# 9 Best Payroll Software for Small Businesses 2026 | Capterra > Find and compare the 2026 best Payroll software for small businesses, using our interactive tool to quickly narrow your choices based on businesses like yours. Source: https://www.capterra.com/payroll-software/s/small-businesses --- # Best Payroll Software for Small Businesses in 2025 Last updated on July 18, 2025 Written by [Emilie Audubert](https://www.capterra.com/resources/author/emilie-audubert/) Writer Edited by [Mehar Luthra](https://www.capterra.com/resources/author/mehar-luthra/) Editor Managing payroll processes can be intricate and time-consuming, especially for small businesses with limited resources and staff. [Payroll software](https://www.capterra.com/payroll-software/) can automate various tasks, enhance the efficiency of payment processes, and ensure adherence to tax regulations for small businesses. To help you select the ideal payroll solution for your small business, we have compiled a list of the highest-rated systems, highlighting features that users consider crucial, as well as the primary advantages of each. We analyzed almost 19,000 verified user reviews, including more than 14,000 from small businesses to identify the most important features and benefits.[\[1\]](#footnotes) ## 9 best payroll software for small businesses According to 34,800 verified Capterra reviews [ Gusto ](#42ee393d-0695-4c41-b194-a6d200b44a29) Highly rated for ease of use 4.6 (4201) [ Patriot Software ](#532c9341-4fdb-41c8-a168-a6d200b595c1) Highest rated 4.8 (3935) [ Rippling ](#598e6747-cf05-4b9f-9fb7-a8770071ba2f) Highly rated for value for money 4.9 (4706) [ Paycom ](#33a55443-15ee-465a-a3b7-a6d200b5a51b) Highly rated for payroll reporting 4.4 (1249) [ RUN Powered by ADP ](#bfd74414-82d5-4157-8bfc-a6d200b630e4) Highly rated for direct deposit 4.6 (1392) [ Proliant ](#19b627c2-00cf-4b59-825c-a6d200b5e38b) Highly rated for functionality 4.5 (333) [ Paychex Flex ](#8e6823ad-dfd1-457e-b4e0-a6d200b5a51b) Highly rated for W-2 preparation 4.2 (1797) [ PrimePay ](#f6b62738-ce3e-4f86-951a-a6e301521bc6) Highly rated for tax compliance 4.0 (381) [ OnPay ](#222b240f-8294-401b-9dfa-a7ed00810a75) Highly rated for customer support 4.8 (464) [Explore our full Payroll solutions](https://www.capterra.com/payroll-software/) ### How we picked the software on this list All the tools listed below are featured in the [2024 Capterra Shortlist for Payroll](https://www.capterra.com/payroll-software/shortlist/). These tools have received more than 20 reviews in the past two years, with ratings consistently above 4.5. Our analysis of thousands of user reviews highlights key insights about user experiences with these platforms, offering valuable feedback on functionality, ease of use, customer support, and value for money. * * * [4.8 (3935)](https://www.capterra.com/p/116050/Patriot-Software/reviews/) Highest rated Highest rated Starting Price: $17.00 Flat Rate, Per Month Free Trial Free Version Top rated feature: Tax Compliance Based on 301 reviews User rating: TY 85% of reviewers rated it 5 stars Patriot Payroll is the highest-rated among our most popular payroll tools for SMBs, with an overall rating of 4.8 out of 5 and more than 3,500 reviews. It is a comprehensive payroll solution for small businesses with unlimited monthly payrolls, an included employee portal, and multiple integrations. Features Features reviewers most value **Payroll management** Reviewers appreciate Patriot Payroll's payroll management capabilities, giving that feature a rating of 4.5 out of 5. They report that it ensures accurate salary processing and simplifies tax compliance. Users highlight the ease of adding, terminating, and adjusting employee details, as well as the ability to manage payroll from a smartphone app. However, some users wish for more automation and a modernized interface for viewing payroll information. **Tax compliance** Reviewers indicate that Patriot Payroll's tax compliance capabilities are valuable for ensuring accurate and timely tax filings; they give the feature a rating of 4.3 out of 5. They appreciate the software's ability to handle federal and state tax forms, reducing the risk of penalties and legal issues. Users find the reporting options helpful and the process straightforward. However, some users mention occasional errors and the need for better communication about certain services, such as mailing W-2s and 1099s. **Direct deposit** Reviewers give this feature a rating of 4.3 out of 5. Users report that Patriot Payroll's direct deposit feature is convenient and secure, allowing for seamless payment processing. They appreciate the ability to set up multiple bank accounts and the clear instructions provided. Reviewers highlight the time saved compared to issuing paper checks and the reliability of timely deposits. However, some users express a desire for faster processing times and next-day deposit options. Pros & Cons AL Abigail L. Public Relations and Communications, Self-employed Used the software for: 1-2 years "Patriot is the best tool I've found that makes it easy for a small-business owner (solopreneur) as an S-Corp to run payroll and manage everything seamlessly without overpaying. If I have questions, their team is a simple chat or phone call away." TF Teresa F. Computer Software, 1-10 employees Used the software for: Less than 6 months "Our contractors previously lacked portal access to review their payment history, so this feature has improved transparency and reduced administrative requests." TF Teresa F. Computer Software, 1-10 employees Used the software for: Less than 6 months "The main limitation is that support is not available 24/7, though this has not created operational issues for our team. If a question comes up over the weekend, you must wait until normal business hours." JF Jody F. Transportation/Trucking/Railroad, 1-10 employees Used the software for: 1-2 years "The only thing I don't like is when I am doing payroll and if I want to make a wage change for someone, I have to start my payroll all over. " Pricing Patriot’s Basic Payroll plan costs $17 per month, plus $4 per month for each employee. However, there is no charge for the first 30 days businesses use Patriot Payroll, and the price is cut in half for the next three months ($8.50 monthly, plus $2 per employee). The Full Service Payroll tier adds tax filing features. It costs $37 per month, plus $4 per employee. [Learn more about Patriot Software pricing plans](https://www.capterra.com/p/116050/Patriot-Software/pricing/) Integrations **Popular Integrations** - **QuickBooks Online Advanced** is a cloud-based accounting and business management system that integrates with Patriot Payroll to capture payroll expenses. - **Vestwell** manages workplace savings and investment plans, and it integrates with Patriot Payroll to automate 401(k) and 403(b) deductions. - **Plaid** is a money management platform that integrates with Patriot Payroll to automatically send employee pay to specified bank accounts or financial apps. [Learn more about Patriot Software](https://www.capterra.com/p/116050/Patriot-Software/) * * * [4.9 (4706)](https://www.capterra.com/p/172127/Rippling/reviews/) Highly rated for value for money Highly rated for value for money Starting Price: $8.00 Per User, Per Month Free Trial Free Version Top rated feature: Direct Deposit Based on 953 reviews User rating: AH 90% of reviewers rated it 5 stars Rippling is a cloud-based HR, IT, and spending management platform with payroll functionality. Small businesses can use Rippling to automate tasks such as calculating payroll and filing taxes. With more than 3,000 verified ratings, our users give Rippling an overall 4.9/5 rating and, among the most popular payroll tools for small businesses, it has the highest rating for providing value for money. Features Features reviewers most value **Employee profiles** Reviewers rate this feature 4.6 out of 5. They appreciate Rippling's employee profiles for their ease of navigation and the ability to quickly find essential job role data. Users report that the tool is helpful for tracking contact information and viewing the organizational chart. They find it straightforward to update profiles and keep track of employees at a high level. Reviewers feel that having all relevant employee information in one place is very helpful, especially during onboarding. However, some users wish they could view all employees, not just upper management. **Online time tracking** Giving the feature a rating of 4.6 out of 5, users report that Rippling's online time tracking is convenient and easy to use, allowing them to track their time and breaks from anywhere. Reviewers indicate that it helps manage hours effectively, ensuring compliance and accurate payroll. They find it simple to make adjustments and appreciate the various ways to input and track time for different projects. However, some users mention occasional bugs and a desire for more functionality. Overall, they value the ease of use and reliability of this function. **Onboarding** Reviewers give this feature a rating of 4.6 out of 5. They highlight Rippling's onboarding process as intuitive and user-friendly, making it easy for new employees to complete necessary documents and tasks. They report that the system clearly highlights outstanding items and provides timely reminders. Users find the process straightforward and effective, with everything needed in one place. They appreciate the automated experience and the ability to track onboarding status. However, some mention issues with workflows getting stuck and the offer letter editor being subpar. Pros & Cons SV Stefan V. Mental Health Care, 201-500 employees Used the software for: 6-12 months "The payroll interface is my favorite part because it's clear, updates in a timely manner, can download paystubs, and can look up all the information related to my paty." Jagadeesh T. Information Technology and Services, 501-1,000 employees Used the software for: 1-2 years "Employee Management: The self-service portal gives me complete visibility into my leave history, pending requests, and available balance across different leave categories (casual, sick, earned)." RN Ronald N. Furniture, 51-200 employees Used the software for: Less than 6 months "This made it harder to create detailed, customized views of our device inventory and track certain metrics the way I needed to." CW Connor W. Financial Services, 51-200 employees Used the software for: 2+ years "the main gripe is having multiple rippling accounts under personal emails in past with past companies - signing up was a difficult process for each with old accounts associated with the email still" Pricing Rippling is highly customizable, so its pricing depends on your desired feature set. Businesses should contact Rippling for a price quote. [Learn more about Rippling pricing plans](https://www.capterra.com/p/172127/Rippling/pricing/) Integrations **Popular Integrations** - **QuickBooks Online** is a cloud-based accounting app that integrates with Rippling to record payroll expenses. - **Google Workspace** is an online productivity platform that integrates with Rippling for single sign-on (SSO) user authentication. - **NetSuite** is a SaaS enterprise resource planning (ERP) app that integrates with Rippling’s payroll, headcount, and financial data. [Learn more about Rippling](https://www.capterra.com/p/172127/Rippling/) * * * [4.6 (4201)](https://www.capterra.com/p/131882/Gusto/reviews/) Highly rated for ease of use Highly rated for ease of use Starting Price: $49.00 Other, Per Month Free Trial Free Version Top rated feature: Payroll Management Based on 325 reviews User rating: CC 73% of reviewers rated it 5 stars Gusto is a recruiting and payroll solution for small and growing businesses. Guest has over 4,000 reviews on Capterra, and it is the highest rated for ease of use, among the most popular payroll tools, with an overall rating of 4.6 out of 5. It streamlines the payroll process and automatically generates documents, such as W-2s, saving small payroll teams time. Features Features reviewers most value **Employee profiles** Reviewers give this feature a rating of 4.8 out of 5. They appreciate Gusto's employee profiles for their ease of creation and maintenance. They say employees can quickly set up and update their own profiles, which reduces management's workload. Users report that having all employee information, including payroll, tax documentation, and benefits, in one secure place is helpful. They find the automated email invitations and the ability for employees to self-maintain their profiles valuable. They also highlight the convenience of having detailed reports and analytics readily available. **Direct deposit** Reviewers indicate Gusto's direct deposit is reliable and efficient, ensuring timely payroll processing; they give the feature a rating of 4.8 out of 5. They appreciate the ability to split payments into multiple bank accounts and the ease of updating direct deposit information. Users report that the automated notifications and reminders help manage payroll schedules effectively. They find the direct deposit feature saves time compared to issuing paper checks and enhances employee satisfaction by providing quick access to funds. Some users mention occasional issues with payment timing. **Employee database** Reviewers give this feature a rating of 4.5 out of 5. Users report that Gusto's employee database centralizes essential information, making HR tasks easier. They appreciate the secure storage of compliance documents and the automatic creation of employee profiles during onboarding. Reviewers find it easy to access and manage employee data, including payroll activities and contact information. They highlight the convenience of having all employee information in one place, which improves organization and efficiency. Some users note that the search function could be more reliable. Pros & Cons Ryan P. Design, 1-10 employees Used the software for: 1-2 years "As an employee with the employer implementing Gusto as our way to clock hours and bill labor, I found it pretty simple and straightforward, with full transparency as far as being able to view accrued hours, break time etc." JT Jarvis T. Health, Wellness and Fitness, 11-50 employees Used the software for: 2+ years "The integration between the app and the desktop version makes the login and navigation process feel completely seamless, which significantly reduces the administrative burden of managing my employment details." Hallye N. Mechanical or Industrial Engineering, 11-50 employees Used the software for: I used a free trial "Slow support, rising per-employee costs, limited customization, weaker mobile app, and advanced features locked behind higher-tier plans." Sofia L. Accounting, 1-10 employees Used the software for: 1-2 years "Gusto can get pricey depending upon the number of employees being serviced, and some employees have found it difficult to customize their withholdings." Pricing Gusto’s Simple plan for smaller businesses costs $40 per company and $6 per employee per month. The Plus tier is aimed at companies with more complex payroll needs and is priced at $80 per organization and $12 per employee per month. Larger companies with specialized needs can inquire about the Concierge, Contractor, and Premium plans. [Learn more about Gusto pricing plans](https://www.capterra.com/p/131882/Gusto/pricing/) Integrations **Popular Integrations** - **Bonusly** is a performance enablement and bonus management solution that integrates with Gusto’s payroll features. - **When I Work** is a shift management and scheduling tool that can integrate its time-tracking data with Gusto’s payroll features. - **Apios** is an accounting platform for nonprofits that integrates with Gusto for payroll processing. [Learn more about Gusto](https://www.capterra.com/p/131882/Gusto/) * * * [### OnPay](https://www.capterra.com/p/167109/OnPay/) [4.8 (464)](https://www.capterra.com/p/167109/OnPay/reviews/) Highly rated for customer support Highly rated for customer support [View Profile](https://www.capterra.com/p/167109/OnPay/) Starting Price: $49.00 Per User, Per Month Free Trial Free Version Top rated feature: Tax Compliance Based on 62 reviews User rating: JC 89% of reviewers rated it 5 stars OnPay seeks to provide a flexible HR and payroll solution for growing businesses by automating tax withholdings and integrating with popular accounting software. It also covers other HR features such as hiring and benefits. Among the most popular payroll tools for small businesses on Capterra, OnPay is the highest rated for customer support with a 4.8 out of 5 rating. Features Features reviewers most value **Tax compliance** Reviewers appreciate OnPay's tax compliance capabilities, giving it a rating of 4.3 out of 5. They report that OnPay keeps them up to date with tax laws and changes, ensuring timely and accurate tax payments. Users highlight the helpful customer service and the relief from dealing with tax issues themselves. They find that OnPay handles state and federal matters efficiently, reducing stress and liability. Although there have been occasional non-compliance issues, reviewers indicate that OnPay resolves them quickly. **Payroll management** Reviewers give this feature a rating of 4 out of 5. They report that OnPay's payroll management saves them significant time and effort. They appreciate the ease of running payroll, tracking expenses, and accessing payroll information. Reviewers indicate that OnPay's customizable options and user-friendly interface make managing payroll straightforward. They find the self-service access for employees valuable and note the efficient customer service. Users also highlight the integration with QuickBooks Online and the ability to manage everything from a single dashboard. **W-2 preparation** Reviewers appreciate OnPay's W-2 preparation capabilities, giving it a rating of 4 out of 5. They report that OnPay handles the preparation, storage, and distribution of W-2 forms efficiently, saving them time and effort. Users like the option to print or mail forms directly from OnPay and find the process easy and reliable. They highlight the timely availability of W-2s and the peace of mind it provides. Reviewers also mention the cost savings and the convenience of having downloadable W-2s without additional charges. Pros & Cons MS Marcus S. Construction, 11-50 employees Used the software for: 6-12 months "It supports unlimited monthly pay runs for W-2 employees and 1099 contractors, handles multi-state payroll, direct deposit/check/debit card payments." MS Marcus S. Construction, 11-50 employees Used the software for: 6-12 months "Overall, it worked for us with the transparent pricing and predictable costs." CR Cory R. Transportation/Trucking/Railroad, 501-1,000 employees Used the software for: 6-12 months "The software does not have built-in time tracking or scheduling tools, requiring users to rely on external integrations." OD Olga D. Health, Wellness and Fitness, Self-employed Used the software for: I used a free trial "Not being able to set date of payroll check to be sooner to when I ran payroll l. I wish I could make the date of check closer." Pricing OnPay offers a simple pricing structure of a flat $40 per month plus $6 per person on your payroll. [Learn more about OnPay pricing plans](https://www.capterra.com/p/167109/OnPay/pricing/) Integrations **Popular Integrations** - **QuickBooks Online** is a cloud-based accounting application that can automatically integrate payroll numbers from OnPay. - **When I Work** is a shift management app that can integrate schedules and hours worked with OnPay. - **Xero** is an online accounting platform that can sync payroll data created in OnPay. [Learn more about OnPay](https://www.capterra.com/p/167109/OnPay/) * * * [### Proliant](https://www.capterra.com/p/187093/Proliant/) [4.5 (333)](https://www.capterra.com/p/187093/Proliant/reviews/) Highly rated for functionality Highly rated for functionality [View Profile](https://www.capterra.com/p/187093/Proliant/) Starting Price: Not provided by vendor Free Trial Free Version Top rated feature: Payroll Management Based on 97 reviews User rating: PB 60% of reviewers rated it 5 stars Proliant is an HR and benefits administration tool that seeks to simplify complex tasks for small businesses. Its payroll features cover everything from onboarding to bonus management. Among the most popular payroll tools for small businesses on Capterra, Proliant is the highest rated for functionality. It has a 4.5 of 5 overall rating based on more than 300 reviews. Features Features reviewers most value **Direct deposit** Reviewers appreciate Proliant's direct deposit capability, giving it a rating of 4.7 out of 5. They find it eliminates the hassle of managing paper checks and ensures timely, accurate payments. Users report it is easy to set up and modify, saving time and reducing errors. They highlight the convenience for remote employees and the ability to update banking information quickly. **Tax compliance** Reviewers give this feature a rating of 4.3 out of 5. They indicate Proliant's tax compliance capabilities are valuable for maintaining accurate and timely tax filings. They report that Proliant handles multistate tax requirements efficiently, providing peace of mind. Users appreciate the knowledgeable support team and the ease of outsourcing tax reporting. They find the service reliable, with no issues in timely tax deposits, and highlight the benefit of having all tax information in one place, which simplifies end-of-year processes. **Payroll management** Reviewers highlight Proliant's payroll management capabilities as essential for their operations and they give the feature a rating of 3.9 out of 5. They report it is easy to use, with a straightforward interface and helpful reports. Users appreciate the automation and accuracy in processing payroll, reducing manual effort and errors. They also value the ability to manage payroll across multiple states and the seamless integration with other systems. Pros & Cons Andy M. Hospital & Health Care, 1,001-5,000 employees Used the software for: 1-2 years "Overall, proliant delivers solid performance and support, though setup can be tricky for complex setups" GD Gregory D. Facilities Services, 11-50 employees Used the software for: 6-12 months "Running bi-weekly payroll was very simple and easy, much easier than on ADP." GD Gregory D. Facilities Services, 11-50 employees Used the software for: 6-12 months "The reports were very complicated to figure out and the process to run them wasn't very user friendly." AW Amanda W. Hospital & Health Care, 501-1,000 employees Used the software for: 2+ years "The system should be able to see the pay rate and DOH is effective 5/16 and know this employee would not get a check for the 1st - 15th pay period." Pricing Proliant does not provide public pricing information. Integrations **Popular Integrations** - **Okta** is a digital identity management solution that can authenticate employee logins for Proliant. - **Docebo** is a learning management system that can integrate with Proliant’s training features. - **Cornerstone** is a performance management application that integrates with Proliant’s HR management functions. [Learn more about Proliant](https://www.capterra.com/p/187093/Proliant/) * * * [### RUN Powered by ADP](https://www.capterra.com/p/185859/RUN/) [4.6 (1392)](https://www.capterra.com/p/185859/RUN/reviews/) Highly rated for direct deposit Highly rated for direct deposit [View Profile](https://www.capterra.com/p/185859/RUN/) Starting Price: Not provided by vendor Free Trial Free Version Top rated feature: Payroll Management Based on 420 reviews User rating: RW 72% of reviewers rated it 5 stars RUN Powered by ADP aims to provide essential payroll functions for small businesses. Once you have established your payroll process, RUN can automate everything for you with its autopilot feature. With more than 750 reviews and an overall rating of 4.5 out of 5, RUN Powered by ADP has the highest rating for direct deposit management among the most popular tools. Features Features reviewers most value **Direct deposit** Reviewers appreciate RUN Powered by ADP's direct deposit capability for its efficiency and convenience, giving it a rating of 4.8 out of 5. They find it easy to set up and use, ensuring timely and accurate deposits. Users report that it eliminates the need for paper checks, reduces the risk of lost or delayed payments, and allows employees to access their paystubs via the employee portal. They say it simplifies payroll processing and is a valuable option for companies requiring direct deposit for all employees. However, some mention occasional system outages affecting deposits. **Tax compliance** Reviewers give this feature a 4.5 out of 5. They indicate that RUN Powered by ADP's tax compliance feature is helpful for managing and filing taxes accurately. They appreciate that ADP handles all tax filings, including federal, state, and city taxes, reducing the risk of errors and penalties. Users report that ADP provides updates on tax laws and compliance, and assists with resolving any issues that arise. They appreciate the time saved and the peace of mind knowing their tax obligations are managed. However, some users mention needing to follow up with ADP to ensure timely resolution of tax notices. **Payroll management** Users report that RUN Powered by ADP simplifies payroll management with its user-friendly interface and comprehensive tools; they give the feature a 4.5 out of 5 rating. They find it easy to run payroll, track salaries, manage deductions, and handle PTO days. Reviewers appreciate the ability to access payroll information online. They say the software is intuitive, allowing employees to update their information independently. However, some users experience difficulties with customer service and pulling accurate reports. Overall, they find it saves time and streamlines payroll processes. Pros & Cons Maxwell P. Hospitality, 11-50 employees Used the software for: 2+ years "My employees can clock in and out easily, and that data flows directly into the payroll system without me having to manually enter hours, which eliminates so many human errors. Whenever I have hit a snag, the Customer Support team has been exceptional." KO Kelvin O. Security and Investigations, 11-50 employees Used the software for: Less than 6 months "It helps automate payroll, handle tax filings, and keep employee records organized, which reduces a lot of administrative work. While there are a few areas where the interface could be smoother, the reliability and support make it a dependable platform for managing payroll." DT Deborah T. Construction, 11-50 employees Used the software for: Less than 6 months "It cannot handle multiple local jurisdictions so it's not compatible for a small construction business that has multiple job sites, employees living in one state and working in multiple states. " JM Jeannine M. Food Production, 11-50 employees Used the software for: 2+ years "My particular system has a search engine that ADP does not prefer which causes me to refresh my page in order to print out the information I seek." Pricing ADP does not provide public pricing for RUN and requires interested parties to request a quote. Integrations **Popular Integrations** RUN Powered by ADP does not support integrations out of the box, although businesses can purchase ADP’s Payroll Integrations Connector to develop their own solutions. [Learn more about RUN Powered by ADP](https://www.capterra.com/p/185859/RUN/) * * * [4.4 (1249)](https://www.capterra.com/p/130949/Paycom/reviews/) Highly rated for payroll reporting Highly rated for payroll reporting Starting Price: Not provided by vendor Free Trial Free Version Top rated feature: Payroll Management Based on 231 reviews User rating: AV 61% of reviewers rated it 5 stars Paycom is an HR and payroll platform that focuses on the employee lifecycle, from onboarding to talent management. Paycom has the highest rating for payroll reporting among Capterra’s most popular payroll tools, and it has an overall rating of 4.4 out of 5. Beyond payroll, Paycom offers benefits, compliance management, and labor cost tracking. Features Features reviewers most value **Direct deposit** Reviewers appreciate Paycom's direct deposit capabilities for their convenience and efficiency, giving it a rating of 4.7 out of 5. They report that employees receive their wages directly into their bank accounts on time, often early, without manual handling of checks. Users find it easy to set up and modify direct deposit information, even for multiple accounts. They say it saves time, reduces payroll issues, and is environmentally friendly. However, some small businesses mention additional fees for wire transfers, which they find burdensome. **Mobile access** Users report that Paycom's mobile access is highly valuable for its flexibility and functionality; they rate the feature 4.5 out of 5. They indicate that the mobile app allows employees to manage time-keeping, request time off, and view pay information from anywhere. They find it particularly useful for remote work and appreciate that it mirrors the website's capabilities. Reviewers feel the app is user-friendly and efficient, saving time for HR and employees alike. They say it enhances overall accessibility and convenience. **Employee database** Reviewers give this feature a 4.6 out of 5. Reviewers highlight the effectiveness of Paycom's employee database for centralizing and managing employee information. They find it easy to navigate, search, and filter data, which simplifies payroll processing, tax reporting, and compliance. Users appreciate the comprehensive storage of employee data and the ability to quickly access necessary information. However, some users note initial inaccuracies in data input, which required correction. Pros & Cons LB Lindsey B. Hospital & Health Care, 201-500 employees Used the software for: 2+ years "Customizable onboarding lists, ability to upload our company documents for ESS visibility, time off requests are simple, learning platform is nice." SS Susan S. Human Resources, 51-200 employees Used the software for: Less than 6 months "Paycom empowers employees to manage their own benefit elections, updates, and payroll details, which significantly reduces administrative workload and improves data accuracy." TC Tiffany C. Construction, 201-500 employees Used the software for: 1-2 years "Also, when reviewing documents (like PAFs and other documents), you can’t easily go back to where you left off, you have to restart from the employee profile and find your place again, which can be frustrating and time-consuming." AE Ashley E. Civic & Social Organization, 51-200 employees Used the software for: 6-12 months "Good because they can keep track of how much people are working and slightly annoying when I clock 39.99 hours instead of 40 (not that the reporting really changes my pay, just a personal pet peeve)." Pricing Paycom does not provide public pricing information. [Learn more about Paycom pricing plans](https://www.capterra.com/p/130949/Paycom/pricing/) Integrations **Popular Integrations** Paycom does not officially support third-party integrations. [Learn more about Paycom](https://www.capterra.com/p/130949/Paycom/) * * * [### PrimePay](https://www.capterra.com/p/156904/PrimePay/) [4 (381)](https://www.capterra.com/p/156904/PrimePay/reviews/) Highly rated for tax compliance Highly rated for tax compliance [View Profile](https://www.capterra.com/p/156904/PrimePay/) Starting Price: Not provided by vendor Free Trial Free Version Top rated feature: Payroll Management Based on 109 reviews User rating: LR 56% of reviewers rated it 5 stars Among the most popular payroll tools for small businesses on Capterra, PrimePay is the highest rated by users looking for its tax compliance capabilities. Out of more than 300 reviews, it earned a 3.9 out of 5 overall rating. In addition to automated payroll processing, PrimePay offers time and attendance features, workforce planning, benefits administration, and more HR features. Features Features reviewers most value **Direct deposit** Reviewers appreciate PrimePay's direct deposit capabilities, giving it a rating of 4.2 out of 5. They find it convenient and essential, especially since it eliminates the need for live checks and reduces paper usage. Users report that employees love having their paychecks directly deposited into their accounts. They indicate that once set up, it works smoothly and reliably. However, some users mention issues with incorrect data entry during implementation and delays in processing, which can affect timely deposits. **W-2 preparation** Reviewers highlight PrimePay's W-2 preparation aspect as valuable for its ease and reliability; they give the feature a 4.1 out of 5 rating. They say it saves them time and reduces stress, as PrimePay handles the entire process, ensuring W-2s are ready and compliant with IRS requirements. Users report that W-2s are generated and distributed on time, with easy access for employees. However, a few users mention occasional errors and billing issues that needed correction. **Tax compliance** Reviewers give this feature a rating of 3.8 out of 5. They indicate that PrimePay's tax compliance aspect is important for ensuring proper tax deductions and timely payments. They find it provides peace of mind, as PrimePay handles tax filings and keeps up with changing tax laws. Users report that it meets their needs and reduces their workload. However, some users mention issues with response times and occasional penalties due to late payments, highlighting the need for improved reliability. Pros & Cons ND Nikki D. Accounting, 1-10 employees Used the software for: 2+ years "The automation of these tasks helps reduce manual errors and ensures compliance without having to constantly monitor deadlines." ND Nikki D. Accounting, 1-10 employees Used the software for: 2+ years "One of the biggest advantages of using PrimePay is how seamlessly it handles all tax filings and quarterly reports." CH Christina H. Construction, 51-200 employees Used the software for: 2+ years "It had some ability to modify the set up and codes but when it came to customer service, it was difficult to get answers and help without starting from ground zero and explaining your whole company/ process to each person." AB Alicia B. Accounting, 11-50 employees Used the software for: 1-2 years "Our company has had some communication issues with taxes being paid in correctly or overpaid from switching over mid-year." Pricing PrimePay does not list pricing information publicly on its website. However, it offers three plans so businesses can choose a solution that best meets their needs: Payroll Essential, Payroll & Time Essentials, and the full-featured HCM Essentials. [Learn more about PrimePay pricing plans](https://www.capterra.com/p/156904/PrimePay/pricing/) Integrations **Popular Integrations** PrimePay does not officially support integrations, but it does offer an API for businesses to develop custom solutions. [Learn more about PrimePay](https://www.capterra.com/p/156904/PrimePay/) * * * [### Paychex Flex](https://www.capterra.com/p/119841/Paychex-Flex/) [4.2 (1797)](https://www.capterra.com/p/119841/Paychex-Flex/reviews/) Highly rated for W-2 preparation Highly rated for W-2 preparation [View Profile](https://www.capterra.com/p/119841/Paychex-Flex/) Starting Price: Not provided by vendor Free Trial Free Version Top rated feature: Direct Deposit Based on 273 reviews User rating: 49% of reviewers rated it 5 stars Out of the most popular payroll tools for small businesses on Capterra, Paychex Flex was highest rated by users for W-2 preparation, earning an overall rating of 4.2 out of 5. Paychex Flex’s HR lifecycle solution covers payroll, performance, benefits, and retirement management. It also has accounting features that cover job costing and tax reporting. Features Features reviewers most value **Direct deposit** Reviewers appreciate Paychex Flex's direct deposit capabilities for their convenience and reliability, rating the feature 4.5 out of 5. Users report that employees receive their paychecks on time, often even early, and can split payments into multiple accounts. They find it easy to set up and manage, with options to add or remove accounts without contacting payroll administrators. Users also highlight the security and accuracy of the system, noting it prevents errors and ensures timely payments, which is particularly valuable for remote employees. **Timesheet management** Users report that Paychex Flex's timesheet management capabilities are easy to use and efficient; they give this feature a rating of 4.3 out of 5. They find it helpful for tracking hours worked, making adjustments, and ensuring accuracy before submission. Reviewers indicate that the system allows for quick corrections of errors and provides a clear summary of submitted and unsubmitted time. They appreciate the organized layout and the ability to manage employee hours effectively. **W-2 preparation** Reviewers highlight the ease and efficiency of W-2 preparation with Paychex Flex, giving it a rating of 4.2 out of 5. They appreciate that the process is automated, timely, and accurate, with W-2s being mailed directly to employees and available online for self-service. Users report that this capability saves time and reduces the administrative burden, allowing employees to access their tax documents quickly. They also value the ability to update employee information easily and the integration with tax services for seamless filing. Pros & Cons Nicholas D. Construction, 11-50 employees Used the software for: 2+ years "It's great for users as well, as it allows us, as users, to manage retirement (401k), manage direct deposit, and even manage taxes, right from the employee login." Mai M. Hospitality, 11-50 employees Used the software for: 6-12 months "It's become the perfect option for our small businesses by automating tax data, self-service access via desktop or mobile app, and all the additional workforce management tasks." Nicholas D. Construction, 11-50 employees Used the software for: 2+ years "We don't use time clocks, as we're all salaried, so no tracking needed, but the communication features are somewhat lacking, and we do not use any to communicate with employees, rather doing so via phone calls or in-person." JL Jill L. Construction, 51-200 employees Used the software for: 1-2 years "We will be using time tracking through Paylocity and Paycheck does not offer this feature. Once you are no longer a member, you need to contact them to have paycheck stubs, W2's and any additional information printed." Pricing Paychex offers three Flex pricing plans: Select, Pro, and Enterprise. However, pricing is only available by requesting a quote. [Learn more about Paychex Flex pricing plans](https://www.capterra.com/p/119841/Paychex-Flex/pricing/) Integrations **Popular Integrations** - **Xero** is a cloud-based accounting application that integrates with Paychex Flex’s payroll, benefits, and PTO data. - **Clover** is a point-of-sale and payment system that integrates with Paychex Flex for paying contractors and freelancers. - **Altametrics** is a workforce management tool. Its shift scheduling features integrate with Paychex Flex to share employee time cards and other data. [Learn more about Paychex Flex](https://www.capterra.com/p/119841/Paychex-Flex/) * * * ## Top payroll software for small businesses at a glance Vendor Highly rated Starting Price [Gusto](https://www.capterra.com/p/131882/Gusto/)[4.6 (4201)](https://www.capterra.com/p/131882/Gusto/reviews/) Ease of use $49.00 Per Month [Patriot Software](https://www.capterra.com/p/116050/Patriot-Software/)[4.8 (3935)](https://www.capterra.com/p/116050/Patriot-Software/reviews/) Highest rated $17.00 Per Month [Rippling](https://www.capterra.com/p/172127/Rippling/)[4.9 (4706)](https://www.capterra.com/p/172127/Rippling/reviews/) Value for money $8.00 Per Month [Paycom](https://www.capterra.com/p/130949/Paycom/)[4.4 (1249)](https://www.capterra.com/p/130949/Paycom/reviews/) Payroll reporting Not provided by vendor [RUN Powered by ADP](https://www.capterra.com/p/185859/RUN/)[4.6 (1392)](https://www.capterra.com/p/185859/RUN/reviews/) Direct deposit Not provided by vendor [Learn More](https://www.capterra.com/p/185859/RUN/) [Proliant](https://www.capterra.com/p/187093/Proliant/)[4.5 (333)](https://www.capterra.com/p/187093/Proliant/reviews/) Functionality Not provided by vendor [Learn More](https://www.capterra.com/p/187093/Proliant/) [Paychex Flex](https://www.capterra.com/p/119841/Paychex-Flex/)[4.2 (1797)](https://www.capterra.com/p/119841/Paychex-Flex/reviews/) W-2 preparation Not provided by vendor [Learn More](https://www.capterra.com/p/119841/Paychex-Flex/) [PrimePay](https://www.capterra.com/p/156904/PrimePay/)[4.0 (381)](https://www.capterra.com/p/156904/PrimePay/reviews/) Tax compliance Not provided by vendor [Learn More](https://www.capterra.com/p/156904/PrimePay/) [OnPay](https://www.capterra.com/p/167109/OnPay/)[4.8 (464)](https://www.capterra.com/p/167109/OnPay/reviews/) Customer support $49.00 Per Month [Learn More](https://www.capterra.com/p/167109/OnPay/) Explore our 595 Payroll solutions[Browse Directory](https://www.capterra.com/payroll-software/) ## Our methodology To be considered for this list, products had to: - Feature in the [2024 Capterra Shortlist for Payroll](https://www.capterra.com/payroll-software/shortlist/). - Meet our market definition for payroll software. - Have more than 20 reviews from small and midsized businesses (SMBs) in the past two years (August 1, 2022 to August 31, 2024). We took the highest rated products in each of the listed parameters unless that product already appeared on our list, in which case we featured the next highest rated.  **Most valued features selection:** Our research team analyzed verified payroll software reviews on Capterra (as of November 2024) to identify the features that users value the most in each of the listed tools. Features that received the highest rating were then included in the list. **Review excerpts selection:** Review excerpts are passages extracted from longer reviews written by verified reviewers. We obtain these excerpts by applying an algorithm that considers factors including, but not limited to, length, sentiment, topic coverage, and thematic relevance. Excerpts represent user opinion and do not represent the views of, nor constitute, an endorsement by Capterra or its affiliates. Excerpts are not edited for clarity or grammar. **Popular integrations selection:** We identified integrations from our internal database and selected products considered as “most popular.” ## What is payroll software? [Payroll software](https://www.capterra.com/payroll-software/) streamlines the administration of employee compensation, including salaries, wages, bonuses, and deductions. Additionally, it monitors time off, accrual of vacation days, and employee benefits. Common features of payroll software include tax calculations, direct deposit options, employee self-service portals, and integrations with human resources (HR) and accounting systems. This software is specifically designed to assist organizations in managing their payroll operations accurately and efficiently while adhering to applicable laws and regulations. Payroll software can significantly enhance time efficiency and minimize the likelihood of errors in payroll procedures. It also ensures improved transparency and access to payroll data for employees, including pay stubs and tax-related documents. ## Importance of payroll software for small business Small businesses may have only a single employee in the HR function instead of employing a full HR team. Regardless of the team's size, these individuals often find themselves swamped with essential administrative tasks, leaving little opportunity for strategic planning or other high-value activities that contribute to the efficient functioning of the organization. Payroll software can play a crucial role in streamlining common payroll operations by automating wage calculation and tax deductions, as well as the generation of pay stubs. The primary factors that underscore the significance of payroll software for small businesses include: - **Efficiency enhancement:** Payroll accounting software eliminates the need for manual calculations, allowing payroll administrators to focus on oversight and management. The software automatically computes tax deductions, and it can track various payroll-related items such as time off, expenses submitted, bonuses, holiday pay, overtime, and both hourly wages and salaries.  - **Onboarding optimization:** By utilizing a centralized platform, users can efficiently manage essential tasks such as gathering personal and tax information, assigning pay rates and schedules, and enrolling employees in benefits. This not only simplifies the onboarding process but also minimizes the potential for errors, ensuring compliance and enhancing overall operational efficiency. - **Attendance tracking improvement:** An essential aspect of payroll management is the accurate monitoring and reporting of hours worked. These systems streamline the tedious process of manual entry and employee hours tracking, reducing errors and ensuring that employees are compensated correctly for each hour they’ve worked. Small businesses require resources that enhance operational efficiency and can evolve in response to their changing needs, particularly during periods of rapid growth and scaling. Payroll software is particularly beneficial in this context, as it streamlines payroll management processes, thereby allowing payroll teams to allocate more time to other critical activities. ## Key features to look for in payroll software for small businesses Payroll software offers essential functionalities that enhance the efficiency of payroll management, payroll reporting, and tax compliances for small businesses, optimizing financial operations and ensuring adherence to regulatory standards. Over the past two years (as of October 2024), we asked users to rate the importance of various payroll software features on a scale from "low importance" to "critical." The features listed below are those that the highest percentage of reviewers deemed "highly important" or "critical." ### Tax compliance The implementation of payroll software plays an important role in automating administrative functions, facilitating the precise calculation of important payroll elements, including tax deductions. For small business owners, the significance of accurate tax deductions goes beyond simple regulatory adherence; it has a direct effect on cash flow and the overall financial well-being of the business. Using payroll software can streamline these calculations, significantly reducing the likelihood of errors that may result in expensive penalties. Among small business users who left ratings on Capterra, 82% of them rate the tax compliance feature as highly important. ### Self-service portal Payroll software can serve as an effective tool for customizing and optimizing payroll processes at small businesses. For instance, it can offer employees a self-service portal that grants staff access to their pay stubs, tax documents, and personal data, alleviating the administrative burden. A payroll administrator has the ability to adjust access levels according to job roles, ensuring that sensitive information is restricted to authorized individuals only. 83% of software reviewers rate the self-service feature as highly important. ### Document management Features such as document management enable the storage and sharing of essential documents, including company policies, tax forms, and compliance guidelines, directly within the software. In many systems, administrators can take advantage of document version control, which guarantees that all team members have access to the most current versions of documents, minimizing confusion and errors. 83% of software reviewers among small businesses rate the document management feature as highly important. ## How to choose the best payroll software for your small team Selecting an appropriate payroll system for your small business can significantly impact your operational efficiency and financial management. It is essential to dedicate sufficient time to evaluating how a payroll solution corresponds with your business's distinct needs, including the features most relevant to your specific requirements, the overall cost of ownership, and the compatibility of each system with your current software. This thorough assessment will enable you to make a well-informed choice that addresses your immediate payroll requirements while also facilitating long-term strategic objectives. ### 1\. Assess and define the essential features and services required by your business To identify the features and services that are most pertinent to your small business, ask the following questions among internal stakeholders and decision-makers: - **Customization and scalability**: How adaptable is the payroll system to accommodate the evolving needs of my business as it grows? Can I easily add features as my workforce expands? - **Compliance and reporting**: What measures does the vendor have in place to ensure compliance with local, state, and federal regulations? How does the system handle tax filings and reporting requirements? - **User experience**: Are there resources or training available to help my team navigate the system effectively? - **Integration with existing systems**: Can the payroll software seamlessly integrate with my current accounting, HR, and time-tracking systems? What kind of data migration support is provided? - **Customer support and service**: What level of customer support is available? Is there a dedicated representative or a support team that can assist me with any issues that arise? - **Security measures**: What security protocols are in place to protect sensitive employee information? How does the vendor ensure data integrity and security against breaches? - **Employee self-service features**: Are there options for employee self-service, allowing staff to access their pay stubs, tax documents, and personal information without needing to go through HR? By strategically aligning your inquiries with these key areas, you can better assess which payroll vendor will ultimately serve as a valuable partner in supporting the growth and operational efficiency of your small business. ### 2\. Evaluate the total cost of ownership The total cost of ownership (TCO) of a payroll software encompasses all potential expenses, including hidden fees, maintenance costs, and any variable factors that could influence your initial budget. Understanding TCO goes beyond just the upfront pricing; it requires a comprehensive examination of the long-term implications of adopting a payroll solution. Be sure to inquire about undefined costs that may arise over time, such as software updates, customer support, and integration with existing systems. Additionally, consider how the vendor’s solution might scale with your business growth, as this can significantly impact your overall expenditure. ### 3\. Ensure integration with your current tech stack As a small business owner, you must consider how your payroll software will interact with your existing systems, such as accounting software, human resources platforms, and time-tracking tools. Integration issues could lead to data discrepancies, increased workload, and potential compliance challenges. Take the time to research and identify the specific integration capabilities of your payroll solution. Ensure that it can seamlessly connect with the other systems in your business ecosystem to facilitate a smooth flow of information. ## Tips for implementing payroll software Implementing software can be a time-consuming and resource-intensive process, making it crucial to develop a detailed plan to facilitate its integration into business operations. The following tips can simplify the process when integrating a payroll software system into a small business: ### 1\. Engage the key stakeholders beforehand Engaging key team members in the decision-making process before choosing your payroll software is a strategic move that can significantly improve its implementation. For instance, considering the sensitive nature of payroll data, it is imperative to adopt robust security measures that effectively protect against data breaches and unauthorized access. Therefore, involving your IT team is particularly beneficial, as they can assist in refining your security protocols and establishing best practices for the future use of the software. This proactive approach allows you to identify potential vulnerabilities early on, ultimately leading to a more successful integration of the payroll system into your business operations. ### 2\. Define clear objectives As a small business owner, it is crucial to establish well-defined objectives when considering the implementation of new payroll software. Clearly outlining your goals will not only streamline the integration process but also ensure that the software aligns with your business needs. Consider what you hope to achieve with this investment. Are you aiming to reduce processing time, to improve efficiency? Perhaps minimizing errors is a priority to safeguard against potential compliance issues. By articulating these specific objectives, you create a framework for the implementation process. This approach will assist you in evaluating success after implementation and enable you to make informed decisions based on clear information. ### 3\. Assess vendors’ support capabilities The vendor's capacity to offer continuous support, including routine check-ins or updates, serves as a significant advantage in facilitating a seamless implementation. Furthermore, it plays a crucial role in ensuring that the software functions effectively over the long term. To assess this aspect, inquire about the availability of dedicated support representatives who can guide you through the implementation process, respond to your questions, and troubleshoot any issues that arise. Furthermore, consider the specifics of their onboarding services. A comprehensive onboarding process may include personalized training sessions, step-by-step tutorials, and access to a library of resources tailored to small business owners. ## The future of payroll software for small businesses ### The rise of AI in finance-related software The use of artificial intelligence (AI) within financial operations has seen a notable increase over the past year, with 58% of organizations employing this technology in 2024. This marks a substantial rise of 21 percentage points compared to 2023, as reported by a Gartner survey.[\[2\]](#footnotes) AI can improve numerous payroll-related functions, including assisting organizations in predicting future workforce requirements by leveraging historical payroll and employee information through AI-powered predictive analytics. Additionally, AI algorithms can be employed to analyze payroll data, enabling the detection of irregular patterns that could help detect potential fraud or errors. ### The rise of multicountry payroll The rise of remote and hybrid work has opened up new opportunities for small businesses to tap into a global talent pool, allowing them to hire skilled professionals from around the world. This shift has significantly increased the demand for multicountry payroll solutions. Gartner forecasts that by 2025, 65% of global midmarket and large enterprises will adopt strategies to unify multicountry payroll through no more than three vendors. Such unified payroll systems are essential for managing complex compliance requirements and ensuring seamless payroll processing across multiple regions.[\[3\]](#footnotes) ## What does payroll software for small businesses cost? Most payroll software platforms on the market are typically priced on a monthly subscription basis. Entry-level plans start at $497 per month for basic functionality such as automated payroll taxes and forms or employee self-service portal. More advanced or premium payroll solutions can cost anywhere from $2,317 to $3,329 per month and have basic features plus premium ones, such as user-based permission, recurring invoices set-up, or advanced time and attendance tracking.[\[4\]](#footnotes) Small business users can test drive payroll software before purchasing by taking advantage of limited free trials or freemium versions. These trial periods allow SMBs to assess the most essential features and ensure compatibility with their existing systems. However, some free plans also come with hidden costs for installation, integration, and access to specialized features. We’ve compared the current pricing metrics for some of the top-reviewed software tools. Vendor Pricing model Free version Free trial Basic Premium Advanced [Gusto](https://www.capterra.com/p/131882/Gusto/) Subscription /month No Yes $46 - $640 $1,292 - $3,080 $3,092+ [Patriot Payroll](https://www.capterra.com/p/116050/Patriot-Payroll/) Subscription /month No Yes $41 - $437 $441 - $1,037 $1,041+ [QuickBooks Payroll](https://www.capterra.com/p/174981/QuickBooks/) Subscription /month No No $99 - $500 $505 - $1,250 $1,255+ ## What is the difference between payroll software for large and small businesses? Payroll systems for small businesses typically differ from those used by larger companies or corporations in terms of scale, resources, and complexity. Payroll software tailored for small businesses typically provides basic tax and compliance tools to meet local and federal regulations. Additionally, payroll software for small companies is commonly optimized to handle a smaller workforce, requiring fewer user licenses since fewer employees need to access the system.  In contrast, solutions designed for larger organizations often come with more comprehensive compliance management across multiple regions, including automated updates to keep up with regulatory changes. ## Common payroll pitfalls small businesses need to avoid Payroll software errors can have particularly severe consequences for small businesses as they have direct financial impact. Therefore, it is crucial to thoroughly prepare for and mitigate potential issues when using payroll software, in order to avoid the most damaging pitfalls. ### Set-up issues Properly configuring payroll software is critical. Misconfigured settings can lead to a range of issues, from poor performance to security vulnerabilities that leave the system exposed to exploitation by hackers and other threats. In fact, Capterra's research found that 39% of IT professionals surveyed experienced a data breach due to improper system configurations. These configuration problems can be especially damaging for smaller businesses, as resolving them can be time-consuming and expensive.[\[5\]](#footnotes) ### Inadequate leave management processes Effective leave management in payroll software is vital for accurate employee compensation, yet there can be challenges such as restricted access, especially when a manager or administrator is unavailable for approvals. Correctly assigning designated backup approvers in payroll software can greatly improve leave management efficiency for small businesses by ensuring that leave requests are processed promptly, even in the absence of the primary manager or administrator.  ### Inadequate or expired tax records Effective tax documentation management is vital for payroll accuracy and compliance with tax regulations, which minimizes the risk of audits, penalties, and fines. Incorrect tax information can disrupt payroll software functionality, resulting in incorrect calculations of employee wages and deductions. Regularly creating, reviewing, and updating essential tax documentation is crucial for ensuring staff have access to validated information when needed, ultimately supporting reliable payroll processing and maintaining the organization’s financial health. ## Frequently asked questions What is the best software for payroll for a small business? Determining the "best" payroll software can depend on various factors, including the size of your company, your specific needs, budget, and the features you prioritize. Several payroll software solutions are highly regarded in the industry for their features, ease of use, customer support or value for money. According to our ratings from small businesses, [Patriot Payroll](https://www.capterra.com/p/116050/Patriot-Payroll/) is considered as the best rated payroll software in our list of the most popular tools. Can I do my own payroll for my small business? The decision should be based on your specific circumstances, including your comfort level with payroll processes, your budget, and how much time you can dedicate to managing payroll. However, for most small businesses, using payroll software is generally the better option, as it simplifies the process, reduces the risk of errors, and helps ensure compliance with tax laws. The time saved and the peace of mind can often outweigh the costs involved. Can I do my own payroll for free? Managing payroll with free software can be a viable option for small businesses, but there are key considerations to bear in mind. While free solutions offer cost savings, they often come with limited features compared to paid versions, which may impact essential functions such as tax calculations, direct deposits, and reporting. Additionally, scalability has to be taken into account, as some free software may cap the number of employees, leading to challenges as your business expands. Therefore, it's crucial to evaluate your specific payroll needs and compare available options before committing to ensure the software aligns with both your current requirements and future growth. Our [catalog of free payroll solutions](https://www.capterra.com/payroll-software/?pricing_options=FREE_VERSION) can help you identify the most suitable tools for your business. Can you run payroll without software? Manual payroll processing can be time-consuming and susceptible to errors, making it essential to meticulously verify all calculations and maintain organization throughout the process. To enhance efficiency and minimize the likelihood of mistakes, many businesses choose to adopt payroll software. These tools not only automate calculations but also help manage records, ensuring more accurate and timely payroll processing while allowing HR personnel to focus on more strategic tasks. How much does payroll software cost? Payroll software pricing generally operates on a monthly subscription model, with entry-level plans starting around $497 and premium solutions ranging from $2,317 to $3,329 per month.[\[4\]](#footnotes) Small businesses can benefit from limited free trials or freemium versions, enabling them to test the software’s essential features and compatibility with their existing systems before committing to a purchase. This approach allows them to make informed decisions and select the best payroll solution tailored to their needs. **Sources** 1. **Capterra reviews data:** Capterra reviews are collected from verified users for individual software products. For this report, we analyzed reviews from small and medium businesses from the past two years as of the production date. [Read the complete methodology.](https://www.capterra.com/resources/proprietary-data-research/#software-buyers-guides-methodology) 2. [AI in Finance: Use Cases, Strategies, Frameworks and Benefits](https://www.gartner.com/en/finance/topics/finance-ai), Gartner 3. [Market Guide for Multicountry Payroll Solutions](https://www.gartner.com/document-reader/document/4745831), Gartner 4. **Capterra software pricing data:** Only products with publicly available pricing information and qualified software products within the category, as of the date of production, are included in the pricing analysis. [Read the complete methodology here](https://www.capterra.com/resources/proprietary-data-research/#software-buyers-guides-methodology). 5. **Capterra’s 2024 Data Security Survey:** This survey was conducted online in August 2024 among 4,000 respondents in Australia (n=350), Brazil (n=350), Canada (n=350), France (n=350), India (n=350), Italy (n=350), Japan (n=350), Mexico (n=350), Spain (n=350), the U.K. (n=350), and the U.S. (n=500) to learn more about data security practices at businesses around the world. Respondents were screened for full-time employment in an IT role with responsibility for, or full knowledge of, their company's data security measures. [Emilie Audubert](https://www.capterra.com/resources/author/emilie-audubert/) Emilie is a content analyst at Capterra. Always on the lookout for the latest technological and strategic trends for small and midsize businesses, she specializes in human resources topics. Emilie’s research and analysis is informed by more than 250,000 authentic user reviews on Capterra and over 20,000 interactions between Capterra software advisors and HR software buyers. Emilie also regularly analyzes market sentiment by conducting surveys of HR leaders and practitioners so she can provide... [Mehar Luthra](https://www.capterra.com/resources/author/mehar-luthra/) Mehar Luthra is a team lead at Capterra and specializes in editing reports that cover the latest trends affecting small businesses. With nearly a decade of experience, she has edited a multitude of research articles, top-rated software reports, and thought leadership articles for diverse markets such as Brazil, Japan, Canada, France, Australia, and India. She finds it particularly rewarding to produce content that provides small-business owners with practical tips and helpful advice on topics... Related reading Best rated products on this list - [ Gusto](#42ee393d-0695-4c41-b194-a6d200b44a29) - [ Patriot Software](#532c9341-4fdb-41c8-a168-a6d200b595c1) - [ Rippling](#598e6747-cf05-4b9f-9fb7-a8770071ba2f) - [ Paycom](#33a55443-15ee-465a-a3b7-a6d200b5a51b) - [ RUN Powered by ADP](#bfd74414-82d5-4157-8bfc-a6d200b630e4) - [ Proliant](#19b627c2-00cf-4b59-825c-a6d200b5e38b) - [ Paychex Flex](#8e6823ad-dfd1-457e-b4e0-a6d200b5a51b) - [ PrimePay](#f6b62738-ce3e-4f86-951a-a6e301521bc6) - [ OnPay](#222b240f-8294-401b-9dfa-a7ed00810a75) Talk to a Capterra advisor for free and get results within 15 minutes.