Congratulations, your small business is expanding. While hiring and growing your team is a sign of financial success, managing payroll can feel daunting. Fortunately, there are many payroll services on the market that help streamline the process and offer benefits administration and onboarding workflows.
Below, CNBC Select rounds up six of the best payroll services for small businesses. We evaluated each payroll service based on a range of features, including pricing, features, benefits administration and HR tools. (See our methodology for more information on how we choose the best payroll services.)
Best payroll services for small businesses
Best for comprehensive features
OnPay
Cost
$40/month + $6/month per person (one month free)
Benefits Administration
Health insurance, retirement, vacation and PTO, life and disability insurance, liability insurance, commuter benefits, HSA and FSA
HR tools
Yes
Pros
- One month free trial
- Offers the capability to provide employees with a wide array of benefits
- Health insurance available in all 50 states
- Offers automated tax payments and filings
- Free W-2 and 1099 processing available
Cons
- Other platforms offer longer free trial periods
Who's this for? OnPay packs all of the payroll features your business could need into a simple platform at an affordable price. It handles payroll taxes on the federal, state and local levels and even lets you create customizable payroll reports. It also accounts for multiple pay schedules, can handle withholding for unemployment insurance and can manage payroll for employees across multiple states.
Standout benefits: OnPay offers integrations with accounting services like Quickbooks and Xero. There are also features for HR and employee benefits. For instance, an employee self-service feature allows new employees to sign administrative paperwork, conduct onboarding and request time off.
Best for user experience
Gusto
Cost
Starts at $40/month + $6/month per person
Benefits Administration
Medical, dental, and vision insurance, 401(k) retirement plans, HSA and FSA, Commuter benefits, 529 college savings plan
HR tools
Yes
Pros
- Contractor-only option available
- Offers the capability to provide employees with a wide array of benefits
- Offers different tiers for flexible price points
- Offers automated tax payments and filings
- Offers employee performance review tools and survey insights
Cons
- Doesn't offer a free trial
Who's this for? Gusto offers simple, automated processes for business owners, including automatic W-2 and 1099 forms, unlimited payroll runs, state tax registration, international contractor payments, time off requests and approvals, PTO reporting, cost reports, tax credits and more.
Customer reviews suggest Gusto is easier to navigate than other platforms because of its simplicity and well-designed user interface. Both employers and employees describe the platform as user-friendly but even instances where users had to reach out to customer service for assistance received positive feedback on the experience.
Standout benefits: Gusto allows business owners to pay themselves, W-2 employees and contractors. There are even capabilities allowing you to pay employees and contractors who reside in more than one state.
Best for affordability
Wave Payroll
Cost
Starts at $20/month + $6/month per employee + $6/month per contractor
Benefits Administration
None
HR tools
No
Pros
- Offers a 30-day free trial
- Generates W-2 and 1099 forms for tax season
- Offers two pricing tiers for US-based businesses
Cons
- Complete payroll tax service, which automatically pays and files state and federal payroll taxes for businesses, only available in AZ, CA, FL, GA, IL, IN, MN, NY, NC, TN, TX, VA, WA, and WI at this time
- Doesn't offer employee benefits administration
Who's this for? Wave Payroll offers more limited features compared to bigger-name competitors but can be a more affordable option for some businesses. That's because Wave charges lower rates to businesses based in "self-service" states, where Wave doesn't file payroll taxes automatically. However, Wave still allows you to export the appropriate forms, making it easy to go through the filing process manually.
Standout benefits: Wave currently offers a 30-day free trial for new users. Small business owners based in Canada can also use Wave's payroll services.
Best for payroll and bookkeeping
Quickbooks® Payroll
Cost
Starts at $37.50/month + $5/month per employee (with discount; regular price starts at $75/month + $5/month per employee)
Benefits Administration
401(k) plans, health benefits, workers' compensation administration
HR tools
Yes
Pros
- 50% off discount for the first three months across all tiers
- Offers HR resources and ability to talk to an HR advisor
- Ability to only sign up for payroll services
Cons
- Base cost is on the pricier side compared to competitors
Who's this for? Intuit Quickbooks is a household name in the business bookkeeping space. So if your business has already been using this service for bookkeeping, the good news is you can also use the same platform for payroll.
Every plan offered by Quickbooks Payroll includes bundled features for payroll, benefits administration and bookkeeping. More premium plans offer features like same-day direct deposits, access to an HR Support Center and mobile time tracking. However, there are also more affordable plans for businesses that only need payroll and benefits administration services.
Standout benefits: Within the most basic plan, bookkeeping features include income and expense tracking, organizing receipts, maximizing tax deductions, invoicing and accepting payments, running reports and sending estimates, managing 1099 contractors and tracking sales and sales tax.
Best for international payments
Rippling
Cost
Starts at $8 per month per user; Rippling provides custom quotes based on the services your business needs
Benefits Administration
FSA, HSA, commuter benefits, medical, dental and vision insurance, 401(k)
HR tools
Yes
Pros
- Starts at $8 per user per month
- Offers HR, payroll, benefits, IT and business finance tools all in one platform
- Features for tax compliance
- Free off-cycle pay runs
- Onboard and pay international employees in their currency while also staying compliant with local laws in other countries
Cons
- Must get a custom quote to figure out exactly how much your business will pay
Who's this for? Rippling is geared toward businesses that hire both U.S.-based and international employees and contractors. Rippling also offers a ton for businesses that have no intention of hiring globally, including a slew of HR tools, IT and finance features and benefits administration. However, those who do hire globally have the peace of mind of knowing that the platform's robust automation allows them to onboard and pay employees and contractors in their local currency.
Standout benefits: Rippling's global payroll features also allow your business to remain compliant with local and international tax laws.
Best free trial offer
SurePayroll
Cost
$19.99 per month + $4 per employee (without tax filing); $29.99 per month + $5 per employee (full service); offers a 6-month free trial
Benefits Administration
401(k) plans, workers' compensation, health insurance
HR tools
Yes
Pros
- Lengthy 6-month free trial period
- Offers unlimited payroll runs
- Live assistance available
- Offers access to an HR advisor
Cons
- Benefits administration isn't as comprehensive as what's offered by some competitors
- The lowest pricing tier doesn't include tax services
Who's this for? SurePayroll offers the longest free trial period of any other service on this list. New users get six months to try out either of its plans — full-service or no tax filing — for free.
Standout benefits: Users can make paying for payroll more affordable by opting for the no-tax filing tier. This tier costs just $19.99 plus $4 per employee. However, the platform will not file and deposit any local, state, or federal taxes and will not submit and year-end filings. Most other platforms include tax services across all offerings. Still, it gives the power to business owners to decide whether they'd like to handle this service themselves for a lower monthly fee.
Best for larger businesses
ADP
Cost
Must enter your information to receive a quote
Benefits Administration
401(k), SIMPLE IRA and SEP IRA plans, health insurance
HR tools
Yes
Pros
- Established brand among corporations
- Offers a wide range of services including benefits administration, payroll, talent acquisition, HR tools, compliance services and AI tools
- Provides services for small, medium and large (1,000+ employees) businesses
- Offers 4 months of payroll for free when customers sign up for small business payroll processing
- Offers mobile app
- Offers full-service payroll in all 50 states and in over 140 countries
- Offers state and federal compliance alerts
Cons
- Must enter your information in order to receive a quote on pricing
Who's this for? ADP is a leader in the payroll space, with the ability to serve small businesses with as little as one employee to large organizations with over 1,000 employees.
Standout benefits: ADP is available in all 50 states as well as internationally in over 140 countries. It offers a wide array of services that can be tailored to fit your organization based on your industry, compliance and software integration needs.
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More on our picks for best payroll services for small businesses
OnPay
OnPay boasts some of the lowest pricing on the market. It offers many HR and benefits tools and features including W-2 and 1099 processing, PTO, health insurance, 401(k) plans, life and disability insurance, liability insurance, commuter benefits, HSA and FSA. When people think of working for small businesses or startups, a common concern is that they won't get health insurance or retirement planning account contributions. So having access to "corporate" benefits makes the platform appealing to business owners who want to offer competitive perks.
Cost
$40 per month plus $6 per employee per month
Benefits administration
Health insurance, retirement, vacation and PTO, life and disability insurance, liability insurance, commuter benefits, HSA and FSA
Gusto
Gusto offers various employee benefits administration and HR tools, including applicant tracking, custom onboarding checklists, offer letter templates, benefits advisors, 401(k) plans, 529 plans, HSA, FSA accounts and more. However, you may need to pay more to access all features.
Cost
The "Simple" plan costs $40 per month plus $6 per employee per month and a more comprehensive "Plus" plan costs $80 per month plus $12 per employee. For access to the "Premium" plan, you must contact Gusto directly.
Benefits administration
Medical, dental, and vision insurance, 401(k) retirement plans, HSA and FSA, Commuter benefits, 529 college savings plan
Wave Payroll
Wave offers reasonable rates and only charges for contractors you pay each month, so you won't be charged for contractors or seasonal employees who are not actively working for you.
There are only 14 "tax service" states where businesses have the option to automatically file taxes: Arizona, California, Florida, Georgia, Illinois, Indiana, Minnesota, New York, North Carolina, Tennessee, Texas, Virginia, Washington and Wisconsin. All other states are considered self-service states.
Cost
For self-service states, users pay $20 per month + $6 per employee + $6 per contractor; For tax service states, users pay $40 per month + $6 per employee + $6 per contractor
Benefits administration
None
Quickbooks
Quickbooks Payroll offers an introductory 50% off offer for the first three months. After, you'll be charged normal pricing. Without the 50% off three-month discount, plans start at $75 per month plus $5 per month per employee and can be as expensive as $170 per month plus $8 per employee per month, which is pricier than many of the alternatives.
Payroll and benefits-only services are also eligible for the offer of 50% off for the first three months. Because you aren't including bookkeeping services, the pricing here is lower, with plans costing $45 to $125 per month plus $5 to $10 per employee per month (without the discount).
Cost
Plans start at $75 per month plus $5 per employee per month without the introductory discount
Benefits administration
401(k) plans, health benefits, workers' compensation administration, employee portal
Rippling
Rippling's automations make it well-equipped to handle robust needs, like paying global employees, creating workflows that send notifications and help manage administrative tasks, categorizing data and more. The platform also lets business owners create a custom benefits experience for teams working abroad so you can create a holiday time-off calendar to suit different countries and create policies specific to the countries your employees work in. You can even offer equity to employees globally.
The platform boasts over 500 integrations with platforms like Brex, Carta, Slack, AWS, Zoom, PayPal, Salesforce, Google Workspace, Checkr and more.
Its HR tools allow it to handle onboarding and offboarding, time and attendance, performance management, employee training and employee feedback, among other features.
Cost
Starts at $8 per user per month but you must get a customizable quote to know exactly how much you'll pay
Benefits administration
FSA, HSA, commuter benefits, medical, dental and vision insurance, 401(k)
SurePayroll
SurePayroll offers some administration for basic benefits like health insurance, 401(k) plans and workers' compensation. In terms of payroll, the platform offers free 2-day direct deposit, unlimited payroll runs, the ability to process multiple pay rates and bonuses, access to online paystubs and more.
Cost
$29.99 per month + $5 per employee for the full suite of services; $19.99 per month + $4 per employee to exclude tax filing
Benefits administration
401(k), health insurance and workers' compensation
ADP
ADP has been in the payroll space for over 75 years and is used by many large corporations. In addition to payroll, ADP offers services around tax and compliance so your business can keep up with local regulations. It calculates tax liability, withholds and pays the appropriate taxes for you and issues tax forms like your W-2 and 1099. ADP SmartCompliance® technology also helps businesses capitalize on applicable business tax credits, improve wage garnishment processing and flag potential compliance issues.
Cost
Must provide your information to receive a pricing quote
Benefits administrations
401(k), SIMPLE IRA, SEP IRA, health insurance
FAQs
What are the benefits of using payroll software as a small business?
Payroll software can help business owners save time, reduce the likelihood of error and even make it easier to manage payments to contractors or employees who may reside in other countries. It's the business owner's responsibility to make sure employees are paid on time and payroll software and services can assist with this.
What information do you need to add an employee to payroll?
To add employees to the payroll, you'll need their full legal name, address, a completed W-4 form and often an email address.
What are payroll taxes?
Payroll taxes are a type of tax paid on wages, tips and salaries. The business owner must withhold payroll taxes from their employee's paychecks and send them to the IRS on their employees' behalf.
Can I do payroll myself?
Payroll can be a complex process, especially if you're managing employees who reside in different states and even in different countries. It's usually best to get an expert or digital payroll tool to enable your process so you can avoid mistakes and avoid incurring any fines due to payroll and tax mistakes.
Do paychecks count as paystubs?
Paychecks and paystubs are not the same thing. A paycheck is an electronic deposit or a physical bank check with the amount of money you've been paid. A pay stub outlines all the calculations and deductions needed to arrive at the correct take-home pay.
Bottom line
While growing your team as a business owner can be exciting, it's important to make sure you have your ducks in a row when it comes to payroll. Fortunately, there are a variety of services on the market that don't just help you handle payroll but also employee benefits, onboarding, bookkeeping and more. Aside from the features, be sure to also keep price points and user experience in mind when selecting the right payroll service for you.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every payroll service review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of small business products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best payroll services for small businesses.
Our methodology
To determine which payroll services are best for small businesses, CNBC Select analyzed over a dozen software companies and looked at their pricing, features, user reviews and ratings.
The software we've chosen received high marks for:
- Having an easy-to-navigate user interface
- Having helpful integrations with other business software
- Having automation features that make payroll easier
- Easy to customize based on your company's needs and policies
We sifted through online reviews for each platform to better understand the functionality when it comes to user experience, customer service, features for full-time and contract employees and the implementation of HR resources.
The payroll services we selected for this ranking offer benefits administration and HR tools. They also offer payment processing for contractors and tiered packages based on the needs of the business.
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