The Top Payroll Services for Businesses Under 20 Employees
As a small business owner or manager, effectively managing payroll is crucial for your company's financial health and employee satisfaction. Payroll isn't just about paying your employees on time; it's about maintaining compliance with tax regulations, keeping accurate records, and ensuring that your business operates efficiently.
Last updated: September 2026
- Hire, pay and grow like a pro
- Run automated payroll in 5 minutes flat
- 500,000+ businesses run on Gusto
- Exceptional value: payroll + HR + benefits from $49/mo
- Unlimited payroll runs at no extra cost
- Automated tax calculations, filings, and payments
- Employee self-service portal reduces HR admin significantly
- No dedicated admin mobile app, payroll requires desktop
- No annual plan or money-back guarantee
- E-sign for custom documents not available on Simple plan
- Global EOR covers ~13 countries
- Hire, pay and grow like a pro
- Run automated payroll in 5 minutes flat
- 500,000+ businesses run on Gusto
- Exceptional value: payroll + HR + benefits from $49/mo
- Unlimited payroll runs at no extra cost
- Automated tax calculations, filings, and payments
- Employee self-service portal reduces HR admin significantly
- No dedicated admin mobile app, payroll requires desktop
- No annual plan or money-back guarantee
- E-sign for custom documents not available on Simple plan
- Global EOR covers ~13 countries
- Unlimited pay runs in any state
- Automated tax filings & payments
- Starting at $55/mo. No hidden fees
- Free Migration & Setup
- Straightforward Pricing
- Exceptional customer support
- Deep integrations with multiple software
- Limited international support
- Unlimited pay runs in any state
- Automated tax filings & payments
- Starting at $55/mo. No hidden fees
- Free Migration & Setup
- Straightforward Pricing
- Exceptional customer support
- Deep integrations with multiple software
- Limited international support
- One platform for HR & Payroll
- Seamlessly connects to tools you rely on
- Dedicated response service for support
- Employee Mobile App
- 24/7 Support
- Integration with multiple accounting software
- Easy to Use
- Pricier than other platforms
- Free 6-month trial
- One platform for HR & Payroll
- Seamlessly connects to tools you rely on
- Dedicated response service for support
- Employee Mobile App
- 24/7 Support
- Integration with multiple accounting software
- Easy to Use
- Pricier than other platforms
- Free 6-month trial
- SMBs most trusted advisor
- Winners of 2 Gold Stevie awards
- 351K worksite employees
- Comprehensive payroll & benefits options
- Full-service portal for employees
- Mobile App
- Wide range of integrations
- Pricing is hard to ascertain
- Complex to navigate for new users
- SMBs most trusted advisor
- Winners of 2 Gold Stevie awards
- 351K worksite employees
- Comprehensive payroll & benefits options
- Full-service portal for employees
- Mobile App
- Wide range of integrations
- Pricing is hard to ascertain
- Complex to navigate for new users
- All-in-one HR solution for success
- Used by 2.5M users & 40K+ businesses
- Vast partner network
- Mobile App
- Customizable Features
- Easy to Use
- Limited Customer Service Options
- Busy Interface
- Limited Reporting
- All-in-one HR solution for success
- Used by 2.5M users & 40K+ businesses
- Vast partner network
- Mobile App
- Customizable Features
- Easy to Use
- Limited Customer Service Options
- Busy Interface
- Limited Reporting
- All plans include extensive payroll features
- Offers third-party HR tools
- Try free for 30 days
- Unlimited Payroll Runs
- Extensive Learning & Support Resources
- Wide Range of Integrations
- Longevity
- More expensive than competitors
- Additional filing fees for employees in other states
- 24/7 support only for Elite plan
- All plans include extensive payroll features
- Offers third-party HR tools
- Try free for 30 days
- Unlimited Payroll Runs
- Extensive Learning & Support Resources
- Wide Range of Integrations
- Longevity
- More expensive than competitors
- Additional filing fees for employees in other states
- 24/7 support only for Elite plan
- Payroll made easy for as little as $1 per day
- Automated payroll for business efficiency
- US-based customer support
- Simplified employee payroll process
- Convenient mobile app designed for small businesses
- Reasonably priced plans
- Requirement to provide information to receive pricing details
- Lack of 24/7 customer support
- Payroll made easy for as little as $1 per day
- Automated payroll for business efficiency
- US-based customer support
- Simplified employee payroll process
- Convenient mobile app designed for small businesses
- Reasonably priced plans
- Requirement to provide information to receive pricing details
- Lack of 24/7 customer support
* Featured prices and terms can be updated. Free offers may include additional terms.
Why Payroll Services and Software Are Crucial for Small Businesses
Managing payroll in-house can be complex and time-consuming, especially for small businesses. Manual processing increases the risk of errors, compliance issues, and inefficiencies. Here’s why investing in a payroll service or payroll software is essential for small businesses:
1. Accuracy in Payments and Deductions
Small business owners need to ensure employees are paid accurately and on time, including overtime, bonuses, and commissions. Payroll software automates calculations and correctly calculates deductions (such as taxes, insurance, and retirement contributions). This avoids errors that could lead to employee dissatisfaction or costly legal issues.
2. Compliance with Tax Regulations
Small businesses must comply with federal, state, and local tax regulations. Payroll services help you meet all tax obligations, automatically calculating, withholding, and filing taxes on your behalf. Staying compliant avoids penalties and fines that can disrupt small businesses with tight budgets.
3. Time Savings
Manual payroll processing takes valuable time away from running your business. With payroll software, small business owners can automate repetitive tasks, such as calculating wages and tax filings, allowing you to focus on business growth and operations.
4. Reducing Errors
Payroll errors, such as incorrect calculations or missed tax payments, can be costly. Payroll services help reduce these errors through automation, ensuring that payroll is processed accurately every time, and mitigating risks like tax miscalculations or missed filing deadlines.
5. Improving Employee Satisfaction
Ensuring employees are paid accurately and on time is critical to maintaining employee satisfaction. Payroll services help avoid late or incorrect payments, which can hurt morale and increase turnover, especially in small businesses where employee loyalty is key.
6. Comprehensive Record-Keeping
Payroll services securely store important payroll data, such as employee pay stubs, tax forms, and records of hours worked. This data is essential for maintaining compliance, preparing for audits, and making informed business decisions.
Compare Best Payroll Software For Small Businesses
- Automated payroll service, tax & withholdings
- Grow stress-free with build-in compliance
- Hire, pay and grow like a pro
- Run automated payroll in 5 minutes flat
- Built for all businesses small to large
- Automate tax registration
- All-in-one HR solution for success
- Used by 2.5M users & 40K+ businesses
- Unlimited custom invoices and quotes
- Cleaner books from day one
- Payroll made easy for as little as $1 per day
- Automated payroll for business efficiency
Justworks Payroll is a cloud-based payroll service for small businesses that makes paying employees, contractors, and vendors hassle-free. Since 2012, Justworks has been helping small businesses save… Read more
Justworks Payroll is a cloud-based payroll service for small businesses that makes paying employees, contractors, and vendors hassle-free. Since 2012, Justworks has been helping small businesses save time on payroll with an intuitive interface and easy-to-use features like time tracking and tax form generation.
Learn more in our full Justworks review.
Pros & Cons
- Straightforward pricing
- Tax filing management
- 24/7 customer support
- Automatic deductions
- Base plan doesn't include time tracking & benefits management
Features
- 401k Tracking
- FMLA Tracking
- Generation of pay stubs and reports
- Multi-State
- Calculate and pay employee salaries
- Compliance with state and federal tax laws
- Direct Deposit for Employee Paychecks
- Tracking of employee hours and overtime
- Update real-time employee information
- Employee self-service update anytime
- Vacation/Sick Leave Tracking
- Benefits Management
- Employee profile management
- Form 1099-MISC
- Form 1095-B
- Form 1094-B
- Form 1095-C
- Form 1094-C
- Form 940 (Annual federal taxes)
- Form 941 (Quarterly federal taxes)
- Form 944 (Annual federal taxes)
- Form W-2 ( Tax filing included)
- Tax Compliance
- Time and Attendance Tracking
- HR & Benefits Systems
- Accounting Software
- Direct Deposit
- Tax filing and compliance
Pricing
$8
/mo per person/
/mo per person
$59
/mo per person/
/mo per person
$109
/mo per person/
/mo per person
$599
/mo per person/
/mo per person
Gusto is a cloud-based HR, payroll, and benefits platform designed for small and medium-sized businesses. It simplifies payroll processing with automated tax filings, direct deposits, and benefits… Read more
Gusto is a cloud-based HR, payroll, and benefits platform designed for small and medium-sized businesses. It simplifies payroll processing with automated tax filings, direct deposits, and benefits administration, ensuring compliance with labor laws. With features like employee self-service, time tracking, and onboarding tools, Gusto streamlines HR tasks and enhances workforce management. Businesses benefit from reduced administrative burdens, improved accuracy, and seamless integration with accounting software. The platform also offers health benefits and retirement plans, making it a comprehensive solution for business owners. In this Gusto payroll processing review, I'll discuss features, performance, customer service, and Gusto pricing.
Learn more in our full Gusto review.
Pros & Cons
- Exceptional value: payroll + HR + benefits from $49/mo
- Unlimited payroll runs at no extra cost
- Automated tax calculations, filings, and payments
- Employee self-service portal reduces HR admin significantly
- No dedicated admin mobile app, payroll requires desktop
- No annual plan or money-back guarantee
- E-sign for custom documents not available on Simple plan
- Global EOR covers ~13 countries
Features
- 401k Tracking
- FMLA Tracking
- Generation of pay stubs and reports
- Multi-Country
- Multi-State
- Mobile App For Employees
- Calculate and pay employee salaries
- Compliance with state and federal tax laws
- Direct Deposit for Employee Paychecks
- Tracking of employee hours and overtime
- Update real-time employee information
- Employee Attendance Tracking
- Employee self-service update anytime
- Vacation/Sick Leave Tracking
- Benefits Management
- Employee profile management
- Organizational Chart
- Automatic Tax Payment
- Form 1099-MISC
- Form 1095-B
- Form 1094-B
- Form 1095-C
- Form 1094-C
- Form 940 (Annual federal taxes)
- Form 941 (Quarterly federal taxes)
- Form 944 (Annual federal taxes)
- Form 945 (Non-Payroll Payments-e.g. Pension & Annuities)
- Form W-2 ( Tax filing included)
- Form W-3
- Form W-4
- Tax Compliance
- Time and Attendance Tracking
- HR & Benefits Systems
- Accounting Software
- Direct Deposit
- Tax filing and compliance
Pricing
$49
mo/
month
$80
mo/
month
$180
mo/
month
Rippling is an all-in-one employee management software that links human resources and IT management, all under one roof. It’s a cloud-based unified platform that helps manage employee data, payroll,… Read more
Rippling is an all-in-one employee management software that links human resources and IT management, all under one roof. It’s a cloud-based unified platform that helps manage employee data, payroll, benefits, devices, apps, and more. The software takes some training to get started. From device and app management to payroll, talent management, benefits, and employee management, it does an excellent job of offering functionality that's the best of both worlds. With Rippling you can manage and automate every part of the employee lifecycle in a single system.
Learn more in our full Rippling review.
Pros & Cons
- All-in-one HR solution
- User friendly, easy processes
- Great for small-midsize businesses
- Technical issues
- Poor report generating & customizing
Features
- 360 Degree Feedback
- Applicant Tracking
- Benefits Management
- Compensation Management
- Employee Database
- Employee Profiles
- Onboarding
- Payroll Management
- Performance Management
- Recruitment Management
- Self Service Portal
- Time & Attendance Management
- Time Off Management
- Calendar Management
- Employee Scheduling
- FMLA Tracking
- Overtime Calculation
- Reporting/Analytics
- Time tracking
- Assessments
- Background Screening
- Candidate Tracking
- Interview Scheduling
- Job Posting
- Resume Search
- Workflow Management
- Tax Calculation
- Tax Filing
- Live Online
- Webinars
- Documentation
- Monthly Payment
- Annual subscription
- Android
- Mac
- Chromebook
- Cloud, SaaS, Web-Based
- iPad
- iPhone
- Linux
- On-Premise - Linux
- On-Premise - Windows
- Windows
Pricing
$8
+$8/user/
+$8/user
Paycor is a comprehensive payroll software designed to streamline and automate the payroll process while saving businesses time and reducing errors. Paycor also integrates with popular HR systems,… Read more
Paycor is a comprehensive payroll software designed to streamline and automate the payroll process while saving businesses time and reducing errors. Paycor also integrates with popular HR systems, providing a seamless and integrated solution for small to medium-sized businesses.
Learn more in our full Paycor review.
Pros & Cons
- Mobile App
- Customizable Features
- Easy to Use
- Limited Customer Service Options
- Busy Interface
- Limited Reporting
Features
- 401k Tracking
- FMLA Tracking
- Generation of pay stubs and reports
- Multi-Country
- Multi-State
- Mobile App For Employees
- Calculate and pay employee salaries
- Compliance with state and federal tax laws
- Direct Deposit for Employee Paychecks
- Tracking of employee hours and overtime
- Update real-time employee information
- Employee Attendance Tracking
- Employee self-service update anytime
- Vacation/Sick Leave Tracking
- Benefits Management
- Employee profile management
- Organizational Chart
- Automatic Tax Payment
- Form 1099-MISC
- Form 1095-B
- Form 1094-B
- Form 1095-C
- Form 1094-C
- Form 940 (Annual federal taxes)
- Form 941 (Quarterly federal taxes)
- Form 944 (Annual federal taxes)
- Form 945 (Non-Payroll Payments-e.g. Pension & Annuities)
- Form W-2 ( Tax filing included)
- Form W-3
- Form W-4
- Tax Compliance
- Time and Attendance Tracking
- HR & Benefits Systems
- Accounting Software
- Direct Deposit
- Tax filing and compliance
Pricing
$99
mo/
month
$149
mo/
month
$199
mo/
month
$199
mo/
month
Quickbooks leads the way in cloud-based accounting software for small businesses by keeping it simple and effective. Everything your business needs is housed under its site and app. It is packed with… Read more
Quickbooks leads the way in cloud-based accounting software for small businesses by keeping it simple and effective. Everything your business needs is housed under its site and app. It is packed with features and integrations for automating aspects deemed too time-consuming.
Learn more in our full Quickbooks review.
Pros & Cons
- Robust and secure cloud-based software
- Customizable and intuitive dashboard and reports
- Numerous integrations
- Full desktop and mobile access
- Lack of 24/7 customer phone support (except for Advanced)
- Payroll costs extra
- Learning curve
Features
- General Ledger
- Bookkeeping
- Manages Accounts Payable/Receivable
- Income & Expenses Tracking/Management
- Account Reconciliations
- Financial Reporting
- Invoicing
- Record Expenses
- Record Mileage
- Generate Invoices
- Tax Compliance
- Manage Tax Calculations/Reporting
- Accountant-Prep Friendly
- Automation of Invoices/Notifications
- Suggests Transaction Matches
- Purchase Order Automation
- Payment Processing
- Payroll Processing
- Project Management
- Time tracking
- Third-party Integrations
- Windows
- Android
- iPhone/iPad
- Mac
- Web-Based
Pricing
$0
mo/
month
$38
mo/
month
$85
mo/
month
$140
mo/
month
$340
mo/
month
SurePayroll is a web-based tool providing payroll and tax-filing solutions primarily for small businesses. With its core features of unlimited payroll processing and accurate payroll tax… Read more
SurePayroll is a web-based tool providing payroll and tax-filing solutions primarily for small businesses. With its core features of unlimited payroll processing and accurate payroll tax computations, SurePayroll helps businesses optimize their operations.
Learn more in our full SurePayroll review.
Pros & Cons
- Simplified employee payroll process
- Convenient mobile app designed for small businesses
- Reasonably priced plans
- Requirement to provide information to receive pricing details
- Lack of 24/7 customer support
Features
- 401k Tracking
- FMLA Tracking
- Generation of pay stubs and reports
- Multi-State
- Mobile App For Employees
- Calculate and pay employee salaries
- Compliance with state and federal tax laws
- Direct Deposit for Employee Paychecks
- Tracking of employee hours and overtime
- Update real-time employee information
- Employee Attendance Tracking
- Employee self-service update anytime
- Vacation/Sick Leave Tracking
- Benefits Management
- Employee profile management
- Automatic Tax Payment
- Form 1099-MISC
- Form 1095-B
- Form 1094-B
- Form 1095-C
- Form 1094-C
- Form 940 (Annual federal taxes)
- Form 941 (Quarterly federal taxes)
- Form 944 (Annual federal taxes)
- Form 945 (Non-Payroll Payments-e.g. Pension & Annuities)
- Form W-2 ( Tax filing included)
- Form W-3
- Form W-4
- Tax Compliance
- Time and Attendance Tracking
- HR & Benefits Systems
- Accounting Software
- Direct Deposit
- Tax filing and compliance
Pricing
$20
/mo + $4/user/
/mo + $4/user
$29
/mo + $7/user/
/mo + $7/user
$39
/mo + $10/user/
/mo + $10/user
Provider | Accounting | Time Tracking | Point of Sale | 24/7 Support | Phone Support | Automated Payroll Tax Filing | Automated W-2 / 1099 Filing | Time Tracking Built-In | Time Tracking Add-On | Time Tracking Integration |
Gusto | V | V | V | X | V | V | V | V | X | V |
Paycor | V | V | V | X | V | V | V | X | V | V |
Rippling | V | V | V | X | V | V | V | X | V | V |
Justworks | V | V | X | X | V | V | V | X | V | V |
QuickBooks | V | V | V | X | V | V | V | X | V | V |
Paychex | V | V | V | V | V | V | V | X | V | V |
OnPay | V | V | X | X | V | V | V | X | X | V |
TriNet | V | V | V | V | V | V | V | X | V | V |
SurePayroll | V | V | X | X | V | X | X | X | X | V |
Understanding Small Business Payroll Services: More Than Just Processing Paychecks
Modern payroll services do more than just process payments; they offer a range of features that help streamline business operations:
- Wage and Salary Calculations: Automates the calculation of regular pay, overtime, bonuses, and commissions.
- Tax Withholding and Filings: Automatically calculates and files federal, state, and local taxes.
- Direct Deposit and Payment Options: Supports secure electronic payments via direct deposit and other methods.
- Pay Stub and Tax Form Generation: Automates the creation and distribution of pay stubs and year-end tax forms like W-2s and 1099s.
- Time and Attendance Tracking: Integrates with time-tracking systems for accurate labor cost management.
- Benefits Administration: Manages employee benefits, such as health insurance and retirement plans.
- Compliance Management: Stays up-to-date with changing labor laws and regulations to ensure legal compliance.
- Reporting and Analytics: Provide valuable insights into labor costs, employee turnover, and other key metrics.
By leveraging these features, small businesses can save time, reduce errors, and gain valuable insights into workforce management.
Related Articles
Types of Small Business Payroll Services: Finding the Right Fit for Your Business
Small businesses have several options when it comes to managing payroll:
1. In-House Payroll Processing
Pros:
- Complete control over payroll.
- Potentially lower costs for very small businesses.
Cons:
- Time-consuming and requires in-depth knowledge of tax laws.
- Higher risk of errors and compliance issues.
Best for: Very small businesses with simple payroll needs and someone on staff with payroll expertise.
2. Outsourced Payroll Services
Pros:
- Expertise in tax compliance and payroll processing.
- Saves time and reduces the risk of penalties.
Cons:
- Can be more expensive than DIY options.
- Less direct control over payroll processes.
Best for: Small businesses looking to save time while ensuring compliance.
3. Hybrid Payroll Solutions
Pros:
- Flexibility to handle some tasks in-house while outsourcing others.
- Balances control and expertise.
Cons:
- Requires clear communication and delineation of tasks.
Best for: Growing businesses that need support with complex payroll tasks but want to retain some control.
Key Features to Look for in Payroll Services
When choosing small business payroll software or services, consider these essential features:
- Automated Calculations: Handles complex payroll calculations for taxes, deductions, and different pay types.
- Tax Filing and Compliance: Automatically calculates, files, and pays taxes.
- Direct Deposit: Ensures timely, secure payments to employees’ bank accounts.
- Employee Self-Service Portal: Allows employees to view pay stubs, tax forms, and update personal information.
- Mobile Access: Lets you manage payroll from anywhere, a must for business owners on the go.
- Integration with Accounting Software: Synchronizes payroll data with your accounting system for seamless financial management.
- Compliance Updates: Keeps up with changes in labor laws and tax regulations.
- Scalability: Accommodates business growth and increasing payroll complexity.
Benefits of Using Payroll Services for Small Businesses
Investing in a payroll service offers multiple benefits, including:
- Time Savings: Automating payroll tasks frees up time to focus on running your business.
- Improved Accuracy: Automation reduces errors in payroll calculations and tax filings.
- Enhanced Compliance: Stay current with tax laws and avoid penalties.
- Employee Satisfaction: On-time, accurate payments improve morale.
- Data Security: Protect sensitive employee information through encryption and secure data handling.
- Cost Savings: More economical than hiring a full-time payroll administrator.
- Scalability: Payroll services can grow with your business, handling more employees and complex pay structures.
- Expert Support: Access professional help when needed to resolve complex payroll issues.
Potential Drawbacks of Payroll Services
While payroll services provide numerous benefits, there are some potential drawbacks:
- Cost: Some payroll services may be expensive for very small businesses.
- Less Control: Outsourcing payroll may reduce direct oversight of the process.
- Integration Challenges: Syncing payroll software with existing systems like accounting or HR can sometimes be challenging.
How to Choose the Best Payroll Service for Your Small Business
Managing payroll can be one of small business owners' most complex and time-consuming tasks. As your business grows, so do the intricacies of payroll management, including tax compliance, employee benefits, and record-keeping. Choosing the right payroll service can streamline these processes, save you time, and ensure compliance with regulations. Here’s a comprehensive guide to help you select the best payroll service for your small business.
When selecting a payroll service, follow these steps:
- Assess Your Payroll Needs: Consider your business size, payroll complexity, and compliance requirements.
- Set a Budget: Determine how much you're willing to spend on payroll services, factoring in long-term value.
- Compare Features: Evaluate providers based on features like tax filing, automation, and reporting.
- Check Integrations: Ensure compatibility with your existing accounting or HR systems.
- Review Customer Support: Choose a service with reliable customer support that can assist when needed.
- Try Before You Buy: Many payroll providers offer demos or trials—take advantage of these to test usability.
- Plan for Growth: Choose a service that can scale with your business as it expands.
Compliance and Data Security Considerations
Payroll services must ensure compliance with various regulations, including federal, state, and local tax laws, labor laws, and worker classifications. Additionally, safeguarding sensitive payroll data through encryption and access controls is essential to protect against data breaches.
See also
- Base fee plus per-person pricing decides what you actually pay, so compare the structures listed in payroll services.
- Owner-only payroll does not need benefits administration or approval flows, so look at best payroll for a single employee instead.
- With cash tight and filings you are willing to do yourself, free payroll software still runs the calculations and payslips.
- Hiring across state lines and paying contractors alongside staff shifts the shortlist towards best payroll for startups.
- Hourly crews need clock-ins that flow straight into gross pay, and that feed comes from time and attendance software.
Conclusion
Managing payroll efficiently is crucial for small business success. Whether you handle payroll in-house or outsource it, a professional payroll service ensures compliance, saves time, reduces errors, and improves employee satisfaction. As your business grows, a scalable payroll solution becomes even more important for maintaining financial health and operational efficiency. Choose a payroll service that fits your specific needs and empowers your business to thrive.