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The 6 Best Payroll Software Providers for Small Businesses in 2024, According to ADP

Whether you’re new to using payroll software or thinking about a switch, getting payroll right and on time is crucial for any small business. That’s why so many small business owners turn to full-service payroll providers—they want the peace of mind that comes with knowing their payroll is taken care of by the experts. But with so many payroll software companies out there, finding the perfect fit for your business can feel overwhelming.

That’s where we come in! We’ve put together this guide to help you compare small business payroll providers against ADP1. Dive into our detailed analysis and discover why ADP is the best payroll solution for your growing business.

BEST SMALL BUSINESS PAYROLL SERVICES OF 2024

Best overall small business payroll provider – ADP

Runner-ups – Gusto, Paychex, QuickBooks, OnPay, SurePayroll

ADP Review – Best overall small business payroll provider

ADP is one of the most trusted small business payroll & HR providers, catering extensively to both small and large businesses. Its small business payroll platform, RUN Powered by ADP®, offers a wide range of payroll & HR services, including automatic payroll processing, tax calculations and filings, compliance management and time and attendance tracking, making it highly adaptable to different needs. ADP also excels in scalability, supporting businesses as they grow and change with advanced HR tools and analytics.

Key features

  • Full-service, automated payroll processing
  • Payroll AutoPilot for recurring payrolls
  • AI-powered error detection
  • Integrated platform includes access to includes benefits and insurance
  • Automated tax calculations, filings and payments
  • Built-in compliance updates to support federal, state, and local regulations
  • Time and attendance add-ons, including mobile app and kiosks
  • Payroll and tax compliance support
  • One-on-one support from HR professionals
  • Top-rated RUN mobile app for employers and employees

The main takeaway? ADP’s small business platform is the most flexible solution for small businesses at any stage, offering automated payroll, tax calculations, compliance and time tracking. It also supports business growth with advanced HR tools, AI error detection, one-on-one HR support, and a top-rated mobile app.

Gusto Review

Gusto is an online payroll and HR platform tailored for small businesses. It offers payroll processing, automated tax calculations, and benefits administration. Key features include employee self-service, direct deposit, time tracking, and compliance support. Gusto supports domestic and international contractor payroll and integrates with over 100 apps, including accounting software like QuickBooks. Customer support is available via phone, email, and web chat.

Key features

  • Full-service payroll processing
  • Unlimited payroll runs
  • Automated tax calculations and filings
  • Employee self-service
  • Benefits administration
  • Hiring, onboarding and talent management
  • Time tracking and management
  • Accounting integrations
  • Spending & savings accounts via Gusto Wallet app
  • Mobile tools

Why ADP is better than Gusto for small business payroll & HR

Payroll    
24/7 live support (Gusto provides support from 5am-5pm PT, Monday through Friday) offered not offered
Comprehensive tools for managing State Unemployment Insurance (claim responses, benefit payment reviews, best practices consulting) offered not offered
Integrated time tracking suite, including scheduling and physical time clocks offered not offered
Dedicated onboarding support for new small business clients of any size (across all packages) offered not offered
Mobile app for on-the-go payroll and HR (Gusto offers mobile access only via web browser) offered not offered
Same-day ACH processing offered not offered
Two-day processing cycles for all clients (no direct deposit limits applied) offered not offered
Register with tax agencies in all 50 states (without needing a third-party partner) offered not offered
Customer support available through the payroll provider's Apple® iOS app offered not offered
Integration with over 30 leading Point of Sale (POS) solutions via partner apps offered not offered
Single invoice billing that combines ADP payroll with partner services offered not offered
75 years of experience in payroll services offered not offered
HR & Business    
Employee handbook wizard, tailored for your state or jurisdiction offered not offered
Job postings through ZipRecruiter® offered not offered
Job description creation tool offered not offered
Employee discount program for brand-name products and everyday essentials offered not offered
Live consultation for R&D tax credits to determine the amount based on your business offered not offered
Easy setup and management of Google Ads marketing campaigns offered not offered
Access to free and discounted legal services (provided by third-party) offered not offered
 

User satisfaction ratings

See how customers rated RUN Powered by ADP vs. Gusto on TrustRadius, a leading business software review platform, in key categories for small business payroll & HR.2

image of logo for TrustRadius

Categories ADP RUN Gusto
Usability 9.8 8.4
Product scalability 9.1 N/A
Implementation rating 9.5 8.2
Likelihood to recommend 8.5 7.2

Ratings include incentivized reviews

The main takeaway? Gusto is a robust payroll and HR platform for small businesses, offering essential features like payroll processing, automated tax calculations, and employee self-service. However, RUN Powered by ADP surpasses Gusto with comprehensive support services, including 24/7 live support, integrated time tracking, and extensive payroll and HR management tools.

Paychex Review

Key features

  • Automated payroll processing
  • Tax administration and compliance assistance
  • Employee benefits management
  • HR administration
  • Time and attendance tracking
  • Workers' compensation management
  • Reporting and analytics tools
  • Employee self-service portal
  • Paychex Flex mobile app for employers and employees

Why ADP is better than Paychex for small business payroll & HR

Payroll    
Single invoice billing that consolidates ADP payroll and partner services offered not offered
Register with tax agencies in all 50 states without a third-party service offered not offered
75 years of payroll experience offered not offered
HR & Business    
Create job listings with ZipRecruiter® offered not offered
Comprehensive partner marketplace for finding, comparing, activating, and paying for various apps (time management, HR, accounting, and more) offered not offered
Salary benchmarking at no added cost in top-tier HR bundles (to help you make competitive job offers) offered not offered
Job description creation tool available at no additional charge offered not offered
Access to free and discounted legal services (offered by third-party) offered not offered
Easy setup and management of Google Ads marketing campaigns offered not offered
 

User satisfaction ratings

See how customers rated RUN Powered by ADP vs. Paychex on G2, a leading business software review platform, in key categories for small business payroll & HR.3

image of logo for G2

Categories ADP Paychex
Performance 92% 86%
Reporting 89% 84%
Mobility 89% 81%
Ease of use 91% 85%
Performance and reliability 93% 88%
Compliance 91% 84%
Ease of admin 91% 86%

Ratings include incentivized reviews

The main takeaway? Paychex Flex offers small businesses payroll processing, automated tax filings, and a mobile app for employee self-service, along with HR and benefits management. However, RUN Powered by ADP beats out Paychex Flex by offering integrated payroll capabilities and more comprehensive HR tools, including job listing creation and a robust partner marketplace.

QuickBooks Review

QuickBooks is an accounting software with integrated payroll management. It features payroll processing, automated tax calculations, direct deposit, and compliance support. QuickBooks also offers time tracking integrations but does not integrate with other accounting platforms. Phone-based customer support is available Monday through Friday, 6 AM to 6 PM PT, and Saturday, 6 AM to 3 PM PT. Chat support is available 24/7 from payroll experts.

Key features

  • Automated payroll processing
  • Same-day direct deposit
  • Unlimited payroll runs
  • Automated federal and state taxes
  • Employee self-service portal
  • Time tracking integration
  • Benefits management
  • Customizable payroll reports
  • Compliance updates
  • Mobile app access
  • QuickBooks App Marketplace

Why ADP is better than QuickBooks for small business payroll & HR

Payroll    
Advanced tools for State Unemployment Insurance management (including claim responses, benefit payments review, and best practices consulting) offered not offered
User-friendly mobile app for managing payroll and HR offered not offered
24/7 live support for all plans – not limited to top-tier bundles offered not offered
Dedicated onboarding support for new clients, catering to small businesses of all sizes offered not offered
Register with tax agencies in all 50 states without a third-party service offered not offered
Easily pay employees who work in more than one state or local jurisdiction in the same pay period offered not offered
Award-winning portal (Stratus Award, American Best in Business) for connecting your accountant to your payroll system offered not offered
75 years of payroll experience offered not offered
HR & Business    
Employee handbook wizard, pre-populated for your state or local jurisdiction offered not offered
Online training courses on topics such as  sexual harassment and abusive conduct, and HR compliance  – plus completion tracking offered not offered
Free printed labor law posters offered not offered
Discount programs for employees on brand-name products and daily essentials offered not offered
Post job listings with ZipRecruiter® offered not offered
Salary benchmark data to help you make competitive job offers offered not offered
Applicant tracking system for managing the entire hiring process offered not offered
Background checks for prospective employees offered not offered
Simple setup and management of Google Ads marketing campaigns offered not offered
Free and discounted legal services (offered by third-party) offered not offered
 

User satisfaction ratings

See how customers rated RUN Powered by ADP vs. QuickBooks Payroll on G2, a leading business software review platform, in key categories for small business payroll & HR.4

image of logo for G2

Categories ADP QuickBooks
Ease of use 91% 83%
Reporting and dashboards 89% 84%
Performance and reliability 93% 84%
Quality of support 89% 74%

Ratings include incentivized reviews

The main takeaway? QuickBooks offers accounting software with integrated payroll management, including features like payroll processing, automated tax calculations, and time tracking integration. However, RUN Powered by ADP outshines QuickBooks with advanced State Unemployment Insurance management tools, 24/7 live support, and a comprehensive

OnPay Review

OnPay is a cloud-based payroll and HR platform designed for small businesses. It supports multi-state payroll, automated tax calculations, and employee self-service. OnPay integrates with various accounting and time-tracking software and includes features for employee onboarding. Customer support is provided through phone and chat during weekdays. On the weekends, emergency support is available via email.

Key features

  • Unlimited monthly payroll runs
  • Multiple pay schedules and rates
  • Automatic tax calculations & filings
  • Streamlined employee onboarding
  • Employee self-service

Why ADP is better than OnPay for small business payroll & HR

Payroll    
24/7 live support across all bundles offered not offered
Advanced State Unemployment Insurance management tools (claim responses, benefit payments review, best practices consulting) offered not offered
Integrated time tracking suite, including scheduling and physical time clocks offered not offered
Same-day ACH processing offered not offered
Single invoice billing that combines ADP payroll and complementary partner services offered not offered
Mobile app for on-the-go payroll and HR (OnPay offers mobile access only via web browser) offered not offered
Register with tax agencies in all 50 states (does not require third-party partner) offered not offered
Customer support available through the payroll provider's Apple® iOS app offered not offered
Integration with over 30 leading Point of Sale (POS) solutions via partner apps offered not offered
75 years of payroll experience offered not offered
HR & Business    
Employee handbook wizard, pre-populated for your state or local jurisdiction offered not offered
Salary benchmark data (to help you make competitive job offers) offered not offered
Job postings via ZipRecruiter® offered not offered
Job description creation tool offered not offered
One-stop partner marketplace to search, compare, activate, and pay for apps (time, HR, accounting, and more) offered not offered
Online courses on workplace and sexual harassment, HR record keeping, DE&I, and more offered not offered
Google Ads marketing campaign simple setup and management offered not offered
Access to free and discounted legal services (provided by third party) offered not offered
 

User satisfaction ratings

See how customers rated RUN Powered by ADP vs. OnPay on TrustRadius, a leading business software review platform, in key categories for small business payroll & HR.5

image of logo for TrustRadius

Categories ADP RUN OnPay
Overall rating 8.5 8.2

Ratings include incentivized reviews

The main takeaway? OnPay is a cloud-based payroll and HR platform for small businesses, offering multi-state payroll, automated tax calculations, and employee self-service. However, RUN Powered by ADP is the better choice, thanks to 24/7 live support, advanced State Unemployment Insurance tools, a comprehensive time tracking suite, and a wider range of integrated HR services.

SurePayroll Review

SurePayroll by Paychex provides online payroll processing and tax handling for small businesses. It supports various employee types, including freelancers, and offers features for tax compliance and employee self-service. The platform includes benefits management and customizable payroll reports. Customer support is available via phone, email, and chat during weekdays, with some hours during the weekend.

Key features

  • Automated payroll processing
  • Payroll tax calculations
  • Employee self-service portal
  • Tax and HR compliance tools
  • Customizable payroll reports
  • Customer support available via phone, email, and chat
  • Benefits management

Why ADP is better than SurePayroll for small business payroll & HR

Payroll    
24/7 live support across all bundles (not limited to top-tier bundle) offered not offered
Native suite of time tracking tools with scheduling and physical time clocks offered not offered
Accounting software integration at no additional fee offered not offered
Advanced SUI management tools (claim responses, benefit payments review, best practices consulting) offered not offered
Multi-state tax filings at no additional fee offered not offered
Partner app connectors to over 30 leading Point of Sale (POS) solutions offered not offered
Single invoice billing that combines ADP payroll and complementary partner services offered not offered
75 years of payroll experience offered not offered
HR & Business    
Post job listings with ZipRecruiter® offered not offered
Access salary benchmark data to aid help make competitive job offers and comply with pay transparency laws offered not offered
Comprehensive partner marketplace for finding, comparing, activating, and purchasing apps (including time management, HR, accounting, and more) offered not offered
 

User satisfaction ratings

See how customers rated RUN Powered by ADP vs. SurePayroll on G2, a leading business software review platform, in key categories for small business payroll & HR.6

image of logo for G2

Categories ADP SurePayroll
Ease of use 91% 90%
Performance and reliability 93% 91%
Quality of support 89% 87%

Ratings include incentivized reviews

The main takeaway? SurePayroll by Paychex offers online payroll processing, tax handling, and benefits management for small businesses. However, RUN Powered by ADP outperforms SurePayroll with 24/7 live support, advanced time tracking tools, multi-state tax filings without additional fees, and a comprehensive HR suite, including job listing services and a partner marketplace.

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Small Business Payroll Frequently Asked Questions

How to do payroll for small businesses?

Running small business payroll involves tracking and recording employee hours, calculating wages and withholdings, distributing wages, depositing withheld taxes with government agencies, filing employer tax returns, and sending employees required tax forms like Form W-2. Compliance with ever-changing regulations is crucial, making the expertise of a payroll provider beneficial to ensure accuracy and avoid penalties. A professional service can save time, reduce errors, and keep your business compliant.

How do you start payroll for a small business?

Starting payroll for a small business involves several steps. First, you must apply for an employer identification number (EIN) or federal tax identification number from the IRS, which identifies your business for tax purposes. Then, obtain any necessary state or local business IDs, including a state unemployment ID if required. Collect employee documents such as Form I-9 for employment eligibility verification and Form W-4 for tax withholding. Next, choose a payroll schedule, considering options like weekly, bi-weekly, or monthly pay periods. Purchase workers’ compensation insurance to cover medical care or lost income for employees injured on the job. Additionally, you may want to offer benefits such as health insurance or retirement plans, which can be deducted from employee paychecks. Finally, open a dedicated payroll bank account to manage payroll transactions separately from your main business account, ensuring accurate financial records.

Can I do my own payroll for my small business?

Yes, you can do your own payroll for your small business, but it requires significant time, skills, and resources to ensure accuracy and compliance. Doing payroll yourself can save money initially, but the process is complex and mistakes can lead to costly penalties. Many small businesses find that partnering with a professional payroll service provider helps manage payroll efficiently, reduces the risk of errors, and ensures compliance with ever-changing regulations.

What percentage should payroll be for a small business?

The percentage of revenue allocated to payroll can vary by industry, but a general rule of thumb for small businesses is to aim for payroll expenses to be around 15-30% of total revenue7. It's important to balance payroll expenses with other operational costs to ensure the financial health of your business. Regularly review your payroll expenses to optimize your budget and make adjustments as necessary.

What is the cost of payroll services for small businesses?

The cost of small business payroll depends on several factors, including payroll frequency, total number of employees and the specific services that are needed. Most commonly, there is a per-payroll processing fee and an annual base fee. The important thing to remember is that a payroll service may actually save you money when compared to the cost of tax penalties.

What is the Qualified Small Business Payroll Tax Credit?

The Qualified Small Business Payroll Tax Credit8 allows qualified small businesses to offset some of their payroll tax liabilities with the research and development (R&D) tax credit. It’s a valuable incentive for small businesses investing in innovation and development, providing significant savings on payroll taxes. A qualified small business is a corporation (including an S corporation) or partnership with:

  • Gross receipts of less than $5 million for the tax year, and
  • No gross receipts for any tax year before the 5-tax-year period ending with the tax year.9
  1. Information based on ADP internal research and is accurate as of August 9, 2024 and is subject to change.
  2. Gusto TrustRadius review data from August 9, 2024.
  3. Paychex G2 user review data from August 9, 2024.
  4. QuickBooks G2 user review data from August 9, 2024.
  5. OnPay TrustRadius review data from August 9, 2024. 
  6. SurePayroll G2 user review data from August 9, 2024.
  7. https://www.klipfolio.com/resources/kpi-examples/financial/payroll-to-revenue-ratio
  8. https://www.irs.gov/businesses/small-businesses-self-employed/qualified-small-business-payroll-tax-credit-for-increasing-research-activities 
  9. https://www.irs.gov/pub/irs-pdf/i6765.pdf

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