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HR & payroll

How to Choose Payroll Software for a Small Business

Compare payroll software by tax filing, contractor payments, benefits, time tracking, integrations with accounting, and the per-employee price.

Quick answer

Good payroll software runs pay on schedule, calculates and files payroll taxes, pays contractors and produces year-end forms. Compare whether tax filing is automatic in every state or region you employ in, how it handles contractors and benefits, whether it integrates with your accounting and time tracking, and the total cost including the base fee and per-person price.

Payroll mistakes cost money and trust. Choose software that does the hard parts for you.

What to compare

Area What to check
Tax filing Automatic filing in each jurisdiction you employ in
Pay options Direct deposit, pay schedules, off-cycle runs
Contractors Payments and year-end forms
Benefits Health, retirement, workers’ comp integrations
Time Time tracking or integration
Accounting Sync with your accounting software
Self-service Employee portal for payslips and tax forms
Price Base fee plus per-person cost

Before you switch

  1. Gather employee details, tax IDs and year-to-date totals.
  2. Switch at the start of a quarter if you can.
  3. Run a parallel payroll to check results.

Connect payroll to accounting software, and protect the login with a password manager. If you are also formalizing hiring, compare applicant tracking software. Browse HR and payroll.

Common questions

Does payroll software file taxes for me?

Many full-service payroll products calculate, pay and file payroll taxes. Check which jurisdictions and forms are included.

Can it pay contractors?

Most can, and many produce year-end contractor forms. Confirm international contractor support if you need it.

Should payroll connect to accounting?

Yes. Syncing journal entries saves time and errors at month end.