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Best Payroll Software in 2026: 12 Tools Compared by Company Size and Requirements

Updated October 24, 2026 · 12 tools · Facts checked against vendor pages · How we review

Gusto and OnPay are the most common starting points among payroll software for small US employers, since both publish prices and include tax filing. Patriot Payroll is the budget option, QuickBooks Payroll suits companies already in QuickBooks, and Paycom or Paylocity serve mid-size firms wanting HR in the same system.

This page helps owners and finance leads who need payroll software and want to know what fits their headcount before they call a single vendor. The tools are sorted by company size and requirements, from a three-person shop to a mid-size employer with several states on the books. Copy the requirement lists into a request on SaaSBid and compare the offers that come back, which is faster than chasing quote-only vendors one by one.

Top picks by situation

  • An 8-person firm with employees and contractors

    Gusto

    Tax filing across every jurisdiction is automatic on all plans, Simple opens at $49 with $6 per person on top, and a Contractor Only plan is available.

    From: $49/month plus $6 per person (Simple)

  • A small team paying staff in several states

    OnPay

    Staff can live in any number of states at no extra fee, and tax filings are included with one base price of $49 plus $6 per worker.

    From: $49/month + $6 per worker

  • A 4-person shop watching every dollar

    Patriot Payroll

    The Basic tier opens at $17 a month with $4 charged per worker, while Full Service takes over tax deposits and returns for all jurisdictions.

    From: $17/month + $4 per worker (Basic)

  • A business already keeping books in QuickBooks Online

    QuickBooks Payroll

    Payroll bundles with the accounting product, files taxes, and e-files unlimited 1099-NEC and 1099-MISC forms for contractors.

    From: $44/month + $6.50 per employee (Payroll + Simple Start, 50% promo…

  • A startup wanting benefits handled for it

    Justworks

    Co-employment gives access to bundled benefits at a flat monthly price per employee, and G2 users score support at 9.2 out of 10.

    From: $50/month base plus $8 per employee (Payroll plan)

  • A 200-person employer with an IT team

    Paycom

    Payroll, HR, time and talent share one database, tax filing is included, and SAML 2.0 is listed for security-minded IT staff.

    From: Contact sales

Payroll Software comparison table

Payroll Software compared
ToolBest forStarting priceFree planFree trialG2 rating
Paycor US employers with roughly 10 to 1,000 staff that want payroll and HR from one vendor Contact sales No No 3.9 (1,363 reviews)
TriNet Small and mid size employers wanting benefits and compliance outsourced Contact sales No No 4.2 (1,944 reviews)
ADP Run Small businesses wanting a large provider with tax filing and add-on HR/benefits Contact sales No Not stated 4.6 (5,122 reviews)
Gusto Small US businesses of 1 to a few dozen people wanting simple setup $49/month plus $6 per person (Simple) No No 4.6 (9,000 reviews)
Paylocity Mid-size US employers that want payroll, HR, time and benefits in one platform Contact sales No No 4.4 (6,080 reviews)
Paycom Mid-size US employers that want one database for payroll, HR, time and talent Contact sales No No 4.5 (6,244 reviews)
Justworks Small US companies that want a PEO with benefits and compliance handled for them $50/month base plus $8 per employee (Payroll plan) No No 4.6 (1,126 reviews)
Patriot Payroll Very small businesses watching cost $17/month + $4 per worker (Basic) No Yes 4.8 (603 reviews)
OnPay Small businesses and accounting-firm partners $49/month + $6 per worker No Not stated 4.8 (406 reviews)
Paychex Flex Mid-size employers wanting a full-service provider with HR and benefits options Contact sales No Not stated 4.1 (1,724 reviews)
Rippling Companies already running payroll and HR on Rippling that want app access tied to employee records $8 per employee per month plus monthly base fee No No 4.7 (1,116 reviews)
QuickBooks Payroll Businesses already on QuickBooks Online $44/month + $6.50 per employee (Payroll + Simple Start, 50% promo… No Not stated 4.4 (501 reviews)

What is payroll software?

Each pay period, payroll software determines the amount owed to every worker, subtracts withholding and benefit contributions, and releases the money to bank accounts or prints checks. Behind the scenes it sends tax payments to government agencies, submits quarterly returns, and prepares W-2 and 1099 statements in January. Owners, bookkeepers and HR staff share the work, with accounting software on one side and timesheets on the other. Done well, it replaces the manual rules lookup behind most penalties and late-deposit notices.

Core capabilities

  • Pay calculation and direct deposit

    Computes gross-to-net pay for each worker and sends funds on the pay date, including off-cycle and bonus runs.

  • Payroll tax filing

    Withholds taxes from each paycheck, deposits them with the right agencies on schedule, and prepares quarterly returns and annual forms.

  • Contractor payments

    Pays 1099 workers by direct deposit or check and produces their annual forms alongside employee filings.

  • Time tracking and leave

    Collects hours and time-off balances so that approved data flows into each paycheck without retyping.

  • Benefits deductions

    Applies health, retirement and other plan contributions to every paycheck so deductions and provider records match.

  • Accounting sync

    Sends payroll journal entries to the general ledger so the books reflect wages, taxes and liabilities.

The 12 best payroll software, reviewed

1

Paycor

Contact sales

Paycor is a human capital suite that covers payroll, HR, time and talent for US employers from about 10 to 1,000 people. Pricing is by quote only. Paychex took ownership in 2025, which matters for buyers who want a vendor with long-term independence.

  • 1-10: no data
  • 11-50: strong fit
  • 51-500: strong fit
  • 500+: no data

Best for

  • US employers with roughly 10 to 1,000 staff that want payroll and HR from one vendor
  • Teams that value a broad module list and will negotiate a quote

Look elsewhere if

  • Buyers who need public list prices to compare before talking to sales
  • Teams that need guaranteed vendor independence, since the owner changed in 2025

Key features

Pricing model
Quote only; per employee per month plus base fee reported by third parties; promo of about 50% off first 6 months reported
Target company size
Small to mid-size, plus upmarket push after Paychex deal
Tax filing and compliance
Included in payroll product ( not confirmed by the vendor in detail)
Time tracking and PTO
Time and attendance module

What users like

  • Easy navigation and good value for the price per G2 summaries
  • Broad module coverage in one suite

Common complaints

  • Missing features and access limitations
  • Payroll issues and difficult navigation; support rated 7.5/10 on G2

Full Paycor profileRequest an offer

2

TriNet

Contact sales

TriNet is a professional employer organization, so it becomes co-employer and takes over payroll, benefits and compliance work. Small and mid-size firms without an HR department use it. Fees are quoted per employee, and reviewers describe them as high.

  • 1-10: no data
  • 11-50: strong fit
  • 51-500: strong fit
  • 500+: no data

Best for

  • Small and mid size employers wanting benefits and compliance outsourced
  • Companies without an in house HR team

Look elsewhere if

  • Companies wanting software only without co-employment
  • Price sensitive teams (reviews cite high fees)

Key features

Pricing model
Quote based per employee per month
Target company size
Small to mid size business
Tax filing and compliance
Handled by TriNet as co-employer (PEO model)
Benefits administration
Benefits via PEO group plans, billed separately

What users like

  • Payroll processing reliable
  • Responsive account support for some

Common complaints

  • High fees
  • Customer support and interface criticism

Full TriNet profileRequest an offer

3

ADP Run

Contact sales

ADP Run is the small-business payroll product from a very large provider, offered in four tiers by quote. Benefits, retirement and workers' compensation come as add-ons. Weekly pay runs raise the cost, and reviewers rate benefits management lower than payroll entry.

  • 1-10: poor fit
  • 11-50: strong fit
  • 51-500: no data
  • 500+: no data

Best for

  • Small businesses wanting a large provider with tax filing and add-on HR/benefits
  • Employers who want guided support and tiered service

Look elsewhere if

  • Buyers who need published prices
  • Very small teams sensitive to add-on and weekly-run cost

Key features

Pricing model
Quote; base plus per employee, higher cost with weekly runs
Target company size
Small businesses
Tax filing and compliance
Tax filing in all tiers per vendor positioning; details not confirmed by the vendor
Benefits administration
Benefits, retirement, health insurance, workers comp as add-ons

What users like

  • Payroll entry and direct deposit tools score high
  • Automatic tax-rule updates

Common complaints

  • Wait times for support in some comparisons
  • Benefits management scores lower

Full ADP Run profileRequest an offer

4

Gusto

$49/month plus $6 per person (Simple)

Pricing at Gusto means a monthly base fee and a charge for each person, and every plan files payroll taxes automatically. Simple handles a single state, while Plus and Premium cover several. On G2 its usability scores 9.5 out of 10, and small firms make up most of its users.

  • 1-10: strong fit
  • 11-50: strong fit
  • 51-500: no data
  • 500+: poor fit

Best for

  • Small US businesses of 1 to a few dozen people wanting simple setup
  • Companies that pay a mix of W-2 employees and 1099 contractors

Look elsewhere if

  • Large enterprises needing SCIM or deep identity controls
  • Companies that need global payroll

Key features

Pricing model
Base fee plus per-person fee per plan
Target company size
Small businesses (about 84% of G2 reviews)
Tax filing and compliance
Automatic federal, state and local filing on all plans
Multi-state payroll
Plus and Premium; Simple is single-state
Time tracking and PTO
Plus adds time tracking and PTO
Contractor and 1099 payments
Contractor Only plan $35 + $6 per contractor

What users like

  • Ease of use (9.5 of 10 on G2)
  • Quick setup and onboarding

Common complaints

  • Support rated slightly behind some competitors

Full Gusto profileRequest an offer

5

Paylocity

Contact sales

Paylocity is a cloud suite with payroll, HR, time, benefits and talent modules for mid-size US employers. Prices come by quote, per employee plus modules. Many integrations work with Okta SSO, and slow or inconsistent support is a leading complaint on G2.

  • 1-10: poor fit
  • 11-50: poor fit
  • 51-500: strong fit
  • 500+: no data

Best for

  • Mid-size US employers that want payroll, HR, time and benefits in one platform
  • Teams that want a large pool of Okta/SSO-ready integrations

Look elsewhere if

  • Small teams that need transparent per-employee pricing
  • Buyers who need responsive support, a top G2 complaint theme

Key features

Pricing model
Quote only; per employee per month plus modules
Target company size
Mid-size (about 44,400 clients FY2026)
Time tracking and PTO
Time and labor module
Benefits administration
Benefits administration module

What users like

  • Ease of use and modules that work together
  • Wide feature coverage for the price tier

Common complaints

  • Slow or inconsistent support (245 G2 reviews flag it)
  • Time-consuming workflows and unintuitive navigation; limited customization

Full Paylocity profileRequest an offer

6

Paycom

Contact sales

Paycom keeps payroll, HR, time and talent in a single database and serves mid-market US employers. Fees are quoted and include a charge per payroll run. Tax filing is included. Reviewers like its ease of use, and some say implementation is difficult.

  • 1-10: poor fit
  • 11-50: poor fit
  • 51-500: strong fit
  • 500+: no data

Best for

  • Mid-size US employers that want one database for payroll, HR, time and talent
  • IT teams that need SAML 2.0 and strong security attestations

Look elsewhere if

  • Small teams that want public prices
  • Buyers who dislike per-payroll-run fee structures

Key features

Pricing model
Quote only; per payroll plus per employee fees
Target company size
Mid-market; about 39,200 clients per 10-K summary
Tax filing and compliance
Included
Time tracking and PTO
Included
Benefits administration
Benefits module

What users like

  • Ease of use and one-database design
  • Support praised in G2 summaries

Common complaints

  • Implementation can be challenging for specific workflows
  • No transparent pricing

Full Paycom profileRequest an offer

7

Justworks

$50/month base plus $8 per employee (Payroll plan)

Justworks is a PEO for small US companies, rolling benefits, HR and compliance into payroll, although a payroll-only plan also exists with a $50 base and $8 for each employee. Reviewers mention a limited mobile app and a short list of insurance options.

  • 1-10: strong fit
  • 11-50: strong fit
  • 51-500: no data
  • 500+: no data

Best for

  • Small US companies that want a PEO with benefits and compliance handled for them
  • Startups needing a single per-employee price

Look elsewhere if

  • Companies that want to keep their own benefits broker and plans
  • Teams outside the US

Key features

Pricing model
Flat per employee per month; Payroll plan has $50 base fee
Target company size
Small business
Time tracking and PTO
Time Tracking add-on
Benefits administration
Benefits included via PEO co-employment
Contractor and 1099 payments
$8 per active contractor per month on Payroll plan

What users like

  • Ease of use and clean design
  • Support (G2 support sub-score 9.2/10)

Common complaints

  • Mobile app lacks features
  • Limited insurance plan options

Full Justworks profileRequest an offer

8

Patriot Payroll

$17/month + $4 per worker (Basic)

Patriot Payroll targets very small employers with a low-cost Basic tier and a Full Service tier that files taxes for you. Contractors count as workers, at $4 each when paid. Reviewers mention manual QuickBooks entry and occasional direct deposit delays.

  • 1-10: strong fit
  • 11-50: strong fit
  • 51-500: workable
  • 500+: poor fit

Best for

  • Very small businesses watching cost
  • Employers who want Full Service tax filing at a low base fee

Look elsewhere if

  • Teams wanting seamless QuickBooks sync (reviewers report manual entry)
  • Larger or complex multi-state employers

Key features

Pricing model
Base plus per worker, contractors count
Target company size
Up to 500 employees (press kit)
Tax filing and compliance
Full Service handles federal, state and local deposits and filings
Accounting integrations
Patriot Accounting; QuickBooks integration reported as manual
Time tracking and PTO
Time & Attendance add-on
Benefits administration
Free 401(k) and workers' comp integrations (Wise review)
Contractor and 1099 payments
1099 contractors paid by direct deposit or check; $4 per contractor paid

What users like

  • Easy use and strong support
  • Simple setup

Common complaints

  • Manual data entry and limited QuickBooks options
  • Direct deposit delays

Full Patriot Payroll profileRequest an offer

9

OnPay

$49/month + $6 per worker

OnPay sells one plan with unlimited pay runs and federal, state and local tax filing included. Workers can be paid in any number of states without extra charges. Health, workers' comp and 401(k) are add-ons, and third-party integrations are limited.

  • 1-10: strong fit
  • 11-50: strong fit
  • 51-500: poor fit
  • 500+: poor fit

Best for

  • Small businesses and accounting-firm partners
  • Multi-state small teams needing included filings

Look elsewhere if

  • Teams needing deep third-party integrations
  • Larger employers

Key features

Pricing model
Base plus per worker
Target company size
Small business (97.7% of G2 reviews)
Tax filing and compliance
Federal, state and local filings included
Multi-state payroll
Pay workers in any number of states, no extra fee
Accounting integrations
not confirmed by the vendor
Time tracking and PTO
Time tracking add-on $15 + $4 per worker
Benefits administration
Health, workers comp and 401(k) as add-ons, pay only premiums
Contractor and 1099 payments
1099 forms included; contractor pricing not listed

What users like

  • Responsive support
  • Handles taxes and forms
  • Straightforward setup

Common complaints

  • Limited third-party integrations (TechRepublic)
  • No built-in time tracking in base (Merchant Maverick, older)

Full OnPay profileRequest an offer

10

Paychex Flex

Contact sales

Paychex Flex is a tiered payroll and HR platform priced by quote, with a base fee plus a charge per employee. It covers small firms up to enterprises. Reviewers praise accurate processing and complain about slow support, surprise price increases and renewal haggling.

  • 1-10: no data
  • 11-50: strong fit
  • 51-500: strong fit
  • 500+: workable

Best for

  • Mid-size employers wanting a full-service provider with HR and benefits options
  • Teams that accept negotiated quotes

Look elsewhere if

  • Buyers wanting transparent pricing
  • Teams worried about annual-contract exit fees

Key features

Pricing model
Quote; base plus per employee
Target company size
Small to enterprise
Accounting integrations
QuickBooks sync may cost extra on lower tiers (third-party)

What users like

  • Easy to use and accurate payroll processing

Common complaints

  • Slow customer support response
  • Unexpected price increases and hard discount renewals

Full Paychex Flex profileRequest an offer

11

Rippling

$8 per employee per month plus monthly base fee

Rippling bundles HR, payroll, IT and spend management as separate modules billed per employee, from $8 monthly plus a base fee. Payroll customers can link app access and offboarding to the employee record. Reviewers warn that initial setup can be complex.

  • 1-10: no data
  • 11-50: strong fit
  • 51-500: strong fit
  • 500+: strong fit

Best for

  • Companies already running payroll and HR on Rippling that want app access tied to employee records
  • Teams wanting automatic account provisioning and offboarding

Look elsewhere if

  • Teams needing discovery of unmanaged or shadow SaaS
  • Buyers who want standalone SaaS spend or license optimization

Key features

Pricing model
Per employee per month, modular, custom quote
Time tracking and PTO
Time & Attendance and Scheduling listed as products
Benefits administration
Benefits Administration and PEO listed as products
Contractor and 1099 payments
Contractors, Contractor of Record, Global Contractors listed as products

What users like

  • Intuitive; apps ready on day one for new hires
  • Offboarding automatically revokes app access

Common complaints

  • Initial setup can be complex

Full Rippling profileRequest an offer

12

QuickBooks Payroll

$44/month + $6.50 per employee (Payroll + Simple Start, 50% promo…

Note: Now marketed as QuickBooks Workforce

Intuit sells QuickBooks Payroll in bundles with its accounting software. Plans combine a base fee with a charge per employee, and tax filing plus 1099 e-filing come included. Reviewers like the tight QuickBooks Online link and criticize support and basic reports.

  • 1-10: strong fit
  • 11-50: strong fit
  • 51-500: no data
  • 500+: no data

Best for

  • Businesses already on QuickBooks Online
  • Employers wanting payroll bundled with bookkeeping

Look elsewhere if

  • Teams that need Elite pricing in public
  • Buyers wanting benefits admin included

Key features

Pricing model
Base plus per employee, bundled with accounting
Target company size
Small businesses
Tax filing and compliance
Full-service payroll calculates, files and pays payroll taxes
Accounting integrations
Native QuickBooks bookkeeping bundle
Time tracking and PTO
Scheduling in all bundles; time tracking with Premium and Elite
Benefits administration
Access to Allstate health, Vestwell 401(k), Next workers' comp, Mineral HR advisor; limited availability, extra fees
Contractor and 1099 payments
1099-NEC and 1099-MISC e-filing for unlimited forms, contractor management

What users like

  • Tight QuickBooks Online integration
  • Easy setup

Common complaints

  • Poor support reported
  • Basic payroll reports

Full QuickBooks Payroll profileRequest an offer

How to choose payroll software

Pricing model

Payroll is usually billed as a base fee plus a charge per person, sometimes with extra fees per pay run or for add-ons like time tracking. Strong models publish the numbers and show what each plan includes. Weak ones depend on a sales quote and hide the cost of filing, weekly runs or contractors.

Target company size

Products are built for different payroll sizes, from owner-only businesses to employers with 1,000 staff. A fit at the right size means the plan, support and features match your needs without clutter. A mismatch leaves tiny firms paying for HR suites they ignore, or growing firms outgrowing basic tools.

Tax filing and compliance

This is the central job of payroll software: calculating withholding, depositing it and filing returns on time. Strong tools do federal, state and local filing automatically on every plan and stand behind errors. Weak ones file only some jurisdictions or charge extra for each type.

Multi-state payroll

Staff who live in different states trigger separate registrations, withholding rules and unemployment accounts. Strong tools let you add states without extra fees or plan upgrades and keep the filings organized by state. Weak tools restrict you to one state on entry plans.

Accounting integrations

Integrations carry payroll totals into the general ledger so the books reflect wages and tax liabilities. Strong tools offer native, automatic links to the major accounting packages. Weak ones leave you with manual journal entries or reports to upload.

Time tracking and PTO

What people earn depends on hours worked and leave taken. Strong tools gather time and approvals in the same system, so approved hours land in the paycheck automatically. Weak ones make you buy timesheets separately or rely on an outside app.

Benefits administration

Benefits administration covers health insurance, retirement plans and other deductions, plus how they reach providers. Strong tools handle enrollment and apply deductions automatically, or bundle plans through a PEO. Weak ones limit you to a few carriers or bill separately for each connection.

Contractor and 1099 payments

Many small firms pay freelancers and employees together. Strong tools pay contractors by direct deposit, produce their annual 1099 forms and price them clearly. Weak tools exclude contractors from the base plan or make the per-contractor fee hard to find.

The SaaSBid view

Which payroll tool fits your company size

Fit of each tool by company size
Tool1-10 people11-50 people51-500 people500+ people
PaycorNo dataStrong fitStrong fitNo data
TriNetNo dataStrong fitStrong fitNo data
ADP RunPoor fitStrong fitNo dataNo data
GustoStrong fitStrong fitNo dataPoor fit
PaylocityPoor fitPoor fitStrong fitNo data
PaycomPoor fitPoor fitStrong fitNo data
JustworksStrong fitStrong fitNo dataNo data
Patriot PayrollStrong fitStrong fitWorkablePoor fit
OnPayStrong fitStrong fitPoor fitPoor fit
Paychex FlexNo dataStrong fitStrong fitWorkable
RipplingNo dataStrong fitStrong fitStrong fit
QuickBooks PayrollStrong fitStrong fitNo dataNo data

Strong fitWorkablePoor fitNo data from the vendor

Ratings reflect each vendor's stated audience, any published employee ceiling, whether pricing suits tiny payrolls, and signals such as SSO or SCIM support for larger organizations. Cells stay empty where the vendor says nothing about a size.

  • 1-10 people

    Published pricing and quick setup matter most. Gusto, OnPay, Patriot Payroll, QuickBooks Payroll and Justworks all list small businesses as their audience. Patriot has the lowest starting fee, while Gusto offers a Contractor Only plan for businesses without staff.

  • 11-50 people

    Multi-state staff, benefits and time tracking begin to matter. Gusto Plus, OnPay, Justworks, Paycor, TriNet and ADP Run all fit here. Ask which plan adds time tracking, since it is often an extra charge.

  • 51-500 people

    Payroll usually joins HR, time and benefits in one platform. Paylocity, Paycom, Paycor, Paychex Flex, TriNet and Rippling target this range, mostly by quote. Compare support quality, since it is a repeated complaint about the larger vendors.

  • 500+ people

    Few listed products are built mainly for this size. Rippling and Paychex Flex describe coverage up to enterprise, and Paycor is pushing upmarket after its acquisition. Ask each vendor about identity controls and multi-entity support.

Feature coverage at a glance

Documented features by tool
ToolTax filing and complianceMulti-state payrollAccounting integrationsTime tracking and PTOBenefits administrationContractor and 1099 paymentsShare
PaycorDocumented: Included in payroll product ( not confirmed by the vendor in detail)Not documentedNot documentedDocumented: Time and attendance moduleNot documentedNot documented33%
TriNetDocumented: Handled by TriNet as co-employer (PEO model)Not documentedNot documentedNot documentedDocumented: Benefits via PEO group plans, billed separatelyNot documented33%
ADP RunDocumented: Tax filing in all tiers per vendor positioning; details not confirmed by the vendorNot documentedNot documentedNot documentedDocumented: Benefits, retirement, health insurance, workers comp as add-onsNot documented33%
GustoDocumented: Automatic federal, state and local filing on all plansDocumented: Plus and Premium; Simple is single-stateNot documentedDocumented: Plus adds time tracking and PTONot documentedDocumented: Contractor Only plan $35 + $6 per contractor67%
PaylocityNot documentedNot documentedNot documentedDocumented: Time and labor moduleDocumented: Benefits administration moduleNot documented33%
PaycomDocumented: IncludedNot documentedNot documentedDocumented: IncludedDocumented: Benefits moduleNot documented50%
JustworksNot documentedNot documentedNot documentedDocumented: Time Tracking add-onDocumented: Benefits included via PEO co-employmentDocumented: $8 per active contractor per month on Payroll plan50%
Patriot PayrollDocumented: Full Service handles federal, state and local deposits and filingsNot documentedDocumented: Patriot Accounting; QuickBooks integration reported as manualDocumented: Time & Attendance add-onDocumented: Free 401(k) and workers' comp integrations (Wise review)Documented: 1099 contractors paid by direct deposit or check; $4 per contractor paid83%
OnPayDocumented: Federal, state and local filings includedDocumented: Pay workers in any number of states, no extra feeDocumented: not confirmed by the vendorDocumented: Time tracking add-on $15 + $4 per workerDocumented: Health, workers comp and 401(k) as add-ons, pay only premiumsDocumented: 1099 forms included; contractor pricing not listed100%
Paychex FlexNot documentedNot documentedDocumented: QuickBooks sync may cost extra on lower tiers (third-party)Not documentedNot documentedNot documented17%
RipplingNot documentedNot documentedNot documentedDocumented: Time & Attendance and Scheduling listed as productsDocumented: Benefits Administration and PEO listed as productsDocumented: Contractors, Contractor of Record, Global Contractors listed as products50%
QuickBooks PayrollDocumented: Full-service payroll calculates, files and pays payroll taxesNot documentedDocumented: Native QuickBooks bookkeeping bundleDocumented: Scheduling in all bundles; time tracking with Premium and EliteDocumented: Access to Allstate health, Vestwell 401(k), Next workers' comp, Mineral HR advisor; limited availability, extra feesDocumented: 1099-NEC and 1099-MISC e-filing for unlimited forms, contractor management83%

A check means the vendor documents the capability publicly (hover for the detail). A dash means we found no public documentation, which is a question to put in your request, not proof the feature is missing.

Payroll Software requirements checklist

Use this list to write down what your team actually needs. Sorting requirements into must-have, should-have and nice-to-have is what lets vendors quote accurately instead of pitching their biggest plan.

Must have

  • Automatic filing of federal, state and local payroll taxesCompliance is the main purpose of the purchase, and some plans leave out particular jurisdictions.
  • Direct deposit on a schedule we choose, including off-cycle runsWeekly runs and extra runs are charged separately by some vendors.
  • Year-end tax statements for employees and contractors, prepared and filed for usForm filing is sometimes bundled and sometimes billed per form.
  • Support for every state where our staff liveMulti-state payroll is restricted to higher plans at some vendors.
  • Payment of contractors alongside employeesContractor fees are counted per head and change the monthly total.

Should have

  • Journal entries that post to our accounting systemA native sync avoids retyping, while manual entry costs bookkeeping hours.
  • Time tracking and paid-time-off balances feeding each paycheckIt is sold as a module or add-on at many vendors.
  • Health and retirement deductions applied automaticallyBenefits connections differ between vendors and often carry separate fees.
  • Penalty protection if a tax filing goes wrongTerms differ on who pays when an error occurs.

Nice to have

  • Employee self-service app for pay stubs and tax formsIt cuts routine questions to the payroll admin.
  • Single sign-on through Okta or a similar providerMid-size firms with IT policies require it, and it may sit in a higher tier.
  • HR tools such as onboarding and an employee handbookCombining them reduces the number of vendors but raises the per-employee fee.

Turn this checklist into a request

Questions vendors will ask you

Have answers ready for these, and your first conversation with a vendor starts at pricing instead of discovery.

  1. How many employees and how many contractors do you pay each cycle?Most vendors charge per head, and contractors may be counted at a different rate.
  2. In which states do your people work?State registrations and tax rules determine which plan can cover you.
  3. How often do you run payroll?Weekly or off-cycle runs raise costs at vendors that bill per run.
  4. Which accounting and time tracking tools must connect to payroll?Some integrations are native and others cost extra or need manual uploads.
  5. Would you rather buy software alone, or a PEO that shoulders benefits and compliance?Co-employment changes contracts, pricing and who controls benefit plans.
  6. When is your first live payroll, and are you moving from another provider?A mid-year switch needs year-to-date balances imported, which affects the setup timeline.

Example request

What a strong payroll software request looks like
We are a 22-person design agency based in Texas with remote staff in two other states and five regular freelancers. Payroll currently runs on spreadsheets and our bookkeeper files the returns, which is slow and risky. We need automatic federal, state and local tax filing, direct deposit every two weeks, 1099 handling for freelancers, and a sync with Xero. Employees should view pay stubs in an app. We offer a 401(k) and want those deductions applied automatically. We aim to switch at the start of next quarter and expect a monthly budget in the mid three figures.

Write your own request

Payroll Software FAQ

What is payroll software?

Payroll software calculates what each worker earns, deducts taxes and other items, then pays out through direct deposit or check. It files payroll taxes and creates year-end forms too. Many products also include time tracking, benefits and basic HR tools.

Which payroll software is best for a small business?

It depends on your situation. Gusto and OnPay publish prices and include tax filing, Patriot Payroll costs the least to start, and QuickBooks Payroll works best for firms already in QuickBooks. Justworks suits those wanting benefits handled through a PEO.

Is there free payroll software?

None of the tools listed here has a free plan. Patriot Payroll has a free trial and a low monthly fee, and published starting prices run from $17 to $50 per month plus a fee per worker. Free spreadsheets leave tax filing to you.

What features should payroll software have?

At minimum, automatic tax filing, direct deposit, year-end forms and support for every state where you employ people. After that, check contractor payments, an accounting integration, time tracking and benefit deductions, since these decide how much manual work remains.

Should I choose full-service payroll or a DIY tool?

A full-service product does the calculating, depositing and filing of payroll taxes on your behalf, which fits most employers. With a DIY setup your bookkeeper handles the filings and you carry the penalty risk. A PEO goes further by taking on benefits and compliance, as TriNet and Justworks do.

What should I put in a payroll software request for offers?

State your headcount, contractor count, states, pay frequency, accounting software, benefit plans and start date. Add a budget range in words. Vendors can then quote the right plan and any add-ons without guesswork.

The bottom line

Start with headcount and the states where your people work, then remove vendors that file only some jurisdictions or hide contractor fees. Three or four candidates usually remain. A clear request on SaaSBid tells vendors your pay frequency, integrations and benefits needs, so each offer states the same scope and you can compare the true monthly total instead of a headline base fee.

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