Software comparison
Best Payroll Software for Small Business
If you already use QuickBooks or Xero for accounting, check their built-in payroll add-on before shopping standalone tools - avoiding double-entry between two systems is worth more than a marginally better feature list elsewhere.
Updated October 8, 2026
Pricing reality
Almost every tool here uses a base monthly fee plus a per-employee add-on, and both numbers change periodically. Confirm both parts of the price, not just the headline base fee, directly with the vendor.
At a glance
Which one fits?
Best for: Small businesses with mixed salaried/hourly staff who also want benefits admin
Free: No free tier.
Best for: Businesses already using QuickBooks Online for accounting
Free: No free tier.
Best for: Multi-state employers who don't want per-state add-on fees
Free: No free tier.
Best for: Very budget-conscious small businesses with simple payroll needs
Free: No free tier, but the lowest starting price in this category.
How we compare
The details that change the decision.
We focus on practical decisions: what the tool costs, what the free or entry plan really includes, where it fits, and which trade-offs are easy to miss. We cross-check vendor documentation and pricing information rather than repeating a feature list.
For a useful comparison, start with the job you need to complete, test the same workflow in each finalist, and check what happens when the free plan stops being enough. Then verify the current price and terms directly with the vendor before you commit.
01
Cost reality
Subscription, usage and important limits.
02
Fit
Who benefits and who should skip it.
03
Trade-offs
The limitation most likely to affect the decision.
Do this before paying
Run the same five-minute test on every finalist.
Feature lists are easy to compare and easy to overvalue. If the service offers a free plan or trial, use the same small real-world task in each finalist instead. Record what you can complete, where you hit a limit, and what requires an upgrade.
- 01
Create
Set up the smallest realistic workspace.
- 02
Do
Complete the task you actually need.
- 03
Limit
Find the first meaningful free-plan cap.
- 04
Export
Check whether your data can leave cleanly.
- 05
Price
Check the current paid plan and renewal terms.
Detailed comparison
What to know before you choose.
01
Gusto
Best for Small businesses with mixed salaried/hourly staff who also want benefits admin
Free option
No free tier.
Trade-off
A broad feature set combines payroll with benefits and optional time-tracking workflows. That breadth can reduce tool switching, although the base fee plus per-person cost can add up as headcount grows. Pricing has risen over the years and the base fee plus per-person cost adds up faster than budget-tier competitors as headcount grows.
02
QuickBooks Payroll
Best for Businesses already using QuickBooks Online for accounting
Free option
No free tier.
Trade-off
The integration with QuickBooks accounting is the entire point - payroll data flows straight into your books with no manual sync. Outside the QuickBooks ecosystem, it's a fairly unremarkable payroll tool on its own merits.
03
OnPay
Best for Multi-state employers who don't want per-state add-on fees
Free option
No free tier.
Trade-off
A pricing structure that can include multi-state filing may be attractive when employees work across states. Compare the current included states, filing scope and total per-employee cost before deciding. Fewer bundled HR extras than Gusto if you want payroll and HR fully combined.
04
Patriot Software
Best for Very budget-conscious small businesses with simple payroll needs
Free option
No free tier, but the lowest starting price in this category.
Trade-off
A lower starting price can suit straightforward payroll needs. The trade-off is a narrower feature set than broader payroll-and-HR platforms, so check whether benefits, HR and time-tracking needs are covered. Fine for straightforward payroll, limiting if you want integrated benefits administration or HR tools.
StackPick verdict
The bottom line.
Already on QuickBooks for accounting? Use its payroll add-on before anything else - the integration alone is worth it. Want the most complete, modern experience and can afford it? Gusto. Multi-state team? OnPay's flat multi-state pricing likely saves money. Tight budget, simple needs? Patriot Software.
Keep exploring
Related comparisons
Best Invoicing Software for Freelancers
Compare practical invoicing options and free-plan limits.
Read comparisonBest Accounting Software for Small Business
Compare accounting tools for growing small teams.
Read comparisonBest Expense Management Software for Small Business
Compare expense tracking and reimbursement tools.
Read comparisonSome links on this page may be affiliate links. Read our affiliate disclosure.