Growing your team is a sign of financial success, but managing payroll adds another layer of complexity. Payroll services help streamline the process and often include benefits administration and onboarding workflows.
Below, CNBC Select names the six best payroll services for small businesses, based on features like pricing, features, benefits administration and HR tools. See our methodology for more information on how we made our choices.
Best payroll services for small businesses
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Best for payroll and bookkeeping: QuickBooks Workforce
Who's this for? If you already use Intuit QuickBooks for bookkeeping, you can stay in the same ecosphere for payroll. Premium plans offer features like same-day direct deposits, access to HR support and mobile time tracking.
Standout benefits: The basic plan includes income and expense tracking, organizing receipts, maximizing tax deductions, invoicing and accepting payments, running reports and sending estimates, managing 1099 contractors and tracking sales and sales tax.
Benefits administration: 401(k) plans, health benefits, workers' compensation administration, employee portal
QuickBooks Workforce
Cost
Costs vary depending on the plan. Take advantage of a limited-time offer: 50% off for 3 months
Benefits Administration
401(k) plans, health benefits, workers' compensation administration
HR tools
Yes
Pros
- Seamless integration with QuickBooks Online
- AI Payroll Agent collects time data and flags inconsistencies
- HR advisors and compliance support available
- Automatically syncs payroll and federal, state and local tax info
Cons
- More expensive than many competitors
- Requires deep familiarity with QuickBooks ecosystem
Best for international payments: Rippling
Who's this for? Companies that hire globally have the peace of mind of knowing that Rippling's robust automation allows them to onboard and pay employees and contractors in local currency.
Standout benefits: Rippling's global payroll features also allow your business to remain compliant with local and international tax laws.
Benefits administration: FSA, HSA, commuter benefits, medical, dental and vision insurance, 401(k)
Rippling
Cost
Starts at $8 per month per user; custom quote available based on the services needed
Benefits Administration
FSA, HSA, commuter benefits, medical, dental and vision insurance, 401(k)
HR tools
Yes
Pros
- A-la-carte platform allows you to add HR, payroll, benefits, IT, etc. as you scale
- Employees can access their info from app
- integrate with 600+ apps, including Slack, Zoom, QuickBooks, Zendesk, Xero and Salesforce
- Supports compliance and payments in 185+ countries
Cons
- Must request a demo to get specific price quote
- DIY model means price can add up
- Phone support is not available
Best for larger businesses: ADP
Who's this for? Available in all 50 states and 140 countries, ADP serves small businesses with as few as one employee to large organizations with more than 1,000 workers.
Standout benefits: Services can be tailored to your company's industry, compliance, and software integration needs.
Benefits administration: 401(k), SIMPLE IRA, SEP IRA, health insurance
ADP
Cost
Must enter your information to receive a quote
Benefits Administration
401(k), SIMPLE IRA and SEP IRA plans, health insurance
HR tools
Yes
Pros
- Incorporates payroll, HR, benefits, compliance and recruiting features
- 3 months of free ADP payroll services for eligible new customers
- Full-service payroll in all 50 states and 140+ countries
- State and federal compliance alerts
Cons
- Must request a price quote
- Steep learning curve
- Many features are limited to higher tier
Best for comprehensive features: OnPay
Who's this for? OnPay handles federal, state and local payroll taxes and lets users create customizable payroll reports. It also accounts for multiple pay schedules, can handle withholding for unemployment insurance and can manage payroll for employees across multiple states.
Standout benefits: OnPay offers integrations with accounting services like QuickBooks and Xero. There are also features for HR and employee benefits. For instance, an employee self-service feature allows new employees to sign administrative paperwork, conduct onboarding and request time off.
Benefits administration: Health insurance, retirement, vacation and PTO, life and disability insurance, liability insurance, commuter benefits, HSA and FSA.
OnPay
Cost
$40 per month, plus $6 per person (One-month free trial)
Benefits Administration
Health insurance, retirement, vacation and PTO, life and disability insurance, liability, commuter benefits, HSA and FSA
HR tools
Yes
Pros
- One month free trial
- Employees can access info via mobile app
- Automated tax payments and filings
Cons
- Limited HR features
- Few third-party software integrations
- Does not include built-in time tracking
Best for user experience: Gusto
Who's this for? Gusto offers simple, automated processes for business owners, including automatic W-2 and 1099 forms, unlimited payroll runs, state tax registration, international contractor payments, time off requests and approvals, PTO reporting, cost reports and tax credits.
Standout benefits: Gusto allows business owners to pay themselves, W-2 employees and contractors, even if they live in different states.
Benefits administration: Medical, dental, and vision insurance, 401(k) retirement plans, HSA and FSA, Commuter benefits, 529 college savings plan.
Gusto
Cost
Starts at $49 per month (plus $6 per person)
Benefits Administration
Medical, dental, and vision insurance, 401(k) retirement plans, HSA and FSA, Commuter benefits, 529 college savings plan
HR tools
Yes
Pros
- Tiered plans suitable for different budgets
- Contractor-only option
- Same-day direct deposit available
- Employee performance review tools and survey insights
Cons
- No free trial
- Limited support for international payroll
Best for affordability: Wave
Who's this for? Wave Payroll has limited capabilities, but it is the most affordable among the platforms we reviewed. It charges lower rates to businesses based in self-service states, where Wave doesn't automatically file payroll taxes. (You can still export the appropriate forms, making it easier to go through the filing process manually.)
Standout benefits: Wave currently offers a 30-day free trial for new users. Small business owners based in Canada can also use Wave's payroll services.
Benefits administration: None
Wave
Cost
Starter plan is free, Pro plan starts at $190 per year. Wave Advisors bookkeeping service starts at $199 per month.
Benefits administration
No
HR tools
No
Pros
- 30-day free trial
- Free Starter tier has robust offerings
- Unlimited free direct deposits
Cons
- Can't administer employee benefits
- Bookkeeping and payroll services not available nationwide
- Time tracking not included
Best free trial offer: SurePayroll
Who's this for? New users can test-drive either SurePayroll's no-tax-filing or full-service plans for free for up to six months.
Standout benefits: No-tax filing tier is only $19.99 plus $4 per employee. Higher tiers include filing and depositing local, state, or federal taxes and year-end filings.
Benefits administration: 401(k), health insurance and workers' compensation.
SurePayroll
Cost
$19.99 per month + $4 per employee (without tax filing); $29.99 per month + $5 per employee (full service); offers a 6-month free trial
Benefits Administration
401(k) plans, workers' compensation, health insurance
HR tools
Yes
Pros
- Lengthy 6-month free trial period
- Offers unlimited payroll runs
- Live assistance available
- Offers access to an HR advisor
Cons
- Benefits administration isn't as comprehensive as what's offered by some competitors
- The lowest pricing tier doesn't include tax services
Do I need a payroll service if I only plan to pay myself?
If you're a team of one, payroll software is probably unnecessary, especially if you're registered as a sole proprietorship or LLC.
If you're an LLC and trying to pay yourself, you can take an owner's draw by transferring funds from your business bank account to your personal bank account.
However, if you're registered as an S-Corp or C-Corp, you may be considered a W-2 employee. In that case, you need to pay yourself a salary with the appropriate payroll withholdings. A payroll service can help make this process smoother.
How do I offer benefits to my employees?
The first step is to decide what you want to offer your employees. Depending on where your business is registered and its size, you may also be legally required to offer certain benefits, like health insurance and paid time off (PTO).
Review your finances to ensure you can cover the cost — a bookkeeper or a fractional chief financial officer may be able to help.
Once you're ready, select the benefits provider you want. Many payroll services also administer benefits, allowing you to manage both through the same platform.
Your workers will need help enrolling and managing their benefits, so make sure the platform you select includes onboarding resources and employee access.
Payroll FAQs
What are payroll taxes?
Payroll taxes are levied on wages, salaries and tips to fund programs like Social Security and Medicare. The funds are withheld from employees' paychecks by their employer, who is responsible for sending them to the IRS and relevant state tax agencies.
What information do I need to add an employee to my payroll?
To add employees to payroll, you'll need their full legal name, address, Social Security number and date of birth, as well as a completed W-4 form and their specific pay rate.
What are the benefits of using payroll software?
Payroll can be a complex process, especially if you're managing employees in different states or countries. Small businesses may be able to manage payroll manually, but doing so can lead to mistakes or even penalties.
Payroll software can help business owners save time and reduce errors by automating tax calculations, deductions and payments. The right platform will protect sensitive employee and company data, allow workers to manage their withholdings and benefits and ensure compliance as regulations change.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every payroll service review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of small business products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best payroll services for small businesses.
Our methodology
CNBC Select analyzed over a dozen payroll services, looked at pricing, features, integrations, user reviews and ratings.
The software we've chosen received high marks for:
- Customization based on your company's needs and policies
- Easy-to-navigate user interfaces
- Helpful integrations with other business software
- Automation features that save time and limit errors
We also considered user experience, customer service, HR resources and features for full-time and contract employees.
All the payroll services we selected for this list offer benefits administration and HR tools, payment processing for contractors, and tiered packages tailored to business budgets and needs.
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