How to Choose Payroll Software in 2026: A Buyer’s Checklist and Scorecard

The short answer: choose payroll software by checking five things in this order: that it files every federal, state and local payroll tax you owe; that it handles your workforce (multiple states, contractors, hourly staff); what it costs at your real headcount; whether it connects to your time tracking and accounting; and what support you get when a filing goes wrong. Most small-business plans that publish prices charge a base fee of $35 to $50 a month plus $6 to $7 per person on the entry tier, so a 10-person team pays roughly $95 to $120 a month. Use the scorecard below to compare two or three providers side by side before you sign.

Every price in this guide is vendor-published, checked September 2026, in US dollars. Where a provider only quotes on request, we say so. If you want a ranked list of providers, see our best payroll software for small business comparison of 10 tools; this guide is about how to make the decision.

How to choose payroll software: the 8-step checklist

Have your numbers ready: headcount, the states where people work, how many contractors you pay, and the accounting and time tools you use. By step 8 you should have two or three providers left to demo.

1. Confirm full tax filing and compliance coverage

This matters most, because filing mistakes cost more than any subscription. Full-service payroll means the provider calculates, pays and files federal withholding, Social Security and Medicare, FUTA, state income tax, state unemployment (SUI) and local taxes, then produces W-2s and 1099s.

• Ask whether the entry plan files taxes or only calculates them, and name any local taxes you owe.
• Check whether new-hire reporting and garnishment payments are included (ADP lists them on Enhanced RUN, not Essential).
• Ask who pays if the provider makes an error. QuickBooks Workforce Elite advertises tax penalty protection up to $25,000 a year (terms apply).

2. Check multi-state payroll

One employee in a second state, even a remote hire, means you need multi-state payroll. Gusto lists single-state payroll on Simple and multi-state from Plus. OnPay says you can pay workers in as many states as you need on its standard plan. Square Payroll lists multistate payroll as a feature. Also ask whether the provider registers you with a new state’s tax agencies; Gusto sells state tax registration as an add-on with pricing that varies by state.

3. Decide how you pay contractors

Check that 1099-NEC forms are filed for you and whether contractors count toward the per-person fee. If you only pay contractors, a contractor-only plan costs far less: Gusto’s Contractor Only plan is $35 a month (discounted to $0 for the first six months when we checked) plus $6 per person, and Square’s contractor-only payroll is $6 a month per person paid with no base fee.

4. Decide how much benefits and HR you need

Buy the HR you will use in the next 12 to 24 months. Check whether health insurance, 401(k) and workers’ comp are administered in the product or through a partner, and what each costs. A small team that only needs pay, tax filing and basic PTO will overpay on an HR-heavy tier.

5. Check time tracking and scheduling integration

For hourly teams, time tracking is where payroll errors start. Approved hours should flow into payroll with no retyping:

• Included: Gusto Plus includes time tracking; QuickBooks includes time tracking with Workforce Premium and Elite; Square Payroll imports timecards from Square POS or the Square Team app and lists scheduling features.
• Add-on: OnPay lists time tracking at $15 base plus $4 per worker; Gusto sells Time & Attendance Plus for $6 a month per person.
• Integration: if you already use a scheduling tool, confirm hours sync automatically.

Of the tools in this guide, Square Payroll and Paychex list scheduling on their own pricing pages.

6. Check accounting integration

Payroll should post wages, taxes and deductions to your ledger automatically. QuickBooks Workforce Payroll is built into QuickBooks Online; most other providers connect to QuickBooks Online and Xero. Ask whether the sync maps to your chart of accounts and runs after every pay run.

7. Understand the pricing model

Most small-business payroll is a monthly base fee plus a per-person fee; some providers only quote. The base fee dominates at small headcounts, the per-person fee as you grow. Ask:

• Is the per-person fee charged for everyone on file, or only for people paid that month? Square charges per person paid, which helps seasonal businesses.
• Is the headline price a promotion? QuickBooks was showing 50% off for three months and ADP three months free when we checked.
• What costs extra: year-end forms, next-day or same-day pay, state registration, off-cycle runs, setup?

Our guide to how much payroll costs breaks down per-employee pricing across 13 providers, and free payroll software covers when a free option is realistic.

8. Test support and switching

Ask how and when you reach support, and whether you get a named contact: Gusto includes a dedicated service advisor on Premium, and Paychex lists a payroll specialist on its higher packages. If you switch mid-year, ask who migrates year-to-date history, since the new provider needs it for correct W-2s. Our step-by-step guide on how to switch payroll providers covers timing and data.

Payroll software buyer scorecard

Score each finalist from 1 (poor) to 5 (excellent) per criterion, multiply by the weight, add the results and divide by 5 for a score out of 100. Adjust weights first: a restaurant with hourly staff might raise time tracking to 20, a salaried team drop it to 5.

Criterion	Weight	What good looks like	Questions to ask the vendor
Tax filing and compliance	25	Federal, state and local taxes calculated, paid and filed; W-2s and 1099s included; new-hire reporting and garnishments handled	Which taxes do you file on the plan I am quoted? Who pays penalties if you make a filing error? Do you file local taxes in my cities?
Workforce fit	15	Multi-state included on your plan; contractors and hourly staff supported; overtime and multiple pay rates handled	Is multi-state included? Do contractors count toward the per-person fee? Can one employee have several pay rates?
Total cost at your headcount	15	Published or written quote; cost at today’s and next year’s headcount known; no surprise fees	What is the all-in monthly cost at my headcount after any promotion ends? What costs extra at year end?
Time tracking and scheduling	10	Approved hours flow into payroll automatically; scheduling in the same tool or a direct integration	Is time tracking included or an add-on, and at what price? Does it sync with my scheduling tool?
Accounting integration	10	Automatic journal entries to your accounting software, mapped to your chart of accounts	Which accounting tools do you sync with? Does the sync run after every payroll?
Benefits and HR	10	The benefits and HR tools you need in the next two years, priced clearly	Which benefits are administered in-product? What does health insurance or 401(k) administration cost?
Ease of use and setup	10	You can run a test payroll in the demo; employee self-service for pay stubs and tax forms; migration help	Who sets up my account and migrates year-to-date data? Can I run a sample payroll during the trial?
Support	5	Phone and chat support in your working hours; named contact on higher tiers	What are support hours? Do I get a dedicated contact on this plan?

Example: scores of 5, 4, 3, 2, 5, 3, 4 and 4 down the table give 125 + 60 + 45 + 20 + 50 + 30 + 40 + 20 = 390, or 78 out of 100. Treat scores within five points as a tie and decide on price or the demo.

How the main payroll providers compare

A compact view of the providers most small businesses compare. For the full ranked list with more tools, see Best Payroll Software for Small Business in 2026.

Tool	Best for	Starting price (vendor-published)	Free plan / trial
Gusto	Small teams wanting payroll plus light HR	Simple: $49/month + $6 per person	No free plan; Contractor Only base fee discounted to $0 for 6 months
QuickBooks Workforce Payroll	Businesses already on QuickBooks Online	Payroll: $50/month + $7 per employee	No free plan; 50% off for 3 months promotion when checked
RUN Powered by ADP	Businesses that want to grow into ADP’s HR tiers	Quote-based (4 packages)	No free plan; 3 months free payroll promotion when checked
Paychex Flex	Businesses wanting a payroll specialist and compliance services	Quote-based (Basic, Foundations, Advanced, Complete)	No; free quote
OnPay	Multi-state teams on a budget	$49/month + $6 per worker	No free plan; one month free
Rippling	Companies wanting payroll, HR, IT and spend in one system	Quote-based, billed per employee per month	No; free quote
Square Payroll	Square sellers with hourly and tipped staff	$35/month + $6 per person paid	No free plan; contractor-only $6 per person paid, no base fee

Compare all 120 tools in the payroll software category on Spotsaas, including buyer ratings and reviews on each product page.

Gusto

Best for: small businesses that want payroll, basic HR and benefits in one simple product. Pricing: Simple $49 a month plus $6 per person (single-state payroll); Plus $80 plus $12 per person (multi-state, next-day pay, time tracking); Premium $180 plus $22 per person (dedicated service advisor, HR experts). Limitations: multi-state payroll and time tracking start on Plus, so one out-of-state hire doubles the per-person fee. Full detail in our Gusto pricing guide and on the Gusto product page.

QuickBooks Workforce Payroll

Best for: businesses already using QuickBooks Online that want payroll inside their accounting. Pricing: on the payroll-only pricing page, Workforce Payroll is $50 a month plus $7 per employee, Workforce Premium $88 plus $13, and Workforce Elite $134 plus $17; QuickBooks was advertising 50% off for three months. Limitations: time tracking comes only with Premium and Elite, and it is a weaker fit if your books are in Xero or another ledger. See the QuickBooks Payroll product page and Gusto vs QuickBooks Payroll.

RUN Powered by ADP

Best for: small businesses (ADP positions RUN for 1 to 49 employees) that want a large provider and the option to add HR support. Pricing: quote-based across four packages: Essential Payroll, Enhanced Payroll (adds State Unemployment Insurance and garnishment payment services), Complete Payroll & HR+ and HR Pro Payroll & HR. ADP was offering three months of free payroll. Limitations: no published prices, and some compliance services sit on Enhanced, not Essential. See RUN Powered by ADP and our Gusto vs ADP comparison.

Paychex Flex

Best for: businesses wanting a payroll specialist and compliance services such as labor law posters and SUI management. Pricing: quote-based across Basic, Foundations, Advanced and Complete packages, with separate options for 1 to 19, 20 to 99 and 100+ employees. Limitations: no published prices, and packages differ by company size, so compare quotes line by line. See Paychex Flex pricing and ADP vs Paychex.

OnPay

Best for: small teams paying people in several states. Pricing: $49 a month plus $6 per worker, with year-end forms, all tax filings and any number of states included; time tracking is an add-on at $15 base plus $4 per worker; one month free. Limitations: HR and time tracking are paid add-ons, so the all-in cost rises for hourly teams that need both. See the OnPay product page.

Rippling

Best for: growing companies that want payroll, HR, device management and spend management on one employee record. Pricing: quote-based. Rippling’s pricing page says most products are billed per employee per month and some include a monthly base fee. Limitations: each module adds cost, so the quote depends on scope; a small team needing only payroll is buying more system than it needs. See the Rippling product page and our guide to reading a Rippling quote.

Square Payroll

Best for: restaurants, retail and service businesses already on Square with hourly and tipped staff. Pricing: $35 a month plus $6 per person paid; contractor-only payroll is $6 a month per person paid; paper W-2 or 1099 mailing is $3 per form per year if you opt in. Square lists multistate payroll, free seasonal inactivity, timecard import from Square POS and the Square Team app, scheduling and tip tracking. Limitations: the time and tip features depend on using Square’s own POS and team apps. See Square Payroll pricing.

Patriot Software is a common low-cost option but is not in this comparison: its pricing page blocked our check in September 2026, so we could not confirm current prices.

Is ADP or QuickBooks better for payroll?

QuickBooks is better if your books are in QuickBooks Online and you want published prices; ADP is better if you want room to grow into HR support and larger-company payroll. QuickBooks Workforce Payroll starts at $50 a month plus $7 per employee and posts straight to your ledger. RUN Powered by ADP is quote-based, and ADP sells separate products for 50 to 999 and 1,000+ employees.

Check two details in a demo: QuickBooks includes time tracking only on Premium and Elite, and ADP puts state unemployment insurance and garnishment payments on Enhanced, not Essential. See the side-by-side QuickBooks Payroll vs RUN Powered by ADP comparison.

Which payroll software is easiest to use?

The easiest is the one with the fewest steps for your pay run, so test it: in a demo, time how long it takes to add an employee, enter hours, run payroll and find the tax report. Gusto, OnPay, Square Payroll and QuickBooks are built for owners running payroll themselves; ADP and Paychex pair software with specialists for owners who want to hand the work off. For the highest-reviewed options, compare buyer ratings on the Spotsaas product pages above, weighting recent reviews from businesses your size.

What are the four types of payroll?

The four common ways to run payroll are manual payroll, self-service payroll software, a full-service payroll provider and a PEO. Manual payroll means doing the math and filings yourself. Self-service software calculates pay but may leave filings to you. Full-service providers (all seven above) calculate, pay and file taxes for you. A professional employer organization (PEO) becomes your co-employer and runs payroll, benefits and HR compliance under its own tax ID. For a primer, read what payroll software is and how it works.

Frequently asked questions