Payroll are priced per employee, so costs scale predictably. ADP and Paychex use custom pricing that can sometimes be negotiated for larger teams. If you're under 10 employees and growing slowly, Gusto is typically the most cost-effective. If you're heading toward 30 to 50 employees, ADP or Paychex may offer better long-term value.

Think About Tax Filing and Compliance Every payroll software on this list handles automatic federal tax filing. But state and local tax compliance varies in complexity, especially if you have employees in multiple states. Paychex and ADP have the strongest multi-state compliance engines. If you operate in just one state, Gusto and QuickBooks Payroll handle it well.

Check Your Accounting Software If you already use QuickBooks Online, the payroll add-on is almost always the cleanest option. If you use Xero, FreshBooks, or another accounting platform, check which payroll tools integrate best. Gusto integrates with a wide range of accounting software and is a solid choice regardless of what you're using.

Consider How Much HR Support You Need Payroll and HR are closely connected. If you need help with benefits administration, PTO tracking, employee onboarding, or offer letters, Gusto has the most built-in HR tools of the group at an accessible price. ADP and Paychex offer HR services too, but they're often sold as add-ons.

Look at the Support Model When payroll goes wrong, you need help immediately. Paychex stands out with 24/7 live support. Gusto and QuickBooks both offer support, but hours and response times vary by plan. ADP has a large support team but access to dedicated reps depends on your plan level. If peace of mind matters to you, factor the support experience into your decision.

Don't Forget the Employee Experience Modern payroll software does more than just pay your people — it gives them a place to view pay stubs, update their banking info, download tax forms, and manage PTO. A good employee self-service portal reduces the number of questions your HR or admin team has to answer every week. All four tools on this list offer this, but Gusto's portal is particularly well-rated by employees.

Frequently Asked Questions

What is the best payroll software for small businesses in the USA? Gusto is widely considered the best payroll software for small businesses in the USA, thanks to its easy setup, transparent pricing, built-in HR tools, and automatic tax filing. QuickBooks Payroll is the better pick if you're already using QuickBooks for accounting.

How much does payroll software cost for a small business? Prices typically range from $40 to $125 per month as a base fee, plus $6 to $12 per employee per month. For a small business with 10 employees, you can expect to pay anywhere from $100 to $250 per month depending on the platform and plan you choose. ADP and Paychex use custom pricing, so your actual cost requires a quote.

Does payroll software file taxes automatically? Yes — all four platforms reviewed here (Gusto, ADP, Paychex, and QuickBooks Payroll) include automatic federal and state tax filing. They calculate withholdings, submit payments to the IRS and state agencies, and generate W-2s and 1099s at year end. This alone is worth the price of the software for most small business owners.

Can I run payroll for contractors and freelancers? Yes. Gusto, ADP, Paychex, and QuickBooks Payroll all support contractor payments and handle 1099 filing at year end. Gusto in particular has a contractor-only plan starting at $6 per contractor per month if you don't have any W-2 employees yet.

Is it worth switching payroll software if I'm already using one? Switching payroll platforms mid-year is possible but takes planning. You'll need to transfer year-to-date payroll data, tax payment records, and employee information. Most providers offer migration support to make this easier. If your current software is causing errors, costing too much, or missing features you need, switching is absolutely worth the short-term effort.

Conclusion: Which Payroll Software Should You Choose?

Payroll is one of the most important systems in your business — get it right and your team stays happy, your taxes stay clean, and you can focus on growing. Get it wrong and you're dealing with IRS notices, employee frustration, and compliance headaches that no small business owner has time for.

Here's the short version of how to decide:

Go with Gusto if you want the best all-around small business payroll software in the USA. It's easy, affordable, and handles both payroll and HR in one place. Perfect for startups, growing teams, and business owners who want something they can manage without a dedicated HR person.

Go with ADP Run if your business is scaling quickly, you need enterprise-grade compliance, or you want a platform that can handle your payroll needs at 5 employees and again at 50.

Go with Paychex Flex if you operate across multiple states, need 24/7 live support, or want the backing of one of the most experienced payroll companies in the USA.

Go with QuickBooks Payroll if your books are already in QuickBooks and you want everything in one place with zero integration headaches.

All four platforms offer demos or trial periods — take advantage of that before you commit. The best payroll software for your small business is the one that fits how you actually work, not just the one with the most features on paper.