Best Payroll Company for Small Businesses in 2025

If you’ve ever dealt with tax errors, missed filings, or lost hours to manual data entry, you know that running payroll can get messy—fast. That’s where the right payroll company can make all the difference.

But here’s the thing: there’s no one-size-fits-all “best payroll company.” The best choice for you depends on your team size, industry, and how fast you’re growing. Whether you’re running a lean five-person crew or scaling up across multiple locations, the right payroll partner should take admin off your plate—not add more.

In this guide, we’ll break down what the best payroll companies offer, what to look for, and which providers are leading the pack in 2025—especially for small businesses that want smarter, simpler payroll.

Let’s get into it.

TL;DR: The best payroll company for your small business

“Best” is relative. The right payroll provider depends on your business size, industry, budget, and growth stage—not just brand name.

Top features to look for: Accuracy, automation, compliance support, ease of use, customer service, scalability, and tool integrations.

Top 10 payroll companies for small businesses in 2025:

• Gusto: Best all-in-one payroll for small businesses
• Homebase Payroll: Best for hourly teams and scheduling integration
• ADP RUN: Best for growing and scaling businesses
• Paychex Flex: Best for professional services with HR needs
• QuickBooks Payroll: Best for QuickBooks users
• Square Payroll: Best for retail and restaurants
• OnPay: Best for affordability and nonprofits
• Patriot Payroll: Best budget-friendly option
• Rippling: Best for tech-savvy, fast-scaling companies
• Zenefits (TriNet): Best for HR-first companies

‍Evaluate based on: Industry fit, team size, HR needs, integrations, and whether you prefer a full-service payroll provider or DIY payroll software.

Still unsure? Try free trials or demos to see which solution fits your workflow best.

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What makes a payroll company “the best”?

A payroll company that works for a 500-person tech firm won’t always suit a 10-person landscaping business. So what actually sets the best payroll companies apart from the rest?

Here’s what to look for:

• Industry reputation: Trust matters. Look for payroll providers with strong reviews, proven track records, and experience working with businesses like yours.
• Customer service and support: The best payroll service for small business is one you can actually reach. Whether it’s live chat, phone support, or a dedicated rep, you want quick answers when payroll questions come up.
• Scalability and integrations: Over time, your business will (hopefully) grow. The best payroll company for small business supports that growth with features like multi-state payroll, benefits administration, and integrations with your scheduling, accounting, or HR tools.
• Ease of use: Don’t make your team wade through clunky payroll dashboards. A top payroll service should be intuitive for both employers and employees—from running payroll to accessing pay stubs.
• Accuracy and automation: Mistakes with paychecks or taxes can cost you—big time. The best payroll services automate calculations, tax filings, and direct deposits so you can run payroll with confidence.
• Compliance help: Keeping up with payroll tax law changes, filing deadlines, and labor rules is a job in itself. The right payroll provider should take that weight off your shoulders by staying on top of compliance for you.

Payroll company vs. payroll software vs. payroll provider: What’s the difference?

These terms often get tossed around interchangeably, but they’re not all the same:

• A payroll company is a service provider that handles payroll processing and compliance on your behalf—often with human support included.
• Payroll software is a self-service platform that you use to manage payroll yourself. It may or may not include filing, support, or benefits tools.
• A payroll provider can refer to either a full-service payroll company or a software vendor, depending on the context.

If you’re short on time or want built-in compliance help, a full-service payroll company might be your best bet. If you prefer more control and already have in-house HR support, payroll processing software could do the trick. Either way, it’s worth comparing the top payroll systems to see what fits your workflow.

10 best payroll companies for small businesses (2025 rankings)

To choose the best payroll company for your small businesses, you need to pick the one that best fits your team, industry, and day-to-day operations. 

Here’s how 10 top payroll companies stack up across price, features, and business needs in 2025.

1. Gusto — Best all-in-one for small businesses

Best For: Small businesses needing payroll + HR + benefits in one place

Key Features: Automated payroll, tax filing, employee benefits, onboarding tools

Starting Price: $40/month + $6 per employee

Free Trial? Yes

Gusto is one of the top payroll services for small businesses, with a clean interface and strong HR features. Startups and lean teams tend to love it as it helps them scale smoothly without juggling multiple systems. They’re also known for their great customer support and ease of use.

2. Homebase Payroll — Best for hourly teams and scheduling integration

Best For: Restaurants, retail shops, and service businesses with hourly employees

Key Features: Built-in time tracking, scheduling, and payroll in one app

Starting Price: $39/month + $6 per employee

Free Trial? Yes

If you’re running an hourly team, Homebase Payroll is tailor-made for you. As one of the best payroll software for small businesses with hourly workers, it automatically pulls hours into payroll, handles taxes, and syncs with time clocks. Plus, it’s part of the broader Homebase platform with hiring, messaging, and labor law compliance.

3. ADP RUN — Best for growing and scaling businesses

Best For: Small to midsize businesses planning to scale

Key Features: Robust tax filing, benefits admin, HR add-ons, multi-state support

Starting Price: Custom pricing

Free Trial? No

ADP RUN is one of the most recognizable payroll providers in the world. While its pricing is less transparent, it’s a go-to choice for businesses that expect to grow and need advanced features and deep compliance support. It also integrates with hundreds of business tools.

4. Paychex Flex — Best for professional services and HR features

Best For: Offices and firms that need integrated HR and retirement benefits

Key Features: 401(k) administration, employee self-service, new hire reporting

Starting Price: $39/month + $5 per employee

Free Trial? No

Paychex Flex ranks among the top payroll companies for professional services firms, especially those needing help managing compliance and benefits. Its support team gets strong reviews from customers who value having a dedicated point of contact.

5. QuickBooks Payroll — Best for businesses using QuickBooks

Best For: Existing QuickBooks accounting users

Key Features: Seamless QuickBooks integration, automatic tax filing, next-day direct deposit

Starting Price: $45/month + $6 per employee

Free Trial? Yes

Already using QuickBooks? Their native payroll processing software is a natural next step. QuickBooks Payroll offers full-service payroll, tax filings, and integrations that reduce double entry and errors.

6. Square Payroll — Best for retail and food businesses

Best For: Retail shops, cafés, salons, and restaurants

Key Features: Tipped wage support, employee apps, and timecards

Starting Price: $35/month + $5 per employee

Free Trial? Yes

Square Payroll is a plug-and-play option that simplifies everything from time tracking to tip reporting. It’s ideal for teams with variable hours and turnover. Square payroll makes the most sense for businesses already using Square POS. 

7. OnPay — Best for affordability and nonprofit support

Best For: Budget-conscious businesses and nonprofits

Key Features: Full-service payroll, tax filings, benefits, and HR tools

Starting Price: $40/month + $6 per employee

Free Trial? Yes

OnPay consistently ranks as one of the best payroll services for small businesses thanks to its transparent pricing and nonprofit-friendly features. It’s simple, affordable, and gets high marks for customer service.

8. Patriot Payroll — Best budget-friendly option

Best For: Very small teams and startups with simple payroll needs

Key Features: Basic payroll, direct deposit, tax filing (full-service option available)

Starting Price: $17/month + $4 per employee (basic); $37/month + $4 for full-service

Free Trial? Yes

If cost is your biggest concern, Patriot Payroll is a good affordable payroll service option. While it’s not packed with extras, it covers the essentials well and is easy to learn.

9. Rippling — Best for tech-forward companies and integrations

Best For: Tech startups or remote teams needing lots of integrations

Key Features: Modular HR and payroll tools, robust app integrations, international payroll

Starting Price: $8 per employee/month (custom platform pricing)

Free Trial? No

Rippling is a favorite among startups and software-savvy companies thanks to its automation and API integrations. It doesn’t just do payroll—it’s an entire workforce management platform.

10. Zenefits (TriNet) — Best for HR-heavy needs

Best For: Businesses that want payroll bundled with robust HR support

Key Features: Compliance tools, benefits admin, hiring workflows, employee records

Starting Price: $8 per employee/month (Essentials plan)

Free Trial? No

Now part of TriNet, Zenefits offers a full HR and payroll suite ideal for companies with complex compliance needs. It’s best for teams that want built-in support for onboarding, PTO policies, and org management—not just paycheck processing.

How to evaluate the best payroll provider for your company

As mentioned, not every payroll provider is built the same—and not every provider will be a good fit for your business. Use this quick evaluation checklist to narrow your options:

Industry fit

Some payroll companies cater to niche industries. Choose a payroll provider that understands your industry’s specific nuances. For example:

• Hospitality and retail businesses may need tip reporting and shift-based scheduling integrations.
• Healthcare or home services may require more robust compliance tools and contractor management.

Company size and growth plans

• Just getting started? A low-cost payroll management software with essential features might be enough.
• Planning to scale? Look for top payroll services that grow with you—multi-state tax handling, onboarding tools, and employee benefits all become more important as your team expands.

HR features vs. pure payroll processing

Decide how much of your HR operations you want handled in one place. Some payroll service providers focus only on running payroll and filing taxes. Others offer integrated HR tools like:

• PTO tracking
• Employee onboarding
• Document storage
• Org charts

Support and compliance guidance

If you’re in a heavily regulated industry or dealing with multiple locations, customer service and compliance help can make or break the experience. Ask yourself:

• Do you want quick chat support—or a dedicated rep?
• Is state-by-state compliance a headache?

Integrations with your existing tools

Fewer logins, fewer mistakes. The best payroll software for small business should play nicely with what you already use—whether that’s:

• Time tracking apps
• Scheduling platforms (like Homebase)
• Accounting software (like QuickBooks or Xero)
• HR tools or benefits platforms

Payroll service vs. payroll software

Evaluate what level of hands-on involvement makes the most sense for your team and your time.

• Payroll services (like Gusto or ADP) often offer full-service processing—including tax filing and W-2 delivery.
• Payroll software may require more DIY setup and oversight but offers more flexibility or lower cost.

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Frequently asked questions about the best payroll companies

What is the top payroll company?

There’s no one-size-fits-all answer. The best payroll company depends on your business size, industry, and needs. That said, Gusto, ADP, and Paychex consistently rank at the top for reliability, features, and support—especially for small to mid-sized businesses.

Is ADP the best payroll company?

ADP is one of the largest and most established payroll providers. It’s a great option for growing businesses that need advanced HR tools, multi-state compliance, and strong customer support. However, it may be more complex and costly than some small businesses need.

What is the best online payroll provider?

For small businesses looking for cloud-based solutions, Gusto, Homebase Payroll, and QuickBooks Payroll are top picks. These online payroll services offer automated tax filing, easy onboarding, and integrations with tools you may already use—like scheduling and accounting software.

Who are the top 10 payroll vendors in 2025?

Each has different strengths—choose based on your specific needs. Here are the current leaders in payroll services for small businesses:

• Gusto
• Homebase Payroll
• ADP RUN
• Paychex Flex
• QuickBooks Payroll
• Square Payroll
• OnPay
• Patriot Payroll
• Rippling
• Zenefits (TriNet)

What’s the difference between payroll software and a payroll service provider?

Payroll software is a tool you use to run payroll yourself—great for DIYers who want control and low cost. A payroll service provider does more for you, like filing taxes, sending out W-2s, and staying on top of compliance. It’s ideal if you want to save time and reduce risk.

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