Who this is for
Businesses running payroll manually in spreadsheets, startups hiring their first employees, or companies frustrated with a provider that's become expensive, clunky, or bad at support.
What to look for in a provider
- Automatic tax filing at federal, state, and local levels, the provider should file and pay on your behalf and take liability for accuracy.
- Transparent per-employee pricing. Most modern providers charge a base fee ($40–$80/month) plus $6–$12 per employee. Watch for add-on fees.
- Direct deposit speed. Two-day is standard; next-day and same-day are premium features.
- Benefits and contractor support. Health benefits administration, 401(k), and 1099 contractor payments if you use freelancers.
- Integrations. With your accounting software (QuickBooks, Xero) and time-tracking.
- Multi-state capability if you have remote employees.
Frequently asked questions
How much does payroll software cost for a small business?
Most cloud payroll providers charge a monthly base fee of roughly $40–$80 plus $6–$12 per employee per month. A 10-person business typically pays $120–$200/month all-in. Providers that bundle benefits, HR tools, and compliance support sit at the higher end but replace several separate tools.
What's the difference between a payroll service and a PEO?
A payroll service runs payroll and files taxes under your own company's tax IDs. A Professional Employer Organization (PEO) co-employs your staff under its own IDs, bundling payroll with benefits and HR at a higher cost: useful for very small companies wanting big-company benefits, but more expensive and harder to leave. Most SMBs start with a payroll service and consider a PEO only as benefits needs grow.
Can payroll software handle contractors and 1099s?
Yes. Most modern providers pay W-2 employees and 1099 contractors from the same dashboard and generate year-end tax forms automatically. If your workforce is contractor-heavy, look for providers that don't charge full per-employee rates for contractors.
How long does it take to switch payroll providers?
Typically 2–4 weeks. The best time to switch is at the start of a quarter or calendar year, because year-to-date tax data transfers more cleanly. A good provider handles the migration and imports prior wage data for you.
Do I need payroll software if I only have one or two employees?
Usually yes. Even one employee means recurring tax filings across multiple agencies, and the penalty for a missed or wrong filing often exceeds a year of software cost. Automated filing removes that risk for around $50–$70/month at that size.
What happens if payroll taxes are filed late?
The IRS and state agencies charge penalties plus interest, and repeated failures escalate. A provider that files on your behalf and guarantees accuracy shifts that liability off you, one of the main reasons to use software rather than doing it manually.
How we help
Tell us your headcount, whether you use contractors, which states you operate in, and what's frustrating about your current setup. We shortlist payroll providers that fit and introduce you directly, free to your business.
The providers pay us if you sign up, which is why you pay nothing and why we only point you toward things that actually fit.