Payroll is the one back-office task where a mistake costs you twice — once in penalties from the IRS, and again in the trust of an employee whose paycheck was wrong. Good payroll software removes both risks by calculating, filing, and depositing automatically. The catch is that "per-employee per-month" pricing makes the cheap-looking option expensive at scale, and the two biggest names hide their prices behind a sales call. This guide compares four options on what you'll actually pay and what you get for it.

Pricing here is quoted as base fee + per-employee fee, the standard payroll model — figures drawn from each provider's published rates (or, for ADP, reported estimates, since it doesn't list prices).

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1. Gusto: Best all-round full-service payroll

Gusto is the default recommendation for most small businesses, and for good reason: it runs full-service payroll (automatic tax filing in all 50 states), handles benefits and onboarding, and wraps it all in the friendliest interface in the category. Its Simple plan is $49/month + $6 per employee (the base rose from $40 in March 2026), with Plus at $80 + $12 adding multi-state payroll and time tracking, and Premium higher still.

Best for: small businesses that want one tool to handle payroll, benefits, and basic HR without a learning curve. Skip it if you only pay contractors occasionally — though Gusto's contractor-only option covers that cheaply too.

2. OnPay: Best value and pricing transparency

OnPay does something refreshing: it charges one flat price — $40/month + $6 per employee — with every feature included. No tiers, no "upgrade to unlock tax filing," no add-on upsells. You get full-service payroll, tax filing in all 50 states, HR tools, and benefits administration at the base rate. For a small team, it's typically the cheapest path to genuinely complete payroll.

Best for: cost-conscious businesses that want everything included without decoding a pricing table. Skip it if you need deep third-party integrations or a large app ecosystem — OnPay is focused, not sprawling.

3. QuickBooks Payroll: Best for QuickBooks users

If your books already live in QuickBooks Online, adding QuickBooks Payroll keeps payroll and accounting in one system — no exporting, no reconciling between tools. Plans are Core $50 + $6/employee, Premium $85 + $9, and Elite $130 + $11 per month, with higher tiers adding same-day deposit, time tracking, and tax-penalty protection.

Best for: existing QuickBooks customers who value a single integrated ledger. Skip it if you don't use QuickBooks for accounting — standalone, it's pricier than OnPay or Gusto for similar core features. (Weigh your accounting platform first: see QuickBooks vs Xero.)

4. ADP: Best for scaling and complex payroll

ADP (its small-business product is RUN Powered by ADP) is the enterprise incumbent. It's built to handle complex, multi-state, high-headcount payroll with dedicated support and a deep compliance backbone — and it scales with you all the way to enterprise. The trade-off is opaque, quote-based pricing: the entry tier is reported around $79/month + ~$4/employee, but most small businesses end up paying $100–$300/month once features and add-ons are included, and extras like year-end W-2s can carry separate fees.

Best for: businesses anticipating fast growth, complex compliance, or that simply want a heavyweight provider with a support rep. Skip it if you're a small, simple team — you'll pay for capability you won't use.

How to choose

• Most small businesses → Gusto for the best balance of features and ease, or OnPay if price and transparency win.
• On QuickBooks already → QuickBooks Payroll, to keep one ledger.
• Scaling fast or complex needs → ADP, with eyes open about cost.

For the most-requested head-to-head in this category, see Gusto vs ADP. And since payroll feeds your books, it's worth getting accounting right too — freelancers and very small teams can start with our best accounting software for freelancers.

Frequently asked questions

What is the best payroll software for a small business?

Gusto is the best all-rounder thanks to full-service payroll and an easy interface. OnPay wins on flat-rate value, QuickBooks Payroll is best if you already use QuickBooks, and ADP suits businesses that need enterprise-grade scale.

How much does payroll software cost?

Most charge a base fee plus per-employee fee. Expect roughly $40–$50/month base plus $6 per employee for OnPay, Gusto, or QuickBooks Core. ADP is quote-based and typically runs higher, often $100–$300/month all-in.

Does payroll software file taxes for me?

Yes — OnPay, Gusto, and QuickBooks Payroll all offer full-service payroll that calculates, files, and pays federal, state, and local payroll taxes automatically. Always confirm coverage for your specific states.

Which payroll software is cheapest?

OnPay is usually the cheapest for complete payroll, since its single $40 + $6/employee plan includes every feature with no upsells. Gusto Simple ($49 + $6) is close.

Related comparisons

• Gusto vs ADP: Which Payroll Is Better? — the two best-known names, head to head.
• QuickBooks vs Xero: Which for Small Business? — pick the accounting platform your payroll feeds.
• Best Accounting Software for Freelancers — for very small teams and solo operators.

Pricing verified from gusto.com, onpay.com, quickbooks.intuit.com, and reported ADP estimates as of June 2026. Plans can change — confirm current rates before purchase.

Researched with AI assistance and reviewed by the editor.