Best SMB Payroll Software in 2026: Top Tools for Small Businesses

Running payroll shouldn't eat your Sunday nights. The best small business payroll software handles the math, files your taxes, and keeps you compliant—so you can focus on running your team instead of managing spreadsheets.

Whether you're paying hourly workers with fluctuating schedules or managing a small office team, the right payroll tool eliminates errors, saves hours every pay period, and gives you peace of mind. This guide compares seven payroll platforms built for small businesses, breaking down what each does best and who they're built for.

The best SMB payroll software at a glance

If you need the quick answer, here's what we found after comparing seven payroll platforms for small businesses:

• Best overall for hourly teams: Homebase combines scheduling, time tracking, and payroll in one app. Perfect for shift-based businesses like restaurants, retail, and services. Payroll is an add-on at $39/month plus $6 per employee paid per month.
• Best for mixed workforces: Gusto offers strong benefits administration and works well for teams with both salaried and hourly employees. Starting at $49/month plus $6 per person.
• Best for established credibility: ADP Run brings enterprise-level compliance to growing small businesses with custom pricing.
• Best for QuickBooks users: QuickBooks Payroll integrates seamlessly if you already run accounting in QuickBooks. Core plan starts at $50/month plus $6.50 per employee (often discounted to $25/month promotional pricing).
• Best budget option: OnPay delivers straightforward payroll with unlimited runs at $49/month plus $6 per person.
• Best for tech-forward teams: Rippling combines payroll with IT management and app provisioning. Pricing is quote-based with a modular structure.
• Best for Square merchants: Square Payroll works natively with Square POS for retail and restaurant operations at $35/month plus $6 per person.

Quick comparison of the best SMB payroll software

Choosing payroll software means balancing features, pricing, and how well the tool fits your specific operation. 

We evaluated seven SMB payroll platforms based on real small-business needs: payroll accuracy, tax compliance, time-tracking integration, pricing transparency, and usability for both owners and employees. Here's how the seven platforms stack up:

• Homebase is best for hourly teams with shifts. Payroll is an add-on at $39/month plus $6 per employee paid (separate from your scheduling and time tracking plan fee). The key strength is scheduling, time tracking, and payroll in one app. No data transfer between systems.
• Gusto works best for mixed salaried and hourly teams, starting at $49/month plus $6 per person. Strong benefits administration and contractor payments make it popular with accountants.
• ADP Run serves growing businesses with custom pricing. Enterprise compliance reputation and multi-state support are the main draws.
• QuickBooks Payroll is built for QuickBooks users. The Core plan starts at $50/month plus $6.50 per employee, though promotional pricing often discounts the base fee to $25/month. Premium and Elite tiers offer same-day direct deposit and enhanced multi-state tax handling.
• OnPay targets budget-conscious SMBs at $49/month plus $6 per person. Unlimited payroll runs and simple pricing with no hidden fees.
• Rippling serves tech-forward companies with quote-based pricing. The platform typically starts at $8 per employee for the core system, with payroll as an added module. IT management and device provisioning extend beyond traditional payroll.
• Square Payroll is designed for Square POS users at $35/month plus $6 per person. Native Square integration connects labor costs directly to sales data within the Square ecosystem

How we evaluated the best SMB payroll software

We compared these payroll tools based on what actually matters when you're running a small business. These aren’t just feature lists, we also looked at whether the software solves real problems without creating new ones.

What matters most for small business payroll

• Payroll accuracy without manual work. The best payroll software calculates hours, wages, taxes, and deductions automatically. You shouldn't need a calculator or worry about underpaying your team.
• Tax filing you can trust. Federal, state, and local tax requirements change constantly. The right tool handles filings and deadlines so you're not Googling tax forms at midnight.
• Ease of use for everyone. If your managers can't figure out how to run payroll or your team can't access their pay stubs, the software creates more problems than it solves.
• Transparent pricing. Hidden fees and surprise charges destroy your budget. The best providers show exactly what you'll pay before you commit.

How we compared payroll tools

We evaluated each platform using consistent criteria: payroll automation capabilities, tax compliance support, time tracking integration, pricing structure, user experience for both owners and employees, and how well each tool serves specific business models. No payroll software is "best for everyone.” A tool built for tech startups won't work for a three-location coffee shop.

Reviews of the best SMB payroll software

Each platform brings specific strengths to different business models. Here's what makes each one stand out and where they work best.

Homebase: Best payroll software for hourly teams

What it's best for: Shift-based businesses running on hourly workers, like restaurants, retail stores, service businesses, and any operation where scheduling and time tracking drive payroll accuracy.

Homebase connects scheduling, time tracking, and payroll in a single system built specifically for hourly operations. Your team clocks in through the app, hours flow automatically to payroll, and you run payday from your phone. The platform handles multiple wage rates for employees working different roles, tracks tips and manages distribution, and includes configurable break and compliance settings based on your state's requirements.

Pros:

• Scheduling and time tracking built into payroll. No integration headaches or data transfer
• Automated federal, state, and local tax filing (coverage depends on jurisdiction)
• Mobile-first experience that hourly workers actually use
• Labor cost tracking tied to actual shift data
• Multiple location support with payroll managed in one system

Cons:

• Less robust benefits administration than platforms focused on salaried workforces
• Newer to payroll compared to decades-old providers

Gusto: Best payroll software for mixed workforces

What it's best for: Small businesses with both salaried and hourly employees who want strong benefits administration alongside payroll.

Gusto delivers full-service payroll with particularly strong benefits management. You can offer health insurance, 401(k) plans, and other benefits through Gusto's platform, making it easier to compete for talent. The software handles contractor payments well, supports PTO tracking, and integrates with many accounting systems.

Pros:

• Comprehensive benefits administration included
• Strong contractor payment features
• Accountant-friendly with good third-party integrations
• Clean, modern interface
• Automated tax filing and compliance support

Cons:

• More expensive than simpler payroll-only tools
• Time tracking feels like an add-on rather than core functionality
• Less focused on shift-based hourly operations

ADP Run: Best payroll software for growing businesses

What it's best for: Growing small businesses that want the compliance reputation and scalability of an enterprise provider without enterprise complexity.

ADP Run brings decades of payroll experience to small business operations. The platform handles complex payroll scenarios—multi-state compliance, diverse wage structures, detailed reporting—with the backing of a company that processes payroll for millions of workers. As your business grows from 10 to 50 to 100+ employees, ADP scales with you without requiring a platform switch.

Pros:

• Enterprise-level compliance and tax filing accuracy
• Scales from small business to mid-market
• Strong multi-state and multi-location support
• Extensive reporting capabilities
• Established provider with deep compliance expertise

Cons:

• Higher cost than simpler SMB-focused tools
• Implementation can take longer
• Interface feels more corporate than modern SMB tools
• Customer service quality varies by account size

QuickBooks Payroll: Best payroll software for QuickBooks users

What it's best for: Small businesses already running accounting in QuickBooks who want native payroll integration.

If QuickBooks handles your books, QuickBooks Payroll eliminates the friction of connecting separate systems. Payroll data flows directly into your accounting records, tax information syncs automatically, and you manage everything from the QuickBooks dashboard. The integration is seamless because it's the same company. No third-party connectors or data export headaches.

Pros:

• Perfect integration with QuickBooks accounting
• Familiar interface for existing QuickBooks users
• Automated federal and state tax filing (local tax handling and multi-state filings have plan-based rules)
• Same-day direct deposit available on Premium and Elite plans
• Good contractor payment features

Cons:

• Less competitive if you're not already using QuickBooks
• Time tracking functionality is basic
• Scheduling features are minimal to nonexistent
• Benefits administration is limited compared to dedicated HR platforms

OnPay: Best no-frills payroll for small teams

What it's best for: Very small businesses that need reliable payroll without complexity or hidden fees.

OnPay focuses on doing payroll well without trying to be an all-in-one HR platform. You get unlimited payroll runs for one flat monthly fee, which is helpful if you pay different teams on different schedules or need to run off-cycle bonuses without watching the meter. The interface is straightforward, implementation is quick, and pricing is transparent from the start.

Pros:

• Simple, predictable pricing with unlimited payroll runs
• Fast setup and onboarding
• Automated tax filing for all jurisdictions
• Clean, uncluttered interface
• Good customer support for a budget-friendly tool

Cons:

• Basic time tracking. Better as a payroll-only solution
• Limited benefits administration
• Fewer integrations than larger platforms
• Not built for complex multi-location operations

Rippling: Best payroll software for tech-forward companies

What it's best for: Tech-savvy businesses managing employees, devices, and software applications who want everything connected in one platform.

Rippling goes beyond payroll to manage IT, benefits, and HR in a unified system. When you hire someone, Rippling can provision their laptop, set up their email, enroll them in payroll, and grant access to the applications they need, all from one workflow. The platform excels at automation across systems, making it powerful for companies that value tight integration.

Pros:

• Comprehensive platform connecting payroll, IT, and benefits
• Powerful automation and workflow capabilities
• Strong app integration ecosystem
• Modern, intuitive interface
• Scales well for growing tech companies

Cons:

• Overbuilt for businesses that just need payroll
• Higher learning curve for simple payroll use cases
• More expensive than payroll-only solutions
• Less focused on shift-based hourly operations

Square Payroll: Best payroll software for Square POS users

What it's best for: Retail stores, restaurants, and service businesses already using Square for point-of-sale that want payroll connected to the same system.

Square Payroll integrates directly with Square POS, so your sales data, labor costs, and payroll calculations live in one ecosystem. The platform offers unlimited pay runs per month and lets you pay your team by check, direct deposit, or Cash App, all without exporting data or connecting third-party tools.

Pros:

• Native Square POS integration
• Labor cost reporting within the Square ecosystem
• Good tip management for tipped employees
• Mobile-friendly for retail and restaurant operations
• Same-day payment options

Cons:

• Limited value if you're not using Square POS
• Scheduling features are basic
• Benefits administration is minimal
• Smaller feature set than full-service payroll platforms

How to choose the right payroll software for your SMB

Start by mapping what your payroll actually involves. Do you pay hourly workers with fluctuating schedules, or mostly salaried employees with consistent paychecks? Do employees work in multiple states? Does your team include contractors alongside W-2 employees? Do you need to track and distribute tips? A coffee shop with 12 hourly baristas working variable shifts needs different features than a consulting firm with eight salaried employees.

Choose payroll software that automates the riskiest parts: automatic tax calculations for all jurisdictions where you operate, automated filing of federal and state tax forms, proper overtime calculations based on current regulations, and clear audit trails. The software should reduce your compliance risk, not just move manual work from spreadsheets to a different screen.

Look at pricing structures carefully. Some platforms charge per payroll run, others charge flat monthly fees regardless of how often you pay. Calculate your real monthly cost including base fees, per-person charges, and any add-ons you'll need for time tracking, benefits, or HR features. Sometimes paying slightly more for a platform that includes scheduling or time tracking eliminates the cost of separate tools and reduces errors from manual data transfer.

Payroll features small businesses should prioritize

The feature lists on payroll software websites all start looking the same. Focus on these capabilities that actually impact your daily operations and long-term compliance:

• Automated tax filing that handles federal, state, and local requirements without you having to track filing deadlines or mail forms
• Direct deposit with clear timelines so your team knows exactly when money hits their accounts
• Employee self-service where your team can view pay stubs, download W-2s, and update personal information without asking you
• Time tracking integration that flows hours directly into payroll, eliminating rekeying and reducing errors
• Multiple wage rates if employees work different roles or locations at different pay levels
• Payroll reports that show labor costs by department, location, or role so you can make informed staffing decisions
• Compliance record storage that keeps timecard and payroll records for the legally required period
• Mobile access for both you and your team, because payday doesn't wait until you're at your desk

Common payroll mistakes SMBs should avoid

Even the best payroll software can't fix poor decisions. Avoid these four mistakes that create expensive problems down the road:

• Misclassifying workers as independent contractors. The IRS looks closely at worker classification. Misclassifying employees as contractors to avoid payroll taxes can trigger back wages, penalties, and legal trouble. If you control when, where, and how someone works, they're probably an employee.
• Missing tax deadlines. Payroll taxes are due on strict schedules. Miss a deadline, and penalties stack up quickly. Automated payroll software handles filing schedules so you're not tracking dozens of federal, state, and local deadlines manually.
• Calculating hours manually. Rounding errors, forgotten overtime multipliers, and simple math mistakes add up. If you're still using spreadsheets or calculators to figure out weekly hours, you're creating risk every pay period.
• Running disconnected time tracking and payroll systems. When time clocks and payroll don't talk to each other, someone manually transfers hours every pay period. That person makes mistakes. Hours get rounded wrong. Overtime gets missed. Choose tools that integrate directly, or better yet, live in the same platform.

Frequently asked questions about SMB payroll software

What is the best SMB payroll software?

The best small business payroll software depends on your specific operation. Homebase works best for hourly teams with shifts. Gusto fits businesses with mixed workforces and benefits needs. QuickBooks Payroll makes sense if you already live in QuickBooks. OnPay serves budget-conscious small teams well. Choose based on your workforce type, complexity, and what other tools you already use.

How much does payroll software cost for small businesses?

Most small business payroll software costs $40-50 per month base fee plus $5-8 per employee. Expect to pay $100-150 monthly for a 10-person team. Some providers charge per payroll run, others offer unlimited runs. Watch for hidden fees like year-end tax forms, direct deposit, or state tax filing—these should be included, not add-ons.

Does payroll software handle taxes automatically?

Yes, most modern payroll software calculates, files, and pays federal, state, and local payroll taxes automatically. The software tracks tax deadlines, submits forms electronically, and withdraws tax payments from your account on schedule. You should never manually calculate payroll taxes or mail tax forms if you're using current payroll software.

Do very small teams need payroll software?

Yes. Even a three-person team benefits from automated tax calculations, direct deposit, and proper record-keeping. The cost of one payroll mistake—underpayment, missed tax deadline, or compliance penalty—exceeds the annual cost of payroll software. The time you save every pay period adds up to hours every month you can spend on your business instead of payroll math.

Final thoughts on choosing the best SMB payroll software

The best payroll software for your small business matches how your team actually works. If you run on hourly shifts with variable schedules, choose a platform where scheduling and time tracking feed directly into payroll. If benefits matter to your hiring strategy, prioritize tools with strong benefits administration. If you're already invested in specific accounting software, native integration might outweigh other features.

Don't choose payroll software based on the longest feature list, choose based on what eliminates your specific pain points (the Sunday night payroll dread, the tax filing anxiety, the time clock math errors, the compliance uncertainty).

Ready to simplify payroll for your hourly team? Homebase connects scheduling, time tracking, and payroll in one app built specifically for shift-based businesses. Your team clocks in, hours flow automatically to payroll, and you run payday from anywhere. Try Homebase free and see how payroll works when it's designed for how hourly teams actually operate.

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