Best Payroll Companies of 2025

Payroll software and services help small and mid-sized U.S. businesses automate employee pay, handle taxes, and stay compliant. They manage wage calculations, direct deposits, payroll tax filing, and year-end forms like W-2s and 1099s.

Key features include automated payroll runs, accurate tax withholding, employee self-service portals, basic benefits administration, and compliance updates based on U.S. federal, state, and local laws. Most SMB-friendly plans cost $20 to $300 per month, depending on team size and features.

Look for integrations with popular U.S. accounting tools such as QuickBooks or Xero, plus simple HR add-ons for onboarding and time tracking. By automating payroll, SMBs reduce errors, stay compliant, save time, and improve overall efficiency and employee satisfaction.

OnPay Payroll is the best overall payrollsolution for small teams

• One low price: ~$40 base + $6 per employee

• Includes everything essential: Full-service payroll, all tax filings, W-2s/1099s, direct deposit, garnishments

• No hidden tiers or upsells

• Great small-business service and accuracy

• Easiest to use for non-HR founders

Gusto Payroll is the simplest and quickest solution for “set and forget” payroll automations

Pros

• Very clean UI

• Automatic payroll option

• Very good onboarding tools

Cons

• Costs more than OnPay

• More HR-oriented than needed for a tiny team

SurePayroll is hands-down the cheapest and yet still most reliable option

Pros

• Often the lowest price among major providers

• Solid accuracy and tax filing

• Simple for micro-businesses

Cons

• Outdated interface

• Add-on fees appear more often

Important Features for Payroll Software and Services

Automated Payroll Processes

• Reduces errors and saves time by minimizing manual data entry

• Supports automated calculations, recurring payroll runs, and off-cycle payrolls

• Helps ensure consistency when pay rates or hours change

Built-In Compliance & Tax Filing

• Automatically calculates, withholds, files, and pays federal, state, and local payroll taxes

• Generates and files W-2s and 1099s

• Ensures adherence to wage and hour rules (e.g., FLSA overtime regulations)

• Minimizes risk of penalties or filing errors

Fast & Reliable Direct Deposit

• Provides next-day or same-day direct deposit for timely employee payment

• Supports employees without bank accounts via pay cards

• Reduces payroll delays that can harm employee trust

Employee Self-Service Portal

• Allows employees to view pay stubs, tax forms, and personal info

• Usually includes a mobile app for easy access on the go

• May include features like earned wage access or digital wallets

Robust Payroll Reports & Analytics

• Generates detailed payroll summaries, tax reports, deduction reports, and garnishment tracking

• Supports audits, budgeting, and forecasting

• Provides visibility into payroll costs across time periods or teams

Roles, Permissions & Data Security

• Limits who can view, edit, or manage payroll data

• Offers role-based access for admins, managers, and accountants

• Helps protect sensitive information and maintain internal controls

Taxes & Compliance are Often Supported

Virtually all reputable payroll providers calculate, withhold, and file payroll taxes for small businesses. Different vendors vary in the depth and legal responsibility they take on.

• Basic compliance typically includes:
  
  ✔ automatic tax calculations
  
  ✔ filing federal, state, and local payroll taxes
  
  ✔ generating W-2s and 1099s

• Advanced compliance includes:
  
  ✔ taking on liability for tax-filing errors
  
  ✔ monitoring multi-state tax rules
  
  ✔ handling complex wage & hour compliance (e.g., FLSA)
  
  ✔ supporting industry-specific rules (restaurants, contractors, nonprofits)
  
  ✔ automated new-hire reporting
  
  ✔ garnishment and child support management