8 best payroll software options for small businesses in 2025

Who doesn’t love payday? Overstretched HR professionals, that’s who.

Payroll processing can be a huge admin burden for small businesses with limited internal resources. However, with the right software and support, your team can transform payroll cycles into a streamlined system that unlocks new value in your people strategy.

But how do you choose a service provider, and what’s the best payroll software for your small business? We’ve broken down the facts below, with top tips on what to look out for and a list of eight top-ranking payroll solutions.

For each tool, we’ve outlined:

Main features that support payroll processes
Pros and cons, based on customer reviews
“Best for” summaries to help you choose the best solution for your needs
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*The information below is based on our research in September and October 2024. All user feedback referenced in the text has been sourced from independent software review platforms (like G2 and Capterra) in September and October 2024.

This article is for informational purposes only and doesn’t offer legal, tax, or financial advice. While we’ve done our best to ensure accuracy and completeness, we can’t guarantee everything is up-to-date or error-free. For tailored advice, we recommend consulting a qualified lawyer or tax advisor.

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Companies

Pricing

Language options

Customer rating

Leapsome

Leapsome’s modular pricing starts at US$8 per user per month

32 languages

4.7

ADP RUN

ADP RUN Payroll software

ADP RUN starts at US$79 per month, plus US$4 per user per month

4 — English, Spanish, French, and Portuguese

4.5

Gusto

Gusto payroll software

Gusto’s pricing starts at US$40 per month, plus US$6 per user per month

1 — English only

4.6

Homebase

Homebase payroll software

Homebase’s payroll integration can be added to any plan for US$39 per month, plus US$6/user per month

1 — English only

4.6

Paychex Flex

Paychex payroll software

Paychex Flex’s pricing information isn’t readily available

2 — English and Spanish

4.2

Paycor

Paycor payroll software

Paycor’s pricing information isn’t readily available

1 — English only

4.4

Rippling

Rippling payroll software

Rippling plans start at US$8 per month. Its payroll software can be added for a custom fee

1 — English only

4.9

Wave

Wave payroll automation

Wave payroll is US$20 or US$40 per month, depending on where you’re based (plus US$6 per active employee and US$6 per active independent contractor)

1 — English only

4.4

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Ally.io employee management

Pricing not readily available

1

4.6

What to consider when choosing the best payroll software for your small business

Plenty of HR tools promise to help your people team optimize complicated payroll processes. However, while features might look similar across the board, there’s a lot of variation between payroll tools.

Flashy features are all well and good, but if you want to get the most out of your payroll technology, make sure that your chosen provider can tick all of these boxes:

User-friendly interface — If the tool isn’t easy to use, no one will use it. For successful company-wide adoption, choose software that’s people-centered and offers a great user experience.

Cost-effective and scalable — Look for a flexible platform that offers a comprehensive suite of tools you can choose from as your business grows, so you’re never paying for features you don’t want or need. And don’t be fooled by inexpensive introductory plans: some can quickly become costly due to additional fees for more users and features.

Reliable customer service — If you’re dealing with a payroll issue, you need to know there’s someone readily available to help you find a timely solution.

Seamless system integration — Spreading payroll tasks across multiple platforms can get messy. Instead, use software that works with your existing people management systems to help unify your HR processes and build a single source of truth.

For example, Leapsome’s new human resources information system (HRIS) solution likely ticks most things off on your HRIS requirements checklist. It’s designed to consolidate employee enablement and HR tools into a single platform — ideal for small and mid-sized businesses (SMBs) that want to take care of HR responsibilities, payroll tasks, and engagement initiatives in one place.
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💡 Looking for the perfect HRIS for your small business?

‍Check out our guide on choosing HRIS software, with an up-to-date list of top solutions for small businesses.

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1. Leapsome

Leapsome's payroll management interface, with tabs for "Personal info," "Salary," and "Absences." A table lists employees' names, birthdays, start dates, and addresses, with some fields blank. Buttons for "Approve," date navigation, and "Edit policy" are at the top.

Leapsome is the #1-rated HR platform for people enablement, complete with a wide array of scalable and intelligent tools designed for ambitious, growing businesses.

Our key products include:

Our comprehensive platform consolidates tech stacks and automates core HR processes and responsibilities — enhancing employee performance, streamlining people management, and ensuring smooth internal operations.

Leapsome’s new HRIS takes these capabilities to the next level. Our data-driven, people-centered solution connects every stage of the employee lifecycle to provide deeper, holistic performance insights and enable you to take consistent, meaningful action. What’s more, it has integrated features to streamline preliminary payroll tasks — freeing up your HR team’s time to focus on fostering a meaningful workplace.

Our payroll tool can help your small business with payroll preparation, enable you to launch payroll cycles automatically, and allow you to prepare and distribute crucial documentation like payslips. We’re continuously developing our tools to expand features.
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Main features

Payroll support: Purpose-built tools to simplify complex, time-consuming payroll management processes. The platform enables admins to define and assign payroll policies, automate payroll cycles, bulk-upload payslips, and export data in customizable formats that integrate seamlessly with your existing payroll systems.

Core HR tasks: Centralizes and streamlines essential HR functions like employee data management, organizational management, document management, and compliance tracking.

Reporting and analytics: A robust framework for generating and customizing reports with AI-powered capabilities that can deliver data-driven insights across the entire employee life cycle.

Time tracking and absence management: Admins can efficiently create, assign, and manage absence policies in line with proration rules, carry-over entitlements, and tenure-based adjustments. HR teams can use this tool to automate balance calculations, standardize approval processes, and accommodate new hires or policy changes without manual recalculations.

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Best for

Leapsome’s HRIS tool is ideal for SMBs and startups looking for a people-first HR platform with a suite of tools for payroll, core HR tasks, absence management, people enablement, and beyond.
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Pros

Consolidated HRIS and people enablement features
Useful for both HR professionals and company employees
People-first software solution
Powerful analytics
User-friendly interface
Customizable access rights and permissions
Available in 13 languages
Strong customer support
Built-in AI-powered tools

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cons

Cons

Payroll features are limited for now, but they’re currently being further developed
It may not be the best choice if you only require core payroll tools and don’t want to invest in people enablement

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2. ADP RUN

RUN is a payroll integration by ADP, a large and trusted global payroll provider. It offers simple payroll and benefits administration, along with self-service and automation features designed to help small and growing businesses save time and money.
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Main features

Tax compliance support: Offers automatic tax calculations, filings, and payments, as well as built-in compliance updates to support federal, state, and local regulations.

Payroll Autopilot: Provides full-service payroll capabilities with the option to set recurring or off-cycle payroll runs as needed.

Time tracking: Has add-on time and attendance tracking features for employees, with biometric and geofencing tools to ensure accuracy and security.
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Best for

RUN by ADP is a good option for businesses with fewer than 50 employees. It’s especially suitable for companies that require advanced tax management features to support compliance as they scale.
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Pros

Designed for small businesses and startups
Easy to use
Employee self-service capabilities

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cons

Cons

Customer support could be improved
Some users say the time management tools are “clunky”
Some users report that the technology can be “glitchy”

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3. Gusto

Gusto is an online payroll and HR tool that supports payroll processing for employees and contractors. With unlimited payrolls, contractor-only plans, and integrations with other HR platforms, this solution has plenty to offer small business owners.
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Main features

Full-service payroll: It is possible to run automatic payroll cycles or carry them out manually with a three-step process. Includes reporting, employee self-service tools, and automatic tax filing.

Benefits administration: Automates payroll deductions for benefits contributions and enables companies to add or change employee benefits throughout the year.

Time tracking: Eliminates manual data entry with easy time logging via any web browser or the Gusto Wallet app.
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Best for

Gusto is best suited to businesses and startups that work with a mix of employees and contractors. It’s also a worthy option for companies planning to expand globally.
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Pros

User-friendly interface
Contractor-only plans
Unlimited payroll runs
Simple, easy-to-use time-tracking tools

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cons

Cons

Some users experienced slow loading times
A more expensive option
Some users report access issues
Some users say customer support could be improved

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4. Homebase

Collage of images from Homebase's payroll and HR software platform.

Homebase is a cloud-based team management solution with tools for time tracking, scheduling, and payroll. It’s designed for small, brick-and-mortar businesses and has more affordable pricing than many competitors.
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Main features

Scheduling software: Allows small business owners to create custom schedules with just a few clicks, sends automatic shift reminders to staff, and collects team availability with the employee app.

“Set and forget” payroll: Offers a full-service payroll add-on that integrates with time tracking and scheduling tools, so business owners can pay their team in just a few minutes.

Hiring and onboarding: Supports paperless, automated onboarding processes with secure document management for direct deposit, W-4, W-9, and I-9 forms.
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Best for

Homebase is a good starter software for small businesses (predominantly those that operate in the service industry) that want an easy-to-use tool for scheduling, time tracking, and payroll. However, its features are limited compared to other, more advanced software solutions.
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Pros

Ideal for small, brick-and-mortar businesses
No training required
Affordable price point
Wide range of tools
Flat monthly fee for unlimited payroll

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cons

Cons

Most features are limited to more basic functionalities
Some users have experienced occasional lagging and connectivity issues
It is not ideal for larger companies with more complex HR needs

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5. Paychex Flex

Screenshot of the Paychex Flex platform interface.

Paychex Flex is a combined payroll and HR solution that offers tiered plans to meet different business needs. It offers a range of flexible integrations to help manage payroll, recruitment, employee experience, and benefits in one place — though many advanced features are add-ons.
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Main features

Digitized payroll: Enables users to complete payroll online, access specialist support, and automate tax administration.

Analytics and reporting: Offers more than 160 standard reports (plus custom and pre-processing reports) to help efficiently manage HR, payroll, and benefits.

Compliance support: Ensures that all tax filings meet local requirements. All plans include new hire reporting for employees and contractors, plus up-to-date labor law information.
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Best for

While it’s suitable for businesses of all sizes, Paychex Flex is best suited to companies that need a simple or custom-built solution and employ fewer than 50 workers. The Essentials plan doesn’t include more complex HR and benefits administration features, so be prepared to pay for extra functionality as your company grows.
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Pros

Intuitive interface
Self-service capabilities for employees and contractors
Customizable plans
Stripped-down payroll processing

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cons

Cons

Limited standard HR tools
Add-ons can add up cost-wise
Some users say the platform can be hard to navigate

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6. Paycor

A screenshot of different Paycor interfaces viewed on mobile.

Paycor is a full-service payroll processing software with HR capabilities. It has add-ons like time tracking, benefits administration, and on-demand pay to streamline people management workflows.
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Main features

Payroll processing: The basic plan includes features like automated and off-cycle pay runs, basic tax services, wage garnishments, online paycheck stubs, and payroll reporting.

Tax compliance: Presents compliance alerts and recommendations in an intuitive dashboard and handles tax filing, W-2, and 1099 processing.

Paycor Mobile Wallet: Provides a secure place where employees can access wages, pay card information, and financial wellness resources.
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Best for

Thanks to its wide range of features, Paycor is great for businesses with complex HR needs. The platform may be better suited to medium or large companies due to the relatively high cost of adding necessary integrations.
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Pros

Scalable
On-demand pay features
Self-service portal and app
Simple payroll processing
All-in-one platform

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cons

Cons

Some users report poor customer support
The tool doesn't come with an integrated time tracking feature (it’s an add-on)
A more expensive option when compared with competitors
Some users find the setup process complicated

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7. Rippling

A screenshot of an interface from Rippling's payroll software.

Rippling is a popular workforce management system for HR, IT, and finance teams. It includes a payroll product with optional people management features like benefits administration, an applicant tracking system (ATS), and new hire onboarding.
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Main features

Payroll automation: Enables users to calculate payroll earnings and deductions, issue reimbursements, manage direct deposit payments, and remit taxes to local authorities.

HRIS integration: Saves time and supports data-driven decision-making by automating manual HR tasks, minimizing compliance errors, and enabling employee self-service.

Certified compliance: Offers certified payroll tax calculations and transmissions in line with national, local, and industry-specific tax laws.
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Best for

Rippling Unity (Rippling’s basic plan) is best for small businesses and startups that want payroll software without additional HR capabilities. The platform also works well for larger companies with more complex requirements, as more comprehensive, custom packages with extra features are available.
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Pros

Customizable plans
Intuitive, user-friendly design
Flexible payroll runs
Time-saving automations

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cons

Cons

Some users report slow problem resolution
Some people say they’ve experienced lags and glitches with the software

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8. Wave

A screenshot of a payroll summary interface within Wave's platform.

Wave is a no-fuss money management platform for companies of all kinds. It offers a straightforward payroll tool specifically designed for small businesses and works seamlessly with the rest of its accounting, invoicing, and payment features.
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Main features

Automatic tax management: Saves time with automatic tax filings and payments in eligible states.

Self-service features: Provides employees with online access to pay stubs and tax forms, as well as the ability to update banking and contact details.

Accounting integration: Connects with the rest of your Wave account to minimize manual bookkeeping and streamline HR management.
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Best for

Wave is made for small businesses that don’t have a lot of internal payroll resources or experience. It’s an affordable option for anyone who already uses Wave software — especially those who pay contract workers and seasonal employees.
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Pros