Running payroll correctly is critical - mistakes can result in IRS penalties and unhappy employees. Modern payroll services automate taxes, filings, and direct deposits. Here's how to choose the right one.
Best Payroll Services 2025
- Best Overall: Gusto ($40/mo + $6/person) - Modern, easy, full-featured
- Best for Growing: ADP Run (custom pricing) - Scalable, enterprise features
- Best Budget: OnPay ($40/mo + $6/person) - Simple, affordable
- Best for Contractors: Wave Payroll ($20/mo base) - Free invoicing included
- Best HR Bundle: Paychex Flex (custom pricing) - Full HR suite
Top Payroll Services Compared
| Service | Base Price | Per Employee | Best For | Rating |
|---|---|---|---|---|
| Gusto | $40/mo | $6/person | Small businesses | |
| OnPay | $40/mo | $6/person | Budget-conscious | |
| ADP Run | Custom | Custom | Growing companies | |
| Paychex Flex | Custom | Custom | HR needs | |
| Wave Payroll | $20/mo | $6/person | Freelancers | |
| QuickBooks Payroll | $50/mo | $6/person | QB users |
Detailed Service Reviews
TOP PICK
Gusto
- Pricing: Simple $40/mo + $6/person, Plus $80/mo + $12/person
- Includes: Full-service payroll, benefits admin, tax filings, time tracking
- Pros: Beautiful interface, excellent support, health benefits integration
- Cons: No phone support on basic plan, can get expensive
- Best for: Tech-savvy small businesses wanting modern experience
ENTERPRISE
ADP Run
- Pricing: Custom quotes only (typically $59+ base)
- Includes: Payroll, tax filing, HR tools, compliance
- Pros: Industry leader, scales to enterprise, dedicated support
- Cons: Expensive, long contracts, outdated interface
- Best for: Growing companies planning to scale significantly
VALUE
OnPay
- Pricing: $40/mo + $6/person (all features included)
- Includes: Unlimited payroll runs, all tax filings, HR tools
- Pros: Transparent pricing, no tiers, all states supported
- Cons: Fewer integrations, less brand recognition
- Best for: Small businesses wanting simple, affordable payroll
What's Included in Payroll Services
| Feature | Gusto | ADP | OnPay | Paychex |
|---|---|---|---|---|
| Direct Deposit | Yes | Yes | Yes | Yes |
| Tax Filing | All | All | All | All |
| W-2/1099 Filing | Yes | Yes | Yes | Yes |
| New Hire Reporting | Yes | Yes | Yes | Yes |
| Time Tracking | Built-in | Add-on | Built-in | Add-on |
| Benefits Admin | Yes | Yes | Basic | Yes |
| HR Tools | Plus plan | Yes | Basic | Yes |
Key Features to Consider
Core Payroll
- Unlimited payroll runs: Pay employees anytime without extra fees
- Direct deposit: Free ACH transfers to employee accounts
- Multiple pay schedules: Weekly, bi-weekly, semi-monthly, monthly
- Pay types: Salary, hourly, commission, bonus, tips
Tax Compliance
- Automatic tax calculation: Federal, state, and local taxes
- Tax filing and payment: Service handles all filings
- Year-end forms: W-2s, 1099s generated and filed
- Tax penalty guarantee: Provider pays if they make errors
Pricing Breakdown
Monthly Cost Examples (10 Employees)
- Gusto Simple: $40 + (10 × $6) = $100/month
- OnPay: $40 + (10 × $6) = $100/month
- Wave Payroll: $20 + (10 × $6) = $80/month
- QuickBooks Payroll: $50 + (10 × $6) = $110/month
- ADP/Paychex: Custom pricing, typically $150-300/month
Benefits Administration
- Health insurance: Shop and manage group health plans
- 401(k): Integration with retirement providers
- HSA/FSA: Pre-tax benefit accounts
- Workers' comp: Pay-as-you-go insurance
- PTO tracking: Vacation, sick, personal time
Contractor Payroll
- 1099 payments: Pay contractors without full payroll
- Year-end 1099s: Automatic filing
- International: Some services support international contractors
- Gusto Contractor: $6/person/month for 1099 only
How to Choose
- Count employees: Total cost depends on headcount
- Assess HR needs: Basic payroll or full HR suite?
- Check integrations: Works with your accounting software?
- Consider benefits: Need health insurance administration?
- Evaluate support: Phone, chat, email availability
- Try demos: Most offer free trials or demos
Switching Payroll Providers
- Best time: Start of quarter or year
- Gather records: YTD wages, tax payments, employee data
- Overlap period: Run both systems briefly to verify
- Notify employees: Update direct deposit if needed
- Cancel old service: After successful transition