Best Payroll Software for 2026: 12 tools compared for buyers
This page compares the best payroll software for businesses that want to pay people accurately and stay on the right side of tax rules. Payroll software calculates pay, withholds and files taxes, and sends money to employees and contractors. The tools below range from low-cost options for tiny teams to full HR suites and PEO services for mid-size employers.
Tools were compared on fit for company size, tax filing coverage, multi-state support, accounting and time tracking links, ease of use and how clearly the vendor publishes pricing. Each listing also shows what the vendor states on support, contract terms and add-ons, so you can ask better questions in a demo.
Our shortlist at a glance
- Best for simple setup at a small US company
GustoAutomatic federal, state and local filing on all plans, a 9.5 of 10 ease-of-use score on G2, and support for both employees and contractors.
$49/month plus $6 per person (Simple) - Best for small teams paying staff in several states
OnPayOne plan with all-state tax filing included, no extra fee for paying workers in any number of states, and 1099 forms included.
$49/month + $6 per worker - Best when payroll should drive app access and offboarding
RipplingHR, payroll and IT suite whose app management handles provisioning and offboarding from employee records, with benefits, time and contractor products listed.
$8 per employee per month plus monthly base fee - Best for startups wanting a PEO with one per-employee price
JustworksBundles benefits and compliance through co-employment, charges a flat per-employee fee, and earns a 9.2 of 10 support sub-score on G2.
$50/month base plus $8 per employee (Payroll plan) - Best for IT-reviewed HR and payroll in one database
PaycomSingle-database HCM for mid-size US employers with SAML 2.0 and security attestations, plus time, benefits and tax filing included.
Contact sales - Best for owners who want full-service filing at a low base fee
Patriot PayrollFull Service handles federal, state and local deposits and filings from $17 per month plus $4 per worker, with contractors paid by direct deposit.
$17/month + $4 per worker (Basic)
What is payroll software?
Payroll software turns hours and salaries into paychecks. It calculates gross pay, deducts taxes and benefit contributions, and pays employees by direct deposit or check. Most platforms also file and pay federal, state and local payroll taxes, produce year-end forms such as W-2 and 1099, and track what each worker is owed. Many connect to accounting software to post journal entries and to time tracking tools to import hours. Business owners, office managers, HR staff and accountants use it to run regular pay cycles, onboard new hires and handle off-cycle payments without manual spreadsheets.
Payroll Software side by side
| Tool | Best for | Starting price | Free plan or trial |
|---|---|---|---|
| Gusto | Best for simple setup at a small US company. | $49/month plus $6 per person (Simple) | No |
| OnPay | Best for small teams paying staff in several states. | $49/month + $6 per worker | No |
| Rippling | Best when payroll should drive app access and offboarding. | $8 per employee per month plus monthly base fee | No |
| Justworks | Best for startups wanting a PEO with one per-employee price. | $50/month base plus $8 per employee (Payroll plan) | No |
| Paycom | Best for IT-reviewed HR and payroll in one database. | Contact sales | No |
| Patriot Payroll | Best for owners who want full-service filing at a low base fee. | $17/month + $4 per worker (Basic) | Free trial |
 Paylocity | Mid-size US employers that want payroll, HR, time and benefits in one platform. | Contact sales | No |
 ADP Run | Small businesses wanting a large provider with tax filing and add-on HR/benefits. | Contact sales | No |
 TriNet | Small and mid size employers wanting benefits and compliance outsourced. | Contact sales | No |
 Paychex Flex | Mid-size employers wanting a full-service provider with HR and benefits options. | Contact sales | No |
 Paycor | US employers with roughly 10 to 1,000 staff that want payroll and HR from one vendor. | Contact sales | No |
 QuickBooks Payroll | Businesses already on QuickBooks Online. | $44/month + $6.50 per employee (Payroll + Simple Start, 50% promo for 3 months shown; list $88) | No |
Prices as published by each vendor on October 24, 2026. "Contact sales" means the vendor publishes no price.
The 12 payroll software tools in detail
Best for simple setup at a small US company
Gusto
Small-business payroll platform that bundles tax filing, benefits and basic HR tools, priced as a base fee plus a per-person fee.
Small US businesses and sole-owner firms paying both W-2 staff and 1099 contractors can start on Simple, at $49 monthly plus $6 per person. Filing is automatic on every plan. Multi-state payroll needs Plus or Premium, and G2 reviewers rate ease of use 9.5 of 10.
- Best for
- Small US businesses of 1 to a few dozen people wanting simple setup.
- Company size
- Small businesses (about 84% of G2 reviews)
Key features
- Tax filing and compliance
- Automatic federal, state and local filing on all plans.
- Multi-state payroll
- Plus and Premium; Simple is single-state.
- Time tracking and PTO
- Plus adds time tracking and PTO.
- Contractor and 1099 payments
- Contractor Only plan $35 + $6 per contractor.
Pros
- Ease of use (9.5 of 10 on G2)
- Quick setup and onboarding.
Cons
- Support rated slightly behind some competitors.
Pricing: $49/month plus $6 per person (Simple)
Best for small teams paying staff in several states
OnPay
Small-business payroll with one flat plan, unlimited pay runs and all-state tax filing included.
Small firms and accountants who want a single plan can pay $49 monthly plus $6 per worker, with unlimited pay runs and filings in every state. Time tracking costs $15 plus $4 per worker, and benefits are add-ons. Check that your accounting tool is supported, since integrations are limited.
- Best for
- Small businesses and accounting-firm partners.
- Company size
- Small business (97.7% of G2 reviews)
Key features
- Tax filing and compliance
- Federal, state and local filings included.
- Multi-state payroll
- Pay workers in any number of states, no extra fee.
- Time tracking and PTO
- Time tracking add-on $15 + $4 per worker.
- Benefits administration
- Health, workers comp and 401(k) as add-ons, pay only premiums.
Pros
- Responsive support.
- Handles taxes and forms.
- Straightforward setup.
Cons
- Limited third-party integrations (TechRepublic)
- No built-in time tracking in base (Merchant Maverick, older)
Pricing: $49/month + $6 per worker
Best when payroll should drive app access and offboarding
Rippling
HR, payroll, IT and spend suite whose app management handles SSO, provisioning and offboarding for employee apps.
Rippling is an HR, payroll, IT and spend suite starting at $8 per employee per month plus a base fee. Its app management ties provisioning and offboarding to employee records, though initial setup can be complex.
- Best for
- Companies already running payroll and HR on Rippling that want app access tied to employee records.
- Company size
- Small to enterprise (suite)
Key features
- Time tracking and PTO
- Time & Attendance and Scheduling listed as products.
- Benefits administration
- Benefits Administration and PEO listed as products.
- Contractor and 1099 payments
- Contractors, Contractor of Record, Global Contractors listed as products.
Pros
- Intuitive; apps ready on day one for new hires.
- Offboarding automatically revokes app access.
Cons
- Initial setup can be complex.
Pricing: $8 per employee per month plus monthly base fee
Best for startups wanting a PEO with one per-employee price
Justworks
PEO and payroll platform for small US businesses that bundles HR, benefits and payroll under co-employment, or payroll only.
Small US companies that would rather outsource benefits and compliance can buy the bundled PEO plan, or choose payroll only at $50 monthly plus $8 per employee. Contractors cost $8 each. Check insurance choices against your broker plans, since reviewers call options limited and the mobile app thin.
- Best for
- Small US companies that want a PEO with benefits and compliance handled for them.
- Company size
- Small business.
Key features
- Time tracking and PTO
- Time Tracking add-on.
- Benefits administration
- Benefits included via PEO co-employment.
- Contractor and 1099 payments
- $8 per active contractor per month on Payroll plan.
Pros
- Ease of use and clean design.
- Support (G2 support sub-score 9.2/10)
Cons
- Mobile app lacks features.
- Limited insurance plan options.
Pricing: $50/month base plus $8 per employee (Payroll plan)
Best for IT-reviewed HR and payroll in one database
Paycom
Single-database HCM and payroll platform for mid-size US employers, quote-based and billed per payroll run.
IT and HR leads at mid-size US companies who prefer one database for payroll, HR, time and talent are the target buyers. SAML 2.0 is supported. Pricing combines per-payroll and per-employee fees by quote, and reviewers say complex workflows can be tough to implement.
- Best for
- Mid-size US employers that want one database for payroll, HR, time and talent.
- Company size
- Mid-market; about 39,200 clients per 10-K summary.
Key features
- Tax filing and compliance
- Included.
- Time tracking and PTO
- Included.
- Benefits administration
- Benefits module.
Pros
- Ease of use and one-database design.
- Support praised in G2 summaries.
Cons
- Implementation can be challenging for specific workflows.
- No transparent pricing.
Pricing: Contact sales
Best for owners who want full-service filing at a low base fee
Patriot Payroll
Low-cost small business payroll from Patriot Software, in Basic and Full Service tiers.
Patriot Payroll is low-cost payroll for small businesses, with Basic from $17 per month plus $4 per worker and a Full Service tier. Reviewers like its support, but QuickBooks sync is reported as manual and direct deposit can be delayed.
- Best for
- Very small businesses watching cost.
- Company size
- Up to 500 employees (press kit)
Key features
- Tax filing and compliance
- Full Service handles federal, state and local deposits and filings.
- Accounting integrations
- Patriot Accounting; QuickBooks integration reported as manual.
- Time tracking and PTO
- Time & Attendance add-on.
- Benefits administration
- Free 401(k) and workers' comp integrations (Wise review)
Pros
- Easy use and strong support.
- Simple setup.
Cons
- Manual data entry and limited QuickBooks options.
- Direct deposit delays.
Pricing: $17/month + $4 per worker (Basic) · Free trial
Paylocity
Cloud HCM suite covering payroll, HR, time, benefits and talent for mid-size US employers, sold by quote only.
Mid-size US employers that want payroll, HR, time and benefits in a single platform should plan a quote request, since pricing is hidden. Okta and SSO-ready integrations are plentiful. Test support responsiveness with references, because 245 G2 reviews flag slow help.
- Best for
- Mid-size US employers that want payroll, HR, time and benefits in one platform.
- Company size
- Mid-size (about 44,400 clients FY2026)
Key features
- Time tracking and PTO
- Time and labor module.
- Benefits administration
- Benefits administration module.
Pros
- Ease of use and modules that work together.
- Wide feature coverage for the price tier.
Cons
- Slow or inconsistent support (245 G2 reviews flag it)
- Time-consuming workflows and unintuitive navigation; limited customization.
Pricing: Contact sales
ADP Run is ADP's payroll and HR platform for small businesses, sold by quote in four tiers. It includes tax filing and offers benefits and retirement add-ons, but weekly runs and add-ons raise the cost.
- Best for
- Small businesses wanting a large provider with tax filing and add-on HR/benefits.
- Company size
- Small businesses.
Key features
- Tax filing and compliance
- Tax filing in all tiers per vendor positioning; details not confirmed by the vendor.
- Benefits administration
- Benefits, retirement, health insurance, workers comp as add-ons.
Pros
- Payroll entry and direct deposit tools score high.
- Automatic tax-rule updates.
Cons
- Wait times for support in some comparisons.
- Benefits management scores lower.
Pricing: Contact sales
TriNet
Professional employer organization that bundles payroll, benefits, compliance and HR software under co-employment.
Employers with no in-house HR person can hand benefits, compliance and payroll to this professional employer organization, which becomes co-employer. That is a bigger commitment than buying software alone. Pricing is a per-employee quote, and reviews point to high fees and uneven support.
- Best for
- Small and mid size employers wanting benefits and compliance outsourced.
- Company size
- Small to mid size business.
Key features
- Tax filing and compliance
- Handled by TriNet as co-employer (PEO model)
- Benefits administration
- Benefits via PEO group plans, billed separately.
Pros
- Payroll processing reliable.
- Responsive account support for some.
Cons
- High fees.
- Customer support and interface criticism.
Pricing: Contact sales
Paychex Flex
Paychex's tiered payroll and HR platform for small to mid-size businesses, priced by quote.
Employers who want a full-service provider with HR and benefits options can get a tiered quote, from small firms up to enterprise. Reviewers find payroll accurate and easy. Negotiate renewal terms and annual-contract exit fees up front, because price increases and slow support are common complaints.
- Best for
- Mid-size employers wanting a full-service provider with HR and benefits options.
- Company size
- Small to enterprise.
Key features
- Accounting integrations
- QuickBooks sync may cost extra on lower tiers (third-party)
Pros
- Easy to use and accurate payroll processing.
Cons
- Slow customer support response.
- Unexpected price increases and hard discount renewals.
Pricing: Contact sales
Paycor
HCM suite with payroll, HR, time and talent modules aimed at small and mid-size US employers, now owned by Paychex.
US employers with roughly 10 to 1,000 staff who want payroll, HR, time and talent from one vendor can request a quote, as no list prices exist. Paychex now owns the company, which matters if vendor independence counts. Reviewers note missing features and a 7.5 of 10 support score on G2.
- Best for
- US employers with roughly 10 to 1,000 staff that want payroll and HR from one vendor.
- Company size
- Small to mid-size, plus upmarket push after Paychex deal.
Key features
- Tax filing and compliance
- Included in payroll product (not confirmed by the vendor in detail)
- Time tracking and PTO
- Time and attendance module.
Pros
- Easy navigation and good value for the price per G2 summaries.
- Broad module coverage in one suite.
Cons
- Missing features and access limitations.
- Payroll issues and difficult navigation; support rated 7.5/10 on G2.
Pricing: Contact sales
QuickBooks Payroll
Intuit's payroll sold as bundles with QuickBooks accounting, with tax filing and 1099 e-filing included.
Rebranded: Now marketed as QuickBooks Workforce (Payroll bundles); G2 page titled QuickBooks Workforce.
Businesses whose bookkeeping already lives in QuickBooks Online get native sync, filing of payroll taxes and 1099 e-filing inside bundled plans. One cited bundle is $44 monthly plus $6.50 per employee on a promotional discount. Premium or Elite is needed for time tracking, and reviewers report weak support and basic reports.
- Best for
- Businesses already on QuickBooks Online.
- Company size
- Small businesses.
Key features
- Tax filing and compliance
- Full-service payroll calculates, files and pays payroll taxes.
- Accounting integrations
- Native QuickBooks bookkeeping bundle.
- Time tracking and PTO
- Scheduling in all bundles; time tracking with Premium and Elite.
- Benefits administration
- Access to Allstate health, Vestwell 401(k), Next workers' comp, Mineral HR advisor; limited availability, extra fees.
Pros
- Tight QuickBooks Online integration.
- Easy setup.
Cons
- Poor support reported.
- Basic payroll reports.
Pricing: $44/month + $6.50 per employee (Payroll + Simple Start, 50% promo for 3 months shown; list $88)
What to look for in payroll software
Choosing payroll software begins with how many people you pay, where they live and what else you want the system to handle. A five-person company in one state needs something different from a 200-person employer with remote staff. Decide whether you want DIY software, full-service tax filing or a PEO that takes on HR duties. Then check the criteria below, because tax accuracy and support matter more than the monthly fee, and run a trial payroll with real data.
Pricing model
Payroll pricing usually combines a base fee with a per-employee fee, but add-ons can change the real cost. Items such as state filing, time tracking, HR tools, weekly pay runs and benefits administration are often extra. Quote-only vendors may also charge per payroll run. Ask for a written price for your headcount and pay frequency, and ask what increases at renewal.
- Gusto: Base fee plus per-person fee per plan.
- OnPay: Base plus per worker.
- Rippling: Per employee per month, modular, custom quote.
- Justworks: Flat per employee per month; Payroll plan has $50 base fee.
- Paycom: Quote only; per payroll plus per employee fees.
Target company size
A payroll tool built for solo owners and small teams usually has simple setup and few settings, while mid-market platforms offer deeper HR, permissions and support. The wrong size means either missing features or paying for tools you never use. Match the vendor's stated company size to your headcount and expected growth, and ask for a reference customer of similar size.
- Gusto: Small businesses (about 84% of G2 reviews)
- OnPay: Small business (97.7% of G2 reviews)
- Justworks: Small business.
- Paycom: Mid-market; about 39,200 clients per 10-K summary.
- Patriot Payroll: Up to 500 employees (press kit)
Tax filing and compliance
Tax filing is the main reason to buy payroll software. A strong tool calculates withholding, files federal, state and local returns, pays the agencies on time and covers year-end forms. Check whether filing is included in every plan, how penalties are handled if the vendor makes an error, and who files new-state registrations. In a demo, ask to see a filed return.
- Gusto: Automatic federal, state and local filing on all plans.
- OnPay: Federal, state and local filings included.
- Paycom: Included.
- Patriot Payroll: Full Service handles federal, state and local deposits and filings.
- ADP Run: Tax filing in all tiers per vendor positioning; details not confirmed by the vendor.
Multi-state payroll
Remote staff mean each state may have its own income tax, unemployment insurance and registration rules. Good payroll software handles several states from one account, applies the right rates and tracks where each employee works. Some plans are single-state only or charge extra for additional states. Confirm which states you pay in today and which you might add.
- Gusto: Plus and Premium; Simple is single-state.
- OnPay: Pay workers in any number of states, no extra fee.
Accounting integrations
Payroll creates journal entries that need to land in your books. A good integration with QuickBooks, Xero, NetSuite or Sage Intacct posts wages, taxes and deductions automatically and maps them to the right accounts. A weak one forces manual entry or export files. Ask your accountant to test the sync with one real pay run.
- Patriot Payroll: Patriot Accounting; QuickBooks integration reported as manual.
- Paychex Flex: QuickBooks sync may cost extra on lower tiers (third-party)
- QuickBooks Payroll: Native QuickBooks bookkeeping bundle.
Time tracking and PTO
When hours and leave live inside the payroll system, approved time flows straight into paychecks and cuts errors. Look for time clocks, schedules, overtime rules, PTO accruals and approval flows. Some vendors include this in higher plans or sell it as an add-on. Ask to see how an employee requests leave and how it reaches the next pay run.
- Gusto: Plus adds time tracking and PTO.
- OnPay: Time tracking add-on $15 + $4 per worker.
- Rippling: Time & Attendance and Scheduling listed as products.
- Justworks: Time Tracking add-on.
- Paycom: Included.
Benefits administration
Benefit deductions for health insurance, retirement plans and other programs must flow into payroll correctly. Some platforms offer their own benefits marketplace, others integrate with brokers, and PEOs bundle group plans under co-employment. Check which carriers and 401(k) providers are supported, whether you can keep your own broker and what the fees are.
- OnPay: Health, workers comp and 401(k) as add-ons, pay only premiums.
- Rippling: Benefits Administration and PEO listed as products.
- Justworks: Benefits included via PEO co-employment.
- Paycom: Benefits module.
- Patriot Payroll: Free 401(k) and workers' comp integrations (Wise review)
Contractor and 1099 payments
Many small businesses pay both employees and contractors. A good tool pays 1099 contractors by direct deposit, collects tax details, and files 1099-NEC forms at year end. Check whether contractors are priced separately, such as a per-contractor fee, and whether you can onboard them without giving access to company payroll data.
- Gusto: Contractor Only plan $35 + $6 per contractor.
- OnPay: 1099 forms included; contractor pricing not listed.
- Rippling: Contractors, Contractor of Record, Global Contractors listed as products.
- Justworks: $8 per active contractor per month on Payroll plan.
- Patriot Payroll: 1099 contractors paid by direct deposit or check; $4 per contractor paid.
Buying payroll software: security, admin and vendor checks
Once a tool fits the team, the purchase depends on what the vendor commits to in writing: single sign-on, user provisioning, audit logs, where data lives and the contract. The checks below use each vendor's public pages, so a blank means "ask", not "no".
- Try before you buy
- 1 of 12
- Publish SAML SSO
- 0 of 12
- Publish SCIM provisioning
- 0 of 12
- Publish a DPA
- 0 of 12
1 free trials, 0 free plans
ask the rest in writing
ask every vendor in writing
request it before signing
Must-haves and what each vendor publishes
A blank is not a no, but it is work for your security review. ADP Run publishes the most (0 of 5); ADP Run, Gusto, Justworks and OnPay and 8 more publish none of these controls, so every question goes to their sales team. Tick what your team requires; vendors that drop out show why, and the budget check prices the plan that actually includes single sign-on when you require it.
All 12 vendors shown. Tick a must-have to filter. ● published with the plan, ◐ mentioned without plan or details, ○ not on the vendor's public pages.
| Vendor | SAML SSO | SCIM | Audit logs | Data residency | DPA |
|---|---|---|---|---|---|
| ADP Run0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
| Gusto0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
| Justworks0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
| OnPay0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
| Patriot Payroll0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
| Paychex Flex0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
| Paycom0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
| Paycor0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
| Paylocity0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
| QuickBooks Payroll0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
| Rippling0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
| TriNet0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
What drives a payroll quote
7 of 12 vendors publish no usable price, so a shortlist starts with knowing what each one charges for. The most common basis here is "per employee" (9 vendors).
- 9Per employeeGusto, OnPay, Rippling, Justworks, Patriot Payroll, ADP Run, TriNet, Paychex Flex and QuickBooks PayrollAsk: Do contractors and inactive employees count toward the bill?
- 3Quote only, no stated basisPaycom, Paylocity and PaycorAsk: What is the price metric, and is there a minimum contract value?
| Tool | Pricing basis | As the vendor describes it | Contract terms |
|---|---|---|---|
| Gusto | Per employee | Base fee plus per person. | Monthly pricing; cancellation terms not confirmed by the vendor. |
| OnPay | Per employee | Base fee plus per worker. | Not specified on pricing page. |
| Rippling | Per employee | Per employee. | US VC-backed startups may get 6 months free; custom quote required. |
| Justworks | Per employee | Per user. | Not confirmed by the vendor; PEO involves co-employment agreement. |
| Paycom | Quote only, no stated basis | Custom. | Not published. |
| Patriot Payroll | Per employee | Base fee plus per worker. | Free trial; contract terms not confirmed by the vendor. |
| Paylocity | Quote only, no stated basis | Custom. | Not published. |
| ADP Run | Per employee | Base fee plus per employee. | Quote based; terms not published. |
| TriNet | Per employee | Per user. | Quote based; terms not published. |
| Paychex Flex | Per employee | Base fee plus per employee. | Annual; early termination fees reported. |
| Paycor | Quote only, no stated basis | Custom. | Not published; promo is a 6-month discount. |
| QuickBooks Payroll | Per employee | Base fee plus per employee. | Monthly billing implied; contract terms not confirmed by the vendor. |
How to evaluate payroll software in a demo or trial
Payroll is a high-risk purchase because errors hit employees and tax authorities directly. Evaluate each criterion with your real scenarios: your states, your pay schedules, your contractors and your accounting system. Several vendors in this list do not publish prices or offer a free trial, so the demo carries much of the evaluation. Prepare the scenarios in advance, run them with every shortlisted vendor, and record the answers on one scorecard.
Pricing model
Ask for a written quote that lists the base fee, the per-person rate and every add-on at your headcount. Gusto, OnPay and Patriot Payroll publish base-plus-per-person prices, while Paycor, Paylocity and Paycom quote on request. Ask what changes at renewal and whether prices are fixed for the contract term.
Target company size
Check that the vendor's typical customer looks like you. Patriot Payroll and OnPay serve very small businesses, Gusto small teams, and Paylocity, Paycom and Paycor mid-size employers. Ask for references at your size and find out what support tier you would get. A mismatch shows up later as missing features or a forced migration.
Tax filing and compliance
Ask exactly what the vendor files for you: federal, state and local taxes, quarterly forms and year-end W-2 and 1099. In the demo, ask to see a filing calendar and how errors or notices are handled. Ask who is liable if a filing is wrong and whether the vendor guarantees accuracy in writing.
Multi-state payroll
List every state where you have or expect employees, then ask the vendor to confirm support for each, including registration. OnPay is listed as suited to multi-state small teams, while Patriot Payroll is not recommended for complex multi-state employers. Ask whether state filings are included or charged separately.
Accounting integrations
Test the sync with your actual accounting system in a trial. Check how journal entries are mapped, how often data syncs and what happens when a payroll is corrected. Patriot Payroll reviewers report manual entry for QuickBooks, so do not assume a listed integration works the way you expect. Ask who supports it when it breaks.
Time tracking and PTO
If you have hourly staff, test the full cycle from clock-in to approved hours to payroll. Ask whether time tracking is included or a separate module, how PTO accruals are configured and how state-specific leave rules are handled. Pay attention to approval flows and what managers see on mobile.
Benefits administration
Ask whether benefits are administered by the vendor, a broker or a PEO arrangement. Justworks and TriNet are listed as PEO-style offerings with co-employment, which changes who the legal employer is. Ask how deductions sync with payroll, what carriers are supported, and what happens to your existing broker.
Contractor and 1099 payments
Ask how contractors are onboarded, paid and tracked, and whether 1099 forms are filed for you. Gusto is listed for mixed W-2 and 1099 workforces, and Justworks lists a per-contractor fee. Ask about international contractors and whether tax forms are collected at onboarding.
Questions to ask payroll software vendors
A sales call should leave you with commitments, not impressions. For payroll the main risks are tax accuracy, security of employee data, implementation effort and contract exit. The questions below are designed to produce comparable answers across vendors, so ask all of them every time and request written confirmation for anything that affects liability or price. Share the answers with finance and HR before the shortlist is cut.
Who is liable if a tax filing is wrong?
Ask for the vendor's accuracy guarantee in writing. Payroll errors create penalties, and you need to know whether the vendor covers them.
How do you handle SSO and access control?
Okta lists SAML SSO for Paycor and Paylocity, and Paycom offers SAML 2.0, but plan requirements are not published. Ask which plan includes SSO and whether SCIM is available.
What does implementation involve and cost?
Paylocity and Paycom are reported to charge implementation fees. Ask for the scope, timeline, fee and who on your side must be involved.
What are the contract term and exit conditions?
Some vendors do not publish terms, and Paychex is reported to use annual contracts with termination fees. Ask for the cancellation process and data export options.
What is not included in the quote?
Time tracking, HR, benefits and live support are often separate. Ask for a line-by-line list so the comparison between vendors is fair.
What support do I get, and when?
Paylocity's G2 reviews cite support as a complaint theme. Ask about support hours, named contacts and response times, especially around filing deadlines.
How to run the decision
Run the decision as a short project. Write down your states, pay schedules, contractors, benefits and accounting system, then shortlist three vendors that fit. Run the same scenarios in each demo, ask the same questions on liability, security and exit, and record the answers on one scorecard. Involve finance, HR and IT before the choice is final, and get key commitments in the contract.
Our recommendation
Choose the payroll software that matches your headcount, states and the extras you actually need, then confirm tax filing terms and support before you commit. Small teams can use published-price tools, while mid-size employers may need quoted HR suites or a PEO. Run one sample pay cycle with your accountant, ask each finalist for a written quote with renewal terms, and involve HR and finance in the final decision.
Payroll Software: frequently asked questions
What is payroll software?
It is a tool for paying staff correctly and on time. The system works out gross to net pay, withholds taxes, files them, then pays by check or direct deposit. Many also pay contractors, produce W-2 and 1099 forms at year end, and connect to accounting or time tracking.
What is the best payroll software for a small business?
For small US employers, Gusto is a popular starting point because it files taxes automatically and is easy to set up, while OnPay suits teams paying staff in several states and Patriot Payroll suits tight budgets. Compare tax filing, support and add-ons before choosing.
Can payroll software file federal, state and local taxes automatically?
Many products do. Gusto handles federal, state and local filing on every plan, and OnPay builds filings into its single plan. Patriot Payroll does deposits and filings only in its Full Service tier. Before buying, ask which states are covered and who pays penalties if a filing is wrong.
How much does payroll software cost per employee?
Published prices are typically a monthly base fee plus a per-person fee, such as $49 plus $6 for Gusto and OnPay, $17 plus $4 for Patriot Payroll and $50 plus $8 for Justworks. Larger vendors quote by request, and add-ons change the total.
Should I use full-service or DIY payroll?
Full-service payroll files and pays taxes for you, which suits most employers. DIY leaves filing to you and is cheaper but riskier. A PEO such as TriNet or Justworks also takes on benefits and compliance under co-employment, which suits companies without HR staff.
Which payroll software include SSO below the enterprise plan?
Gusto (Reportedly available by contacting support (third-party source); not confirmed by the vendor). The other tools either reserve SAML SSO for their top tier or do not say on their public pages.