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
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
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
Cons
Some HR features require higher-tier plans
Benefits availability varies by state
Pricing
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Free trial: Yes — free until first payroll
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
Integrated QuickBooks accounting sync
Employee self-service and digital paystubs
Pros and Cons
Pros
Perfect fit for businesses already using QuickBooks
Fast direct deposit options
Cons
Works best only in the QuickBooks ecosystem
Fewer HR features than all-in-one platforms
Pricing
Tiered monthly base fee + per-employee fee
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
HR support and compliance alerts
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
Cons
Pricing is not transparent
Pricing
Quote-based pricing depending on frequency and features
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
Optional full-service tax filing
Pros and Cons
Pros
One of the lowest-cost payroll platforms available
Cons
Limited HR features
Pricing
Basic Payroll: Low monthly fee + per-employee charge
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
Instant timecard import from Square POS
Pros and Cons
Pros
Perfect match for businesses using Square POS
Cons
Best only for businesses in the Square ecosystem
Pricing
Flat monthly fee + per-employee fee; contractor-only plan available
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
Unlimited payroll runs for employees and contractors
Pros and Cons
Pros
Strong all-in-one features at a low price
Cons
Fewer advanced HR features than larger platforms
Pricing
Low monthly base fee + per-employee fee; full-service payroll included in all plans
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
Automated payroll reminders and scheduling
Pros and Cons
Pros
Very easy to use for first-time payroll users
Cons
Not ideal for businesses planning rapid growth
Pricing
Low monthly base fee + per-employee fee; full-service tax filing included
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.