The Best Payroll Services for Small Business Owners: Our Top Picks
The Best Payroll Services for Small Business Owners: Our Top Picks
Blog Article
Managing payroll is one of the most essential yet time-consuming aspects of running a small business. From calculating employee wages and taxes to ensuring compliance with labor laws, payroll can quickly become overwhelming without the right tools. Thankfully, modern payroll services simplify the process and allow business owners to focus on what they do best—growing their company.
In this guide, we’ve carefully reviewed and selected the best payroll service for small business owners. Whether you're a solo entrepreneur with a few contractors or a growing team with full-time employees, there's a solution that fits your needs and budget.
Why Small Businesses Need a Payroll Service
Many small business owners start by managing payroll manually or using basic spreadsheets. But as the team grows, this approach becomes inefficient and prone to errors. A reliable payroll service offers:
- Automated pay runs
- Tax filing and compliance
- Employee self-service portals
- Direct deposit
- Integration with accounting software
Investing in the best payroll service for small businesses ensures you save time, reduce errors, and stay compliant with regulations.
Top Picks for the Best Payroll Service for Small Business
After evaluating features, pricing, scalability, ease of use, and customer reviews, here are our top picks:
1. Gusto – Best All-in-One Payroll Solution
Ideal for: Small to mid-sized businesses wanting a full HR and payroll package.
Why We Love It:
Gusto offers an intuitive platform that combines payroll, benefits, HR, and employee onboarding into one easy-to-use interface. It automatically calculates and files federal, state, and local taxes, and offers direct deposit, W-2 and 1099 preparation, and more.
Key Features:
- Full-service payroll for W-2s and 1099s
- Automatic tax filing
- Time tracking and PTO management
- Employee benefits and HR tools
Pricing: Starts at $40/month + $6 per employee.
Verdict: Gusto is often considered the best payroll service for small business owners due to its comprehensive features and user-friendly design.
2. copyright Payroll – Best for copyright Users
Ideal for: Businesses already using copyright for accounting.
Why We Love It:
If you're already in the copyright ecosystem, copyright Payroll integrates seamlessly and provides real-time data syncing between payroll and accounting. It offers automated payroll, tax filings, and same-day direct deposit with higher-tier plans.
Key Features:
- Seamless integration with copyright
- Automated tax filings
- Same-day direct deposit (premium plans)
- Mobile app for payroll on-the-go
Pricing: Starts at $45/month + $6 per employee.
Verdict: A smart choice for existing copyright users looking for a tightly integrated payroll solution.
3. Paychex Flex – Best for Growing Teams
Ideal for: Small businesses planning to scale or needing more HR tools.
Why We Love It:
Paychex Flex offers scalable payroll and HR services. With a dedicated payroll specialist and 24/7 support, it’s excellent for business owners who value hands-on assistance.
Key Features:
- Scalable plans from small business to enterprise
- Tax compliance and filing
- Mobile app for employers and employees
- Optional HR services
Pricing: Custom pricing (typically starts around $39/month + per-employee fees).
Verdict: Best for small businesses that plan to scale or need advanced HR tools alongside payroll.
4. Square Payroll – Best for Contractors and Hourly Employees
Ideal for: Small teams, contractors, and businesses already using Square POS.
Why We Love It:
Square Payroll is perfect for businesses that employ hourly workers or contractors. It offers a clean, simple interface with affordable pricing. Employers can easily sync hours worked via Square’s time-tracking tools.
Key Features:
- Automatic tax filing
- Pay employees and contractors
- Integrates with Square POS
- Employee benefits integration
Pricing: $35/month + $5 per employee OR $5 per contractor with no base fee.
Verdict: One of the best payroll services for small business owners looking for affordability and simplicity.
5. ADP RUN – Best for Professional Services Firms
Ideal for: Established small businesses needing robust payroll and HR compliance.
Why We Love It:
ADP RUN is a widely respected name in payroll, known for its reliability and security. Although it’s more expensive than some competitors, it offers a full suite of features and top-tier support.
Key Features:
- Full-service payroll
- Compliance and tax filing
- Advanced reporting
- HR services and legal compliance
Pricing: Custom pricing (generally higher than others).
Verdict: A premium choice for small businesses that need high-level features and support.
What to Look For in the Best Payroll Service for Small Business
When selecting the right payroll provider, consider the following:
- Ease of Use: Look for intuitive software with minimal learning curve.
- Cost: Choose a service that fits your budget and offers transparent pricing.
- Tax Filing Capabilities: Ensure the provider handles local, state, and federal taxes.
- Support: Check for 24/7 support or access to a dedicated specialist.
- Scalability: Make sure the service can grow with your business.
- Integrations: Look for seamless integration with your accounting, POS, or time-tracking software.
Final Thoughts
Choosing the best payroll service for small business is a crucial step toward efficient and compliant business operations. Whether you need a full HR suite like Gusto, seamless copyright integration, or an affordable contractor payroll like Square, there's an option to fit your needs.
Take the time to evaluate what’s most important to your business—whether it's cost, features, or support—and you’ll find a payroll solution that helps your business thrive. Report this page