Gusto
Best All-in-One Affordable Payroll Software for Small Business
Overview
Gusto combines ease of use with powerful functionality. It’s built to offer affordable, integrated payroll software for small businesses—plus HR tools. Unlimited payroll runs, automated tax filing, employee self-service, and benefits admin are all included. Gusto supports contractor payments, multi-state payroll (Plus plan and up), and offers excellent customer support.
Gusto is recognized as a Leader on G2's Small-Business Grid® Report for Payroll, Spring 2026, based on verified customer satisfaction and market presence among small businesses.
Key Features
Integrated payroll, HR, time tracking, and benefits
Unlimited payroll runs
Multi-state payroll (Plus+ plans)
2-day pay (next-day pay on Plus+)
Contractor payments in 120+ countries
Employee self-onboarding and paystub access
Pros and Cons
Pros
Transparent pricing
Benefits admin included in all plans
Hundreds of integrations
Cons
Time tracking not included in base plan
Mobile app has limited functionality
Pricing
Simple: $49/month + $6/person/month
Plus: $80/month + $12/person/month
Contractor-only:
Transform your payroll processes with Gusto, a platform that’s already the choice of over 500,000 businesses.
OnPay
Best for Multi-State Payroll
Overview
OnPay offers a single affordable plan that includes payroll, tax filing, HR tools, and benefits administration in all 50 states. There are no tiers or surprises—perfect for businesses with distributed teams who want simplicity and value.
Key Features
All-in-one flat-rate payroll
Multi-state payroll with tax filings
Benefits admin included
Unlimited payroll runs
Direct deposit and check options
Basic HR and onboarding tools
Pros and Cons
Pros
Flat-rate pricing
Includes multi-state payroll
Simple, intuitive interface
Cons
Limited integrations (only ~11)
Charges extra for mailed W-2s and 1099s
$40/month + $6/employee
Learn more about OnPay
Justworks
Best Affordable PEO
Overview
Justworks is a full-service PEO that takes HR, payroll, and compliance off your plate. You’ll get co-employment protection, a bundled HR suite, and access to premium benefits. It’s ideal for small businesses looking to outsource compliance-heavy tasks without breaking the bank.
Key Features
Full PEO with compliance support
Onboarding and PTO tools
Contractor support in 28+ countries
24/7 customer service
Employee self-service and mobile app
Pros and Cons
Pros
Affordable for a PEO
Great customer service
Easy-to-use interface
Cons
Traditional benefits only on Plus plan
Time tracking costs extra
Pricing
Basic: $59/employee (drops to $49 after 50 employees)
Plus: $99/employee (drops to $89 after 50)
Learn more about Justworks
Payroll4Free
Best Free Payroll Software for Very Small Businesses
Overview
For businesses with fewer than 10 employees, Payroll4Free is a no-cost solution that handles basic payroll and tax calculations. Direct deposit and tax filing are paid upgrades, but even with them, it’s far cheaper than most alternatives.
Key Features
Free for up to 10 employees
PTO tracking included
Employee self-service
W-2 and 1099 generation
Pros and Cons
Pros
Fully free for small teams
Useful for nonprofits and startups
Cons
No mobile support
Manual tax payments unless you upgrade
Pricing
Free for core features
Tax filing or direct deposit: $25/month each, $30/month bundled
Learn more about Payroll4free
QuickBooks
Best Cheap Payroll Software for Bookkeepers
Overview
If you already use QuickBooks for accounting, their payroll add-on makes it simple to manage everything in one place. It includes automatic tax filings and same-day direct deposit on mid-tier plans.
Key Features
Fully integrated with QuickBooks Online
Direct deposit (next or same day)
Tax penalty protection
1099 and W-2 filing
Time tracking on Premium+
Pros and Cons
Pros
Ideal for existing QB users
User-friendly UI
Cons
No integration with other accounting software
Local tax filing only on Premium+
Pricing
Core: $45/month + $6/employee
Premium: $80/month + $8/employee
Elite: $125/month + $10/employee
Learn more about QuickBooks
SurePayroll
Best for Household and Nanny Payroll
Overview
SurePayroll offers both business and household payroll options. It’s ideal for household employers and very small businesses looking for simple payroll with add-on flexibility.
Key Features
Household payroll and nanny support
Federal, state, and local tax filing
Garnishments and new hire reporting
Employee access portal
Pros and Cons
Pros
Great for household payroll
Flexible service options
Cons
Limited HR features
Add-ons can get pricey
Pricing
Self-service: From $19.99/month + $4/employee
Full-service: From $29.99/month + $5/employee
Learn more about SurePayroll
Square Payroll
Best Budget Payroll Software for POS Integration
Overview
If you already use Square POS, Square Payroll is a perfect match. It imports hours, tips, and scheduling data directly from the POS—streamlining payroll and minimizing errors.
Key Features
POS-integrated payroll
Time tracking and scheduling tools
Tip pooling and instant pay
Automated tax filings
Pros and Cons
Pros
Great for restaurants and retail
Time tracking free for up to 5 users
Cons
Limited HR features
No custom reporting
Pricing
$35/month + $6/employee
Time tracking add-on: Free for up to 5 users, then starts at $4/user
Learn more about Square Payroll
Patriot Payroll
Best Cheap Payroll for DIY Taxes
Overview
Patriot is a good choice for budget-conscious businesses comfortable handling their own taxes. Their DIY plan is one of the cheapest payroll options available—and you can upgrade to full service later.
Key Features
DIY and full-service options
Multi-state payroll (extra fee)
Unlimited payroll runs
Employee portal
Pros and Cons
Pros
Exceptionally low price
Modular add-ons available
Cons
Full-service costs add up
Limited integrations
Pricing
Basic (DIY): $17/month + $4/employee
Full-Service: $37/month + $4/employee
Add-ons: HR, accounting, time tracking available separately
Learn more about Patriot Payroll
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 | All-in-one affordable payroll with modern HR tools for small businesses | ||
 | $49/mo + $6/employee | (1 month) | Simple flat-rate payroll with tax filing and multi-state support | |
 | $59–$99/employee/mo | (on request) | Affordable PEO payroll with compliance support | |
 | Free core; add‑ons $10–$35 | Very small businesses or startups needing free payroll basics | ||
 | $45–$125/mo + per employee | Not listed | Small businesses using QuickBooks for accounting & payroll | |
 | $19.99–$29.99/mo + per employee | Not listed | Household and small business payroll with flexible options | |
 | $35/mo + $6/employee | Retail & foodservice businesses with POS integration needs | ||
 | $17–$37/mo + per employee | (30 days) | Budget-conscious teams comfortable managing payroll taxes |
| Pricing | Free Trial | |
|---|---|---|
| Simple $49/mo + $6/user/mo; Plus $80/mo + $12/user/mo; Premium custom pricing | |
| $49/mo + $6/employee | (1 month) |
| $59–$99/employee/mo | (on request) |
| Free core; add‑ons $10–$35 | |
| $45–$125/mo + per employee | Not listed |
| $19.99–$29.99/mo + per employee | Not listed |
| $35/mo + $6/employee | |
| $17–$37/mo + per employee | (30 days) |
FAQ
Is Gusto a top-rated payroll service for small businesses?
Yes. Gusto is named a Leader on G2's Small-Business Grid® Report for Payroll, Spring 2026 — a ranking based on verified small business reviews and market presence. Gusto also ranks #1 on G2's Small-Business Grid® Report for Benefits Administration, Spring 2026, making it one of the few payroll platforms recognized as a leader for both payroll and benefits.
Why do small businesses need payroll software?
Payroll and tax compliance are complex and time-consuming. Payroll software helps automate these tasks, reduces errors, ensures legal compliance, and saves valuable time—especially for small teams without a dedicated HR department.
What is the cheapest way to run payroll?
The most cost-effective option is to use free software, such as Payroll4Free (for businesses with fewer than 10 employees), or a DIY tax plan like Patriot’s basic plan. Just be aware that these tools require more hands-on effort and don't always include full compliance support.
What features should affordable payroll software include?
At minimum, you’ll want automated tax filings, direct deposit, W-2 and 1099 generation, and employee self-service. Many platforms also offer time tracking, PTO management, benefits admin, and integrations with accounting tools.
Can I do payroll myself without software?
Yes, but it’s risky. DIY payroll requires you to calculate taxes correctly, file forms on time, and stay updated on changing laws. Software automates these steps and dramatically reduces the risk of fines or errors.
Which payroll software is best for contractors or freelancers?
Gusto and Square are great for businesses with contractors. Gusto allows contractor-only plans at just $6 per person per month, and Square easily handles tipped and hourly gig workers with POS integration.
