Gusto
Full-service payroll with automatic tax filing and HR features
Gusto is the gold standard for small business payroll under 100 employees. It handles everything: payroll runs in minutes, taxes are calculated and filed automatically in all 50 states, W-2s and 1099s are generated at year-end, and new hire reporting is automated. The employee self-service portal eliminates HR paperwork.
✅ Pros
- Full-service: files all payroll taxes automatically
- Employee self-service portal
- Benefits administration (health, 401k, workers comp)
- New hire reporting automated
- Excellent customer support
❌ Cons
- More expensive than basic alternatives
- Some HR features cost extra
- Not ideal for 100+ employees (use ADP/Paychex)
Patriot Payroll
$17/month full-service payroll — lowest price in the market
Patriot offers full-service payroll (including tax filing) for $37/month base + $4/employee — about half the cost of Gusto. No frills, no extras, just reliable payroll and tax compliance. Perfect for businesses that want payroll handled without overpaying for HR features they don't need.
✅ Pros
- Lowest full-service price in market
- Includes all state and federal tax filing
- No long-term contracts
- Contractor 1099 payments included
- Good US-based customer support
❌ Cons
- No benefits administration
- Less polished interface than Gusto
- 4-day direct deposit on base plan
QuickBooks Payroll
Seamless integration if you already use QuickBooks accounting
If your business already runs on QuickBooks accounting, QB Payroll is the natural choice. Payroll data flows directly into your books with zero manual entry, and the same-day direct deposit is the fastest in the industry. The $45+/month Core plan handles most small businesses' full payroll needs.
✅ Pros
- Zero data entry if using QuickBooks
- Same-day direct deposit available
- 100% tax penalty guarantee
- Automatic W-2 filing
- HR support on Premium tier
❌ Cons
- Only makes sense if you use QuickBooks
- More expensive than Patriot
- Annual pricing can be confusing
ADP Run
Enterprise-grade payroll that scales from 5 to 5,000 employees
ADP is the world's largest payroll provider — 1 in 6 US workers is paid through ADP. For businesses expecting rapid growth, ADP Run's ability to scale from a handful of employees to thousands without switching systems is worth the higher price. Compliance expertise is unmatched.
✅ Pros
- Scales to any business size without switching
- Best compliance and legal protection
- Workers comp, benefits, HR all available
- Brand recognition helps with employee trust
❌ Cons
- Pricing not transparent — requires sales call
- More expensive than alternatives
- Implementation can be complex
Payroll tax penalties are brutal — don't DIY this
The IRS penalizes late payroll tax deposits at 2–15% of the unpaid amount. State penalties add up separately. A single missed deposit on $10,000 of payroll taxes can cost $1,500 in penalties. Full-service payroll software (with guaranteed tax filing) pays for itself in the first mistake it prevents.
Contractor vs. employee — get this right first
Misclassifying an employee as a contractor triggers massive penalties: back payroll taxes, interest, 40% of FICA taxes owed, 1.5% of wages, and potential lawsuits. If you control how and when someone works (not just what they produce), they're likely an employee. When in doubt, consult a CPA before issuing 1099s.
Quick Comparison: All Top Picks
| Software | Base Price | Per Employee | Auto Tax Filing | Direct Deposit |
|---|---|---|---|---|
| Gusto | $40/mo | $6 | Yes — all states | 2-day / next-day |
| Patriot | $37/mo | $4 | Yes — all states | 4-day (free) |
| QuickBooks Payroll | $45/mo | $6 | Yes | Same-day (Premium) |
| ADP Run | Custom | Custom | Yes | Next-day |
| Rippling | $8/user/mo | Included | Yes | Same-day |
Build a budget for your payroll costs
Use the budget planner to factor payroll software costs, employer FICA contributions, and benefits into your monthly business budget.