Best overall4.8From $40/moGusto
All-in-one payroll, benefits, and HR for small teams.
- W-2 and 1099 support
- Auto tax filing
- Contractor self-service
Payroll Software for Small Businesses & Contractors (2026)
Compare payroll tools for small businesses, contractors, and trade teams.
Find top picks, side-by-side comparisons, payroll guides, and industry-specific recommendations.
Updated monthlyIndependent reviews
Best Payroll Software Overall
View our full rankings of the best payroll software for small businesses and contractors, with detailed pros, cons, and recommendations.
See full rankings →How to Choose Payroll Software
Key factors when evaluating payroll tools
Payroll software automates pay runs, tax withholdings, tax filing, and pay stubs so you can focus on running your business. This page is for small businesses, contractors, and trade businesses. For a curated shortlist see our best payroll software roundup; use the comparison table, guides, pricing and tax resources, and scenario picks below.
- Team size — Pricing often scales by headcount; small teams need different features than growing or multi-state teams.
- Employees vs contractors — If you pay 1099s, look for contractor self-service and 1099 e-file. See our payroll for contractors guide.
- Accounting integrations — Sync with QuickBooks, Xero, or your books so labor costs flow into job costing and P&L.
- Tax automation — Full-service payroll handles withholdings, deposits, and filing; understand what’s included. How payroll software works.
- Pricing — Base fee plus per-person costs are common; compare total cost at your headcount. Payroll software pricing.
- Reporting and HR — Time tracking, PTO, benefits, and reports matter for scaling teams; payroll for small business covers fit by size.
Top payroll picks
Hand-picked for trade businesses. Updated monthly.
Best overall4.8From $40/mo
Best for QuickBooks users4.6From $30/moQuickBooks Payroll
Seamless payroll inside QuickBooks for contractors already on the platform.
- Integrated with QB books
- Same-day direct deposit
- Time tracking
Best value4.7From $40/moOnPay
Full-service payroll and benefits at a straightforward price.
- Unlimited pay runs
- Health benefits
- Compliance support
Best for larger teams4.5From CustomADP
Enterprise-grade payroll and HR for scaling contractor businesses.
- Multi-state payroll
- Advanced reporting
- Dedicated support
Compare payroll software
Side-by-side pricing and fit.
Use the table below to compare pricing, ratings, and standout features across the most popular payroll platforms.
| Tool | Best for | Starting price | Rating | |
|---|---|---|---|---|
| Gusto | Small trade businesses | $40/mo | 4.8 | Read review |
| QuickBooks Payroll | QuickBooks users | $30/mo | 4.6 | Read review |
| OnPay | Value-focused teams | $40/mo | 4.7 | Read review |
| ADP | Larger teams | Custom | 4.5 | Read review |
 Paychex | Enterprise needs | Custom | 4.4 | Read review |
 Rippling | Payroll + HR + IT in one | Quote | 4.6 | Read review |
 Square Payroll | Square ecosystem users | $35/mo | 4.3 | Read review |
 Patriot Payroll | Budget-conscious small business | $17/mo | 4.2 | Read review |
 Justworks | PEO-style payroll and benefits | Quote | 4.5 | Read review |
 Deel | Global contractors and EOR | Quote | 4.6 | Read review |
 SurePayroll | Simple payroll + full-service option | Quote | 4.2 | Read review |
 Wave | Free accounting + payroll add-on | Add-on | 4.3 | Read review |
Payroll Guides
Guides to pricing, taxes, switching, and industry-specific payroll.
How Payroll Software Works
What payroll software does, how it automates tax and pay runs, and what to expect from setup to ongoing use.
Read guide →Payroll Software Pricing
How payroll pricing works: base fees, per-person costs, and what to budget for small teams and contractors.
Read guide →Payroll for Contractors
Running payroll when you mix employees and 1099 contractors: what to look for and which tools fit best.
Read guide →Payroll for Small Business
Choosing and running payroll for small teams: features, pricing, and top picks for SMBs.
Read guide →How to Switch Payroll Providers
Steps to change payroll software without missing a pay run or losing compliance.
Read guide →Payroll Taxes Explained
Federal and state payroll taxes, withholdings, and how payroll software handles filing and deposits.
Read guide →Payroll for Construction Companies
Payroll needs for construction: job costing, certified payroll, and contractor-friendly platforms.
Read guide →Payroll for Landscaping Businesses
Seasonal workers, crews, and 1099s: payroll software that fits landscaping and lawn care.
Read guide →Payroll for Electricians
Payroll and job costing for electrical contractors: W-2, 1099, and multi-state support.
Read guide →Read our full reviews: Gusto, QuickBooks Payroll, OnPay, ADP, Rippling, Square Payroll, Patriot Payroll.
Find the right payroll fit
Narrow down by team size and pay type.
Best payroll software by scenario
Find payroll software that fits your situation.
Choose a scenario to see our top picks for that use case.
Payroll by trade
Payroll recommendations by trade. All trade pages in one directory.
Popular Payroll Comparisons
Side-by-side feature and pricing comparisons.
What contractors should look for in payroll software
What matters when contractors choose payroll.
W-2 vs 1099 support
Trade businesses often mix employees (W-2) and subcontractors (1099). Your payroll software should handle both, run contractor payments, and file 1099-NEC forms. Look for clear 1099 workflows and state e-file support.
Job costing and project tracking
Allocating labor to jobs or projects helps you track profitability. Some payroll tools integrate with job-costing or accounting software so hours and wages flow into the right job—essential for contractors who bid by project.
Multi-state compliance
If you have workers in more than one state, payroll must handle state withholding, unemployment, and local taxes. Choose a provider that supports multi-state registration and filing so you stay compliant as you grow.
Key features checklist
- W-2 and 1099 payment runs
- Tax filing and deposit
- Direct deposit and pay stubs
- Multi-state support
- Time tracking or integration
- Contractor self-service portal
Payroll software FAQs
Quick answers to common questions.
How we review payroll software
Transparent process, contractor-focused criteria.
Our reviews are independent and updated on a regular cadence so you get current pricing and feature information.
- We test payroll workflows (W-2, 1099, multi-state) and rate ease of use for contractors.
- We compare published pricing, add-ons, and hidden fees so you can budget accurately.
- Reviews are written for trade businesses—job costing, compliance, and support matter.
We may earn a commission when you purchase through our links. This does not affect our recommendations. Affiliate disclosure