Best Payroll Software for Small Business: Top Picks
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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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.
Key features include:
- Automated global payroll and tax compliance.
- Customizable contracts and onboarding workflows.
- Integration with tools like QuickBooks, Xero, and BambooHR.
Deel supports both employees and contractors, and provides localized payslips, benefits administration, and a self-service platform.
Pricing starts at $29 per contractor per month.
- 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
If you're a growing business with global ambitions, Deel is one of the best small business payroll software.
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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.
Gusto handles:
- Full-service payroll with automatic tax filings.
- Employee benefits, like health insurance.
- 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.
Pricing plans include:
- 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.
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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.
Top features:
- Multi-country payments and consolidated invoices.
- Local tax and compliance support.
- Integration with accounting tools like Xero and SAP.
Lano 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.
Pricing models include:
- Payroll consolidation: 3€/ employee/ month
- Multi-Country Payroll: 19€/ employee/ month
- Employer of Record: 499€/ employee/ month
- Contractor Management: 19€/ contractor/ month
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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.
The pricing is custom, based on your business needs, and ranges from $20 to $40 per employee per month, depending on your chosen features.
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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.
Standout features:
- Employer of Record (EOR) in 80+ countries.
- Local tax registration, filing, and benefits administration.
- Self-serve platform for employees and HR teams.
Remote’s flat rate pricing starts at $599 per employee/month for EOR services, while contractor payments start at $29/month.
- Employer of Record: $599 per employee/month
- Payroll: $29 per employee/month
- Contractor Management: $29 per contractor/month
- Contractor of Record: $325per contractor/month
- Equity Advanced: From $999 per year
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.
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H2: How We Chose the Best Payroll Software
To identify the best payroll software for small businesses, we followed a structured review process that involved both hands-on testing and analysis of real user feedback.
- Market Research: We surveyed the payroll software landscape, identifying 10+ widely used platforms that support both domestic and international payroll for small businesses.
- Key Feature Evaluation: Each software was examined for core payroll features, such as direct deposit, tax calculation and filing, benefits management, time tracking, and employee self-service.
- Integration: Compatibility with popular tools, like QuickBooks, BambooHR, and Slack.
- Pricing Affordability: We favored software that offers clear, tiered pricing with minimal hidden fees. We also looked at the value offered at each price point to ensure affordability for small businesses.
- 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.
H2: 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.
H2: FAQ: Common Questions Answered
H3: 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.
H3: 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.
H3: 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.
H3: 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.
H3: 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.