Gusto
Best All-in-One Payroll Tax & Compliance Software
Overview
Gusto is an all-in-one payroll and HR platform designed for small and midsize businesses that need reliable tax filing and compliance support. With automated federal, state, and local payroll tax filing, transparent pricing, and a user-friendly interface, Gusto makes it easy to stay compliant without extra stress. Beyond payroll, Gusto also offers benefits, hiring, and onboarding tools, helping you streamline HR and tax management from one place.
Key Features
Automatic federal, state, and local payroll tax filing
Year-end tax form creation and distribution (W-2s, 1099s)
Automatic compliance with new tax laws and rate changes
Integrated time tracking and PTO management
Benefits administration (health, retirement, commuter, and more)
Contractor payments with 1099 tax support
Built-in compliance alerts and reminders
Employee self-service portal with paystubs and tax docs
Seamless integrations with accounting and HR software
Dedicated support resources and compliance experts
Pros and Cons
Pros
Automatic tax filing and payments reduce compliance risks
Transparent pricing with no hidden fees
Wide range of HR features beyond payroll
Intuitive, easy-to-use interface for admins and employees
Strong integrations with accounting and benefits platforms
Cons
No free plan beyond trial period
Some advanced HR features locked behind higher tiers
Customer support response times can vary
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.
ADP
Best for Scalable Enterprise-Grade Tax & Payroll Infrastructure
Overview
ADP is a long-standing payroll and HR platform geared for businesses planning to scale across states with complex compliance needs. It offers robust tax filing support, multi-jurisdiction reporting, and deep integrations into HR and workforce systems. ADP is ideal when you expect your business to grow and want infrastructure that can handle multi-state, multi-entity tax challenges with confidence.
Key Features
Automatic withholding, filing, and payment of federal, state, and local payroll taxes
Multi-state tax compliance and jurisdiction management
Custom reporting and dashboards for tax and payroll insights
On-demand tax notices and correction handling
Integration with HR, benefits, time & attendance systems
Employee self-service portal for pay stubs and tax forms
Audit support and tax filing liability protections
Scalability across entities, divisions, and geographies
Pros and Cons
Pros
Extremely scalable and well suited for multi-state, multi-entity tax complexity
Strong track record and brand trust in payroll/tax compliance
Rich ecosystem of add-on HR, benefits, and workforce modules
Audit and correction support reduces internal burden
Cons
Pricing tends to be opaque and customized
May be overkill for very small companies
Some features locked behind higher tiers
Implementation can be complex
Pricing
Small business plans typically start around $79/month + $4–$6 per employee
Additional HR, benefits, and time tracking modules add extra cost
Final pricing provided by quote
Paychex
Best for Mid-Market Businesses Wanting Solid Tax Support + HR
Overview
Paychex offers a balanced middle ground between small business simplicity and enterprise-grade capability. It’s particularly strong in payroll tax administration, tax credit services, and compliance support, while also providing HR and benefits tools. For businesses expanding or needing more compliance assurance, Paychex gives an approachable platform with solid support behind it.
Key Features
Automated payroll tax calculation, filing, and payment
Tax credit identification and filing support
Multi-state and local tax compliance support
Payroll reporting and analytics dashboards
Employee self-service with pay stubs and tax forms
HR tools: onboarding, performance, compliance
Mobile access for payroll and HR tasks
Dedicated payroll specialist support
Pros and Cons
Pros
Strong tax and compliance infrastructure
Transparent starting pricing for small to mid-size firms
Good balance of payroll + HR features
Depth of support and reliability from established vendor
Cons
Costs grow as you add features
Limited functionality in the basic plan
Some HR features require module purchases
User interface can feel less modern
Pricing
Flex Essentials: $39/month + $5 per employee
Flex Select, Flex Pro, and Enterprise priced by quote
QuickBooks Payroll
Best for Users Already in the QuickBooks Ecosystem
Overview
If you already use QuickBooks for accounting, adopting QuickBooks Payroll gives you a seamless integration between bookkeeping, payroll, and tax filing. It handles all federal and state tax filings, and the unified platform minimizes reconciliation headaches, making it ideal for small to mid-sized businesses wanting streamlined workflows.
Key Features
Fully automated tax calculations, filings, and payments
Year-end forms generation (W-2, 1099)
Syncs payroll data to QuickBooks accounting automatically
Multiple pay schedules and employee classes
Employee self-service interface for pay stubs and tax forms
Time tracking and absence integration (in higher tiers)
Payroll liability tracking and alerts
Tax penalty protection in higher tiers
Pros and Cons
Pros
Tight integration with QuickBooks accounting
Predictable automated tax support
Familiar interface for QuickBooks users
Transparent tiered features
Cons
Limited if not using QuickBooks for accounting
Some advanced features only in higher tiers
Add-ons can raise costs
Customer support may be slower on lower tiers
Pricing
Starts around $50/month + $6 per employee
Premium and Elite tiers increase costs but add more features
Tax penalty protection available in higher tiers
Overview
OnPay is built to deliver full-service payroll (including tax filings) without the complexity of pricing tiers or surprise fees. It’s well-suited for small and growing businesses that need dependable tax compliance without juggling modules. All features come under a single plan, making budgeting easier and functionality predictable.
Key Features
Full payroll tax filing and payment for federal, state, local
Unlimited pay runs and multi-state support
W-2s, 1099 filings, and year-end forms
Integration with benefits and workers’ compensation
Onboarding, document storage, and HR tools
Employee self-service for pay and tax documents
Compatibility with multiple pay schedules
Reporting and payroll analytics
Pros and Cons
Pros
Transparent, inclusive pricing
No extra charges for multi-state compliance
Simple interface and setup
Strong customer support
Cons
Fewer integrations than larger vendors
No built-in time tracking
Limited mobile experience
Less suited for complex organizations
Pricing
$49/month + $6 per employee
Unlimited payroll runs included
No extra fees for year-end filings or multi-state employees
Rippling
Best for Automating Tax + IT/HR in One Integrated Platform
Overview
Rippling combines payroll, HR, IT, and compliance into a unified platform, making it powerful for businesses that want to automate administrative workflows beyond just payroll. It handles tax filings and compliance while also managing app provisioning, device management, and more—ideal when you want to centralize employee operations in one system.
Key Features
Automated federal, state, and local tax filings and payments
Compliance alerts and automated jurisdiction management
Workflow automation connecting HR, IT, finance systems
Unified employee directory and data platform
Onboarding/offboarding automation
Time and attendance integration
Reporting dashboards across payroll and workforce systems
Global payroll and contractor support
Pros and Cons
Pros
Broad HR, IT, and payroll automation in one
Strong compliance infrastructure
Deep automation reduces manual work
Centralized data platform
Cons
Pricing can escalate quickly with add-ons
Some complexity in setup
Limited transparency in pricing
Overkill for very small businesses
Pricing
Base payroll: $8 per employee per month plus platform fee
Additional HR, IT, and global payroll modules priced separately
Quotes required for advanced features
Paycom
Best for Large Firms Needing Deep Compliance & Tax Automation
Overview
Paycom is tailored toward larger organizations with heavier compliance burdens. It offers sophisticated tax filing, payroll error-checking, and audit support features. Paycom’s emphasis on automation and self-service helps reduce administrative burdens, making it well suited for larger HR/payroll operations that demand strong governance.
Key Features
Automatic payroll tax calculation, filing, and payment
Real-time error detection and correction
Year-end tax forms management (W-2, 1099, etc.)
Employee self-service including tax documents and pay stubs
Integration with time, expense, and HR modules
Audit trails and compliance reporting
Scalability across multiple entities
Advanced scheduling and cost allocation
Pros and Cons
Pros
High level of automation and compliance tools
Strong reporting and audit support
Employee self-service reduces admin load
Scales well for complex organizations
Cons
Higher cost per employee
Pricing transparency is limited
Implementation can take time
Requires bundling for some features
Pricing
Estimated $25–$36 per employee per month
Additional costs for modules and advanced features
Pricing finalized by quote
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 | Small to midsize businesses needing all-in-one payroll tax compliance + HR | ||
 | Custom pricing | (select plans) | Large or fast-scaling orgs with complex, multi-entity tax compliance needs | |
 | $39/mo + $5/employee; higher tiers are custom-priced. | Mid-market businesses wanting strong payroll tax support plus HR | ||
 | $45–$125/mo + per employee | Not listed | Teams already using QuickBooks that want integrated payroll tax filing | |
 | ~$8/user/mo + base fee 35-$40/month + add‑ons | (varies by product) | Businesses wanting automated payroll taxes tied to HR + IT workflows | |
 | Custom pricing | Larger firms needing deep payroll tax automation and audit-ready compliance |
| Pricing | Free Trial | |
|---|---|---|
| Simple $49/mo + $6/user/mo; Plus $80/mo + $12/user/mo; Premium custom pricing | |
| Custom pricing | (select plans) |
| $39/mo + $5/employee; higher tiers are custom-priced. | |
| $45–$125/mo + per employee | Not listed |
| ~$8/user/mo + base fee 35-$40/month + add‑ons | (varies by product) |
| Custom pricing |
FAQ
What is the best payroll software for small businesses?
The best payroll software for small businesses depends on your needs. Gusto is a top choice for all-in-one payroll and tax compliance, while OnPay and QuickBooks Payroll are affordable options for simpler setups. ADP and Paychex serve growing businesses needing more complex compliance and HR features.
Does QuickBooks do payroll and taxes?
Yes. QuickBooks Payroll automatically calculates, files, and pays federal and state payroll taxes. It also generates W-2s and 1099s for employees and contractors. Businesses already using QuickBooks for accounting often prefer this option because it seamlessly syncs payroll data with bookkeeping, minimizing manual entry and reconciliation.
How much does ADP cost for small business?
ADP’s pricing is customized based on employee count, pay frequency, and services selected. Small business plans often start around $79 per month plus $4–$6 per employee. Additional HR, benefits, and time tracking modules add to the monthly cost, making ADP best for businesses with complex compliance needs.
Can payroll software handle taxes?
Yes. Most modern payroll software automatically calculates, withholds, and files federal, state, and local payroll taxes. Platforms like Gusto, Paychex, and ADP also issue year-end tax forms (W-2s and 1099s), manage multi-state compliance, and provide audit support—helping small businesses reduce errors and stay compliant with changing tax laws.
Is Gusto better than QuickBooks?
It depends on your priorities. Gusto is better for businesses that want built-in HR tools, benefits, and a simple, modern interface. QuickBooks Payroll works best for companies already using QuickBooks accounting, since it offers seamless data syncing. Both handle payroll taxes, but Gusto is more comprehensive for HR.
How much does Paychex cost for small businesses?
Paychex Flex Essentials starts at $39 per month plus $5 per employee. More advanced plans with added HR features and dedicated payroll specialists are priced by quote. Costs rise as businesses add services, but Paychex remains a strong option for small businesses needing reliable tax and compliance support.
