10 Payroll Service Providers for Small Business in 2026-2027

10 Payroll Service Providers for Small Business in 2026-2027

Payroll looks simple until you run it. You calculate wages and withholdings, pay people on time, deposit taxes, file quarterly forms, and keep records for W-2 employees and 1099 contractors. One missed deadline can mean penalties.

Payroll software and payroll services take much of that work off your plate. They can calculate payroll taxes, send direct deposits, give employees a place to see their pay stubs, and prepare year-end forms. The catch is that providers differ a lot in price, tax filing, and how much HR help they include.

This guide covers 10 small business payroll software. They are listed in alphabetical-free, non-ranked order, and none is declared a winner. For each one you’ll see what it does, what it costs, who it may suit, and what to check first. Later sections explain payroll basics, software versus full-service payroll, costs, and a checklist for choosing.

Pricing was checked in September 2026. Payroll pricing changes often, so confirm on each provider’s site before you buy.

Quick Comparison Table

Payroll Provider	Best Suited For	payroll software pricing	Payroll Tax Support	Direct Deposit	Multi-State Support
Gusto	Small teams wanting payroll plus HR	$49/month + $6 per employee (Simple)	Filing included	Yes	Plus plan and up
OnPay	Small teams with varied worker types	$49/month + $6 per worker	Filing included	Yes	Included
QuickBooks Workforce	QuickBooks Online users	Around $50/month + per-employee fee; promos vary	Filing included	Yes	Extra fees may apply
RUN Powered by ADP	Teams wanting a large provider	Custom quote	Yes	Yes	Supported; confirm in quote
Paychex Flex	Growing teams wanting specialist support	Custom quote	Yes	Yes	Confirm in quote
Rippling	Companies wanting HR, IT, and payroll together	Custom quote	Yes	Yes	Yes
Square Payroll	Square POS users; contractor-heavy teams	$35/month + $6 per person	Filing included	Yes	Yes
Patriot Payroll	Very small, budget-focused teams	$17/month + $4 per worker (Basic); $37 + $5 (Full Service)	Full Service plan only	Yes	Extra state fee applies
SurePayroll	Micro-businesses and household employers	$20/month + $4 per employee (no tax filing); $29 + $7 (Full-Service)	Full-Service plan only	Yes	Flat add-on fee
Wave Payroll	Wave accounting users	$40/month base fee plus per-person fee	Tax service listed	Yes	Verify before signing

Pricing and features can change by plan, employee count, location, and add-ons. Readers should verify current pricing directly with each provider.

1. Gusto

Gusto is a cloud payroll and HR platform built for small teams. It runs payroll, calculates and files payroll taxes, pays employees by direct deposit, and gives staff a self-service portal. Higher plans add more HR tools, and it connects with many accounting and business apps. Businesses that want payroll and people management in one place often shortlist it.

Key Features

• Automated federal, state, and local payroll tax filing on its employee plans Gustopricing
• Hiring and onboarding tools and health insurance administration Business.com
• Time tracking that syncs to payroll on higher plans Gusto
• Employee self-service for pay stubs and tax forms
• A separate contractor-only plan with 1099-NEC support Business.com
• Faster payment options such as same-day or instant pay, depending on plan Gusto

Pricing

Published pricing in 2026 lists Simple at $49 per month plus $6 per employee (raised from $40 in March 2026), Plus at $80 plus $12, and Premium at $180 plus $22. The contractor-only plan is $35 per month plus $6 per contractor. GustopricingBusiness.com

Who It May Suit

It may be worth considering if you want payroll, onboarding, and benefits in one system and you’re comfortable paying more as you add HR features.

Things to Consider

Simple covers single-state payroll, while Plus adds multi-state payroll and time tracking. Multi-state teams should price the higher plan. Add-ons can raise the total. Workstream

2. OnPay

OnPay is a payroll and HR service for small businesses. It handles full-service US payroll software, tax filings, direct deposit, and year-end forms for both employees and contractors. It also supports several pay schedules and pay rates, which helps with mixed teams of hourly, salaried, and tipped workers.

Key Features

• Full-service payroll with federal, state, and local tax filings and multi-state online payroll software Gusto
• Unlimited pay runs Capterra
• Multiple pay schedules and multiple pay rates per employee PayrollDetective
• Employee self-service and custom reporting
• Integrations with QuickBooks Online, QuickBooks Time, and When I Work Capterra
• Onboarding tools and benefits administration Gusto

Pricing

OnPay lists $49 per month plus $6 per worker paid, and it advertises a free first month. Gusto

Who It May Suit

It may be worth considering for small teams with multiple states, contractors, or varied pay setups that want one straightforward price.

Things to Consider

Expanded HR features cost extra ($15 per month plus $2 per worker), and compliance and live HR support carry additional fees. Built-in time tracking is limited, so you may rely on an integration. Gusto

3. QuickBooks Workforce

QuickBooks Workforce is Intuit’s payroll and HR product. It was formerly QuickBooks Online multi-state payroll software and now brings payroll, time tracking, and HR tools into one connected experience. Its main draw is the tie to QuickBooks accounting, since payroll data can flow into your books. Keep in mind that the accounting software is a separate subscription from payroll. Schoolofbookkeeping

Key Features

• Payroll processing with automated tax calculations
• Automated state and federal tax payments and filings once tax setup is complete; certain local taxes only on Premium and Elite QuickBooks
• Direct deposit and auto payroll for eligible employees
• QuickBooks Time included with Premium and Elite Schoolofbookkeeping
• Employee information and reporting
• Sync with QuickBooks Online

Pricing

Third-party 2026 reviews list the entry Workforce Payroll tier at about $50 per month plus $6.50 per employee. Per-employee pricing was updated on July 1, 2026, and the base subscription price did not change. Promotions are common, so confirm the current rate. HR SoftwareSchoolofbookkeeping

Who It May Suit

It may be worth considering if you already use QuickBooks Online and want payroll and accounting to work together.

Things to Consider

Businesses filing in more than one state may face extra multi-state charges on lower tiers. Compare the full price, not the promotional rate. HR Software

4. RUN Powered by ADP

RUN Powered by ADP is the small-business payroll product from ADP, one of the largest payroll companies in the US. It is designed for businesses with up to 49 employees and comes in Essential, Enhanced, Complete, and HR Pro packages. It suits owners who want a large provider with tax and HR support behind it. Tech.co

Key Features

• Payroll processing and automation with error alerts and reports
• Tax administration and filing
• Direct deposit and employee self-service
• Enhanced adds ZipRecruiter, state unemployment insurance management, and background checks ADP
• Complete adds basic HR support ADP
• 1099 contractor payments ADP

Pricing

RUN uses custom pricing based on headcount, payroll frequency, locations, and selected services. Treat any number you see in third-party guides as a rough estimate. Ask ADP for a written quote. Hireinsouth

Who It May Suit

It may be worth considering if you want a well-known provider with optional HR support and are comfortable requesting a quote.

Things to Consider

Price comparison is harder without published rates. Some reviewers report implementation fees, so ask about setup costs. ITQlick

5. Paychex Flex

Paychex Flex is the cloud platform from Paychex, another large payroll company. It offers payroll processing, tax administration, direct deposit, HR tools, and reporting, with add-ons for time and attendance and benefits. It scales from small teams to larger workforces.

Key Features

• Automated local, state, and federal tax filing Business News Daily
• Direct deposit and employee self-service
• Access to payroll specialist support on some plans Forbes
• Tiered plans (Essentials, Select, Pro) that add HR and unemployment services RemotePeople
• Reporting and time and attendance tools (often add-ons)
• Benefits-related services

Pricing

Paychex does not publish prices and provides custom quotes through its sales team. Pricing varies by size, services, and payroll frequency. Forbes

Who It May Suit

It may be worth considering for growing businesses that value specialist support and may add HR services over time.

Things to Consider

Advanced tools like time and attendance, benefits administration, and integrations may cost extra. Ask for a full breakdown of base, per-employee, and add-on fees. Business News Daily

6. Rippling

Rippling combines affordable payroll software with a broader business platform. Its core is an employee database that connects HR, benefits, onboarding, time tracking, and IT management. When you add a new hire, workflows can trigger payroll and benefits setup automatically. It’s more than a payroll tool.

Key Features

• Domestic payroll with automatic tax handling
• Multi-state compliance and global contractor payments in 185+ countries Rippling
• Employee onboarding and workflow automation
• Benefits, time tracking, and reporting modules
• Employee self-service through a web portal and mobile app Rippling
• IT and device management as optional modules

Pricing

Rippling uses modular, mostly quote-based pricing, and its own pages show differing starting figures. Rippling’s site lists domestic payroll from $8 per employee per month billed annually, or $10 billed monthly. Some sources also report a required platform base fee of around $35 to $40 per month. Get a custom quote for your exact modules. Rippling Pricing: Plans, Modules & Add-On Costs +2

Who It May Suit

It may be worth considering if you need HR, IT, and payroll in one place and expect to grow.

Things to Consider

It can involve more setup and complexity than a basic payroll tool. Some third-party sources report implementation fees, so ask what’s included. Gloroots

7. Square Payroll

Square Payroll is built by Block, the company behind Square’s payment and point-of-sale tools. It’s a straightforward full-service payroll product with published pricing, and it fits businesses that already use Square for sales, scheduling, or team management.

Key Features

• Unlimited payroll runs, direct deposit, digital tax forms, and payroll reports Gusto
• Supported federal and state tax payments and filings, plus multi-jurisdiction support on the full-service plan Gusto
• Time tracking with clock in/out and employee self-service for pay stubs and tax forms Capterra
• Integrations with QuickBooks Online and Xero Comparisun
• A contractor-only option Square

Pricing

Full-service payroll is $35 per month plus $6 per person paid. Contractor-only payroll is $6 per person paid per month. Mailing paper tax forms costs $3 per form. SquareGusto

Who It May Suit

It may be worth considering if you already run Square products, or if you mostly pay contractors.

Things to Consider

Contractor-only users are responsible for their own taxes. Square Payroll does not support global payroll for multi-country companies. HR depth is limited. ComparisunHr

8. Patriot Payroll

Patriot Payroll is a low-cost option for very small US businesses. It offers two paths: a Basic plan where you handle tax filing yourself, and a Full Service plan where Patriot files and pays taxes for you. That difference matters more than the base price.

Key Features

• Unlimited payroll runs, free direct deposit, and an employee portal on both plans Software Advice
• Basic requires you to file your own payroll taxes and make deposits G2
• Full Service adds tax filing and W-2 and 1099 support
• Integrations with Patriot Accounting and QuickBooks Online Frontdeskreview
• Optional time and attendance add-on Software Finder

Pricing

Basic is $17 per month plus $4 per paid worker; Full Service is $37 per month plus $5. A 30-day free trial is available. Business.comSoftware Finder

Who It May Suit

It may be worth considering for small teams on a tight budget, especially if you want an accounting link.

Things to Consider

Full Service covers tax filing in one state and charges $12 per month for each additional state. Multi-state teams should add that up. Business.com

9. SurePayroll

SurePayroll is a small-business payroll service that Paychex has owned since 2011, and it still operates under its own brand. It focuses on micro-businesses and also offers a plan for household employers such as nannies and caregivers. Business.com

Key Features

• Unlimited payroll runs on all plans eLearning Industry
• Direct deposit and online payroll
• W-2 employee and 1099 contractor payments in the same dashboard, with year-end forms for both SurePayroll
• AutoPayroll to run scheduled payroll automatically Comparisun
• A flat multi-state fee of $9.99 per month Business.com

Pricing

Published 2026 reviews list Full-Service from $29 per month plus $7 per employee and No Tax Filing from $20 plus $4. Other sources cite slightly different figures, so check the current price. Business.com

Who It May Suit

It may be worth considering for very small teams, S-corp owners, or households that want predictable pricing.

Things to Consider

Year-end tax forms are billed separately each year. Choose Full-Service if you want tax filing handled. Business.com

10. Wave Payroll

Wave payroll service providers for small business is a payroll add-on to Wave’s accounting platform. It calculates pay, pays employees and contractors by direct deposit, and syncs with Wave accounting. Availability and features can differ by location and service setup, so check your state before you commit.

Key Features

• Payroll for employees and contractors with direct deposit
• 1099 forms for US contractors Wave
• Tax service offered in all 50 US states since April 2025 Wave
• Employee self-service
• Sync with Wave accounting

Pricing

Wave’s help center lists a $40 monthly base fee for full-access payroll in the US, billed with fees for active employees and contractors. Confirm the per-person fee on Wave’s site. Wave Apps

Who It May Suit

It may be worth considering if you already use Wave for invoicing and bookkeeping and have a small team.

Things to Consider

Wave focuses on payroll, without broader HR or workforce tools, and support is via live chat and email rather than phone. Reviewers note no built-in time tracking. HR SoftwareResearch.com

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What Do Payroll Service Providers for Small Business Do?

A payroll provider handles the repeatable parts of paying people. Exact services depend on the provider and plan.

Payroll processing. The system calculates gross pay, subtracts deductions and withholdings, and produces net pay for each run.

Payroll tax calculation. It works out federal income tax withholding, plus FICA (Social Security and Medicare), which employers and employees share. Employers also pay FUTA (federal unemployment tax) and state payroll taxes, which vary by state. This is general information, not tax advice.

Tax filing. Some providers calculate taxes only. Others also submit payments and forms for you, usually on full-service plans.

Direct deposit. Employees get paid electronically. Timing options, such as standard, next-day, or same-day, vary.

Employee self-service. Staff can see pay stubs, tax documents, and payment details, and update their personal information.

W-2 and 1099 support. Employees generally get W-2s. Independent contractors generally get 1099s. Classification rules are strict, so confirm yours with a tax professional.

Time tracking. Connecting hours to payroll reduces re-entry errors.

Payroll reporting. Reports show labor costs, tax liabilities, and payment history, which helps with budgeting and audits.

Multi-state payroll. If employees work in different states, you may owe taxes and registrations in each. Providers differ on how much they automate.

Payroll Software vs. Payroll Services

The two overlap, and many products blend them. Software leaves more work with you. Full-service payroll does more for you.

Feature	Payroll Software	Full-Service Payroll
Payroll calculation	Yes	Yes
Tax calculations	Usually	Yes
Tax filing	Depends on plan	Often included
Direct deposit	Often	Often
Employee self-service	Often	Often
Business involvement	More	Less
Cost	Often lower	Often higher

Patriot’s Basic and Full Service plans show the difference clearly. Always check exactly what a plan includes.

How Much Does Payroll Software Cost?

Most providers charge a monthly base fee plus a per-person fee. Other costs can include:

• Payroll tax filing (sometimes only on higher plans)
• HR add-ons and benefits administration
• Time tracking
• Faster direct deposit (same-day or next-day)
• Setup or migration fees
• Contractor charges
• Extra states, or paper forms

Example (hypothetical, not any provider’s real price): a $40 monthly base fee plus $6 per employee for 8 employees is $40 + $48 = $88 per month. Add a $15 HR add-on and $2 per employee and the bill becomes $119.

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Affordable Payroll Software for Small Business

“Affordable” should mean the lowest total cost for the features you need, not the lowest sticker price. Look at:

• Monthly base fee and per-employee fees
• Whether tax filing is included
• Direct deposit and W-2/1099 costs
• Extra states
• Add-on fees
• Accounting integrations

A $17 base fee that leaves you filing your own taxes can cost more in time than a $49 plan that files for you. Compare quotes for the same scope.

Payroll Software for Startups

Startups often need to pay a few people now and many later. Look for:

• Easy setup and quick onboarding
• Pricing that scales without a large jump
• Direct deposit and tax compliance support
• Contractor payments alongside employees
• Benefits and HR tools you can add later
• Accounting integrations
• The ability to add employees and states as you grow

US Payroll Requirements to Know

Federal payroll taxes. Employers generally withhold federal income tax and FICA from wages, pay the employer share of FICA, and pay FUTA. Deposit and reporting schedules apply.

State payroll taxes. Each state has its own rules, which can include income tax withholding, unemployment insurance, and local taxes.

W-2 payroll. Employers report wages and withholdings to employees and the government after year-end.

1099 payroll. Businesses generally report payments to independent contractors on 1099 forms, depending on the amount and type of payment.

Multi-state payroll. Employees in more than one state can trigger extra registrations and filings. Verify each state’s rules.

Providers can automate many tasks, but you’re still responsible for giving accurate information and reviewing your compliance obligations.

How to Choose Among Payroll Service Providers for Small Business

1. Count your workers. Separate employees from contractors.
2. Decide on software or full-service. Do you want to file taxes yourself?
3. Check tax support. Confirm federal and state filing.
4. Review direct deposit options. Look at timing and cost.
5. Confirm W-2 and 1099 support.
6. Look at self-service. Employees should reach pay stubs easily.
7. Review integrations. Match your accounting or time tracking tools.
8. Compare total costs. Include add-ons and extra states.
9. Check customer support. Ask about hours and channels.
10. Consider growth. Make sure plans scale with you.

Questions to Ask Before Buying Payroll Software

• Does it calculate payroll taxes automatically?
• Does it file federal and state payroll taxes?
• Is direct deposit included?
• Are W-2s included?
• Are 1099s supported?
• Does it support multiple states?
• Is employee self-service available?
• Does it integrate with accounting software?
• Are there extra fees?
• How does customer support work?
• Can I change plans as my business grows?

FAQs

What are payroll service providers for small business?
They’re companies that run payroll for small employers. Depending on the plan, they calculate wages and taxes, pay staff by direct deposit, file payroll taxes, and prepare W-2 and 1099 forms.

How much does payroll software cost for a small business?
Many providers charge a monthly base fee plus a per-person fee. Published prices in this guide range from about $17 to $49 per month in base fees, plus $4 to $7 per worker. Some providers use custom quotes.

Is payroll software worth it for a small business?
It often is. Automation reduces manual calculations, missed deadlines, and record-keeping. If you have several employees or multiple states, the time savings usually matter.

What’s the difference between payroll software and payroll services?
Software gives you tools to run payroll. Full-service payroll also handles more tasks, like tax filing. Many products mix both, so check the plan details.

Can payroll software file payroll taxes?
Some can. Filing is often included on full-service plans and may not be included on basic ones. Ask which federal, state, and local filings are covered.

Can payroll software handle W-2 and 1099 forms?
Many providers prepare both, sometimes on specific plans. Digital delivery is often free, while paper mailing may cost extra.

Can payroll software handle employees in multiple states?
Some can, though coverage and fees vary. Gusto’s entry plan is single-state, while Patriot charges per extra state. Confirm before you sign.

How do I choose a payroll service provider?
Start with your headcount, contractors, and states. Then compare tax filing, direct deposit, integrations, total cost, and support.

Conclusion

The right payroll service providers for small business can cut manual work, reduce errors, and keep tax deadlines from slipping. What matters is fit: how many people you pay, how many states you operate in, and whether you want tax filing handled for you.

Compare total cost rather than headline prices, since add-ons, extra states, and year-end forms can change the bill. Providers with quote-based pricing, like ADP RUN, Paychex Flex, and Rippling, need a written quote to compare fairly.

Pricing and features change often. Verify current plans on each provider’s site, and confirm tax questions with a qualified professional. A short trial or demo with your real payroll setup is the best test.