Payroll for a small business used to be a quarterly nightmare — tax form filings, garnishments, multi-state compliance, all manual. Modern payroll SaaS (Gusto, Rippling, OnPay) automates 95% of it for $40–$200/month total at typical SMB scale. The right pick depends on your size and whether you need bundled HR + IT.
The 4 worth using
| Tool |
Cost (10 employees) |
Best for |
| Gusto |
$40 + $60 = $100/mo |
Most SMBs |
| OnPay |
$40 + $60 = $100/mo |
Cheaper Gusto alternative |
| Rippling |
$350+/mo |
50+ employees, IT bundling |
| ADP RUN |
varies (often higher) |
Established, complex needs |
Best overall — Gusto
EDITOR'S PICK
Gusto
$40/mo Simple plan + $6/employee. $80/mo Plus + $12/employee adds HR features. Automated federal + state + local tax filing. W-2s and 1099s generated and filed automatically year-end. Strong contractor support. Modern dashboard. Integrates with QuickBooks, Xero, Bench, etc.
Visit Gusto →
When Gusto wins: 1–50 employee businesses wanting modern UX + automated tax compliance.
Best contractor-only — Gusto Contractor
If you only pay 1099 contractors (no W-2 employees), Gusto Contractor Only is $35/mo flat + $6/contractor. Files 1099s automatically, handles ACH payments.
Best for medium business — Rippling
If you have 50+ employees + want to bundle payroll with HR (onboarding, time tracking) + IT (device management, app provisioning), Rippling is genuinely best-in-class. Pricing scales but value scales with it.
What's NOT worth your money
- ADP for sub-50-employee businesses — pricing structure assumes enterprise complexity
- Manual payroll DIY for any W-2 employees — tax compliance risk too high
- Premium HR add-ons at SMB scale — most needed features in base tier
- Multiple HR tools for sub-50 employees — Gusto bundles enough
FAQ
Do I need payroll software for one employee?
Yes — automated tax compliance is worth $46/month over manual filing. Penalty for one missed filing is far higher.
Best for international employees?
Deel or Remote.com handle international payroll + compliance. Add-on to domestic Gusto.
Can I do payroll myself in QuickBooks?
QuickBooks has payroll module ($45–125/mo) but Gusto generally cheaper for equivalent quality. QB Payroll integrates well if you're already on QuickBooks.
What about workers' compensation?
Gusto and OnPay both integrate with pay-as-you-go workers' comp providers (NEXT, Zenefits). Single dashboard.
Best for restaurants / multi-state?
Gusto handles multi-state. Restaurants often use specialty payroll like Toast Payroll or 7shifts.
How long does Gusto setup take?
~30 minutes for a single-state business with EIN ready. Multi-state or complex: 1–2 hours.
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