HR and Payroll Software: What It Does, What to Check, and 6 Tools for Small Businesses
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Payrun is our product. We list it in this guide alongside other tools. We have no affiliate deals with any vendor here. Prices come from each vendor's own pricing page, checked on 4 November 2026 (Gusto on 26 October 2026). Prices change, so check each link before you buy.
HR and payroll software keeps your employee records, time off, hours and pay in one system, so the numbers that decide someone's pay don't have to be copied from one tool to another. That's the main reason small businesses buy it.
But "HR and payroll software" covers very different products. Some are payroll services that file your taxes and add a few HR tools. Some are HR systems that calculate pay but leave tax filing to you or your accountant. Before you compare prices, it's worth knowing which of those two jobs you need done.
This guide explains what HR and payroll software does, the one question that matters most (who files your payroll taxes), when one combined tool beats two separate ones, and how six tools compare on price for a 10-, 25- and 50-person team.
What is HR and payroll software?
HR and payroll software is a single system that handles both sides of employing people:
- HR: employee records and documents, onboarding, time off, attendance and hours, approvals, and often hiring.
- Payroll: calculating gross pay, deductions and net pay each pay period, producing payslips, and keeping payroll records.
Because both sides share one employee record, a change in one place (a pay rise, a new hire, approved unpaid leave, extra hours) is already there when you run payroll. You don't re-key it, and you don't reconcile two lists at the end of the month.
You'll also see it called an HRIS with payroll, integrated HR and payroll software, an HR payroll system or all-in-one HR software. They mean broadly the same thing.
Payroll calculation vs payroll tax filing: the question to ask first
This is where products differ most, and where marketing language is least clear.
Job | What it means | Who usually does it |
|---|---|---|
Payroll calculation | Working out gross pay, deductions and net pay, and producing payslips and payroll reports | Any payroll-capable HR or payroll tool |
Paying employees | Sending net pay to employees' bank accounts | Payroll services, or you through your bank |
Payroll tax filing and deposits | In the US: depositing withheld and employer taxes and filing federal, state and local returns (Forms 941, 940, W-2 and state equivalents). In the UK: reporting to HMRC through RTI. | Full-service payroll providers, or your accountant |
Full-service payroll (Gusto, OnPay, Patriot Full Service, BambooHR's payroll add-on, Rippling) does all three in the US. HR-first tools such as Payrun calculate pay and keep payroll records, but don't file payroll taxes, so you pair them with an accountant or a filing service.
Neither is wrong. If you're a US employer without an accountant, you almost certainly want a tool that files for you. If an accountant already files for you, or you employ people outside the US, a tool that calculates pay and keeps HR and payroll records together may be enough.
What HR and payroll software should do
Use this as a checklist when you compare tools:
- One employee record with job title, department, pay, start date, status and documents.
- Time off with leave policies, accruals, balances and manager approvals, so approved unpaid leave reaches payroll. See our guide to employee leave tracking.
- Attendance and hours with timesheets or clock-in and approval before payroll, especially for hourly staff. See attendance management systems.
- Payroll runs with deductions, approvals, payslips and payroll reports.
- Tax filing, if you need it (see above): which countries and states, and whether multi-state filing costs extra.
- Roles and permissions, so managers see their team and only payroll admins see pay.
- Employee self-service, so staff can see payslips, request leave and update details themselves, ideally from a mobile app.
- Accounting integration, so payroll totals reach your books without manual entry.
- Exports, so you can hand records to an accountant or auditor, or leave the tool later.
Integrated HR and payroll vs separate tools
One integrated tool | HR software + separate payroll provider | |
|---|---|---|
Data entry | Once | Twice, or through an integration |
Leave and hours in pay | Flow straight into payroll | Exported or synced each pay period |
Cost | One subscription | Two subscriptions |
Depth | Each side may be lighter | Best-in-class on each side |
Switching later | Move everything at once | Replace one side at a time |
Best for | Small teams that want one place for people and pay | Teams with complex payroll (many states, unions, tips) or an HR tool they already like |
A common setup for small US businesses is HR records, leave and attendance in one tool and a full-service payroll provider for pay and taxes, connected by an integration. It's a good choice when your payroll is complicated. When it isn't, one integrated tool is usually simpler and cheaper.
6 HR and payroll tools for small businesses, compared
All prices in USD from each vendor's own pricing page. "Base + per person" means a monthly fee plus a fee for each person paid.
Tool | Starting price (source) | Payroll | Files US payroll taxes? | Free plan or trial | Best for |
|---|---|---|---|---|---|
Payrun (our product) | Free up to 5 users; payroll from Pro, $9.95/user/month billed annually | Calculation and payroll records on Pro and Ultimate | No | Free plan; 14-day trial, no card | Small teams that want HR, leave, attendance, hiring and payroll calculation in one tool |
Simple: $49/month + $6/person (checked 26 Oct 2026) | Full-service US payroll | Yes, federal, state and local | None listed | US small businesses that want payroll first | |
Payroll Essentials: $49/month + $6/worker; HR add-on +$15 + $2/worker | Full-service US payroll, all 50 states included | Yes, federal, state and local | First month free | US teams in several states, or that want benefits admin included | |
Full Service Payroll: $37/month + $5/worker; HR add-on +$6 + $2/employee | Full-service US payroll | Yes, on Full Service (Basic Payroll doesn't file) | 30-day free trial | The lowest-cost US payroll with basic HR | |
Core: $250/month flat up to 25 employees; $10–10.25/employee above 25. Payroll is a quoted add-on | Payroll add-on, US employees only | Yes, federal and state (add-on) | None listed; quote | US companies that want a full HRIS first | |
From $8/employee/month plus a monthly base fee; quote | US payroll, plus global payroll and EOR products | Yes (US payroll) | None listed; demo | Growing companies that want HR, IT and payroll on one system |
What a small team would pay per month
List prices only, before tax, discounts and introductory offers. HR plus payroll in each case. This is arithmetic, not a quote.
Tool and plan (source) | 10 people | 25 people | 50 people | Includes US tax filing? |
|---|---|---|---|---|
$99.50 | $248.75 | $497.50 | No | |
$109 | $199 | $349 | Yes (one state; Plus for multi-state) | |
$144 | $264 | $464 | Yes, all states | |
$113 | $218 | $393 | Yes (+$12/month per additional state) | |
$250 + payroll | $250 + payroll | ~$500–513 + payroll | Yes, with the payroll add-on | |
Quote | Quote | Quote | Yes |
What this shows:
- If you're a US employer and need taxes filed, Gusto, OnPay and Patriot cost about the same as Payrun Pro or less, and they file for you. Payrun only makes sense here if you value its wider HR tools enough to pay for filing separately.
- If an accountant already files your payroll taxes, or your team is outside the US, you're mainly paying for HR plus payroll calculation, and per-user pricing with a free plan for up to 5 users is cheaper to start.
- BambooHR's $250 flat fee is the main cost below 25 employees, before payroll is added.
Payrun
Payrun is an HR and payroll app for small businesses, made by Gain Solutions AS. It covers employee records and documents, leave policies with accruals and approvals, timesheets and attendance approval, hiring, expenses, projects and assets, with iOS and Android apps. On the Pro and Ultimate plans it calculates salaries and deductions and generates payroll. It lists a Xero integration for payroll and financial data, and sends notifications to Slack and Microsoft Teams.
- Price: free for up to 5 users; Starter $4.95, Pro $9.95 and Ultimate $14.95 per user per month billed annually ($8.25, $16.58 and $24.92 monthly). Starter covers up to 20 users, Pro up to 50, Ultimate unlimited.
- Trial and terms: 14-day trial of all features with no card, no minimum contract, 30-day money-back guarantee, free data migration.
- Limits: Payrun doesn't file payroll taxes (US or HMRC) and doesn't pay employees for you. Payroll is not on the Free or Starter plans. It doesn't offer benefits administration. It's a newer product without the long track record of the others here.
Want the detail on one competitor? See Payrun vs Gusto.
Gusto
Gusto is a US payroll platform with HR tools built around it. Simple is $49/month + $6 per person, Plus $80 + $12 and Premium $180 + $22. Gusto files federal, state and local payroll taxes. Simple covers one state; Plus adds multi-state payroll. A good fit when payroll is the main job and HR needs are light.
OnPay
OnPay's Payroll Essentials plan is $49/month + $6 per worker and includes full-service payroll with federal, state and local tax filings, multi-state payroll at no extra cost, year-end W-2s and 1099s, onboarding with eSignature for I-9 and W-4, document storage, role-based permissions, an employee mobile app and benefits administration. The HR add-on (+$15 base + $2 per worker) adds PTO requests and approvals, onboarding workflows, an org chart and equipment tracking. OnPay advertises the first month free.
Patriot Software
Patriot is the lowest-cost option here with tax filing. Full Service Payroll is $37/month + $5 per worker and files federal, state and local payroll taxes; each additional state is $12/month. Basic Payroll ($17 + $4) calculates pay but leaves tax filing to you. The HR add-on is $6/month + $2 per employee. There's a 30-day free trial.
BambooHR
BambooHR is an established HR system. Core costs $250/month flat for 25 employees or fewer, and from about $10 per employee per month above that; Pro and Elite cost more. Payroll is an add-on for US employees only, with federal and state tax filing, priced by quote. Best when HR depth (reporting, performance, compliance training) matters more than payroll cost. More options in our guide to BambooHR alternatives.
Rippling
Rippling combines HR, IT (devices and app access) and finance tools with US payroll, plus separate global payroll and employer-of-record products. Plans start at $8 per employee per month plus a monthly base fee, and you need a quote for the full price. It suits growing companies that expect to add several modules.
How to choose
- Decide who files payroll taxes. If no one does today and you're in the US, shortlist full-service payroll (Gusto, OnPay, Patriot Full Service, BambooHR's payroll add-on, Rippling).
- Count states and countries. Multi-state payroll is extra on some plans. Outside the US, check which countries a tool actually supports.
- List the HR jobs you do every week: leave, hours, onboarding, documents, hiring. Pick the tool that covers them without add-ons you'll never use.
- Work out the cost at your headcount in 12 months, not just today. Base fees matter more for small teams; per-person fees matter more as you grow.
- Check the accounting integration with the software your accountant uses.
- Trial it with real data: add a few employees, approve a leave request, and run a test payroll before you commit.
If you're moving from another system, our HRIS migration checklist covers what to export and check.
When you might not need HR and payroll software yet
With a handful of salaried staff in one state and an accountant who runs payroll, a spreadsheet for leave plus your accountant's payroll service can be enough. It stops working when more than one person manages leave or hours, when you hire hourly staff, or when you can't answer "who approved this, and when?" quickly. That's usually the point to move records into one system.
Related guides: payroll management system, HR software for small teams, cloud HRMS vs traditional HR, HR software pricing.
Written by the Payrun Team. Prices and features were checked on each vendor's own website on 4 November 2026 (Gusto on 26 October 2026). Payrun is our product; we have no affiliate relationship with any other vendor listed. This is general information, not tax or legal advice. If you spot an error, contact us and we'll correct it.
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