Gusto
Best All-in-One Payroll & HR Solution for Startups
Overview
Gusto is the leading payroll platform for startups that need affordability without sacrificing functionality. Designed for lean teams, it combines payroll, HR, and benefits into a single intuitive platform. With automated tax filings, compliance tools, and seamless integrations, Gusto helps founders spend less time on admin and more time growing their business.
Key Features
Full-service payroll with automated tax filing and W-2/1099 prep
Health insurance, 401(k), and benefits management built in
Onboarding tools with offer letters and e-signature
PTO tracking and time-off approvals
Time tracking and workforce management (Plus and Premium plans)
Compliance support for state and federal payroll laws
Integrations with QuickBooks, Xero, and 100+ other apps
Employee self-service portal for paystubs and benefits
Built-in reporting and analytics
Contractor-only payroll option for flexible teams
Pros and Cons
Pros
Transparent, scalable pricing tailored for startups
Easy setup with minimal learning curve
Strong HR + payroll + benefits combination in one platform
Free until your first payroll run
Excellent customer support and onboarding resources
Cons
State tax registration not automated
Benefits options vary by state
Some advanced HR features require higher-tier plans
Pricing
Simple: $49/mo + $6/person/mo
Plus: $80/mo + $12/person/mo (adds time tracking, advanced HR)
Premium: $180/mo + $22/person/mo (includes HR expert support)
Free until you run your first payroll.
Transform your payroll processes with Gusto, a platform that’s already the choice of over 500,000 businesses.
Rippling
Best Modular HR + IT + Payroll Platform for Scaling Startups
Overview
Rippling combines payroll, HR, benefits, and even IT into one modular platform, letting startups start small and add features as they grow. With automation for onboarding, tax filings, and device management, Rippling streamlines operations for scaling teams. It’s best for startups that expect rapid growth and want a flexible platform to handle compliance, payroll, and IT.
Key Features
Full-service payroll with automated tax filings
Onboarding and offboarding workflows
Benefits administration
Time & attendance tracking
Role- and permission-based access control
Device/app provisioning and IT management
Global payroll support
Workflow automation & custom triggers
Pros and Cons
Pros
Highly modular — pay only for what you need
Scales well as your startup grows
Strong automation and workflow features
Combines HR + IT functions
Cons
Pricing can grow quickly with add-ons
Overkill for very small teams
Some advanced features require custom quotes
Steeper learning curve with multiple modules
Pricing
Core platform: starts around $35/month base + per-employee fee
Payroll add-on: additional per-employee fee
IT/device management and global payroll priced separately
QuickBooks Payroll
Best for Founders Already in the QuickBooks Ecosystem
Overview
QuickBooks Payroll integrates directly with QuickBooks accounting, making it ideal for founders who want payroll and bookkeeping in one place. It automates tax filings, supports benefits, and offers same- or next-day direct deposit. For startups already in the QuickBooks ecosystem, this integration reduces manual entry, simplifies compliance, and streamlines financial management under one familiar platform.
Key Features
Full-service payroll with automatic tax filing & forms
Supports multiple pay types
Employee self-service portal
Seamless QuickBooks accounting integration
Same-day and next-day direct deposit (higher tiers)
Workers’ comp administration
Benefits and 401(k) integrations
Time tracking features
Pros and Cons
Pros
Perfect fit for QuickBooks users
Familiar interface
Reasonably priced tiers
Good support and resources
Cons
Less appealing if you don’t use QuickBooks
Advanced features only in higher tiers
Costs rise with larger teams
Limited local customization
Pricing
Core: monthly base fee + per-employee cost
Premium/Advanced: higher fees, more features
Often includes promotional discounts for early months
Square Payroll
Best for Simplicity and Low Overhead
Overview
Square Payroll is built for simplicity, offering full-service payroll with transparent pricing and contractor-only options. Startups benefit from automated tax filing, direct deposit, and seamless Square POS integration. With predictable costs and easy setup, Square Payroll is a great choice for lean teams in retail, service, or hospitality looking for affordable, no-frills payroll management.
Key Features
Full-service payroll with tax filing
Contractor-only payroll option
Employee self-service portal
Integrates with Square POS
Multiple pay schedules
Direct deposit and checks
Transparent pricing
Basic time tracking
Pros and Cons
Pros
Predictable, transparent pricing
Easy to set up and use
Only pay when you run payroll
Integrates with Square ecosystem
Cons
Limited advanced HR features
Minimal benefits administration
Less scalable for complex needs
Multi-state support can be limited
Pricing
$35/month base + per-employee fee
Contractor-only: flat per-contractor fee, no base
Patriot
Best Ultra-Budget Option for Basic Payroll Needs
Overview
Patriot delivers core payroll functions at one of the lowest price points available. Startups can choose between a basic DIY plan or full-service tax filing, both with unlimited payroll runs and contractor support. While HR features are limited, Patriot is an excellent fit for budget-conscious founders who need reliable, straightforward payroll without costly extras.
Key Features
Payroll processing + direct deposit
Tax calculation (Full Service plan)
Employee self-service portal
Unlimited payroll runs
Contractor support
Optional HR add-ons
Accounting integrations
Multi-state support (extra fee)
Pros and Cons
Pros
Very low entry cost
Transparent pricing for add-ons
Solid payroll basics
Pay only for what you use
Cons
Basic plan requires manual tax filing
Add-on costs can add up
Limited advanced HR features
Weaker compliance support
Pricing
Basic Payroll: monthly base + per-worker fee
Full-Service Payroll: higher base + per-worker fee (includes tax filing)
Additional fee per state for multi-state filings
Justworks
Best for Startups That Want HR + Compliance Outsourcing
Overview
Justworks is a PEO that bundles payroll, benefits, and compliance into one platform. It takes on administrative and regulatory burdens, offering startups access to strong benefits and expert HR guidance. For founders who want to outsource risk and focus on growth, Justworks provides peace of mind, though its higher per-employee cost may stretch small budgets.
Key Features
Payroll with tax filings
Health insurance and benefits options
HR tools and policies
Time tracking
Compliance and risk support
Employee perks and wellness programs
Workers’ comp administration
24/7 customer support
Pros and Cons
Pros
Excellent compliance support
Bundled payroll, HR, and benefits
Hands-on customer support
Access to better benefits
Cons
Higher per-employee costs
Less modular — pay for services you may not need
Expensive for very small teams
Some benefits vary by state
Pricing
Payroll plan: monthly base + per-employee fee
PEO Basic: flat per-employee monthly fee
PEO Plus: higher per-employee monthly fee with advanced benefits
OnPay
Best for Transparent All-In-One Payroll Without Surprises
Overview
OnPay offers flat-rate pricing with unlimited payroll runs, tax filing, and contractor support included. It also provides built-in HR tools like onboarding documents and benefits options. Startups appreciate its predictable costs and simple setup, making it a reliable choice for teams that want affordable, full-featured payroll without hidden fees or complicated tiered plans.
Key Features
Unlimited monthly payroll runs
Full-service tax filing and payments
Employee and contractor payroll
Employee self-service portal
Benefits and workers’ comp options
Flexible pay schedules
Customizable reporting
Migration support
Pros and Cons
Pros
Predictable, transparent pricing
No extra fees for payroll runs or filings
Easy to use with solid support
Complete feature set at one price
Cons
Limited advanced HR tools
Benefits less extensive than PEOs
Not ideal for very large organizations
Some extras (like mailed forms) may cost more
Pricing
Flat monthly base fee + per-employee cost
All core payroll features included in one plan
Warp
Best for Founders Who Want Compliance & Payroll Automation
Overview
Warp automates payroll and compliance for startups, including state tax registrations, filings, and multi-state payroll. It also supports contractor payments, onboarding, and PTO tracking. Designed with lean teams in mind, Warp reduces admin work and simplifies compliance. It’s best for founders who want modern automation and compliance-first payroll, though its pricing may be higher than budget tools.
Key Features
Automated state tax registration & filings
Payroll for employees & contractors
Onboarding workflows
Benefits administration
Multi-state support
Time tracking and PTO
Global contractor payments
Dashboards & reporting
Pros and Cons
Pros
Automates complex compliance tasks
Startup-friendly design and features
Strong multi-state payroll support
Handles employees and contractors
Cons
Higher per-user costs than barebones tools
Newer platform, still maturing
Limited benefits options
Pricing model less familiar
Pricing
Basic: monthly platform fee + per-hire cost
Pro: higher platform fee + per-hire cost (adds multi-state/benefits)
Premium: highest platform fee + per-hire cost (advanced features, 24/7 support)
Compare All
| Pricing | Free Trial | Free Plan | Best Use Case | |
|---|---|---|---|---|
 | Simple $49/mo + $6/user/mo; Plus $80/mo + $12/user/mo; Premium custom pricing | Startups that want an affordable all-in-one payroll, HR, and benefits platform | ||
 | ~$8/user/mo + base fee 35-$40/month + add‑ons | (varies by product) | Scaling startups that want modular payroll with HR + IT automation | |
 | $45–$125/mo + per employee | Not listed | Founders already using QuickBooks who want payroll tightly integrated with accounting | |
 | $35/mo + $6/employee | Lean startups needing simple payroll or contractor pay, especially with Square POS | ||
 | $17–$37/mo + per employee | (30 days) | Ultra-budget startups that only need basic payroll functionality | |
 | $59–$99/employee/mo | (on request) | Startups that want HR, payroll, and compliance fully outsourced via a PEO | |
 | $49/mo + $6/employee | (1 month) | Startups that want transparent, all-in-one payroll with no pricing surprises | |
 | Custom pricing | Founders who want compliance-first payroll with automated state tax registration |
| Pricing | Free Trial | |
|---|---|---|
| Simple $49/mo + $6/user/mo; Plus $80/mo + $12/user/mo; Premium custom pricing | |
| ~$8/user/mo + base fee 35-$40/month + add‑ons | (varies by product) |
| $45–$125/mo + per employee | Not listed |
| $35/mo + $6/employee | |
| $17–$37/mo + per employee | (30 days) |
| $59–$99/employee/mo | (on request) |
| $49/mo + $6/employee | (1 month) |
| Custom pricing |
FAQ
What is the best payroll software for a small business?
The best payroll software depends on your needs. Gusto, OnPay, and Square Payroll are popular with startups for affordability and ease of use, while Rippling and ADP offer advanced options for scaling.
What is the cheapest way to pay employees?
The cheapest option is often contractor-only payroll or budget-friendly software like Square Payroll or Patriot. These tools keep costs low while still handling tax compliance and direct deposits.
Is there free payroll software for small business?
Most providers charge monthly fees, but some offer free trials until your first payroll. Others, like Excel templates or Wave Payroll, provide limited functionality for free but require manual filing.
How much does a $20 an hour employee cost an employer?
Beyond wages, employers must cover payroll taxes and possibly benefits. A $20/hour employee may cost closer to $24–$26/hour depending on benefits and tax rates.
Is it illegal to pay an employee as a 1099?
Yes—if the worker meets the legal definition of an employee, they must be classified correctly. Misclassification can result in fines, back taxes, and penalties.
