Best Payroll Software for Small Business: Top Picks
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Payroll is an essential part of every business, but it can be especially challenging for small businesses where every minute (and penny) counts.
If you are searching for the best payroll software for your small business, keep reading because this guide will show you the best payroll software in 2025 based on essential requirements like ease of use, features, pricing, and support.
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Top 5 Best Payroll Software Solutions
Now, let’s review the top 5 best payroll software platforms nowadays.
| Payroll software | Best For | Key Features | Pricing (Starting From) |
| Deel | Global teams & remote workforce | -Automated global payroll - Tax compliance - Localized payslips - Integrations (QuickBooks, BambooHR, Xero) | $29-$599/employee/month |
| Gusto | All-in-one payroll for US-based businesses | - Automatic tax filings - Health & retirement benefits - Time tracking, onboarding | $19.60-$72/employee/month |
| Lano | Freelancers & hybrid teams | - Multi-country payments - Local tax support - 50+ currencies | 3€-499€ /employee/month |
| Paylocity | Mid-sized teams with HR focus | - HR suite + payroll - Real-time analytics - Talent & labor management | Custom pricing(typically $20–$40/employee/month) |
| Remote | Compliance-first international hiring | - EOR in 80+ countries - Local tax & benefits mgmt - Self-service platform | $29-$599/employee/month |
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How We Chose the Best Payroll Software
To identify the best payroll software for small businesses, we followed a structured review process combining hands-on testing with analysis of real user feedback. Our goal was to measure not only advertised features, but also how well each platform performs in real-world conditions.
- Market Research: We surveyed the payroll software landscape, identifying 10+ widely used platforms that support both domestic and international payroll for small businesses.
- Feature Testing: Each tool was examined for core payroll features—such as direct deposit, tax calculation and filing, benefits management, time tracking, and employee self-service—to confirm reliability, ease of use, and accuracy.
- Integration: We tested compatibility with popular tools such as QuickBooks, BambooHR, and Slack, since seamless integration is critical for small business workflows.
- Pricing and Value: Beyond listed pricing, we assessed whether each platform delivered fair value at every tier, favoring transparent models with minimal hidden fees.
- Customer Support and Reviews: We examined customer feedback on platforms such as Reddit, Capterra, and Trustpilot. Positive user sentiment, AI customer support, and reliability under pressure were crucial factors during our testing.
1. Deel: Best for Global Teams
Deel is a standout choice for companies that manage remote and international workers. It allows businesses to hire, pay, and manage contractors or employees in over 150 countries without setting up local entities.
If you're a growing business with global ambitions, Deel is one of the best payroll services for small businesses.
Key Specs and Expert Insights
| Feature | Details | Expert Take |
| Supported Countries | 150+ | Excellent choice for small businesses with cross-border teams |
| Payroll Type | Global payroll, EOR, contractor management | Flexible enough to cover both employees and freelancers |
| Integrations | QuickBooks, Xero, BambooHR, Netsuite | Saves time by syncing payroll with accounting and HR systems |
| Benefits | Local tax compliance, localized payslips, country-specific benefits | Eliminates compliance headaches for business owners |
| Pricing | $29–$599 per employee/month | Pricier than some US-only tools but essential for global operations |
Pricing Tiers
- Deel EOR (Employer of Record): $599 per employee per month
- Deel Contractor Management: $49 per contractor per month
- Deel Contractor of Record: $325 per contractor per month
- Deel Global Payroll: $29 per employee per month
Small Business Scenario
Imagine a 12-person marketing agency in the UK that needs to hire freelance designers in Spain, developers in India, and a project manager in the US. Normally, this would involve setting up different legal entities and learning local labor laws. With Deel, all of this is managed under one dashboard, with transparent pricing per employee or contractor.
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2. Gusto: Best All-in-One Payroll for US-Based Businesses
Gusto Payroll is known for its user-friendly interface and full-featured payroll and HR platform. It’s ideal for small businesses looking for a reliable, all-in-one solution offering full-service payroll with automatic tax filings, employee benefits, onboarding tools, time tracking, and direct deposit.
Gusto is consistently ranked among the best payroll software for small businesses due to its simplicity and rich feature set. It’s best for US-based companies with both salaried and hourly employees.
Key Specs and Expert Insights
| Feature | Details | Expert Take |
| Best For | US-based businesses | Streamlined payroll and HR makes it easy for small teams |
| Core Features | Payroll, tax filings, health/retirement benefits, onboarding, time tracking | Everything a US SMB needs in one system |
| Integrations | QuickBooks, Xero, FreshBooks, time-tracking tools | Makes payroll easy to link with existing accounting software |
| Support | Email, chat, phone | Reliable for small businesses with limited HR resources |
| Pricing | $19.60–$72 per employee/month | Affordable entry-level pricing, scales as teams grow |
Pricing Tiers
- Simple Plan: $19.60/mo + $2.40/mo per person
- Plus Plan: $32/mo + $4.80/mo per person
- Premium Plan: $72/mo + $8.80/mo per person
All these plans include not only payroll services but also hiring and onboarding features such as onboarding checklists, document storage, custom document e-signing, etc.
Small Business Scenario
A 15-person bakery chain in California needs simple payroll, benefits enrollment, and onboarding. Gusto handles tax filings, staff pay schedules, and healthcare contributions in one dashboard, reducing the admin burden for the owner.
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3. Lano: Best for Freelancers and Hybrid Teams
Lano is designed for businesses managing freelancers, contractors, and employees all in one place. It shines when you need flexibility in how you pay different team types.
The payroll service allows payments in over 50 currencies and provides customizable workflows, making it perfect for hybrid or project-based teams. Also, it offers secure payroll processes globally. While pricing is individual based on company needs, the platform is ideal for companies scaling internationally and looking for solutions to manage freelancers.
Key Specs and Expert Insights
| Feature | Details | Expert Take |
| Payroll Type | Multi-country payroll, EOR, contractor management | Perfect for startups juggling employees and freelancers |
| Currency Support | 50+ | Great for teams spread across regions with different currencies |
| Integrations | SAP, Xero, QuickBooks | Works well with large-company systems and accounting tools |
| Benefits | Local tax support, consolidated invoicing | Simplifies multi-country contractor payments |
| Pricing | €3–€499 per employee/month | Affordable entry options, but costs rise with EOR services |
Pricing Tiers
- Payroll consolidation: 3€/ employee/ month
- Multi-Country Payroll: 19€/ employee/ month
- Employer of Record: 499€/ employee/ month
- Contractor Management: 19€/ contractor/ month
Small Business Scenario
A software startup in Berlin employs three full-timers in Germany and manages freelancers across Poland, the US, and India. Lano consolidates payroll, manages taxes, and ensures contractors are paid on time in their local currency.
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4. Paylocity: Best for Mid-Size Teams with HR Focus
Paylocity combines advanced payroll processing with modern HR capabilities. It's best suited for small to mid-sized businesses in need of strong HR support alongside payroll.
Features include:
- Real-time analytics dashboards and automated workflows.
- Talent management, onboarding, and benefits tools.
- Time and labor management.
Though more robust and complex than tools like Gusto, Paylocity excels in automating compliance-heavy payrolls and building employee engagement with social feeds and surveys.
Key Specs and Expert Insights
| Feature | Details | Expert Take |
| Best For | SMBs and mid-sized teams | Best when payroll needs overlap with HR growth |
| Features | Payroll, HR suite, analytics, labor management, onboarding | Provides both compliance and team engagement |
| Integrations | HRIS, time-tracking, benefits software | Saves time by centralizing HR and payroll |
| Support | Phone, live chat, onboarding support | Useful for teams transitioning from small to mid-size |
| Pricing | $20–$40 per employee/month (custom) | More expensive than Gusto but offers HR depth |
Pricing Tiers
The pricing is custom, based on your business needs, and ranges from $20 to $40 per employee per month, depending on your chosen features.
Small Business Scenario
A 50-person marketing firm in Chicago needs both payroll and HR software. Paylocity handles payroll, while also helping HR track performance reviews and onboard new hires.
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5. Remote: Best for Compliance-First Global Payroll
Remote helps businesses hire and pay international employees with full legal compliance. It's particularly effective for startups and small businesses expanding into new markets.
With its focus on compliance and simplicity, Remote is ideal for startups that want to focus on growth while trusting that their payroll is legally sound.
Key Specs and Expert Insights
| Feature | Details | Expert Take |
| Supported Countries | 80+ | Essential for startups hiring overseas quickly |
| Payroll Type | EOR, contractor payments, global payroll | Covers full-time staff and contractors in one platform |
| Integrations | Slack, BambooHR, accounting software | Helps keep global payroll in sync with team tools |
| Benefits | Local tax registration, benefits management | Provides peace of mind for compliance-heavy industries |
| Pricing | $29–$599 per employee/month | Costs more than domestic tools but worth it for compliance |
Pricing Tiers
- Employer of Record: $599 per employee/month
- Payroll: $29 per employee/month
- Contractor Management: $29 per contractor/month
- Contractor of Record: $325 per contractor/month
- Equity Advanced: From $999 per year
Small Business Scenario
A US-based SaaS startup wants to hire developers in Brazil and a sales team in France. Remote acts as the legal employer in those countries, handling contracts, taxes, and payroll so the startup can expand without setting up foreign entities.
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Our Verdict: What is the Best Payroll Software Tool for Small Businesses?
Choosing the best payroll software depends largely on your business’s size, team structure, and growth goals. Here's a quick recap:
- Deel: Best for international contractor and employee payroll. Offers basic and advanced solutions. Handles both Payroll and tax compliance.
- Gusto: Ideal for US-based small businesses. Have simple, plus, and premium packages. Doesn’t work well for global teams.
- Lano: Perfect for hybrid teams with freelancers. Offers multi-country payments and tax support.
- Paylocity: Great for teams that need HR and payroll in one. Offers custom-based pricing, so you choose based on your business needs.
- Remote: Best for global compliance and EOR support. Payroll pricing starts from $29 per employee/month.
Each of these tools is a leader in its niche. If you have a US-based business and you are unsure where to start, Gusto is often the most accessible and complete option for US-based teams.
Common Payroll Services Questions Answered
What is the best payroll software for small businesses?
The leaders for the best payroll software position are Gusto and Deel. Gusto is great for US-based teams, while Deel is perfect for managing international contractors or global employees.
How much does Gusto payroll cost?
Gusto payroll pricing starts at $19.60/mo + $2.40/mo per person for the simple plan. Higher-tier plans have more HR tools and advanced features.
Is payroll software worth it for a small business?
Absolutely, yes. Payroll software reduces errors, saves time, ensures tax compliance, and improves employee trust. It’s a must-have for any kind of business.
Can I use payroll software for global teams?
Yes, Payroll software like Deel, Remote, and Lano is built specifically for international payments and legal compliance. You can easily handle the payment and taxes of your global contractors with the help of these advanced payroll tools.
What’s the difference between Gusto and Paylocity?
Gusto is simpler and more affordable for small teams. Paylocity offers advanced HR features for growing businesses. The pricing models are also different.
Conclusion: Payroll Services for Small Business
Finding the right payroll platform can save time, reduce errors, and keep your team satisfied. Each option we reviewed brings unique strengths—from global compliance and contractor management to all-in-one HR and payroll solutions—with Deel taking our top spot. Ultimately, the best payroll services for small businesses are those that fit your company’s size, budget, and growth plans while simplifying day-to-day operations.