What Is The Best Payroll Software For Small Businesses?

What Is The Best Payroll Software For Small Businesses?

Gusto is the top payroll application for many small businesses. Gusto fits well for small and medium enterprises in various industries because of its extensive payroll capabilities, automated payroll tax administration, and scalable plans.

Why choose Gusto?

Our top pick for payroll software for small businesses is the affectionately called Gusto. Its full-service payroll system is elegantly designed and has a tonne of payroll and HR capabilities, including:

  • Automatic submission of federal, state, and local payroll taxes
  • automatic filing of tax forms at the end of the year, including W-2s and 1099s
  • Automatic submission of state new-hire forms
  • Administration of health benefits and workers’ compensation
  • HSAs, FSAs, commuter perks, and college savings plans are examples of employee benefits.

Even better, Gusto offers these capabilities without charging extra, in contrast to many payroll companies that do. For instance, Gusto’s internal insurance brokers guarantee that you will only be required to pay the premium if you choose to enroll in employee medical insurance and workers’ compensation insurance through Gusto.

ADP, in comparison, adds a fee on top of the premium and outsources its insurance integrations. Similar to Paychex, which has an internal insurance staff but nevertheless levies additional fees for insurance add-ons. ADP additionally costs for submitting year-end tax returns. Gusto refuses.


During the COVID-19 epidemic, Gusto’s customer service ratings suffered. Thankfully, customers say that Gusto’s customer service has become better throughout the course of 2022. For instance, Gusto received a meager 2.6 out of 5 stars in March 2022 on the online review platform Trustpilot. 

However, as of mid-2022, its rating has increased to a much more positive 3.5.1. Despite the fact that some customers are still having trouble with tax filing, we’re happy to see that recent user evaluations highlight the competent tech assistance.

Comparison with other software

Gusto is not a complete HR management solution, despite having more employee add-ons than many other online payroll systems. You may learn more about Gusto HR, but if you want HR services that go beyond the bare minimum, you should choose Paychex, ADP, or even HR-specific services like Zenefits.

Even while we adore Gusto, there are other payroll software options available. SurePayroll, which offers economical self-service and full-service options, is the least expensive, most cost-effective software. For more complete HR administration, we also suggest Paychex and ADP, and OnPay for thorough yet reasonable payroll.

What qualities should payroll software have?

What does it actually imply when you say that your company’s HR and payroll needs will determine which payroll software is ideal for you? To begin, we advise following these four steps:

Verify the cost. Keep in mind that you must consider both the base price and the additional cost per employee. Set a budget for the amount of money you can and are willing to spend on a payroll system.

Investigate the features. Do you prefer a software system that combines HR and payroll functionality, or do you simply require payroll features? To what extent you are willing to devote time and effort to payroll? Do you mind, for instance, spending less on software and doing your own taxes? With less expensive self-service payroll software, you’ll probably be alright. A more expensive but comprehensive full-service payroll plan is a better option if you’d want a system that takes care of everything with little work from you.

Check the reputation of the customer support for each payroll program. Make sure your service provider promises accurate tax filing and read any recent user reviews to learn how quickly customer support reacts to tax and payroll issues.

If you are interested in more articles like this, here’s one about the benefits and key features of SaaS for HR management.

Jorge Lee
Jorge Lee
Given his background in writing research papers for a tech company, Jorge made it easy to become an editor for Free BSD Made Easy.