Very small teams often need payroll that's fast to set up, simple to maintain, and accurate every time without layering on tools they'll never use. The best payroll services for businesses with under five employees combine full-service tax filing, intuitive workflows, and straightforward pricing so owners can stay compliant with minimal administrative overhead. Below, we compare top payroll solutions that offer the right balance of automation, cost, and ease of use for microbusinesses.
Gusto
Best all-in-one payroll service for very small teams
Gusto is the best all-in-one payroll platform for businesses with fewer than five employees thanks to its simple setup, automated payroll runs, and built-in compliance tools. Even the smallest teams get full-service payroll with automated tax filing, benefits administration, time tracking, and easy onboarding all in one intuitive system. Gusto's clear pricing structure and employee self-service tools make it especially attractive for microbusinesses that need professional-grade payroll without complexity or extra administrative work.
Key Features
Full-service payroll with automated tax filing
Auto-calculated federal, state, and local taxes
Employee onboarding with digital forms and e-signatures
Direct deposit and contractor payments
Benefits administration (health, 401(k), FSA/HSA, commuter)
Time tracking and PTO management
Compliance alerts and document storage
Employee self-service portal
Integrations with QuickBooks, Xero, FreshBooks, and more
Automatic filings for new hire reporting
Pros and Cons
Pros
Extremely easy to use for teams with limited admin capacity
Transparent pricing ideal for very small businesses
All-in-one HR + payroll environment
Reduces compliance and tax-related risk
Free until you run your first payroll
Cons
Some HR features require higher-tier plans
Not designed for large or highly complex organizations
Benefits availability varies by state
Pricing
Simple: $49/month + $6/person/month
Plus: $80/month + $12/person/month
Free trial: Yes — free until first payroll
Free plan: No
Transform your payroll processes with Gusto, a platform that’s already the choice of over 500,000 businesses.
QuickBooks Payroll
Best payroll service for microbusinesses already using QuickBooks
QuickBooks Payroll is a strong choice for businesses with fewer than five employees, especially those already using QuickBooks for accounting. It offers fast, automated payroll runs, auto-calculated taxes, and same-day direct deposit, all tightly synced with your books. For microbusinesses that want to manage payroll and accounting in one ecosystem, QuickBooks Payroll delivers speed, simplicity, and strong compliance support.
Key Features
Automated payroll runs with error-checking
Full-service federal, state, and local tax filing
Same-day or next-day direct deposit
Auto Payroll for salaried employees
Integrated QuickBooks accounting sync
Employee self-service and digital paystubs
Workers' comp and benefits integration
Time tracking with QuickBooks Time
Pros and Cons
Pros
Perfect fit for businesses already using QuickBooks
Easy onboarding and setup
Fast direct deposit options
Strong automation for simple payroll cycles
Cons
Pricing increases with add-ons
Works best only in the QuickBooks ecosystem
Multi-state payroll costs extra
Fewer HR features than all-in-one platforms
Pricing
Tiered monthly base fee + per-employee fee
Lowest tier includes full-service payroll and tax filing
Higher tiers add same-day deposit and HR tools
Month-to-month billing
ADP RUN
Best for small teams that want dedicated support and flexible add-ons
ADP RUN is designed specifically for small businesses and solopreneurs who want professional payroll backed by hands-on support. It offers full-service payroll with automated tax filing and access to HR advisors, making it a good fit for businesses with fewer than five employees that want extra guidance. RUN's scalable add-ons like time tracking, benefits, and HR support allow microbusinesses to start small and expand as needed.
Key Features
Full-service payroll with automated tax filing
Direct deposit and digital paystubs
HR support and compliance alerts
Time and attendance add-ons
Benefits administration through ADP partners
Employee onboarding and background checks
New hire reporting
Mobile app for employers and employees
Pros and Cons
Pros
Strong customer support for new payroll users
Scalable add-ons that grow with your business
Trusted payroll engine with compliance protections
Mobile-friendly experience for small teams
Cons
Pricing is not transparent
Add-ons can increase total cost
Interface less modern than newer platforms
Not as simple as tools designed specifically for very small teams
Pricing
Quote-based pricing depending on frequency and features
Add-ons for HR support, time tracking, and benefits
Month-to-month contracts often available
Discounts for new small businesses
Patriot Payroll
Best low-cost payroll option for very small businesses
Patriot Payroll is one of the most affordable payroll services on the market, making it an excellent fit for businesses with fewer than five employees. Its simple interface, low monthly fees, and fast setup process appeal to microbusinesses that need reliable payroll without extra HR features. Patriot offers both basic payroll and full-service tax filing, giving very small teams flexibility based on budget and compliance needs.
Key Features
Affordable payroll processing with two plan options
Automatic payroll calculations
Optional full-service tax filing
Direct deposit and printable checks
Time and attendance add-on
Employee self-service portal
New hire reporting
Integrations for accounting and time tracking
Pros and Cons
Pros
One of the lowest-cost payroll platforms available
Ideal for microbusinesses with simple payroll needs
Easy-to-use interface and fast onboarding
Flexible plans depending on tax filing needs
Cons
Limited HR features
Add-ons increase the overall cost
Not ideal for multi-state or complex compliance
Interface less modern than premium platforms
Pricing
Basic Payroll: Low monthly fee + per-employee charge
Full-Service Payroll: Includes tax filing and end-of-year forms
Add-ons for time tracking and accounting integrations
Month-to-month billing with no contracts
Square Payroll
Best for small teams that need integrated POS and payroll
Square Payroll is a simple, affordable payroll solution designed for very small businesses especially those already using Square for payments or POS. It offers full-service payroll with automated tax filings, seamless timecard imports from Square POS, and easy contractor payments. For teams with fewer than five employees, Square Payroll delivers speed and convenience without unnecessary features or complexity.
Key Features
Full-service payroll with automated tax filing
Instant timecard import from Square POS
Direct deposit and Cash App payments
Contractor-only payroll option
Employee self-service for paystubs and forms
Benefits integrations (health, retirement, workers' comp)
Tip pooling and reporting tools
Mobile-friendly employer dashboard
Pros and Cons
Pros
Perfect match for businesses using Square POS
Very simple setup for small teams
Low-cost contractor-only plan
Automated timecard syncing saves manual work
Cons
Limited HR features compared to all-in-one platforms
Best only for businesses in the Square ecosystem
Not ideal for complex or multi-state payroll
Fewer integrations outside Square's suite
Pricing
Flat monthly fee + per-employee fee; contractor-only plan available
Includes automated tax filing
Month-to-month contracts
OnPay
Best value all-in-one payroll service for tiny teams
OnPay is an affordable, full-service payroll and HR solution ideal for businesses with fewer than five employees. It offers unlimited payroll runs, automated tax filings, and built-in HR tools without the higher price tag of more complex platforms. OnPay's simple interface, transparent pricing, and included features like onboarding and PTO tracking make it a strong value choice for very small businesses that want more functionality than basic payroll tools offer.
Key Features
Full-service payroll with automated tax filing
Unlimited payroll runs for employees and contractors
Employee onboarding with digital documents
PTO tracking and approval workflows
Integrated benefits administration
Time-tracking integrations
Employee self-service portal
HR tools including org charts and basic compliance docs
Pros and Cons
Pros
Strong all-in-one features at a low price
Straightforward interface for small teams
Unlimited payroll runs included
Great value for businesses needing both payroll and light HR
Cons
Fewer advanced HR features than larger platforms
Benefits availability varies by state
Interface less modern than newer solutions
Add-ons like time tracking require integrations
Pricing
Low monthly base fee + per-employee fee; full-service payroll included in all plans
No extra charge for contractor payments
Month-to-month billing
SurePayroll
Best simple, low-maintenance payroll for very small employers
SurePayroll is a streamlined payroll service built specifically for small employers, household employers, and microbusinesses with only a few workers. It offers full-service tax filing, automated payroll runs, and an ultra-simple dashboard that makes payroll easy even for first-time business owners. With affordable pricing and strong customer support, SurePayroll is a great fit for teams with fewer than five employees who want dependable payroll without extra HR complexity.
Key Features
Full-service payroll with federal, state, and local tax filing
Direct deposit and employee self-service
Automated payroll reminders and scheduling
Mobile payroll app
New hire reporting
Option for same-day or next-day payroll
Time clock and attendance add-ons
HR advisor support for compliance questions
Pros and Cons
Pros
Very easy to use for first-time payroll users
Affordable plans designed for microbusinesses
Helpful live support for small teams
Reliable tax automation and compliance tools
Cons
Limited HR features compared to all-in-one platforms
Add-ons increase cost
Interface is functional but less modern
Not ideal for businesses planning rapid growth
Pricing
Low monthly base fee + per-employee fee; full-service tax filing included
Optional add-ons for time tracking and HR guidance
Month-to-month pricing
FAQ
What is the best payroll service for small businesses?
The best payroll service depends on your business size and needs. For very small teams, Gusto is one of the strongest all-in-one options, offering full-service payroll, automated tax filing, onboarding, and benefits in one system. QuickBooks Payroll and Square Payroll are also popular choices for microbusinesses needing simple, fast payroll.
What is the easiest way to do payroll for a small business?
Using a full-service payroll provider is typically the easiest option. Platforms like Gusto, OnPay, and Square Payroll calculate wages, withhold taxes, file returns, issue year-end forms, and handle direct deposit automatically. This reduces manual work and lowers the risk of compliance errors.
How much does a small business payroll service cost?
Most small-business payroll services charge a monthly base fee plus a per-employee fee. On average, expect to pay $40–$50 per month as a base fee and $4–$10 per employee. Low-cost providers like Patriot and SurePayroll offer more budget-friendly plans, while full HR suites like Gusto or ADP may cost slightly more depending on features.
Can a small business do its own payroll?
Yes, a small business can technically run its own payroll, but it comes with risks. You must calculate withholdings, ensure tax accuracy, submit filings on time, and issue W-2s and 1099s correctly. Many very small teams choose payroll software because it automates these tasks and reduces the chance of costly tax penalties.
How much does a $20 an hour employee cost an employer?
An employee earning $20 per hour typically costs an employer $24–$30 per hour once payroll taxes, workers' compensation, benefits (if offered), and other overhead are included. Exact costs vary by state, industry, and the benefits you provide.