With so many options out there, we know how overwhelming it can be to choose the right payroll software. That’s why we put together this simple comparison table. You can easily see what each platform offers and find the one that fits your needs best. Compare the popular payroll software options side by side to quickly see their key features, benefits, and ratings.
| Rank | Payroll platform | Overall Score (1-100) | Popularity (1-100) | USER RATINGS | EDITORIAL REVIEWS | FEATURES | ||||||||||||||||
| G2 user rating | G2 number of reviews | Capterra user rating | Capterra number of reviews | Reddit sentiment score | NerdWallet | Business.com | Forbes Advisor | TechRadar | PCMag | Business News Daily | W2 filing | 1099 filing | Direct deposit | Tax services | HR tools included | Time tracking | Workflow automations | Automated payroll | ||||
| 1 | Gusto | 97.5 | 99.8 | 4.7 | 5027 | 4.7 | 4137 | 9.7 | 5.0 | 9.2 | 4.5 | 4.5 | 4.5 | 9.2 | yes | yes | yes | yes | yes | yes | yes | yes |
| 2 | ADP | 92.3 | 99.1 | 4.5 | 1810 | 4.5 | 800 | 9.6 | 4.5 | 9.2 | 4.2 | 4.5 | yes | yes | yes | yes | yes | yes | yes | yes | ||
| 3 | Quickbooks | 90.5 | 89.1 | 4.3 | 1727 | 4.4 | 937 | 9.3 | 5.0 | 9.4 | 4.2 | 4.5 | 4.0 | 9.4 | yes | yes | yes | yes | no | |||
| 4 | OnPay | 90.3 | 92.2 | 4.7 | 385 | 4.7 | 444 | 9.2 | 4.5 | 9.3 | 4.5 | 9.5 | yes | yes | yes | yes | no | yes | yes | |||
| 5 | Patriot | 86.0 | 85.2 | 4.7 | 555 | 4.7 | 3579 | 8.5 | 4.0 | 8.9 | 4.0 | 4.0 | 8.8 | yes | yes | yes | no | yes | yes | no | no | |
| 6 | Paycor | 75.8 | 87.4 | 3.9 | 1115 | 4.4 | 3007 | 8.5 | 8.9 | 4.0 | 9.0 | yes | yes | yes | ||||||||
| 7 | Paychex | 72.1 | 91.2 | 4.2 | 1597 | 4.2 | 1745 | 9.4 | 4.0 | yes | yes | yes | yes | yes | yes | yes | yes | |||||
| 8 | Remote | 71.2 | 79.7 | 4.6 | 3960 | 4.4 | 92 | 8.1 | 4.6 | 4.0 | yes | yes | yes | no | no | |||||||
| 9 | Square | 69.3 | 52.6 | 4.2 | 31 | 4.7 | 617 | 9.0 | 8.7 | 4.2 | 3.0 | 9.5 | no | no | no | no | no | yes | no | yes | ||
| 10 | Paylocity | 67.5 | 84.5 | 4.4 | 2821 | 4.3 | 976 | 8.0 | yes | yes | yes | |||||||||||
| 11 | SurePayroll | 66.0 | 81.2 | 4.4 | 528 | 4.1 | 302 | 9.0 | yes | yes | yes | no | yes | |||||||||
| 12 | Wave | 65.2 | 50.6 | 4.3 | 300 | 4.4 | 1698 | 7.9 | 4.1 | yes | yes | yes | no | no | yes | no | yes | |||||
You can access the same table in a spreadsheet if you find that easier:
Why Payroll Software Matters
Managing payroll is one of those tasks that every business has to do, but few actually enjoy. Between calculating wages, keeping track of hours, handling taxes, and making sure employees are paid correctly, it can quickly turn into a stressful and time-consuming process. Even small mistakes can lead to frustrated employees or fines from tax authorities, and that’s probably something you don’t want to deal with.
Payroll software helps take that stress off your plate by automating the repetitive and error-prone parts of the job. It ensures employees are paid on time, deductions are handled correctly, and tax filings are accurate. Most tools also keep up with changing regulations, so you don’t have to constantly worry about compliance. In short, it saves you time, reduces errors, and helps you avoid costly penalties.
Beyond the basics, good payroll software can also make your business run more smoothly. Many platforms come with extra features like direct deposits, employee self-service portals, and integrations with accounting or HR tools. That means less back-and-forth, more transparency for your team, and more time for you to focus on actually running and growing your business instead of being buried in paperwork.
Essential Features to Look For
Not all payroll software is created equal, so it helps to know what really matters before choosing a platform. At the very least, you’ll want something that can handle employee payments, tax calculations, and basic reporting. Direct deposit, automated tax filing, and employee self-service portals are now common features that save time and reduce back-and-forth questions.
Beyond the basics, think about what will make your day-to-day easier. If your business tracks hours, look for built-in time tracking or integrations with your existing tools. If you’re managing contractors and employees together, make sure the software supports both. And if you’re planning to grow, consider whether the platform can scale smoothly with more employees, different pay schedules, or even international payroll down the road.
Common Mistakes to Avoid
When shopping for payroll software, it’s easy to focus on the wrong things. A common mistake is choosing the cheapest option without checking whether it covers compliance or tax filings, which could end up costing you more in the long run. Another pitfall is underestimating support. If payroll goes wrong, you’ll want responsive help to fix issues quickly.
It’s also worth remembering that switching payroll systems can be a hassle. Picking a tool that won’t scale with your business might mean you’ll need to migrate everything a year or two down the line. To avoid that, think ahead: consider where your business will be in a few years, not just where it is today.
Payroll and Compliance
Payroll isn’t just about cutting checks. It’s tightly connected to labor laws and tax regulations. Missing deadlines, filing the wrong amounts, or forgetting about new rules can lead to fines and penalties. Good payroll software keeps up with those changes automatically, so you don’t have to be a compliance expert to stay on the right side of the law.
For small businesses especially, this peace of mind is invaluable. Instead of spending hours researching requirements or double-checking forms, you can rely on your software to handle it in the background. That leaves you with more time to focus on your team and your customers.
Scaling With Your Business
The payroll needs of a five-person startup look very different from those of a company with 50 or 500 employees. What feels simple now can quickly become overwhelming as your team grows. That’s why it’s important to think long term when choosing payroll software.
Good payroll platforms grow with you. They can handle multiple pay schedules, new benefit types, or even expanding into different states with varying tax laws. By starting with software that can scale, you save yourself the pain of switching systems later, which can be costly and disruptive once your payroll gets more complex.
Integrations With Other Tools
Payroll doesn’t happen in a vacuum. It connects to accounting, HR, benefits, and even time-tracking tools. Manually moving data between systems takes time and opens the door to mistakes. That’s why integrations are such a big deal when evaluating payroll software.
If your payroll tool works seamlessly with the software you already use everything runs more smoothly. Employees can update their own info, hours sync automatically, and reports stay consistent across platforms. It’s less manual work for you and fewer headaches when something needs to be updated or reconciled.
Security and Data Protection
Payroll data is sensitive, as it contains salaries, bank details, tax information, and more. Keeping that data safe isn’t optional, it’s essential. That’s why strong security features should be a top priority when choosing payroll software. Look for things like encryption, secure logins, and regular system updates.
It’s also worth checking how the provider stores and backs up your data. The best platforms not only protect against hackers but also make sure your information is safe in case of technical issues. Knowing that your payroll system takes data protection seriously gives both you and your employees peace of mind.
Getting Started With Payroll Software
Making the switch to payroll software might sound intimidating, but most platforms are designed to guide you through the setup step by step. Typically, you’ll start by entering company information, employee details, and banking info. From there, the software helps you configure pay schedules, tax settings, and direct deposits. Many providers even offer onboarding support to walk you through the process.
For the smoothest start, gather your payroll records ahead of time. We’re talking about things like employee forms, previous pay stubs, and tax IDs. Once you’ve set everything up, you’ll usually run a test payroll to make sure numbers line up. After that, you can let the software take over the heavy lifting and focus on running your business instead of crunching payroll numbers.
Payroll Software FAQ
Is payroll software worth it for small businesses?
Yes, even if you only have a few employees. Payroll software saves time, reduces errors, and helps you stay compliant with tax regulations.
Do I still need an accountant if I use payroll software?
Payroll software automates a lot of the process, but an accountant can still be valuable for broader financial planning and complex tax situations.
How much does payroll software usually cost?
Most providers charge a base monthly fee plus a per-employee fee. Prices vary, but it’s worth considering the time and potential penalties it saves you.
Can payroll software handle contractors as well as employees?
Many platforms do let you pay contractors, generate 1099 forms, and keep everything organized in one place.