The 10 Best Payroll Software in 2025
These are the best payroll software vendors, hand-picked by our experts drawing on years of experience in this space.
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Getting employee payments right and on time is super important for any business. With so many payroll software options out there, it can be overwhelming to choose the best one. But don’t worry—we’ve done the research for you! We’ve put together a list of the best payroll software based on our extensive findings, including demos, expert opinions, and real-life experience.
In this guide, you'll discover the top payroll software for small businesses, the best choices for large companies, options specifically for teams in the U.S., and even recommendations for businesses operating globally.
To select the best payroll software and to ensure we specifically list products that are truly best-in-class, we participated in the HR software demos, conducted user interviews, consulted with external experts, and tested dozens of tools that met the basic requirements.
The products that made the cut excel across the board but stood out in particular for:
- Ease of Use: We focused on how user-friendly each software was. It’s crucial that HR professionals and accountants can navigate the system easily without getting bogged down in complicated processes. The goal of payroll tech should be to lighten your team’s load, not make their jobs harder.
- Automation Capabilities: We found that having good automation capabilities is a significant advantage for a payroll platform. Features like automatic tax calculations, fast payroll processing, and solid compliance tracking differentiate top-notch payroll and benefits software vendors from mediocre ones. Automation helps everything flow smoothly while also making sure that employees are paid correctly and in line with the law.
- Mobile Compatibility: We paid attention to how well each software worked on mobile devices since many people need to access payroll information on the go. Imagine your accountant wanting to double-check payroll schedules while out for coffee, or your HR manager easily approving payslips on their tablet during a meeting. Plus, employees should be able to check their pay dates right from their phones without any hassle.
- Expert Support: Finally, we acknowledge that having good customer support can really impact how satisfied users are with the software. Quick and helpful support can make a big difference! When your customer success manager (CSM) really knows their stuff about local payroll laws and practices, it can lead to a smoother experience for everyone involved. On the flip side, if the support team isn’t familiar with your specific payroll requirements, it can lead to long waits for help and lots of frustration.
To learn more about how we put together our shortlists, please review our HR tech assessment methodology here.
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Deel
Though founded much later than competitors, Deel has established a good reputation for its ability to support payroll in over 200 currencies and ensure compliance across 100+ countries.
PROS
- Payroll services in 100+ countries, contractor management extended to 150+ countries, and 15 different payment options.
- 200+ in-house local tax, payroll, and legal experts to aid contractors in setting up LLCs.
- Local compliance management in 100+ countries.
- Automated payroll and invoicing processes.
- Self-service model often verifies identity within 24 hours.
- Offers APIs and native integrations with over 100 HR solutions.
- Excellent 24/7 customer service with fast onboarding (2-3 days) and local payroll experts in each jurisdiction.
- Deel HR is free for companies of all sizes.
- Seamless integration with platforms like QuickBooks, BambooHR, and Greenhouse, plus custom integration options.
- User-friendly, self-service features enable quick setup; identity verification often takes under 24 hours.
- Automated invoices simplify payments, provided they're in English.
CONS
- No phone support.
- Higher pricing compared to some competitors.
- Contract modifications need addenda, and a $5 payout fee applies.
- Invoice generation seems to be available solely in English.
- Key features like onboarding automation are add-ons, which may increase costs.
- Limited flexibility in modifying contracts or service agreements; changes often require an addendum.
- Invoices cannot be generated in languages other than English.
One of the best things about Deel is that the platform keeps getting more comprehensive each time we pay it a visit.
Starting with core payroll and contractor management services in 2019, Deel now includes a global EOR that works across 100+ countries, an expanded array of payment options, visa support, and automated compliance management. So, whether you’re looking to hire full-time employees, contractors, or freelancers in countries where you don’t have local entities, Deel can still assist.
One particularly impressive feature offered by the platform is the ability to process payroll in over 200 currencies with one click (you read this right, one click).
Another is its extensive payment options. There are 15 different methods, ranging from traditional bank transfers to the more modern PayPal, Wise, Payoneer, and even cryptocurrency via Coinbase. As a cherry on top, your contractors can also obtain a Deel card which lets them receive payments in USD and use these funds directly for purchases.
As expected from a tech-savvy startup, Deel’s built-in automation is good, too. Payroll can be fully automated, and invoices can also be auto-generated based on contract terms.
However, Deel payroll and EOR are more expensive than some alternatives. For example, Papaya Global offers contractor management for $30 per month per contractor and that’s $29 with Oyster, whereas Deel charges $49.
As of this writing, Deel still doesn’t provide phone support. Time tracking features are also missing, which may lead to extra money spent on supplemental solutions for such needs.
Over 35,000 companies have used Deel, including Brex, Google, and Duffel.
Deel provides a range of payroll solutions with different pricing structures:
- Deel Payroll: For businesses with existing entities, this plan offers comprehensive payroll services at $29 per employee per month.
- Deel U.S. Payroll: Specifically for U.S.-based companies, this plan handles payroll, tax calculations, and compliance across all states for $19 per employee per month.
- Deel Contractor: This plan covers compliance, payments, and contractor management in over 150 countries for $49 per month.
- Deel EOR (Employer of Record): This plan enables international hiring without an entity, including payroll, taxes, and benefits for $499 per month.
- Deel US PEO: This plan offers a wider range of services for US companies, including HR, payroll, and benefits administration for $89 per employee per month.
Best For
Deel’s payroll software is best for companies that are scaling quickly and need to hire across multiple jurisdictions without establishing local entities.
We use Deel on a weekly basis to hire, manage, and pay international employees for clients. Once a candidate has accepted our verbal offer, we use Deel to send the offer letter, new hire documentation, and collect information for payroll. Deel stores all of our new hire information such as employee benefits selections, tax information, and signed offer letters. We also use Deel to coordinate with our outside payroll vendor to ensure everyone is paid correctly and the proper withholdings are implemented.
The first thing that we love is Deel HR is free! Not only is it free, it still offers all the bells and whistles of your typical paid platforms. I like that you can use Deel as the employer of record for international employees. Deel ensures we are compliant with local labor laws. Deel HR has replaced our need to purchase an HRIS system to serve as our employee management system.
We purchased Deel because we were seeking an affordable HR tool for our startup company. We were experiencing pain in the areas of documentation management, managing employee files on multiple databases, and wanted to streamline our operations. We were also seeking an onboarding solution that could integrate with our recruitment process. Deel has helped us centralize our HR functions and improve our efficiency in managing employee data and onboarding new hires.
The cost for the employer of record is very high for a startup company. This is an amazing solution to offer for a growing company, but I wish the price was lower or split into two payments across the month. Although it is easy to navigate, the UI could be nicer.
Deel is a one-stop shop for domestic and international hires. They have a built-in background check and visa and EOR in one platform. Other platforms require the use of multiple tools to accomplish these tasks.
First, they need to consider their hiring needs. Determine how many international hires annually to be able to do a cost-benefit analysis. They also need to have a defined hiring workflow to determine if Deel has everything they need to enhance their existing workflow.
Deel has done a great job with API and adding new integrations as the market evolves.
Global and domestic organizations of all sizes.
Deel is great for all companies and industries, especially if they want an all-around tool to take care of all HR needs including global payroll and EOR.
Paylocity
Paylocity combines a simple interface and strong U.S. payroll features that cover everything from tax management to benefits administration, making it a versatile choice for mid-sized businesses.
PROS
- Intuitive interface, even for users who aren’t tech-savvy.
- Employers and employees alike appreciate Paylocity’s customer support team.
- Offers a solid value compared to other enterprise-grade payroll tools.
- Employees find the app straightforward and functional for basic payroll tasks.
- The Paylocity team provides guided setup, easing the transition process.
- Paylocity’s customer support is highly rated for always being available to answer questions.
- Global payroll support for 100+ countries.
- Provides free and unlimited training modules on the website.
- Paylocity’s mobile app has a good UI and functionality
- The tool is easy to use for both employees and employers.
- Has 350+ pre-built integrations.
CONS
- Larger teams may find the reporting features less comprehensive than competitors.
- Support is English-only, with no region-specific assistance.
- Less effective for teams managing both employees and contractors worldwide.
- Very small companies may find Paylocity’s features unnecessary for their scale.
- Undisclosed pricing.
- It doesn’t have a free trial or free plan.
- Support is available in English only.
- It isn’t the best solution for remote teams looking for a tool to manage payroll and benefits for their contractors.
From the moment we started testing Paylocity, its simplicity stood out. Navigating the dashboard felt straightforward, even for team members who weren’t particularly tech-savvy.
As one of our editors logged into the mobile app as an employee to access their payroll details, they shared that they could quickly update their direct deposit information during their commute, thanks to the app’s intuitive design. While the mobile app didn’t offer all the features of the web version, it allowed employees to perform essential tasks like viewing pay stubs and checking tax information with ease.
Another thing we liked about this payroll software was its self-service capabilities. For example, employees could adjust their tax withholdings themselves without involving HR, and the system provided real-time updates.
During our tests, updating tax filing status took just a couple of minutes, and then it was ready for HR to review the update instead of managing the entire process manually. However, when we needed to process benefits-related updates, we noticed a lack of automation. For example, verifying benefits data during open enrollment had to be done manually, which could have been more efficient with automation, we suppose.
We were also impressed with how well its modules integrated with each other. For example, once a candidate was hired in the recruiting module, their details automatically transferred to the onboarding module. This means that users won’t need to re-enter information, reducing the chance of errors and saving time.
And the training module was equally great—it was easy to assign courses to new hires and track their progress. We could use the training library to assign compliance courses to all employees during onboarding, and managers could monitor completion rates in real-time.
Paylocity’s reporting was straightforward for basic needs. We could use it to generate payroll history reports for audits or track specific tax details for compliance. However, its limitations became evident when we needed to create customized reports for executive analysis, such as combining payroll data with workforce performance metrics. We ended up exporting data into spreadsheets for further manipulation.
And while the support team was knowledgeable, the response times weren’t as fast as we expected for time-sensitive issues. As reported by some of the users we surveyed, they wish the support were quicker and more efficient, particularly for high-priority concerns since it’d take them a few days or sometimes, nearly a week to get their raised issue resolved.
40,000+ companies, including Momentus, Watters, and Weigel’s.
Paylocity’s pricing is not publicly disclosed, as it depends on the specific features and services a business requires.
Best For
Paylocity is best suited for mid-sized companies with fewer than 2,000 employees, especially U.S.-based organizations.
I used Paylocity every other day to view employee data, approve time-off requests, and track time. I used it biweekly to run payroll and yearly for bonus payouts. I also used it for each new hire to input their data. Additionally, we used it to assign required trainings to the team to ensure compliance with state regulations.
I like that it’s easy to use. Payroll is seamless and easy to submit. New hires are tracked well, and they integrate with payroll once hired. I also appreciate the training features and how easy it is to assign trainings to new hires and track current employees’ progress. It helps us stay compliant.
We decided to use Paylocity to run payroll after moving away from a PEO and bringing everything in-house. We needed a payroll system, and this one integrated easily within our company. We used it for payroll, performance tracking, and time-off tracking. It streamlined our operations, and we’ve been using it for these tasks.
One downside is their customer service, which takes longer to respond. Onboarding all the information at the beginning was somewhat confusing and took a while. Lastly, making changes to payroll sometimes required a lengthy process to resolve.
Paylocity excels in integrating with other systems. For example, they have DocuSign embedded in their platform, making it easy to send offer letters and employee agreements securely, which are then automatically loaded into the employee file. This seamless integration sets them apart from competitors.
Consider the number of employees you have. This system is great for smaller companies, but larger ones with over a few thousand employees might need a different payroll system. Also, consider which features you need. Do you want recruitment and training features, or are you focused solely on payroll? They offer a la carte options, but each comes with associated fees.
Paylocity has evolved by integrating with more systems, allowing for seamless workflows. As mentioned, they’ve embedded DocuSign, making document management more efficient. Over time, they’ve added features like training modules, expanding their library of available trainings to meet user needs.
Paylocity is great for smaller companies, probably under 2,000 employees. It’s ideal for organizations that value organized, easy-to-use systems. The platform’s efficiency and ease of navigation are definite perks.
Larger companies with over 2,000 employees may want to consider a different platform. Companies that don’t need extra tools like training modules might also prefer a simpler system. Additionally, if you need quick customer service responses, this tool might not be the best fit, as their response times can be slower.
ADP
As one of the best-known and biggest companies in the payroll and HR space, ADP is well-positioned to tackle the complex needs of large enterprises in all kinds of industries.
PROS
- Mature, robust platform & staff with decades of experience.
- Comprehensive packages to tackle payroll, benefits, and HR needs with one tool.
- Big enough to cater to the needs of large enterprises with thousands of employees.
- Native, all-in-one technology suite for recruitment, payroll, and compliance.
- 17 RPO service centers in 14 countries and provide services in 42 different languages.
- Dedicated team of AIRS-certified recruiting professionals.
CONS
- Price points might be too steep for budget-strapped organizations
- Not the most modern platform. Prone to bugs and has an outdated look and feel.
- Little flexibility to cater to specific needs when it comes to implementations and pricing plans.
- Pricing is not publicly disclosed.
- Technology options outside ADP’s dedicated HR tools are limited.
ADP stands out in a crowded field thanks to their ability to offer related HR functions like benefits administration, compliance, and time and attendance in addition to tailored payroll packages - all from a single, easy-to-use platform. Their tailored payroll packages offer a range of tools and add-ons, and we’ve found that upgrading between packages is easy, which is great for companies expecting notable shifts in headcount.
However, ADP may not be the best fit for SMBs due to its high price point. Fees tend to increase with time, and it’s not the cheapest tool out there. Also, we’ve spoken to numerous users who have remarked upon their customer service as an aspect they could improve. Some common complaints include the time of each response and not having a stable point of contact to refer to within the company.
In our experience, the software itself can also create some issues with time. While few companies are able to offer as much, it’s common to encounter bugs and errors that require you to speak to a representative in order to get it fixed – for instance, the hourly pay rate doesn’t come through properly.
Overall, ADP is one of the best-known names in the space and their huge market share means they’re definitely a must-consider for some companies, but they are certainly not the most flexible. Also, since you’ll be among thousands of other customers, you’re unlikely to receive a white-glove customer service experience.
Margaritaville, BP, The Bancorp, The Boston Globe, Whole Foods, LongHorn Steakhouse and more.
APD’s pricing is not publicly available. However, they can provide a custom quote through their website if you indicate your company size and the desired modules.
Best For
Large organizations with headcounts in the thousands. ADP has extensive technical and human resources plus a staggering amount of experience in the field.
APS
After testing APS firsthand, we found that its mix of human expertise and experience in service-based industries across 50 U.S. states makes it an excellent fit for organizations in the country looking for reliable payroll processing combined with exceptional support.
PROS
- Each customer is assigned a dedicated account team, ensuring personalized, prompt assistance.
- Tailored payroll expertise for sectors like healthcare, hospitality, churches, and non-profits.
- Recent updates to the UX/UI have modernized the interface while retaining familiarity.
- Comprehensive HRIS features, including workforce planning, AI Assist for HR, and integrations with popular platforms like QuickBooks Online.
- Affordable for small to mid-sized businesses.
- Processes payroll across all 50 U.S. states.
- APS is very cost-effective. Although the pricing is custom and depends on your business size, we’ve heard current users speak of its affordability. Jackie R, who is a HR Director for a small-sized company says, “I love that APS offers all aspects of an HRIS system at an affordable price. We are a small business and can't afford the big name payroll vendors, but get everything they offer at APS for a price we can afford as a small business.”
- Their customer service is remarkable. As testified by multiple users, the customer service team at APS is prompt and there for you every step of the way, right from implementation to anytime you get stuck using the software. They’ll likely resolve your issue within the same day.
- APS is very easy to navigate and everything is updated and saved in real-time. Despite its complex features, you would likely not find it confusing. They also have how-to guides that come in very handy.
CONS
- No free trial available.
- Only supports payroll in the United States, excluding international use.
- Payroll must be purchased to access other features like workforce management.
- Minimum cost of $250 per month applied to all 25-to-100-employee companies.
- The reporting feature is limited in functionality. Sometimes, there will be missing information that you may require.
- Although their customer support is prompt, you can’t directly reach their team via phone. Customer service answers your queries via email and if you wish to talk to someone on the phone, you’ll have to mention it.
APS Payroll is a solid, U.S.-focused payroll solution with a human touch that truly sets it apart from many competitors.
One of its biggest strengths is customer service. From day one, you’re assigned a dedicated account team, which means there’s always someone familiar with your setup available to help. Throughout our experience, we found APS’s support team to be responsive, with most issues resolved within the same day. Most users we spoke to also praised the payroll software vendor for being there from the implementation phase through ongoing assistance.
APS specializes in payroll for service-based industries such as healthcare, hospitality, churches, and non-profits. This focus has allowed APS to develop a payroll system tailored to meet the unique needs of these sectors, including managing workforce planning while ensuring compliance with the varied payroll regulations across different U.S. states.
During our test, we appreciated the expertise of APS’s payroll specialists, who clearly knew the intricacies of state-level payroll requirements—something that sets APS apart from competitors relying solely on automation.
Over the past couple of years, APS has made notable product enhancements, including AI Assist for HR and integrations, but our favorite is the platform’s new look. Previously, the outdated design was one of our biggest complaints. However, by the time of our test, APS had updated its interface while striking a balance between modernizing and maintaining the familiarity that many long-time customers prefer.
APS doesn’t offer a free trial; however, the pricing starts at $250 per month for 25-100 employees, which makes it quite affordable for small SMBs compared to other payroll providers.
During our research, we spoke with Jackie R., an HR Director for a small company. “I love that APS offers all aspects of an HRIS system at an affordable price. We are a small business and can't afford the big name payroll vendors, but we get everything they offer at APS for a price we can afford as a small business,” Jackie shared.
This aligns with our experience—while it’s not the cheapest option out there, the features provided make APS a valuable solution for businesses needing robust payroll and HR services without breaking the bank.
Unfortunately, APS's primary focus on the United States means it lacks the ability to handle operations for companies outside the country, making it a poor fit for international organizations.
Another thing to bear in mind is that the payroll solution is a required component of using other services that APS offers, such as benefits or HR. So, if you’re looking for a workforce management solution but want to keep your current payroll tool, APS is not ideal for you.
3,500+ companies, including Wahlburgers, Rainbow Sandals, Grayson College, and Hillside Christian Church.
- For businesses with 25-100 employees, APS starts at $250/month, which includes a base fee of $50 and an additional $5 for each employee. Optional features like attendance tracking and scheduling are available for additional costs.
- For companies with more than 100 employees, pricing is available upon request.
Best For
U.S.-based companies in the service industry.
Gusto
Gusto offers versatile features such as flexible pay schedules, payroll deductions, automated tax filing, and almost everything else an SMB needs for compliant and fast payroll.
PROS
- Full-service multi-state payroll including W-2s, 1099s, and contractors.
- EOR services for hiring international full-time, salaried employees.
- Supports automated tax filing and benefits administration.
- Flexible payroll options and unlimited pay runs.
- Comprehensive customer support resources.
- Transparent pricing without long-term contracts or setup fees.
- The dashboard feature keeps tabs on compliance tasks
- The hiring and onboarding sequence is nicely streamlined between HR and the new hire
- Post-offer, pre-start tasks are made easy with integrations like CorpNet (state tax set up) Checkr (background checks)
- Easy payroll for U.S.-based W-2 folks, domestic, and international contractors
- Person-to-person phone support, email, and other customer service resources
- The business model is responsive to customer needs
CONS
- Limited analytics dashboard.
- No native accounting feature for earnings and spending tracking.
- Federal/state compliance alerts and benefits require the Premium plan or add-ons.
- Entry plan lacks native time tracking and online signatures.
- Gusto can support payments for international contractors, but not employees
- No native accounting feature to keep earning and spending under the same roof
- Analytics dashboard is simplistic
Gusto has always been a worthy consideration within the payroll software category, especially for small and medium-sized businesses.
First, Gusto is very user-centric: Even the cheapest plan includes call, email, and live chat support at extended hours. There is also an online help center and dedicated community where accountants can connect and learn from each other.
With features ranging from full-service multi-state employee and contractor payments to benefits and even global EOR, Gusto can assist with many business types. We tested its payroll capabilities and can report that its ability to schedule and run fast, flexible (and unlimited) payrolls is pretty much on par with enterprise solution ADP.
That said, we can’t escape the fact that Gusto relies on third-party integrations for accounting capabilities. And while this vendor now provides an international EOR ( partnering with Remote), this service is not available for part-time, hourly workers.
Gusto has a transparent pricing structure and is more affordable than some competitors like Deel. For contractors, it's $6 per contractor per month (Deel is $49) and for employees, it's $40 per person per month (Deel charges $500).
It may be cheap but Gusto does lack some essential features in higher-tier plans, including federal/state compliance alerts, time tracking, and multi-state payroll services. The most affordable plan only supports single-state payroll. For online signatures, time tracking, and expense management, you’ll have to integrate Gusto with third-party tools.
Gusto serves over 400,000 customers nationwide, spanning a wide range of industries and company sizes. While they don’t break down the exact share by business segment, we’ve seen companies of all shapes and sizes — from startups to midsize firms — embrace Gusto’s platform for its reliable payroll and HR features.
Gusto offers payroll software pricing across several tiers:
- Simple: Starts at $49 per month, plus $6 per employee. This plan includes full-service single-state payroll, basic reporting, and employee self-service.
- Plus: Starts at $80 per month, plus $12 per employee. It expands on the Simple plan by adding multi-state payroll, advanced reporting, time tracking, and next-level support.
- Premium: Starts at $180 per month, plus $22 per employee. This plan is designed for companies needing dedicated account support, robust HR tools, and priority service.
- Contractor Only: Starts at $35 per month, for businesses paying only independent contractors.
While Gusto occasionally promotes limited-time discounts or offers, the best way to get accurate pricing details — and to see if you qualify for any current promotions — is to connect directly with their sales team or explore their website.
Best For
Gusto is great for U.S.-based startups and growing SMBs with limited HR resources.
Day-to-day I used Gusto to manage payroll, benefits, and tax forms.
Gusto's automated payroll is solid and I never had an issue with the main payroll functions, although we had a few issues due to confusing UI with the custom earnings and dismissal payroll workflows.
Gusto's quarterly tax filings and reminders about compliance checks/updates were incredibly useful to us. The Docs section and reporting features turned out to be a helpful resource for all kinds of administrative tasks. Around 2021 I started receiving notices that some of our state tax forms weren't being filed on time. Although Gusto did resolve them eventually without penalty, it was concerning that they didn't keep us in the loop.
Gusto's benefits department is its weakest link. I never participated in the initial setup, but I managed 4 or 5 open enrollments through Gusto, and each was an unmitigated disaster. During two separate years, I sent 4+ requests to discuss new providers and never received a response. Not a peep. I have also had to clean up multiple enrollments and COBRA errors.
I speak to Gusto's support team a few times a month. Their support used to be outstanding, but recently they seem to have shifted to a script model, and the agents' competence is hit or miss. There is often an unrealistically long response time when issues are escalated to a specialist, and it is frustrating to wait days or weeks for an answer only to receive an unhelpful form response. Since Gusto handles so many regulated processes, agents are quick to default to a "we cannot advise" answer, and they often provided bad information that caused more problems than they solved. To be fair, I have also worked with agents that helped me pull off miracles, but I wish the quality were as consistent as it used to be a few years ago.
The UI is clean, intuitive, and (mostly) easy to use. I very seldom had issues with automated processes. They make onboarding new employees incredibly simple. I also really like the friendly tone of the brand's "voice." The marching pig on the loading screen that changes with the seasons never gets old; it still sparks joy each time, even after all these years!
I have used Gusto since 2018 in 3 different early-stage tech startups. Gusto has a reputation as the go-to in Silicon Valley incubators and accelerators, although I've seen Rippling gradually gaining market share in the past few years. In all 3 cases, we selected Gusto because of their breadth of services. Gusto makes it easy to set up everything our organization needed to begin hiring and paying employees. What's nice about Gusto is that it makes processes that are intimidating to many founders into a "set it and forget it" task. Automating payroll, benefits, filing government forms, and quarterly taxes helped free up time for our founding team to focus on a growing set of other responsibilities.
Gusto's benefits department is unresponsive and it's nearly impossible to get answers from support about even simple benefits questions.
I have seen quite a few concerning errors across the platform (mostly with benefits), including employees not being enrolled in benefits programs, dismissed employees not being removed from benefits programs, incomplete COBRA enrollment, and late tax filings.
The information from Support is unreliable and often inaccurate.
The dismissal payroll workflow is misleading and we've had a few serious problems as a result.
When a Gusto admin is dismissed, their admin privileges are not removed automatically, which is a serious privacy concern.
I wish Gusto made it easier to set up a business entity in new states. They partner with a company called CorpNet, but I found the level of service wasn't worth the price and went back to handling state registration myself.
I love Gusto's friendly casual-but-professional tone compared to other providers in the space.
Gusto is best for small teams, the smaller the better. It is a great option for founders and single-person People teams who have less time to dedicate to payroll, benefits, and compliance. It makes many benefits available and affordable for small groups that would not have the numbers to access plans through traditional providers.
Gusto becomes less useful as a team grows and compensation & benefits become more complex. I would definitely recommend Gusto to founders, but I recommend moving off of their benefits platform as soon as you have a full-time person to manage benefits administration. Its payroll functionality is solid, but payroll administrators should be aware that they will get limited guidance from the Gusto support team.
Gusto's functionality has grown over the time I've used the platform as they've added additional features and integrations. However, the accuracy and quality of support have suffered over time. I used to be a Gusto evangelist, but these days I recommend that growing companies move off of Gusto as soon as is practical. New features have become less useful over time, and I wish they would focus on maintaining the quality of their core product rather than trying to expand into new services.
Company founders or admins inexperienced in payroll and benefits. Very small teams with a single person managing payroll and benefits administration among many other HR responsibilities.
Larger organizations with 50+ employees. HR teams with specialists in each area. Companies with complex and highly-regulated compensation structures.
Rippling
We have a high opinion of Rippling for the way it combines stellar HR features, payroll, and even IT in one suite.
PROS
- Integrated platform for HR (including payroll), IT, and finance solutions.
- Robust automation features within an easy-to-use interface.
- Extensive analytics options for comprehensive payroll insights.
- Provides a very clear report of company expenses, breaking down headcount costs.
- All-in-one platform for employee management + PEO services offered, and even a suite of other IT products
- With 500 integrations, it’s very likely that they integrate with other key tools from your tech stack.
- Operates globally with any currency
- Workflow automation
- Analytics opportunities
- Provides a holistic view of company outflows—headcount costs included
CONS
- No option of completely automating the payroll process.
- Requires a minimum of one-year contract length.
- Rippling's payroll requires purchase of its core HR platform.
- Total buy-in to Rippling is essential
- Very SMB-oriented, in case you’re a larger company.
- New features tend to be buggy in ways that tech teams are not accustomed to fixing
Rippling is a 3-in-1 HR, IT & finance platform that can handle multi-state payroll, global payroll, benefits, PEO, EOR, and anything in between for your business.
Rippling has always stood out for its UI. The design is crisp, but more importantly, it’s very well thought out. We tried multiple features during our tech test: onboarding, payroll processing, PTO, and time tracking, and we had no complaints.
Rippling’s payroll solution stands shoulder-by-shoulder with other peers on our list. You can use multi-state and global payroll, as well as EOR and PEO, depending on your needs, to hire and pay employees and contractors in the U.S. and overseas.
On the benefits front, while not as versatile as Gusto’s (9,000+ plans available), Rippling offers 4,000+ options—still a lot more than ADP’s 700. We also love that the platform’s integration list is always growing (500+ at the time of writing).
We’ve talked to HR pros who use Rippling daily. Efficient payroll tools, user-friendly benefits enrollment, and generally helpful phone and email support were all mentioned.
However, we’re quite surprised to discover that it’s not possible to automate the entire payroll process—a feature most modern payroll solutions offer.
Rippling is also less flexible when it comes to billing. There’s no free sign-up option like with Deel. A minimum one-year commitment is also required, unlike Gusto or PapayaGlobal which let you pay either monthly or annually.
Rippling's pricing begins at $8 per month per user and can be customized based on selected modules or the entire platform and the number of users.
Best For
Rippling is worth consideration for midsized and large teams looking to combine payroll, HR, and more into a single tool.
We used Rippling as the source of truth for all HR reporting and documentation. The prior system we used did not have the storage and reporting capabilities to be our source of truth.
The key workflows we used were onboarding, offboarding, and document signature and retention. We were able to get most of the functionality we needed for these processes, but there were a few things that didn't work the way we needed them to without buying additional workflows.
There were some basic workflows, which were unlimited and free, but there were others that required upgrades and extra charges. The core plan included one workflow, so if you needed more than that, you had to purchase additional or upgrade your plan. The way that we set up our onboarding workflow (which was specific to location), we needed several workflows to accommodate our different locations, which was not a cost-feasible upgrade. Also, if you change the trigger on the free workflow, it changes to an upgraded workflow.
Rippling is user-friendly; you do not need to be a programmer to be able to program functions on this platform. You can contribute ideas for new features or functionality. Their customer service is better than most HRIS systems.
The organization had been using an HRIS system that did not have the robust reporting, automations, or customer service they were looking for. I used Rippling with the company for about a year and a half as a super admin. We found Rippling's customer service superior to the previous system we had been using.
Implementation was easy, but I strongly recommend that someone who has done implementations previously spearhead an implementation to help bridge where you were with a previous system to where you want to go with Rippling. Setting up workflows and automations is easy in Rippling, and their technical advisors are always willing to hop on a call to walk you through any issues that you may need additional help with.
We started using Rippling as the HRIS/payroll for our US team but quickly added the Canadian team. We used it largely for headcount and reporting for all other global teams.
Only one workflow in the core plan; everything else is an upgrade. Rippling often uses their customers for BETA testing without letting them know (Rippling told us they had functionality for payroll in another country when they did NOT). It feels like they are constantly trying to upsell you and get more money out of you.
The tool is one of my favorites so far. It is very easy to use, but when you get stuck on something, they will provide live support to walk you through. Most other HRIS systems are very helpful through implementation but are hard to reach once you have completed.
People need to think about the implementation process; the new tool is probably not going to look or act like the old tool. Definitely ask if there is a demo account and work through it to see how it works.
Think about where your company is now versus where you expect to be in five years. Will the tool grow with you? How much additional expenditure will be required to scale it with your business? If there are new functions you will need to purchase in the future, will the additional expense work with your scaling budget?
Rippling is very good at taking requests from customers for new functionality. For the most part, Rippling employees only know Rippling; they don't know other platforms. So they don't know how you used XYZ brand prior and how the change in process affected your business.
Rippling is good for organizations with a growing or evolving workforce. It can house all historical HR documents, send revised documents out with the click of a button, and update workflows easily.
Rippling would not be a good fit for a small, cost-conscious organization that doesn't need all the functionality it provides or would have to pay substantially more for the add-ons.
Paycor
Paycor is a feature-rich payroll tool boasting capabilities such as autorun, real-time calculations, paystub previews that are available three days before payday, and much more.
PROS
- Unlimited monthly payrolls.
- User-friendly payroll solution with a simple, intuitive interface.
- Employee mobile-friendly self-service portal for HR info and benefits.
- Multiple subscription plans for businesses of varying sizes.
- Offers frequent discounts and free trials with no set-up fees.
- Paycor payroll solution and mobile app are both straightforward to use.
- Intuitive self-service employee portal.
- Offers multiple modules for small businesses and custom plans for teams with 50-1000 employees.
- Unlimited payrolls.
- Offers discounts frequently. Though not listed on their site, a free trial is available to those who contact the support team directly.
- On-demand pay is available for all plans.
- With the acquisition of the people development platform Verb, it has improved its employee learning experience.
CONS
- Reporting functionality is not robust with occasional data unavailability.
- Pricing is undisclosed. Some SMBs found it expensive.
- Customer services are not very responsive.
- Time tracking is a paid add-on.
- Undisclosed pricing.
- Customer support is reported to be slow at times.
- It is not a good fit for teams with 1000+ employees or those requiring advanced customization to meet their unique requirements.
Paycor is a great option for small to mid-sized businesses seeking a solution that can handle HR tasks in addition to payroll.
Paycor doesn’t (directly) handle global payroll like Deel or Papaya. Instead, the platform outsources such service to its partners and pays close attention to its domestic users—U.S.-based companies and staff. Thanks to that, its national payroll functionalities are rich and, at the same time, straightforward.
Within this single software, you’ll find autorun, pay options, compliance alerts, and employee self-service, to name a few. The system automates federal and state tax filings and you can do as many payroll runs as you like.
Paycor is particularly well-liked for its flexibility. With multiple plans to choose from, businesses can opt for extra tools like onboarding and compensation planning when they truly need them.
The self-service portal is easy to use and provides access to a bunch of cool features. From checking pay stubs to viewing work schedules, updating profiles, and requesting time off, everything's right there on desktop and mobile.
However, a fair number of HR pros we’ve spoken with mentioned that they weren't happy with Paycor's customer support. Most cited the service being often unavailable and the support team members not being on the same page, so they had to report the same issue multiple times.
We also recommend that you communicate clearly with Paycor about the full costs associated with using its product as, from what we found, there may be extra fees like minimum billing and charges for early check clearance on top of the regular subscription cost.
40,000+ companies including McDonald’s, Wendy’s, the Cincinnati Reds, Detroit Zoo, and the Chicago Fire FC.
Varies depending on your headcount and the specific features you choose.
Best For
Paycor excels for U.S.-based organizations with up to 1,000 employees, especially in industries like manufacturing, healthcare, food and beverage, nonprofits, and professional sports.
We use Paycor twice per month when payroll is due. They send reminders to make sure we don't forget to do the payroll as that would be terribly embarrassing if we missed a payroll. With many remote employees in different states, Paycor enables us to not have to research all of the various state tax laws. For that we are very thankful.
Easy to use. Keeps track of all state regulations and taxes. Provides solid customer assistance.
Paycor is an easy-to-use payroll solution for small businesses. Often, a small organization doesn't have a person who is dedicated to HR completely as they perform other duties. We wanted something that was easy to use and Paycor was.
Wish customer service got back to us quicker. Would like them to lower the price, although it is in line with others in the space. Would appreciate more proactive advice.
It has an easy-to-use and understandable interface.
Will it expand with you as your company expands? Do you need personal assistance?
It has continued to improve the product and keep abreast of the many disparate tax laws.
SMBs
I can't think of any.
Paychex
Paychex offers three different plans that can serve the needs of various types of small businesses, all focused on payroll processing and featuring some HR tools as you go up in range.
PROS
- Pay-as-you-go plans for various business scenarios.
- Plan upgrades offer enhanced features like performance management, employee screening, and benefits services.
- 48-hour onboarding with personalized payroll guidance for Select and Pro plans.
- Experienced payroll and benefits administrator for 740,000 US companies.
- Timecard processing can be fully automated.
- Integrates well with benefits providers like Benetrac for benefits management.
- User-friendly interface for reviewing W2s and paystubs.
CONS
- Users struggled to get timely help due to frequent payroll contact changes and long wait times.
- Some reported payroll errors and tax inaccuracies which caused compliance issues.
- Separate departments in Paychex for payroll, HR, and benefits hinder integration, customization, and support for small businesses.
- Limited third-party integrations.
- Some users reported slow app login.
- Less modern looking compared to competitors.
We quickly understood why Paychex is so popular among U.S. businesses after diving into its automations.
The auto payroll tax filing, for example, is nicely done. It can handle the whole tax filing process, which is super handy for multi-state teams in minimizing errors and avoiding penalties. Additionally, the employee onboarding feature is one of the most robust we have tried, with easy-to-complete online forms and personalized messages.
We also got a good impression of Paychex’s time tracking, as this tool not only supports touchless employee clock-ins but is agile enough for both medium and large teams.
On top of that, the availability of PEO services means Paychex users can gain access to specialized support for health benefits, compliance, and onboarding without the hassle of finding a whole new tool.
Paychex might be a bit trickier to use and get support than ADP but its strong automation focus is a boon and its HR tools are high quality.
However, if top-notch design is important to you, a fair warning: Paychex’s UI isn’t very good. Perhaps due to its abundant feature set, the payroll platform’s interface gives off a rather cluttered feeling.
Cluttered interface aside, we found the customer support team to be underwhelming. It's tough to get hold of someone on the phone and, when it comes to email support, this vendor can take hours and even weeks to respond. We're also not big fans of the frequent changes in Paychex's customer success managers' contacts, either. This, according to several users we spoke to, has made it even tougher to get assistance.
740,000+ companies, including ESET, Funnelbox Inc., Smile Cafe, H.Y.P.E. Counseling Services, ASG, and Pet Partners.
- Flex Essentials plan costs $39/month + $5/employee/month.
- Flex Select and Flex Pro plans have custom pricing.
- Some features like recruiting, document management, and time tracking are charged separately.
Best For
Mid- to large-sized U.S. businesses that face the intricacies of employing and paying workers across state lines.
Paychex was a great payroll service to use since the company is a medium sized business. It helped us compliantly garnish child support and work around loans with the pay stub being very detailed for the employee. The continuous articles in regards to new HR standards were great to keep up to date with new laws. The employee portal was a great tool so employees could manage their personal plans, alleviating extra work for the payroll department. The onboarding feature was also convenient to cut down on errors that are all too common with new hire paperwork. Being able to perform background checks on potential management was also a wonderful feature.
The multiple blogs on the ever changing employment laws was a huge benefit to the company. Being able to have employees manage their deductions and plans is also a great way to alleviate pressure off the payroll department. Customer service was also very kind and helpful when questions or issues would arise. Being able to have a company calculate and file taxes was also a great way to reduce accounting labor.
We used Paychex for approximately 7 years to streamline the payroll process between multiple restaurants. After many years of self service payroll, Paychex helped us make payroll more error proof. It was used in organizing employee compliance and benefits. It was also great for tracking taxes and being able to send needed info to the accounting department. It was easy to use when garnishing child support from employees' paychecks.
Paychex sales team is not as knowledgeable or fluid as their customer service staff members were. We did encounter login issues frequently. It usually was rectified with opening and closing the program but it was still time consuming. As pleasant as customer service is, I would like to be able to make minor changes without having to call a specialist.
Paychex is a good service for smaller companies. I feel that integration and reports were not as easy to use as other programs such as Toast or 7shifts.
The cost is fair although the tool can be time consuming. It is a great tool to keep up to date with employee relations and laws. I feel Paychex is continuing to grow and be better but I would compare other companies before signing a contract.
Paychex has evolved with the changing labor laws and requirements and keeps their clients up to date. I also feel that they are streamlining scheduling and AR/AP into the application
Small offices or businesses.
Large companies or companies who do not have much time to devote to completing weekly payrolls.
Remote
Remote provides a unified global payroll solution with strong compliance controls and direct EOR support across more than 100 countries. We like their intuitive UI, localized payroll compliance, and wide international reach, which is especially beneficial for fast-scaling startups and remote-first teams.
PROS
- Payroll and compliance coverage in over 100 countries without needing local entities.
- Consolidates contractor and employee payroll in one platform.
- Transparent per-country pricing model for EOR and contractor management.
- Intuitive dashboard that simplifies global payroll processes.
- Supports multiple pay methods, including localized payment rails.
- Fast and compliant payroll in 170+ countries.
- Live chat support with local payroll experts.
- Flexible, localized benefit packages.
- Flat-rate pricing structure, no deposits or hidden fees.
- Mobile app streamlines expense reimbursement with autofill from receipt photos.
CONS
- No phone support; email support can sometimes require repeated follow-ups.
- Mobile app lacks full functionality compared to the browser version.
- Invoicing UX can be improved; it currently lacks autosave functionality.
- Doesn’t have a free trial.
- Redundant for organizations solely recruiting within the U.S.
- Help center documentation isn’t easiest to understand.
Remote’s payroll software stands out for its international reach and compliance infrastructure, particularly for companies without local legal entities. It supports payroll in more than 100 countries, allowing businesses to manage both global contractors and full-time employees from a single platform. The user experience is designed to be intuitive—we were able to navigate key workflows, like employee onboarding and payroll setup, with minimal friction.
During our tech tests, the dashboard provided clear visibility into multi-country payroll cycles and compliance alerts, which makes it a strong contender for HR teams prioritizing legal and tax compliance.
One of the standout features of this vendor is its approach to Employer of Record (EOR) services. Unlike platforms like Papaya that often depend on third-party local partners, Remote manages its own legal entities. This in-house strategy provides customers with greater confidence in maintaining consistent service and data control across different countries.
Feature-wise, Remote also keeps up with top players like Deel, offering one-click invoicing, payroll automation, and streamlined contractor payments in multiple currencies. The platform is particularly popular among tech companies that are scaling globally and have a lean HR team.
That said, our experience wasn’t without a few hiccups. Some users we spoke with mentioned inconsistent customer support, including slow responses and lengthy email threads for what should be simple queries. We also noticed that the mobile app occasionally redirected us to the browser for certain actions, which slightly diminished its convenience on the go.
Remote has been used by companies including Pydantic, Axelera AI, Reverse Tech, and Weaviate.
Remote offers several pricing tiers, depending on the level of support needed:
- Contractor Management: Starts at $29 per contractor per month.
- Contractor of Record: Starts at $325 per contractor per month.
- Global Payroll: Starts at $29 per employee per month.
- Employer of Record: Starts at $599 per employee per month.
Best For
Remote is best suited for remote-first startups and growing SMBs that want to simplify international hiring and stay compliant without setting up local entities.
PapayaGlobal
Papaya Global distinguishes itself in the payroll software category by facilitating secure, seamless payments to contractors and employees across 160+ countries, supported by rigorous security and compliance protocols.
PROS
- 5 individual solutions at an affordable price: payroll, EOR, contractors, global workforce payments, and agent of record.
- Guaranteed 72-hour payouts in 160+ countries with full-service payroll.
- Dedicated local support for international employees.
- Free access to global employment specialists in 160 countries.
- 60-day money-back guarantee for dissatisfaction with platform performance.
- EOR monthly fee reduced from $650 to $599 per employee.
- Papaya Global packs the EOR services you need to do global payroll and employment compliantly in over 160 countries.
- Automated payments in over 100 currencies, 80 of them directly to the worker's bank account through its global banking partners.
- Dedicated customer support providing locations-specific knowledge regarding employment and payroll.
- End-to-end payroll guaranteed payouts in 72 hours.
- Offers four standalone solutions: data and insights, supplemental benefits & immigration support, payment services, and employee data management, making the platform more affordable and scalable.
CONS
- No free trial or plan is offered.
- Limited existing integrations, but free use of pre-built and custom APIs.
- Additional fees include setup, onboarding, per-employee cycles, year-end fees, and a deposit.
- No local entities in service countries. No tax penalty guarantee info.
- No free trial or free plan.
- Doesn’t own entities in all the countries it serves. The platform forms relationships with existing local in-country partners to handle employment in a specific region on the client’s behalf.
- BI analytics reports and global immigration services cost additional fees.
- Charges extra fees for setup, onboarding, employee cycle, and tax filing. Also requires a refundable deposit.
- Built-in integration options aren’t very robust. However, the platform does offer pre-built APIs, SFTP, and custom API integrations for free.
Papaya Global has its own time and attendance tracker that works really well with its payroll and compliance services. We can imagine how well-received this feature is by HR pros who can now handle employee hours, PTO, and payroll in one unified place.
We think Papaya’s benefits team is also among the best in the field. They break down all the options and can pair you with top-quality benefits providers across hundreds of different countries and regions. Best of all, you get all this bespoke advice at no extra cost.
And, just as we expected from a top player, Papaya’s self-service portal is good. It’s very handy for getting started, requesting time off, and checking pay stubs, and now, it’s even accessible on the go.
However, unlike Deel, which has its own entities in more than 150 countries for its EOR services, Papaya Global relies entirely on local partners. This presents compliance risks and potential add-on fees. Further, the fact that the platform doesn't offer a tax penalty guarantee is another thing worth noting.
We contacted several individuals who have used Papaya for at least three months to see how their experience with customer service has been, and the gathered feedback was kind of mixed. While some found the support quick and helpful, others have been dealing with the same problems over and over again. A few even felt like the reps might not have all the answers to solve their reported issues.
1,000+ companies, including Fiverr, Toyota, Wix, Deezer, Intel, and Microsoft.
Papaya offers 5 different modules:
- PayrollPlus has 3 plans: Grow Global, Scale Global, and Enterprise Global, priced at $25, $20, and $15 per month per employee respectively.
- EOR: Starts at $599 per employee per month.
- Contractors: Begins at $30 per contractor per month.
- Global workforce payments: Starts at $2.5 per transaction.
- Agent of Record: Begins at $200 per contractor per month.
Best For
Companies that employ a diverse, international workforce and need a centralized solution to manage payroll complexities.
I worked with PapayaGlobal for about two years in total, weekly. Mostly, I used the HR workflows because I am an HR consultant, and we were setting up mini HR offices globally. Employee onboarding was, of course, a big one. The integration with Workday was perfect. Uploading documents and organizing was straightforward. What I personally found invaluable were the compliance tools and local experience. This boosted my profile as well because I was learning through using the system.
Customer service is exceptional; you really feel that they are part of your team. I also loved the guarantees of local compliance, which created great trust with our in-house auditors. The ability to see the big picture of our workforce globally was also crucial, as it provided a great understanding of the workforce map and enabled strategic moves on the people side of things.
I was setting up PapayaGlobal for one of my previous clients. The reason we needed a tool like this was that we wanted to hire talent from different countries. Previously, we bypassed this by hiring on a "contractor agreement," but we really wanted employees, not contractors. While managing paperwork for EU candidates was somewhat easier, when it came to hires from outside the EU, it was a bit of a nightmare. Our HR team had to learn local employment laws, and we even contacted local lawyers to send us an empty contract so we could be fully compliant. These were the pains that the service greatly alleviated. We saved a lot of time, and audits were less stressful. We used it for about two years, but then the business took another direction.
It took a long time to learn the navigation through the platform; you really need to invest time to learn everything—you cannot just jump in with no training. Sometimes the screen would not load properly; words were overlapping, and it took some reloads for it to work, which was disappointing for a service that charges so much. We also had some issues with invoices; it was not clear how to manage them, but customer service helped with that.
Compliance support and global presence are the main reasons we chose PapayaGlobal. Another key factor is the customer service, which was consistently excellent. I also enjoyed the real-time access to analytics, which was helpful in following trends and monitoring important metrics globally.
First, consider the cost and how the pricing is structured to determine how much value a company can derive from the service at the agreed price point. Another important factor is access to real people who can guide the onboarding and integration with existing tools, which was commendable. Additionally, global access to local labor laws is perhaps the biggest consideration.
PapayaGlobal has evolved, but I believe other platforms have caught up and may be more attractive in their pricing.
PapayaGlobal is great for rapidly scaling businesses that need support in managing a multinational workforce.
PapayaGlobal is excessive for startups and scaleups with a simple payroll structure, or for those who work only with digital nomads, for example. Ensure you actually need all the services within the platform to make it worth the investment.
Homebase
Homebase is a simple yet effective payroll solution that is a great bet for small businesses in the retail, hospitality, and service industries. Its biggest strength lies in how swimmingly it integrates with Homebase’s time tracking and scheduling tools, which makes payroll easy to run with minimal manual input.
PROS
- Easy integration with Homebase time tracking and scheduling helps reduce manual payroll work.
- Clear pricing at $39/month plus $6 per active employee, which is quite affordable for small businesses.
- Automated tax filing at federal, state, and local levels built-in.
- Facial recognition clock-in to reduce buddy punching and time theft.
- User-friendly interface designed for hourly workers and shift-based businesses.
- Separate dashboards for managers and employees
- Real-time communication features allow for schedule changes on the move
- Requesting and approving paid time off is easy
- Great scheduling templates help managers streamline work
CONS
- Not ideal for larger businesses needing dedicated payroll support.
- US-only payroll with no support for international employees.
- Facial recognition currently does not verify photos against employee profiles.
- Limited third-party integration support
- Additional features are somewhat expensive
If you’re a small retail, restaurant, or service-based business, Homebase Payroll can keep your HR and payroll operation simple and efficient for you.
One of this payroll system’s biggest advantages is how well it syncs with Homebase’s time tracking. Unlike Gusto, which requires third-party time tracking integrations, Homebase automatically pulls employee hours, overtime, and PTO into the payroll system.
During our testing, we clocked in and out using the Homebase app, and our hours were instantly reflected in the payroll dashboard without needing manual adjustments. This makes it a great fit for small businesses that rely on hourly workers and shift-based schedules.
Additionally, Homebase offers overtime prevention tools, which automatically clock out employees when their shift ends to prevent unapproved overtime. This is a feature we haven’t seen in other payroll solutions like APS and Gusto, which makes Homebase a stronger option for labor cost control.
We liked that Homebase provides automated payroll tax calculations and filings at federal, state, and local levels. The platform also includes a facial recognition clock-in feature to prevent buddy punching—something not natively available in competitors like Gusto or APS. The only drawback here is that this feature doesn’t match employee photos to their profiles, making it less foolproof than it initially sounds.
We think Homebase is great for small businesses, but it may not scale as effectively for larger organizations as a few other SMB-friendly payroll software like Gusto.
Another thing to bear in mind is that similar to APS, this vendor is hyper-focused on the U.S. market and thus does not currently support global payroll. Also, they don't offer dedicated account teams if you're looking for more personalized customer service.
100,000+ U.S.-based companies, including Fuzzy Goat Yarn Shop, The Blind Goat & Xin Chao, and Arthritis and Osteoporosis.
Homebase has a clear pricing structure specifically for small businesses. The payroll tool is marketed as an add-on and can be added to any Homebase plan (even the free one) for $39 per month, plus an additional $6 per month for each active employee.
Best For
If you’re a small retail, restaurant, or service-based business, Homebase Payroll keeps things simple and efficient. It’s a great choice for small, shift-based businesses that need automated payroll with built-in time tracking and overtime prevention.
What to Look for in Payroll Software
When looking for a payroll software solution, start by determining your specific needs. Clarity here will narrow the scope of your search tremendously, and knowing exactly what you want will keep you in the driver’s seat when you’re speaking to salespeople.
Once you settle on a list of 5-6 vendors, evaluate each based on these fundamental elements:
- Expert support: Look for payroll software packages that offer dedicated, day-to-day customer support, strategic guidance, and expert assistance. User reviews must be taken with a grain of salt, but they can offer a unique glimpse into how much a company prioritizes the customer experience. Top-tier vendors often provide service-level agreements with guarantees for known scenarios like wait times.
- Key Features: A bare-bones payroll software platform provides automated payroll processing, including time tracking, tax calculation, filing, and pay distribution functions. Another nearly-standard element is employee self-service functions. Think twice about skipping this feature: employees love it, and your HR team will thank you for the time they’re not spending checking someone’s current PTO accrual.
- User-Friendly Interface: In addition to good desktop performance, we recommend companies that offer apps or a mobile-friendly web interface. This is especially critical for payroll software because most users will be employees, not members of your HR team. Look for tools built to enable all users to get the most out of the product. Everyone should be able to access their info on the go with ease.
- Compliance Assurance: If you’ve ever been tasked with running payroll, you know that state and federal regulations are numerous and subject to change. Payroll software should operate in compliance with regulatory standards so you are not at risk of fines or penalties associated with late or incorrect filings.
Key Considerations When Choosing The Best Payroll Software
When looking for a payroll software solution, start by determining your specific needs. Clarity here will narrow the scope of your search tremendously, and knowing exactly what you want will keep you in the driver’s seat when you’re speaking to salespeople.
Once you settle on a list of 5-6 vendors, evaluate each based on these fundamental elements:
- Expert support: Look for payroll software solutions that offer dedicated, day-to-day customer support, strategic guidance, and expert assistance. User reviews must be taken with a grain of salt, but they can offer a unique glimpse into how much a company prioritizes the customer experience. Top-tier vendors often provide service-level agreements with guarantees for known scenarios like wait times. For example, APS provides dedicated support and guarantees that 100% of customer queries are responded to within an hour.
- Key Payroll Software Features: A bare-bones payroll software platform provides automated payroll processing, including time tracking, tax calculation, filing, and pay distribution functions. Another nearly-standard element is employee self-service functions. Think twice about skipping this feature: employees love it, and your HR team will thank you for the time they’re not spending checking someone’s current PTO accrual.
- User-Friendly Interface: In addition to good desktop performance, we recommend companies that offer apps or a mobile-friendly web interface. This is especially critical for payroll software because most users will be employees, not members of your HR team. Look for tools built to enable all users to get the most out of the product. Everyone should be able to access their info on the go with ease.
- Compliance Assurance: If you’ve ever been tasked with running payroll, you know that state and federal regulations are numerous and subject to change (check out the below screenshot as an example). Payroll software should operate in compliance with regulatory standards so you are not at risk of fines or penalties associated with late or incorrect filings.
Pitfalls When Buying Payroll Software
Here are the top three critical pitfalls to watch out for when considering the purchase of payroll software.
1. Underestimating Total Costs
Many businesses focus solely on the initial purchase price of payroll software, neglecting to account for ongoing costs that can accumulate over time. This includes subscription fees, training expenses, and potential costs for necessary upgrades or additional features.
A low-cost solution may end up being more expensive in the long run due to hidden fees or inadequate functionality that requires further investment.
2. Ignoring Scalability
Choosing payroll software that does not accommodate future growth can severely limit a business's operational capabilities.
When an organization expands globally, for example, their payroll needs become more complex; thus, selecting a solution that lacks global payroll capabilities can result in inefficiencies and require a costly switch to a new system later on.
3. Overlooking Compliance and Integration Needs
Compliance with tax laws and labor regulations is critical when managing payroll. Many businesses mistakenly assume that payroll software will automatically ensure compliance, but errors can still occur, leading to potential legal penalties.
Given more than 9 in 10 business leaders worldwide (94%) want to see their payroll software integrated across all their HR systems, failing to consider the payroll software’s integration capabilities can lead to data inconsistencies and operational disruptions.
4. Documentation Readiness
Comprehensive documentation completed in advance will ensure a smooth payroll system implementation. Timely payroll processing is critical for building employee confidence in the new system, so do everything you can to ensure the software makes a good first impression.
5. Broker Compatibility
If you work with an insurance broker, ensure the chosen vendor supports this partnership arrangement. Not all vendors accommodate external brokers, and those that do may impose additional fees.
6. Geographic Mismatch
Whether it’s global access or county by-laws, make sure your vendor can support all your employee types (independent contractors vs. employees) and office locations (Canadian payroll vs. state-side or international payroll). Read the fine print if you’re looking for a global payroll solution.
As of 2024, payroll for contractors in other countries is fairly common, but this is not the case for employees outside of the U.S. - consider whether EOR providers may offer more suitable services.
Payroll Software Pricing
Payroll software is typically priced per employee per month. Many vendors offer free trials and discounts for longer term commitments. Our research indicates that getting started with a good payroll tool can cost as little as $19 per month.
Don’t be surprised if the final payroll software cost includes a hefty allotment of add-ons, though. Even though we’ve built this list with one-size-fits-most in mind, it’s so common for payroll software platforms to offer fundamental features a la carte we’re duty-bound to mention it.
We recommend negotiating, even if it’s a little out of your comfort zone. Deals can be found if both parties are flexible! The best vendors will be willing to make adjustments to create a custom plan that meets your needs, so go ahead and ask.
Payroll Software FAQs
What is payroll software?
Payroll software is a specialized solution designed to streamline, automate, and manage payments due to a company's employees. It facilitates the efficient recording, organization, and distribution of employee wages.
Can my company do payroll without software?
Technically, yes. But is it a good idea? Probably not. While it's possible to process payroll and benefits manually, this approach is prone to human error and demands significant time and effort.
Automating payroll frees up valuable time that can be better utilized to enhance your business or product, It also reduces the risk of compliance-related fees and fines, provided that you go with a vendor that specializes in your jurisdiction and can provide not only a good tool but also excellent guidance when it comes to navigating those legal intricacies.
What are the different types of payroll systems?
Payroll systems can be categorized in various ways based on specific criteria:
- Country-specific payroll systems, for example, Canadian payroll tools are tailored to meet the legal and tax requirements of a specific country and often include localization features such as language support and compliance with local payroll regulations.
- SMB-focused payroll platforms are designed specifically for budget-minded teams and, thus, are typically affordable and cover essential payroll processing without the complexity of larger systems.
- Enterprise payroll software is developed for large organizations and can handle a high volume of payroll transactions and comes with advanced features like integration with other enterprise systems, extensive reporting capabilities, and customizable configurations.
- Global payroll systems are suitable for companies with a global workforce, with multi-country payroll, HR, and compliance for different types of workers.
- Industry-specific payroll software, such as payroll processing tools for construction companies, often includes additional features relevant to particular labor laws or industry practices, such as tracking of overtime, certifications, or union agreements.
Should I use payroll software or payroll services?
Payroll software and payroll services have advantages and disadvantages for different use cases. Payroll software automates processing, manages employee data, calculates taxes, and ensures legal compliance, making it ideal for in-house teams.
In contrast, payroll services or payroll outsourcing offer a hands-off approach, where dedicated professionals manage all payroll tasks, allowing you to concentrate on your core business functions.
Are payroll and benefits software better handled through the same platform?
Many payroll and HR software vendors provide integrated solutions that encompass payroll and benefits management. Conversely, some benefits providers offer payroll functionalities as part of their comprehensive offerings.
Using the same platform for payroll and benefits streamlines integration enhances data consistency, and simplifies vendor management, which can result in cost savings.
However, the decision ultimately hinges on factors like the organization's specific needs, preferences, and scale. While some may favor the efficiency of a single platform, others might choose the flexibility of separate systems, especially in specialized industries like trucking payroll software.
Final Advice on Buying Payroll Software
Many believe that payroll software is more important than any other core HR tech platform. For many, the question isn't whether to buy, it’s when and from which vendor.
When you’re ready to talk to vendors, take the time to be ridiculously organized and prepared for the demos. Know and be able to articulate the feature set that aligns with your payroll budget and needs.
Finally, because you’re buying software the whole company will use, we strongly advise that you consider the input of people who are not usually involved in decision-making.
Understanding the needs and concerns of those working in different departments, people working different shifts, salary, and contract workers, full—and part-time people, and folks in different geographic locations will not only help you find and buy the right product, but you will also have a leg up when it’s time to roll out the new tool that was selected by consensus.
About Us
- Our goal at SSR is to help HR and recruiting teams to find and buy the right software for their needs.
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- SSR lists all companies we feel are top vendors - not just those who pay us - in our comprehensive directories full of the advice needed to make the right purchase decision for your HR team.
