Best Payroll Software in 2026
Pay your team accurately and on time, every time
TL;DR
Gusto is the best choice for most small businesses—easy to use with excellent employee experience. Rippling handles complex needs and international teams. If you're purely domestic with simple payroll, Paychex or ADP work fine. Avoid trying to do payroll manually—compliance risks are too high.
Payroll seems simple until you factor in taxes, benefits, compliance, and all the ways things can go wrong. Getting payroll wrong hurts employees, creates legal liability, and damages trust.
Modern payroll software handles the complexity while being surprisingly easy to use. Here's how to choose.
What Payroll Software Does
Payroll software calculates wages, withholds taxes, handles direct deposits, and files tax forms with government agencies. Modern platforms add benefits administration, time tracking, and HR features. The best ones feel effortless while handling enormous regulatory complexity behind the scenes.
Why Good Payroll Matters
Payroll errors hurt people—late checks, wrong amounts, and tax issues cause real stress. Compliance failures result in penalties. Good payroll software prevents both while saving hours of manual work. As you grow, the complexity multiplies; starting with the right system scales better than switching later.
Key Features to Look For
Automated Tax Filing
essentialCalculate and file federal, state, local taxes
Direct Deposit
essentialPay employees electronically
Tax Form Generation
essentialW-2s, 1099s, and other required forms
Benefits Administration
importantHandle health insurance, 401(k), etc.
Time & Attendance
importantTrack hours for payroll calculation
Employee Self-Service
importantLet employees access pay stubs, update info
Multi-State Support
importantHandle employees in different states
International Payroll
nice-to-havePay employees in other countries
Contractor Payments
nice-to-haveHandle 1099 contractors easily
How to Choose
- Team size—costs scale with employee count
- Geographic complexity—multi-state or international?
- Benefits needs—do you need health insurance, 401(k) administration?
- Existing HR system—integration or all-in-one?
- Growth trajectory—will the platform scale with you?
Pricing Overview
Payroll costs typically include base fee plus per-employee charge.
Small Business
$40-$80/month + $5-12/employee
Teams under 50 employees
Mid-Market
$100-$300/month + $8-15/employee
Growing companies with complex needs
Enterprise
Custom pricing
Large organizations, custom requirements
Top Picks
Based on features, user feedback, and value for money.
Gusto
Top PickThe small business payroll leader
Best for: Small to medium businesses wanting ease of use and great employee experience
Pros
- Incredibly easy to use
- Excellent employee self-service
- Good benefits options
- Helpful customer support
Cons
- Gets expensive as you grow
- Limited international support
- Some advanced features lack depth
Rippling
HR and IT platform with powerful payroll
Best for: Growing companies wanting unified HR, IT, and payroll
Pros
- Handles international payroll
- Unified with HR and IT management
- Powerful automation
- Scales well
Cons
- More complex than Gusto
- Higher price point
- Lots of features to learn
Paychex
Established provider with full-service options
Best for: Companies wanting traditional full-service payroll with support
Pros
- Long track record
- Full-service options available
- Good compliance support
- Enterprise capabilities
Cons
- Dated interface
- Can be expensive
- Less modern than newer options
- Sales-heavy approach
Common Mistakes to Avoid
- Doing payroll manually—compliance risks are too high
- Choosing based on price alone—errors cost more than the savings
- Ignoring benefits integration—separate systems create friction
- Not planning for growth—switching payroll providers is painful
- Underestimating multi-state complexity
Expert Tips
- Start with Gusto unless you have specific needs it can't handle
- Consider Rippling if international or if you want HR/IT unified
- Benefits administration in the same platform simplifies life significantly
- Employee self-service matters—it saves admin time and employees prefer it
- Run payroll a few days early initially—you can adjust once you're confident
The Bottom Line
Gusto is the right choice for most small businesses—it's easy, employee-friendly, and handles complexity you don't have to think about. Rippling makes sense for growing companies with international needs or who want unified HR/IT/payroll. Traditional providers like ADP and Paychex work but feel dated compared to modern options.
Frequently Asked Questions
Can I do payroll myself without software?
Technically yes, but it's risky and time-consuming. Tax calculations, filings, and compliance requirements are complex. The cost of payroll software is far less than the cost of penalties or professional cleanup.
Gusto vs. Rippling—which should I choose?
Gusto for simplicity and best small business experience. Rippling for international payroll, if you want HR/IT unified, or if you're planning rapid growth. Gusto is usually the right start.
How much does payroll software cost?
Typically $40-100/month base plus $5-15 per employee. For a 10-person company, expect $100-250/month. Costs increase with benefits administration and advanced features.
Related Guides
Ready to Choose?
Compare features, read user reviews, and find the perfect tool for your needs.