10 Best Payroll Software for Small Businesses In 2026

by | Jan 15, 2026 | Payroll

Running payroll for small business in 2026 is about more than just cutting checks on time. You need software that keeps up with changing tax rules, remote teams, growing headcount, and the everyday HR tasks that come with it. The right payroll tool can save you hours each week, reduce costly mistakes, and give your team a smoother experience from payday to onboarding.

That’s why we’ve put together this list of the 10 best payroll software for small businesses in 2026. From all-in-one platforms to simple, budget-friendly tools, these options are built to help small teams stay compliant, organized, and focused on what really matters, growing the business with confidence.

What to Look for in Payroll Software

Choosing payroll software is not just about paying people on time. For small businesses, the right tool should reduce stress, save hours every month, and grow with your team as things get busier.

1. Simple setup and easy everyday use

Payroll should not feel like a weekly headache. Look for software that is quick to set up and easy to understand, even if you are not a payroll expert. A clean dashboard, guided steps, and clear labels can make a big difference when you are running payroll late in the evening or between meetings. The best tools let you add employees, set pay schedules, and run your first payroll without digging through long manuals. If your team can start using it confidently within a day or two, that is a strong sign you are on the right track.

2. Built in tax calculations and compliance

Taxes are where most small businesses worry the most, and for good reason. A solid payroll system should automatically calculate federal, state, and local taxes based on where your business and employees are located. It should also update itself when tax rules change so you do not have to keep track of every new rate. Look for features like automatic tax filing, year end forms, and reminders for deadlines. This helps you stay compliant and avoid penalties that can hurt your cash flow.

3. Accurate and flexible pay options

Every business pays people a little differently. Some employees are hourly, some are salaried, and others may earn overtime, bonuses, or commissions. Good payroll software should handle all of these without complicated workarounds. You should be able to adjust pay easily, run off cycle payroll when needed, and correct mistakes without starting over. Accuracy matters because even small errors can damage trust with your team. The right system makes sure everyone gets paid correctly, every time.

4. Employee self service that saves time

Payroll should not mean answering the same questions again and again. Tools with employee self service portals let your team view payslips, download tax forms, update personal details, and check leave balances on their own. This reduces emails and messages coming your way and gives employees more control. When staff can log in from their phone or laptop to find what they need, it creates a smoother experience for everyone and frees you up to focus on running the business.

5. Integration with HR and time tracking

Payroll does not work in isolation. It connects closely with attendance, leave, and basic HR records. Look for software that integrates smoothly with time tracking tools or includes them built in. This way, approved hours, overtime, and leaves flow directly into payroll without manual entry. It cuts down on mistakes and saves you from juggling spreadsheets. If the system also stores employee profiles and documents, you get a more complete view of your team in one place.

6. Clear pricing that fits small business budgets

Small businesses need predictable costs. The best payroll software is transparent about pricing, whether it charges per employee, per month, or offers fixed plans. Watch out for hidden fees for tax filing, support, or reports. It helps to choose a tool that lets you start small and upgrade only when your team grows. A free trial or low-cost entry plan can also be useful to test if the software truly fits your needs before committing long term.

7. Helpful support when things go wrong

Even with great software, questions will come up. You might face an unusual payroll case, a tax notice, or a setup issue. That is when responsive customer support matters. Look for providers that offer chat, email, or phone support with real people who understand payroll. Helpful guides, tutorials, and a knowledge base are also valuable when you need quick answers. Knowing support is there gives peace of mind, especially during busy pay periods.

10 Best Payroll Software for Small Businesses In 2026

Choosing the right payroll software can save small businesses time, reduce costly errors, and keep everything compliant as teams grow. These tools offer reliable payroll, smart automation, and helpful HR features to make paying employees easier in 2026.

  1. Rippling
  2. BambooHR
  3. Payrun
  4. HiPeople
  5. Gusto
  6. Sage
  7. Paycom
  8. Deel
  9. Zoho People
  10. HR Cloud

Pricing Comparison of the Best Payroll Software for Small Businesses (2026)

ToolStarting Price (US)Pricing ModelNotes
RipplingCustom quoteBase fee + per employeePricing depends on modules like Payroll, HR, IT. No fixed public rates.
BambooHRCustom quote (small teams often start around $250/mo)Flat or per employeeExact pricing depends on company size and plan; payroll is an add-on.
PayrunFree; paid from $29/moFlat monthly tiersStarter $29, Pro $49, Enterprise $99 when billed yearly; add-ons for users.
HiPeopleCustom quoteSubscription by modulePricing varies by features like reference checks and analytics.
Gusto$49/mo + $6/personBase + per employeePlus: $80 + $12/person, Premium: $180 + $22/person.
Sage (Sage 50)$124.42/moFlat monthly licensePremium $169.33/mo, Quantum $253.42/mo; payroll is an add-on.
PaycomCustom quotePer employee, modulesNo public pricing; tailored based on company size and features.
Deel$49/contractor/moPer workerPEO $95/employee, Global Payroll $29/employee, EOR $599/employee.
Zoho People$1.25/user/moPer userProfessional $2, Premium $3, Enterprise $4.50 billed annually.
HR CloudCustom quoteTiered plansPricing depends on HR modules; payroll via integrations may add cost.

1. Rippling

Rippling is a unified workforce management platform that brings payroll and HR together in one system. It lets small businesses handle employee data, time tracking, benefits, onboarding, and payroll processing from a single dashboard rather than juggling multiple tools.

Payroll & HR Features: Rippling’s payroll includes automatic tax calculations and filings, direct deposit, federal, state, and local compliance, and support for international employees and contractors all within the same system. Its HR suite covers employee records, onboarding, benefits administration, time tracking, and analytics, giving a broader set of capabilities than tools that focus only on payroll.

Ease of Use: Because Rippling combines many functions, the learning curve can be steeper compared with simpler payroll-only tools. However, once set up, many users appreciate having one platform for payroll and HR data, eliminating duplicate entry and improving accuracy. The interface is modern and integrates well with third-party apps, making navigation and automation smoother over time.

Price: Rippling’s core platform pricing starts from roughly $40/month base + ~$8 per employee per month in the US. Costs vary significantly with add-ons like payroll, time tracking, benefits, and compliance, and require a custom quote for full details.

Best For:

  • Small businesses looking for an all-in-one platform instead of separate payroll and HR tools
  • Teams that need more than basic payroll, including HR, benefits, and compliance management
  • Companies managing both local and global employees or contractors
  • Growing businesses that want payroll tightly connected with onboarding and employee data
  • Owners who prefer to handle most people operations from a single system

2. BambooHR

BambooHR is a people-focused HR platform with built-in payroll that helps small businesses manage employee records, time off, hiring, and pay from one central place. It is known for its clean interface and strong HR foundation, making it a popular choice for growing teams that want better organization without complexity.

Payroll & HR Features: BambooHR offers payroll with automatic tax calculations and filings, direct deposit, and support for hourly and salaried employees, mainly for U.S.-based teams. On the HR side, it shines with employee records, time-off tracking, performance management, applicant tracking, onboarding, and detailed reports. Compared to more IT-heavy platforms, BambooHR focuses more on core HR workflows tied closely with payroll.

Ease of Use: BambooHR is widely appreciated for being easy to navigate, even for non-HR users. Setup is straightforward, and everyday tasks like approving time off or running payroll feel simple. The interface is clean and intuitive, which makes it less intimidating than larger all-in-one systems.

Price: In the US, BambooHR pricing depends on company size and plan. For teams with 25 or fewer employees, it starts at a flat rate from about $250 per month. Larger companies pay per employee, per month, with volume discounts as headcount grows; exact pricing requires a quote.

Best For:

  • Small businesses that want strong HR tools with reliable payroll built in
  • Teams that value simplicity and a clean user experience
  • Companies focused on employee records, time off, and onboarding
  • U.S.-based businesses needing straightforward payroll compliance
  • Growing teams without a dedicated HR department

3. Payrun

Payrun is a cloud-based HR and payroll management platform tailored for small and growing businesses. It combines essential HR functions like employee management, attendance tracking, leave management, and hiring workflows in one place, helping teams stay organized and reduce manual work.

Payroll & HR Features: Payrun includes tools to centralize employee records, track attendance and time, manage leave requests, and streamline recruitment. Its automated HR workflows reduce repetitive administrative tasks and keep workforce data up to date. While payroll capabilities are integrated, Payrun’s strength lies in connecting core HR functions with pay-related data so that teams can run payroll with better context and fewer errors.

Ease of Use: Designed with simplicity in mind, Payrun offers an intuitive interface that small business users find approachable without extensive training. Its dashboard and workflow automation help teams navigate leave, attendance, and basic payroll tasks smoothly. Some users note a slight learning curve for advanced customization, but overall the platform prioritizes usability for non-technical teams.

Price: Payrun offers a free plan, with paid tiers starting at $29/month for Starter, $49/month for Pro, and $99/month for Enterprise when billed yearly. Yearly billing saves 40%, with scalable add-ons for extra users and job listings.

Best For:

  • Small and growing businesses that want HR and payroll together in one place
  • Teams that need basic payroll linked with attendance and employee data
  • Startups and SMBs that prefer intuitive, easy-to-navigate tools
  • Organizations that want affordable, scalable plans as they expand
  • Businesses looking for automated HR workflows alongside pay features

4. HiPeople

HiPeople is a people and hiring platform that focuses on helping small businesses make better recruitment decisions and manage employee data more effectively. While it is not a traditional payroll-first tool, it supports payroll processes by strengthening onboarding, records, and people insights that feed into accurate pay management.

Payroll & HR Features: HiPeople is best known for its reference checks, surveys, and people analytics that help teams evaluate candidates and understand employees. On the HR side, it supports onboarding workflows, employee data collection, and feedback systems. Unlike full payroll suites, HiPeople does not run payroll directly, but it complements payroll software by ensuring clean employee data and smoother transitions from hiring to pay.

Ease of Use: The platform is designed to be straightforward, with guided workflows for setting up checks and collecting feedback. Most small teams can start using it quickly without much training. Since it focuses on fewer core functions, it feels lighter and simpler than large all-in-one HR systems.

Price: HiPeople pricing in the US is subscription-based and tiered by module or seat count, with costs varying by features like reference checks or analytics. Exact pricing requires direct contact or a sales quote. (Vendor pricing not publicly listed)

Best For:

  • Small businesses that want to improve hiring quality and onboarding
  • Teams that already use payroll software but need better people data
  • Companies focused on reference checks and employee feedback
  • Growing startups building structured HR processes
  • Businesses that prefer a simple, focused people platform over complex systems

5. Gusto

Gusto is a popular payroll and HR platform built specifically for small businesses that want an easy way to pay employees and manage basic people operations. It brings payroll, benefits, and simple HR tools together in one system, making it a go-to choice for startups and small teams.

Payroll & HR Features: Gusto offers full-service payroll with automatic tax calculations and filings, direct deposit, year-end forms, and support for hourly and salaried workers. On the HR side, it includes employee profiles, onboarding, offer letters, time-off tracking, and access to health benefits in many regions. Compared to broader platforms, Gusto focuses more on payroll and core HR rather than advanced analytics or complex workflows.

Ease of Use: Gusto is known for its friendly interface and guided setup. Running payroll usually takes just a few clicks, and most tasks feel straightforward even for first-time users. The platform is less complex than enterprise tools, which makes it approachable for small business owners without HR experience.

Price: Gusto offers three US plans: Simple at $49/month + $6 per person, Plus at $80/month + $12 per person, and Premium at $180/month + $22 per person, with transparent monthly billing and no long-term contracts.

Best For:

  • Small businesses that want simple, reliable payroll with minimal setup
  • Startups and first-time employers running payroll for the first time
  • Teams that need built-in tax filing and compliance support
  • Companies looking for basic HR and benefits in one tool
  • Owners who value ease of use over deep customization

6. Sage

Designed for businesses that value accuracy and compliance, Sage brings long-standing accounting expertise into its payroll and HR solutions. It supports small teams that want dependable payroll backed by strong financial controls and reporting.

Payroll & HR Features: Sage payroll handles automatic tax calculations, filings, payslips, and direct deposits, with strong support for local compliance in many regions. It integrates closely with Sage accounting products, which helps connect payroll with finances. On the HR side, features often include employee records, leave tracking, and basic reporting. Compared to modern all-in-one HR suites, Sage is more payroll and finance focused than people experience focused.

Ease of Use: The interface is practical and structured, especially for users familiar with accounting software. While it may feel less modern than newer tools, it offers clear workflows and reliable processing. Setup can take a bit more time, but once configured, day-to-day payroll runs are straightforward.

Price: Sage 50 Accounting starts at $124.42/month for Pro, $169.33/month for Premium, and $253.42/month for Quantum, billed monthly. Payroll is available as an add-on, making total costs higher depending on users and payroll needs.

Best For:

  • Small businesses that already use Sage accounting products
  • Teams that prioritize payroll accuracy and compliance
  • Companies with basic HR needs tied closely to finance
  • Owners comfortable with accounting-style software
  • Businesses operating in regions where Sage has strong local support

7. Paycom

Focused on automation, Paycom offers a single platform where employees and employers manage payroll and HR data together. It is built to reduce manual work by letting information flow directly from employee actions into payroll and compliance.

Payroll & HR Features: Paycom provides full-service payroll with automatic tax calculations, filings, direct deposit, and year-end reporting. Its HR tools cover employee records, time and attendance, talent management, onboarding, and performance tracking. A key difference is its employee-driven model, where staff update their own data, which feeds directly into payroll, reducing admin effort.

Ease of Use: The system is feature-rich, so it can feel more complex than simpler payroll tools. Once users are trained, workflows become efficient, especially for larger teams. The interface is modern, but setup often requires guidance.

Price: Paycom does not publicly list standard US pricing online. Costs are custom quoted based on company size, modules, and payroll needs, often positioned above basic payroll tools due to its comprehensive HR/payroll suite.

Best For:

  • Small to mid-sized businesses planning to scale quickly
  • Teams that want strong payroll automation tied to HR data
  • Companies that value employee self-service for accuracy
  • Businesses needing a wide range of HR features in one system
  • Owners willing to invest time in setup for long-term efficiency

8. Deel

Built with global teams in mind, Deel helps small businesses pay and manage employees and contractors across different countries while staying compliant with local laws.

Payroll & HR Features: Deel supports global payroll, contractor payments, tax compliance, and localized contracts in many countries. It also offers HR features like onboarding, document management, time off tracking, and employee records. Compared to traditional payroll tools, Deel stands out for international compliance rather than domestic payroll depth.

Ease of Use: Deel is designed to be intuitive, especially for managing international workers. Setting up new hires and payments is guided step by step, which makes global payroll less intimidating. For local-only teams, it may feel more than what is needed.

Price: Deel’s US pricing starts at $49 per contractor per month, $95 per employee per month for PEO, $29 per employee per month for Global Payroll, and $599 per employee per month for Employer of Record services, depending on hiring and payroll needs.

Best For:

  • Small businesses hiring internationally or remotely
  • Teams working with global contractors and employees
  • Companies needing built-in international compliance
  • Startups expanding into new countries
  • Owners who want simple global payroll without local entities

9. Zoho People

Part of the wider Zoho ecosystem, Zoho People focuses on helping small businesses manage employee information and HR processes while connecting smoothly with payroll through Zoho’s finance tools.

Payroll & HR Features: Zoho People offers strong HR features like employee records, leave and attendance tracking, onboarding, performance management, and workflows. Payroll is handled through integration with Zoho Payroll in supported regions, allowing tax calculations, direct deposits, and compliance within the same ecosystem. Compared to payroll-first tools, Zoho People leans more toward HR management with payroll as a connected module.

Ease of Use: The interface is clean and flexible, especially for teams already using Zoho apps. There are many customization options, which is great for tailored workflows but can take time to set up. Once configured, daily tasks are smooth and consistent.

Price: Zoho People starts at $1.25 per user per month for Essential HR, $2 for Professional, $3 for Premium, and $4.50 for Enterprise when billed annually, making it one of the most affordable HR options for small teams.

Best For:

  • Small businesses already using Zoho products
  • Teams that want customizable HR workflows
  • Companies needing HR-first tools with payroll integration
  • Budget-conscious businesses looking for scalable software
  • Growing teams that want everything in one ecosystem

10. HR Cloud

With a strong focus on employee experience, HR Cloud helps small businesses bring together onboarding, engagement, HR management, and payroll connections in one people-centered platform.

Payroll & HR Features: HR Cloud provides tools for onboarding, employee directories, document management, time off tracking, and engagement features. Payroll is supported through integrations with popular payroll providers rather than being fully native. This makes it different from payroll-first systems, as it emphasizes HR experience while still fitting into existing payroll setups.

Ease of Use: HR Cloud is designed to be user-friendly, especially for employees. Navigation is simple, and onboarding workflows are easy to follow. Admin setup is manageable, though integrations may require some initial configuration.

Price: HR Cloud offers tiered plans with transparent monthly rates for HR essentials, onboarding, and employee management. Exact pricing varies by chosen package and features, and payroll integrations may add costs, with detailed quotes available upon request from HR Cloud’s website.

Best For:

  • Small businesses focused on onboarding and engagement
  • Teams that already use a payroll system and want better HR tools
  • Companies that value employee experience and communication
  • Growing teams building structured HR processes
  • Owners who want HR flexibility with payroll integrations

Quick Comparison of the Best Payroll Software for Small Businesses

ToolPayroll StrengthHR FeaturesEase of UseBest Fit
RipplingExcellent full payroll with compliance & global supportStrong HR + benefits + onboardingModerate (feature-rich)All-in-one payroll + HR
BambooHRReliable payroll with tax filing (mainly US)Excellent core HR & time-offEasyHR-centric small teams
PayrunBasic payroll linked with HRGood HR, attendance & hiringVery easySmall/ growing businesses
HiPeopleNo native payroll (complements payroll)Strong hiring & people insightsVery easyHiring/ people data focus
GustoFull-service payroll + taxesGood core HR & benefitsVery easySimple payroll needs
SageStrong payroll + accounting tiesBasic HRModeratePayroll + finance focus
PaycomStrong automated payrollComprehensive HRModerate-advancedScaling teams
DeelGlobal payroll & complianceHR basicsEasyRemote/ international teams
Zoho PeoplePayroll via Zoho Payroll integrationFlexible HR workflowsModerateZoho ecosystem users
HR CloudPayroll via integrationsGood onboarding & engagementEasyHR experience-oriented

When Payrun Makes the Most Sense for Your Small Business

Choosing payroll software is about finding the right fit for how your team works today and how it will grow tomorrow. Payrun stands out for small businesses that want simple payroll tied closely with everyday HR without adding complexity.

Ideal for small and growing teams that need simplicity

Payrun works best for businesses that are just starting to build structured people operations. If you have a small team and want to move away from spreadsheets or manual tracking, Payrun gives you an easy way to centralize employee records, attendance, and payroll-related data. You do not need a dedicated HR person to use it. The system is designed so owners and managers can handle core tasks themselves without feeling overwhelmed by features they may never use.

Great if attendance and leave drive your payroll

For many small businesses, payroll accuracy depends on hours worked, shifts, and leave. Payrun shines when time tracking and leave management are part of daily operations. Since attendance and employee data live in the same system, it becomes easier to prepare payroll with fewer mistakes. This is especially useful for teams with hourly staff, rotating shifts, or frequent leave requests, where manual calculations can quickly turn into errors.

A good fit for budget conscious businesses

Cost matters a lot when you are running a small business. Payrun’s flexible pricing makes it attractive for teams that want predictable monthly costs and the option to start small. With plans that scale as you add users or job listings, you only pay more when your business grows. This makes Payrun a practical choice for startups and SMBs that need solid HR and payroll support without investing in expensive enterprise tools.

Helpful when you want HR and payroll in one place

If you prefer not to juggle separate tools for employee records, hiring, leave, and payroll, Payrun offers a more unified experience. It brings together core HR workflows with payroll-related processes so information flows smoothly between them. This reduces duplicate data entry and helps keep everything consistent. For small teams, having one system for people management can save time and make everyday admin feel more organized.

Right for teams that value ease of use over heavy features

Payrun is a strong option when ease of use matters more than having every advanced feature available. It focuses on doing the basics well, with a clean interface and straightforward workflows. If your business does not need complex benefits administration, deep analytics, or global payroll, but instead wants a tool that is quick to learn and simple to run, Payrun fits that mindset well. It lets you stay focused on running your business rather than managing software.

FAQs

What is payroll software and why do small businesses need it?

Payroll software helps businesses calculate wages, deduct taxes, and pay employees accurately. For small businesses, it saves time, reduces errors, and keeps payroll compliant without needing a full-time payroll specialist.

How much does payroll software usually cost for small businesses?

Pricing varies by provider and features. Many tools charge a monthly base fee plus a per-employee cost, while others offer flat plans. Small businesses can often start with affordable options and scale as they grow.

Can payroll software handle taxes automatically?

Most modern payroll systems calculate payroll taxes automatically, and many also file them with tax authorities. This reduces the risk of mistakes and helps businesses stay compliant with changing rules.

Is payroll software secure for employee data?

Yes, reputable providers use encryption, secure servers, and access controls to protect sensitive information like salaries and personal details. Choosing a trusted vendor is key for data safety.

Can payroll software support both hourly and salaried employees?

Most payroll tools are built to handle hourly, salaried, and contract workers, including overtime, bonuses, and deductions. This flexibility is useful for small teams with mixed pay structures.

Do I still need an accountant if I use payroll software?

Payroll software simplifies pay runs and tax tasks, but many small businesses still use accountants for broader financial planning, reporting, and compliance, especially as operations grow.

How do I choose the right payroll software for my business?

Start by looking at your team size, budget, and payroll complexity. Consider whether you need HR features, try free trials, and focus on tools that feel easy to use for your day-to-day work.

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