Payroll types (W-2 / 1099 / mixed)
Most small businesses need both W-2 employees and 1099 contractors. Choose a platform that handles both with clear tax treatment and forms. If you're contractor-only or mixed, ensure 1099 support and contractor self-service are included.
Contractor support
Look for 1099 payment runs, automatic tax forms (e.g. 1099-NEC), and a contractor portal so subs can view pay stubs and documents. Some tools charge extra for 1099 e-file—check before you commit.
Tax automation
Full-service payroll should calculate, file, and deposit federal and state payroll taxes. Confirm that tax filing and deposits are included and that the provider takes responsibility for accuracy and deadlines.
HR and benefits features
If you offer health insurance or 401(k), choose a payroll provider that can run benefits and deductions in sync with payroll. Onboarding, compliance docs, and PTO tracking may be included or add-ons.
Integrations
Payroll should connect to your accounting software (QuickBooks, Xero) and optionally time tracking. Native integration is better than manual export. If you're deep in QuickBooks, QuickBooks Payroll keeps everything in one place.
Ease of use
Setup, running pay runs, and adding employees or contractors should be straightforward. Read reviews and try demos if possible. Modern tools like Gusto and OnPay are built for self-serve; ADP and Paychex offer more hand-holding with custom pricing.
Pricing transparency
Prefer published base + per-person pricing when you can budget upfront. Providers like ADP and Paychex use custom quotes—get a quote and compare total cost to Gusto or OnPay at your headcount.