Top 10 Best Online Payroll Companies & Services

Online payroll services have revolutionized how businesses manage employee compensation, transforming a once tedious task into a simple, streamlined process. With the right payroll software, you can effortlessly handle employee payments, tax filing, and much more. Some providers even offer fully automated payroll runs, ensuring timely payments with minimal effort. This automation saves significant time and resources, freeing up manpower for other critical business functions.

Whether you’re a large corporation or a small business, there’s an online payroll solution tailored to your needs. We’ve compared and reviewed the top services to help you make an informed decision for 2025.

Our Top 10 Best Online Payroll Companies & Services:

Here are our picks for the top online payroll companies and where they truly excel:

• Gusto – Best payroll service overall
• ADP – Best for powerful payroll services mid-enterprise biz
• QuickBooks Payroll – Best for comprehensive general ledger-linked payroll
• Square – Best for hourly employees and retailers
• Paychex – Best for SMBs looking for more than just payroll
• Paycor – Best for businesses seeking scalability
• Surepayroll – Best cloud-based payroll solution
• OnPay – Best for growing businesses
• Paylocity – Best for SMBs looking for a comprehensive HCM solution
• Justworks – Best feature-rich option

A Closer Look at the Top 10 Business Payroll Services

1. Gusto: Easy to Use, Thorough, Feature-Rich Payroll

Gusto stands out as one of the best payroll services for small businesses, independent contractors, and freelancers. It offers automatic tax filing, a wide range of HR benefits (including medical, dental, vision, college funds, and 401k), and the ability to run unlimited payrolls, providing a cost-effective way to streamline monthly accounts.

Gusto seamlessly integrates with numerous applications, such as accounting programs like QuickBooks Online, Xero, and FreshBooks, as well as time-tracking apps (Time Tracker, Homebase) and expense management tools like Expensify. This creates an all-inclusive database for your accounts.

Pros:

• Lots of useful integrations
• Fully automates payroll and taxes
• Good for contractors and freelancers too

Cons:

• No 24/7 customer support
• Not all HR benefits are available in all states

Starting price: From $6

2. ADP: Professional All-Inclusive Payroll Services

ADP is one of the oldest and most experienced payroll services, online or off. It offers a full range of HR benefits and services, payroll services, and time and attendance management, making it a professional choice for businesses seeking more than basic software. With HR guidance, resources, dedicated service managers, full tax compliance, reporting, and self-service capabilities, ADP provides an impressive array of features.

ADP automatically calculates tax liability, withholds and pays taxes on your behalf, and handles all reporting and issuances, including W-2s and 1099s. What’s more, ADP’s services extend globally, handling payroll in more than 140 countries.

Pros:

• Professional, top-rated features and service
• One of the oldest payroll services online
• Full-service, all-inclusive benefits & payroll

Cons:

• Not as cheap as some competitors
• No specific pricing plans for very small businesses

Starting price: From $39

3. QuickBooks Payroll: Accounting-Focused Payroll Services

QuickBooks Payroll by Intuit is a well-known name that has expanded into the payroll industry. This reputable accounting software now offers payroll services that sync seamlessly with all your accounting programs, providing a 360-degree inclusive service.

One of QuickBooks’ strong points is its extensive tax filing services, making it one of the best payroll service providers for year-round tax organization. QuickBooks automatically files all your taxes, handles deductions, allows you to create custom tax categories, and tracks sales tax for e-commerce shops. It’s a very tidy way to stay on top of a major aspect of your business.

Pros:

• Smooth onboarding support
• Extensive tax-filing features
• Fully integrates with your accounting software

Cons:

• Not as customizable as some competitors
• Fewer features included in basic plans

Starting price: From $22.50

4. Square: Simple, Smart, and Easy Payroll Services

Square is one of the best payroll services for small businesses, especially if you already use Square for your point-of-sale needs. As one of the least expensive options, Square handles all your payroll, includes typical benefits like health insurance and 401k, and offers plenty of integrations.

Square fully automates your payroll, allowing you to run unlimited payrolls throughout the month. You can track employee hours, import time cards and tips, and “set and forget” tax filing. Square Payroll is available throughout the United States, providing accessible payroll services online regardless of your location.

Pros:

• Fast and easy software to use
• Run payroll multiple times per month
• Affordable and feature-rich

Cons:

• Reporting features are limited
• Doesn’t support all payment options

Starting price: From $29

5. Paychex: The Easier Way to Get Payroll Done

Paychex is a cloud-based payroll services provider with plans for every size business, though it’s particularly well-suited for smaller businesses with up to 50 employees. Its SMB-focused plan, Paychex Flex, lets you update data via desktop or mobile dashboard, set automated rules, and run payroll quickly and efficiently. With self-service capabilities, Paychex allows employees to manage a significant portion of their data input.

In addition to running payroll, Paychex calculates, pays, and files all your taxes, from local to federal. You can pay employees via direct deposit, paper check, or pay cards. Paychex plans also include features like onboarding, HR analytics, and an events calendar for seamless calculations.

Pros:

• User-friendly software anyone can run
• Great choice for small businesses
• Affordable without missing out on features

Cons:

• Numerous report options can be confusing
• New version launch takes some getting used to

Starting price: Quote-based

6. Paycor: Affordable, Comprehensive Payroll Services

Paycor might not be as well-known as industry giants like ADP and Gusto, but it has garnered a strong following due to its no-nonsense, feature-rich payroll and human resource management service. Paycor offers features like direct deposit, a convenient mobile app, optimized payroll processing, and customizable widgets, allowing extensive flexibility within the software.

Businesses particularly appreciate that Paycor provides many sophisticated features found in higher-priced payroll service providers at a significantly lower price point.

Pros:

• Competitive pricing with room to scale
• Vast knowledge base of human resources information
• Strong reporting and analytics tools

Cons:

• No pricing info published online
• Employee review process can be clunky

Starting price: From $49

7. SurePayroll: Affordable and Convenient Payroll Solution

As a cloud-based payroll solution, SurePayroll is one of the most reputable brands in the industry. It boasts an A+ rating from the BBB, 4.9 out of 5 stars from Google, and was a winner of the 2019 Gold Stevie Award for Contact Center of the Year. SurePayroll offers 6000+ tax compliances, auto payroll, a variety of employee options, a solid tax filing guarantee, and fast service.

SurePayroll also features a referral program where users can earn $539 for every business they refer.

Pros:

• Automatic federal, state, and local tax calculating and filing
• Automated payroll
• Same-day and expedited payroll services

Cons:

• Support is only available 6 days a week
• User interface is a bit outdated

Starting price: From $29.99 upwards

8. OnPay: Hassle-Free Payroll in One Simple Package

From its clean, easy-to-use interface to its single pricing structure, OnPay offers an accessible yet customizable payroll platform for small and growing businesses. While not the largest product in the payroll market, it provides surprising depth and capabilities that allow businesses to streamline their payroll needs with minimal effort.

For payroll services, OnPay covers all the essential bases for a small business: it helps you easily process payroll for W2 employees and 1099 contractors, with automated tax filings and payments, and handles HR benefits, workers’ comp, and insurance for all 50 states. OnPay also boasts an impressive suite of integration capabilities, allowing seamless syncing with time-tracking and accounting software. Additionally, its customer support team is responsive and adept at answering questions.

Pros:

• Extremely accessible and user-friendly
• Integrations with QuickBooks, time-tracking software, and more
• Automated tax filing

Cons:

• Not ideal for larger businesses
• Limited to US-based businesses

Starting price: From $36 per month + $4 per person

9. Paylocity: An All-in-One Human Capital Management Platform

Paylocity is ideal for small to medium-sized businesses (SMBs) seeking to organize their HR tasks. While it handles payroll taxes and benefits effectively, its strongest features lie in staff management and performance improvement. You can use it to set and track employee goals, conduct reviews, and provide continuous feedback.

The platform is user-friendly and integrates easily with other software like Culture Amp, HubSpot, and National Benefit Services (NBS). Although initial setup might take some time, Paylocity provides support throughout the process with assigned representatives and help functions. We chose Paylocity because its on-demand payment option allows staff to access part of their pay early, directly through the platform. This service automatically controls transactions and deductions, helps employees manage sudden expenses, and pre-funds transfers, ensuring no impact on your payroll schedule or cash flow. Our experience found that Paylocity streamlined information across all teams by creating a single space for timesheets, paid time off, and leave requests. We also liked how the software’s Community Hub keeps everyone connected, allowing broadcasts and providing a space for new hires to ask assigned group experts questions.

Pros:

• Vast resource library with product training videos
• Variety of solutions to help with HR processes
• Makes meeting local regulations easier in 100+ countries

Cons:

• Pricing can be unclear—since it’s based on custom quotes
• Setting up a new pay type or code involves several detailed steps

Starting price: Quote-based

10. Justworks: Modern-Day Payroll for Businesses of All Sizes

Justworks is a 21st-century payroll services provider that caters to businesses of all sizes, from gig workers to full-time employees, salaried, hourly, or otherwise. It allows you to run any type of payroll with ease, automating direct deposits, staying up-to-date with tax regulations and compliance, and integrating with other software like QuickBooks and Xero using its intuitive system.

Justworks truly goes the extra mile with its benefits packages, including perks like fitness memberships, bike share, and other unique benefits not typically found in payroll service plans.

Pros:

• Above-and-beyond benefits
• Easy and complete compliance
• HR tools for managing new employees, etc.

Cons:

• No free trial
• Several add-ons require additional payment

Starting price: From $39

What Are Payroll Services and Software?

Payroll is the process of paying employees for their work, typically involving calculating wages, withholding deductions, and depositing money into employee bank accounts. All companies, regardless of size, need to process payroll for their employees.

Payroll services and software handle the crucial task of calculating and distributing employee salaries, wages, and benefits. This includes calculating gross wages, deductions such as taxes, health insurance premiums, and 401(k) contributions, as well as net pay. They help ensure compliance with federal, state, and local tax laws. Payroll software can also generate reports for audits and other purposes, enabling businesses to keep accurate records of their financials and employees’ compensation information easily accessible from one place.

Types of Payroll Services

There are four main types of payroll services:

1. In-house payroll: The employer manages payroll, either manually or through online software. This is suited for companies with a small number of employees and is unsuitable for businesses with complex payroll needs or employees in multiple states.
2. Payroll managed by a bookkeeper or accountant: An outside bookkeeper or certified public accountant (CPA) manages the payroll. This option is best for companies that want to avoid managing payroll themselves or those with many employees and complex requirements, including employees in multiple states.
3. Payroll managed by an agency: Using a specialist agency to manage payroll offers all the advantages of bookkeeper or CPA-managed payroll, plus an entire team of experienced payroll professionals. This provides increased specialist knowledge and is a good—though expensive—option for large companies.
4. Software-managed payroll: Payroll software is increasingly popular with small businesses due to its cost-effectiveness and ease of use. It is usually cloud-based and accessible from anywhere with an internet connection, making it ideal for companies with employees in multiple locations.

You’ll also find payroll software designed for the unique needs of specific industries. The costs of payroll software vary depending on the type and features chosen, typically ranging from $50 to several hundred dollars per month, often with an upfront purchase price and ongoing monthly or yearly payment processing fees.

What Are the Stages of Payroll Processing?

Payroll processing involves several stages, from collecting employee information to filing tax forms. Here’s a quick rundown:

1. Choose a pay cycle: Determine how often you will pay your employees.
2. Collect data: Gather employee information, such as names, addresses, Social Security numbers, salary information, and withholding allowances.
3. Calculate wages: Use online payroll software or a manual calculation to determine gross wages, deductions, taxes, and net pay for each employee.
4. Deduct taxes & benefits: Calculate and deduct applicable taxes and benefits.
5. Deliver payroll funds: Print checks, make online payments, or directly deposit funds into employee bank accounts.
6. File reports & payments: File necessary reports with state and local agencies and remit required tax forms, Social Security/Medicare payments, etc.
7. Reconcile accounts: Reconcile the payroll account with company financial records to ensure the accuracy of all payments made during the payroll period.

How Do You Process Payroll?

Processing payroll involves several steps: calculating wages, withholding taxes on behalf of the government, issuing payments, filing the employer’s portion of taxes with appropriate state and federal agencies, and providing employee W2s at year’s end.

It can be done manually by a business employee, via outsourcing, or by using a payroll service platform.

• Processing payroll manually: This is often time-consuming, labor-intensive, and prone to errors. Calculations must be recorded accurately to avoid penalties or fines.
• Outsourcing payroll processing: This option benefits businesses seeking the convenience of online payroll processing and access to customer service staff experienced in handling complex payroll issues.
• Using a payroll service platform: With a payroll service platform, information is automatically calculated using employee data (e.g., hours worked, salary). Online platforms can also generate payroll reports quickly.

How Do Payroll Services Work?

A payroll service is an online platform that helps businesses manage their payroll needs. While various providers offer these services, most online payroll services provide similar functionalities.

Services typically handle the entire payroll process from start to finish using proprietary software or a website. Employers can use online payroll software to calculate each employee’s gross wages, deductions, and taxes. This software can also assist with deducting taxes and benefits from employees’ paychecks, paying workers’ compensation, filing online reports and payments for taxes, and producing employee W2 forms at year’s end.

Online payroll services are excellent for companies with employees in multiple states, as they manage the complexities of taxes, reports, and payments across different jurisdictions. Online software also facilitates easy access to employee data across multiple locations.

Most payroll services have a portal for employees to input their information, such as addresses, Social Security numbers, and bank account details. Some services also include online timesheets for recording hours. In addition to basic payroll processing, some online payroll services may offer features like online contractor tracking and retirement plan management. They can also integrate with other online platforms, such as accounting packages or HR features for training and employee benefits administration.

Payroll Software Management Features

Online payroll services come with various features that simplify managing employee pay. Look for the following:

• Accurate calculations: Ensures employees are paid correctly and the business complies with tax laws. Software is less prone to errors than manual calculations.
• Automation: Automates administrative processes like calculating deductions, filing online reports, and processing W2 forms.
• Tax payments: Assists with filing quarterly and annual taxes and making online payments to tax authorities.
• Compliance updates: Provides updates on changes to state and federal payroll tax laws.
• Direct employee payments: Enables payment via direct deposit for prompt and accurate delivery.
• Customizable features: Allows business owners to tailor payroll solutions to their specific needs.
• Employee portals: Self-service online portals simplify onboarding, information management, and timesheet access, reducing HR workload.
• Security: Features secure data encryption measures to protect sensitive information from external threats.
• Reports and analytics: Offers reports and analytics to track and manage payroll data, and measure overall productivity and performance.
• Interface integration: Many payroll services integrate with other online platforms, such as accounting packages.
• Mobile apps: Some offer mobile-friendly interfaces for employees to access information anytime, anywhere.

How Much Do Payroll Services Cost?

The cost of online payroll services varies widely based on the brand and included features. Most online payroll companies offer a range of monthly plans, allowing businesses to choose the best fit for their needs and budget. Online services typically charge lower rates than traditional payroll providers, making them attractive for small business owners.

Costs can range from $20 to $300 per employee per month, depending on the features. Cheaper plans offer basic online payroll features, with other services available at an additional fee. Full-service payroll solutions will cost more. Some systems include a global employer of record package for an additional fee, which is essential for businesses managing payroll in multiple countries.

How Do You Use a Payroll Service?

How you use your payroll service will depend on your team’s size and the online platform’s features.

With most providers, the initial setup is straightforward, regardless of whether you have two or 200 employees. You’ll need to set up an account with the online payroll provider and then upload your employees’ details, including pay deductions like federal income tax, Social Security tax, and Medicare tax.

Payroll services are designed to automate most of the payroll process. This includes calculating employee paychecks, making direct deposits into employees’ bank accounts, and many other tasks, depending on your chosen system.

The Difference Between Payroll Software and a Payroll Service

While payroll software and payroll services might seem similar, there are important differences that can influence your choice:

• Security: Payroll services require you to send them highly sensitive employee data (identification numbers, bank information, records). While this is done through highly secure, encrypted channels, you are still transmitting sensitive data. Payroll software, on the other hand, allows you to handle all payroll requirements without sending sensitive data to anyone else, keeping all information on your own servers, making it a safer option for data control.
• Convenience: Payroll services generally offer greater convenience. While running payroll with top online services is simple, being able to hand over information for someone else to manage is even easier. For a completely hands-free approach, a payroll service is often preferable.
• Price: When comparing pricing, payroll software typically wins. Software pricing structures are generally lower than service-based ones, so if budget is a primary concern, payroll software will be more cost-effective.

The Benefits of Using a Payroll Service

Payroll used to be a burdensome task for managers and employers. The monthly (or more frequent) chore of calculating, checking, complying, and organizing payroll for each employee—including time off, sick leave, vacation days, salaried, hourly, and temporary employees—was a major headache. The arrival of payroll services and software brought immense relief.

The most obvious benefit of using a payroll service is that this time-consuming task is taken off your shoulders. Additionally, savvy business owners can gain other benefits from using a reliable payroll service:

• Removes human error: Machines reduce the margin of error in calculations to negligible figures or eliminate it altogether, preventing costly mistakes.
• Tax compliance: Most good payroll service providers offer tax compliance and filing within their packages, including calculating, filing, and reporting all federal, state, and local taxes. They stay updated with ever-changing legal requirements, ensuring full compliance.
• Keep employees in the loop: Payroll services keep all important payroll data in one secure but easily accessible location for employees. Workers can quickly print pay stubs, get an overview of annual payouts, or update information as needed.

Other benefits include saving money with reporting and data analysis, better time efficiency, and human resource management like new-hire onboarding, vacation day calculation, and benefits management.

How to Choose the Right Payroll Service for You

While there’s no single “best fit” for every business, there are a few key features to look out for when comparing payroll services. Before signing up, ensure your chosen service checks off these important boxes:

• Full payroll management: Today, you should ideally only need to click a button or two to initiate payroll.
• Easy payment methods: Ensure your payroll software offers your preferred payment options, such as direct deposit, pay cards, or business checks, for quick and easy employee payments.
• Tax filing: This is a major perk. Ensure the providers you’re considering are fully tax compliant, meaning they file all your federal, state, and local taxes, stay updated with changes, and will issue forms like W-2s and 1099s for all employees.
• Compensation management: Beyond taxes, ensure your payroll services handle workers’ compensation, bonuses, adjustments, and other legally required extras.
• HR benefits management: Determine what HR benefits are included (e.g., health, dental, vision, fitness, mental wellness packages). The more benefits you can offer, the happier and more productive your employees will be.
• Employee self-serve: While not essential, this feature is highly useful. It allows employees to submit their information and access their own data (e.g., print pay stubs, check vacation days), reducing HR workload.
• Reporting: An important feature that provides valuable insights into your organization’s inner workings, from tax and budget overviews to employee productivity evaluations. It’s an essential form of business intelligence.

Why Payroll Services Are Crucial for Small Businesses

For a small business owner, online payroll services offer an efficient solution that saves time, money, and effort. Payroll tasks, such as calculating and filing taxes on time, can be time-consuming and require expert knowledge. Payroll services automate these complexities, allowing small business owners to focus on core operations and growth.