Top 10 Payroll Software of 2025: Cost, Features & Benefits

Payroll software automates wage calculations, tax withholdings, direct deposits, and compliance reporting for businesses of all sizes. These platforms reduce administrative time, prevent calculation errors, and ensure accurate, on-time payments that keep employees satisfied while you stay compliant with changing tax regulations. They work with time-tracking systems to process benefits deductions, manage social security contributions, and handle contractor payments.

Whether you’re running a small business or managing a large enterprise, this guide compares the best payroll software across different business scenarios, from local teams with hourly workers to companies coordinating remote contractors and multi-location operations. You’ll see transparent pricing structures, essential features like employee self-service portals and automated tax filings, and which platforms handle your specific needs, from cloud-based software and multi-state tax capabilities to international payroll support and managing seasonal staff.

Best Payroll Software: Comparison Chart

Tool	Best For	Trial Info	Price
Rippling	Multi-country payroll, HR integration, large teams	Demo available upon request	From $8/user/month (billed annually)
Deel	Global teams, international contractors, 150+ countries	Free version for up to 200 employees	Pay-per-employee; custom pricing
Gusto	Small to mid-sized businesses, intuitive interface	30-day free trial	$40/month base + $6/month per employee
OnPay	Small businesses, specific industries (ag, nonprofits)	3-month trial offer	$40/month base + $6/month per employee
Paylocity	Tax compliance automation, detailed reporting	Demo upon request	$2-$5 per employee/month
Paycor	Mid to large businesses, complex payroll needs	Demo available	Starts at $99/month + per-employee fee
RUN Powered by ADP	Small businesses, easy setup, HR tools	Free trial available	Starts at $19/month + per-employee fee
Remofirst	Multi-currency payroll, 170+ countries	Trial upon request	Starts at $25/employee/month
Oyster HR	International hiring, 180+ countries	Demo available	Custom pricing by team size and country
Paychex Flex	Scalable payroll, customizable features	Free demo	Starts at $59/month

Best Payroll Softwares of 2025 

Let’s take a look at the top payroll software options for 2025, designed to fit the needs of businesses of all sizes. These tools make payroll easier, more accurate, and ensure your business stays compliant.

1. Deel

Deel functions as an Employer of Record across 150+ countries, eliminating the need for companies to establish separate legal entities or navigate conflicting tax codes. Businesses using Deel reduce time-to-hire for international contractors by 70% and eliminate compliance risk associated with misclassification.

• Core capabilities: Contractor classification and management, jurisdiction-specific tax calculation, compliance filing automation by country, multi-currency disbursement, benefits procurement by region, contract standardization.
• Supported integrations: Accounting platforms (Xero, Wave), HR systems (Bamboo HR), project management tools (Asana, Monday.com), banking infrastructure.

Strengths & limitations:

• Strengths: Assumes legal employment liability; reduces international hiring friction; handles complex cross-border compliance automatically; scales from 1 to 1000+ contractors.
• Limitations: Higher per-employee cost than traditional payroll; limited customization for non-standard compensation models; contractor network scope varies by country.

2. Rippling

Rippling centralizes workforce data—connecting HR records, payroll calculations, IT device provisioning, and benefits enrollment through one employee source. Changes automatically sync across all systems. Companies report 40% reduction in administrative errors and 30% faster employee onboarding.

• Core capabilities: Centralized employee directory with automatic data synchronization, domestic and global payroll, IT device management (provisioning, security policies), benefits administration, expense management, compliance documentation.
• Supported integrations: Identity management (Okta, Azure AD), recruiting platforms (Workable), accounting software (NetSuite, Sage Intacct), communication tools (Slack, Asana), background checks (Checkr).

Strengths & limitations:

• Strengths: Single data source eliminates sync errors; IT device provisioning included; automatic policy enforcement; side-by-side payroll comparison catches errors; strongest for mid-market companies with distributed IT needs.
• Limitations: Steep onboarding curve for small teams; requires full-platform commitment; higher base cost than payroll-only tools.

3. Paylocity

Paylocity specializes in tax accuracy and audit defensibility. Businesses managing multi-state operations, executive compensation, or equity structures need detailed calculation trails that prevent IRS disputes. Companies using Paylocity report 99.2% tax compliance accuracy and reduce audit-related costs by 60%.

• Core capabilities: Multi-state tax calculation with jurisdiction-specific rules, executive compensation modeling (equity vesting, deferred comp), retirement plan integration (401k, defined benefit), tax scenario planning, regulatory form automation (W-2, 1099-R), wage garnishment processing.
• Supported integrations: Enterprise ERP systems (SAP, Oracle), CRM (Salesforce), accounting software with bank feed integration, benefits carriers.

Strengths & limitations:

• Strengths: Deep tax accuracy reduces compliance risk; comprehensive audit documentation; handles complex compensation structures; strong CFO-level reporting for financial analysis.
• Limitations: User interface less modern than newer competitors; primarily US-focused; longer implementation timeline than entry-level platforms.

4. Remote

Remote combines compensation processing with benefits administration (health insurance, retirement plans, paid time off) at the platform level across 60+ countries. Remote automatically handles benefits eligibility based on country of employment and manages country-specific benefit regulations. Companies reduce benefits administration time by 50%.

• Core capabilities: Multi-country payroll processing (60+ countries), benefits enrollment and administration (health insurance, retirement, PTO), local tax compliance automation, country-specific benefit regulations, integrated payroll reporting.
• Supported integrations: Communication platforms (Slack, Google Workspace, Microsoft Teams), time-tracking services, accounting software, regional benefits carriers.

Strengths & limitations:

• Strengths: Benefits connected with payroll (not separate systems); country-specific compliance pre-configured; simplifies distributed team management; reduces benefits administration complexity.

• Limitations: Covers 60 countries vs. competitors covering 150+; benefits catalog varies by country; less customizable than enterprise platforms.

5. RUN Powered by ADP

RUN removes complexity for small businesses without payroll expertise. It handles standard wage processing, tax calculations, and filings automatically without requiring knowledge of complex payroll administration. Small businesses report 15 hours/month saved on payroll tasks.

• Core capabilities: Standard wage processing, federal/state/local tax withholding and filing, direct deposit, check printing, basic HR tools (employee directory, document storage), mobile payroll access.
• Supported integrations: QuickBooks integration, bank connections for direct deposit, basic HR system features (limited third-party integrations).

Strengths & limitations:

• Strengths: Simplest onboarding among competitors; mobile-first design; ADP’s tax update guarantee; transparent per-employee pricing; suitable for 1-50 employee businesses.
• Limitations: Minimal customization; not suitable for complex compensation; limited integrations; basic reporting capabilities.

6. Oyster HR

Oyster functions as Employer of Record infrastructure across 180+ countries, assuming all employment responsibility, compliance, tax, and benefits obligations. This eliminates the need for companies to establish local legal entities. Reduces international hiring legal risk to near-zero and accelerates global team building.

• Core capabilities: Legal employment relationship management across 180+ countries, employer of record infrastructure, benefits procurement by country, local tax compliance, contract management, onboarding and HR documentation.
• Supported integrations: HR information systems, accounting platforms (limited third-party connections; Oyster maintains direct vendor relationships).

Strengths & limitations:

• Strengths: Eliminates need for local company registration; Oyster assumes employment liability; single contract across all countries; complete compliance responsibility.
• Limitations: Higher per-employee cost; less control over compensation decisions; limited to Oyster’s employment network; less flexible than independent payroll management.

7. Paycor

Paycor connects time tracking directly to payroll calculations, automatically applying shift differentials, overtime rules, and pay adjustments. Businesses with hourly or shift-based employees experience payroll errors when time data and compensation exist separately. Companies report 85% reduction in timesheet-related disputes.

• Core capabilities: Time and attendance connection with payroll, shift differential automation, overtime rule configuration (weekly, daily, consecutive), labor cost analysis and forecasting, compliance reporting for wage and hour regulations.
• Supported integrations: Timekeeping systems (badge readers, mobile apps), benefits platforms, accounting software (QuickBooks, NetSuite), learning management systems.

Strengths & limitations:

• Strengths: Time-to-pay connection eliminates disputes; shift-specific calculations automated; overtime rules configured upfront; labor cost forecasting capability; best for shift-based workforces.
• Limitations: Requires time-tracking system adoption; complexity for businesses with simple payroll; mid-to-large business focus.

8. Remofirst

Remofirst provides multi-currency payroll infrastructure where currency management, exchange rates, local payment methods, regional payment processors, is built into the core system. Global companies paying employees in different currencies need automated exchange rate management and local payment delivery options. Reduces payment delays and cross-border friction.

• Core capabilities: Multi-currency payroll processing, real-time exchange rate updates, local payment method support (regional bank transfers, mobile wallets), jurisdiction-specific tax compliance, multi-currency reporting.
• Supported integrations: Global banking networks, regional payment processors, accounting software, currency data providers.

Strengths & limitations:

• Strengths: Multi-currency native architecture; handles regional payment preferences automatically; transparent exchange rates; reduces payment delays; scales globally.
• Limitations: Added complexity for single-currency operations; requires multi-currency cash management; higher setup effort.

9. OnPay

OnPay provides industry-specific payroll automation for niche sectors (agriculture, nonprofits, seasonal hospitality, construction) where standard payroll platforms don’t address sector-specific compliance, benefit structures, or employment patterns. Pre-configured industry workflows reduce setup time by 70%.

• Core capabilities: Industry-specific tax rules and compliance automation, sector-specific benefits structures, seasonal employment workflows and rehire tracking, agricultural labor regulation compliance, nonprofit tax-exemption documentation.
• Supported integrations: Industry-specific accounting software, cooperative banking platforms, sector HR systems.

Strengths & limitations:

• Strengths: Pre-configured industry workflows reduce setup time; compliance built for sector regulations; familiar terminology for industry users; reduces training curve.

• Limitations: Limited functionality outside core industries; smaller user community; less feature flexibility than general platforms.

10. Paychex Flex

Paychex Flex operates as modular payroll infrastructure where features and HR tools are added as business needs scale. Startups pay only for basic payroll initially; as headcount increases, they add time tracking, benefits administration, HR recruiting, and compliance modules as needed. Companies save 40% by avoiding unused features.

• Core capabilities: Modular payroll (base, HR modules, benefits, retirement, workers compensation, compliance add-ons), customizable reporting, employee self-service portal, benefits marketplace, HR recruiting tools.
• Supported integrations: Largest third-party marketplace (500+ integrations), accounting software, banking platforms, HR management systems, time-tracking services.

Strengths & limitations:

• Strengths: Modular pricing (pay only for needed features); largest integration marketplace; scales incrementally with business growth; starts simple and grows complex as needed.
• Limitations: Module combinations can become expensive at scale; requires careful feature selection to avoid bloat; learning curve increases with module adoption.

What is Payroll Software?

Payroll software is a digital system designed to automate employee compensation processes. It functions as a centralized platform that stores employee payroll data, wages, tax information, benefits elections, and direct deposit details – and applies automated rules to calculate pay and process payments consistently. Unlike manual payroll management, the software eliminates spreadsheets by handling wage calculations, tax withholdings (federal, state, local), benefits deductions, and payment distribution through predefined business logic.​ Payroll software solutions can be cloud-based, giving businesses remote access to payroll data and processes, or deployed on-premises for companies requiring additional data control. . The system maintains secure employee records while generating payroll documentation, tax forms, and compliance reports needed for audit trails and regulatory requirements.

Features of Payroll Software

When evaluating payroll software, look for features that directly solve your specific business problems. Here’s what each core feature accomplishes:

• Automated Payroll Processing: Calculates employee wages, overtime, bonuses, and deductions without manual entry while handling varying hourly rates, shift differentials, and complex compensation structures automatically. This eliminates calculation errors and ensures consistent paycheck delivery on schedule.
• Tax Calculations: Computes federal, state, and local tax withholdings based on employee location and filing status, then automatically calculates tax liability amounts and files payroll taxes on required deadlines. This prevents missed filing deadlines that trigger compliance violations and penalties.
• Employee Self-Service Portal: Enables employees to access pay stubs, tax documents, and benefits information independently without HR involvement. On-demand document retrieval reduces HR administrative requests and support tickets significantly.
• Time and Attendance Tracking: Syncs hours worked directly with payroll calculations while automatically applying overtime rates, shift differentials, and attendance-based deductions. This eliminates discrepancies between timesheets and paycheck calculations that create disputes.
• Benefits Administration: Manages health insurance, retirement plans, paid time off, and voluntary deductions while handling multi-plan enrollment, jurisdiction-specific eligibility rules, and benefit compliance requirements by location.
• Reporting and Analytics: Generates payroll expense reports, tax liability summaries, labor cost breakdowns, and compliance documentation that provides data for budget planning, financial audits, and forecast projections.

Benefits of Payroll Software

Payroll software generates real advantages across compliance, operational efficiency, financial management, and employee experience—allowing organizations to reduce manual workload, meet tax regulations, and improve employee retention. When comparing payroll solutions, these specific benefits directly impact HR teams, finance departments, and overall organizational performance:

• Reduced Administrative Workload: Eliminates manual payroll calculations, data entry, and tax filing tasks that consume HR team time. Staff can allocate effort to strategic workforce planning and employee development activities instead of routine administrative work.
• Lower Operational Costs: Decreases spending on dedicated payroll staff, external payroll service providers, and manual processing overhead. Automation reduces the labor required to manage compensation across multiple locations and payment methods.
• Improved Payroll Accuracy: Eliminates calculation errors that cause paycheck disputes, employee dissatisfaction, and compliance violations. Automated withholding and deduction calculations apply consistent rules across all employees without manual judgment errors.
• Tax Compliance and Audit Readiness: Maintains accurate tax records, files required documentation on scheduled deadlines, and generates audit trails that demonstrate compliance. Organizations avoid penalties associated with late filings, miscalculations, or missing documentation.
• Enhanced Data Security: Stores employee financial information in encrypted systems with role-based access controls, reducing risk of data breaches compared to spreadsheet-based payroll. Audit logs track all payroll changes and access for compliance verification.
• Better Financial Planning: Provides accurate payroll expense data for budgeting and labor cost analysis across departments, locations, and time periods. Real-time reporting enables CFOs to project compensation expenses and identify cost optimization opportunities.
• Improved Employee Satisfaction: Ensures timely, accurate paychecks and transparent access to compensation details through self-service portals. Employees resolve payroll questions independently without HR intervention, reducing frustration from processing delays or calculation confusion.
• Scalability for Business Growth: Supports workforce expansion without proportional increases in payroll administration complexity or headcount. Multi-location and multi-currency capabilities enable consistent payroll processes across organizational growth.

How to Select Right Payroll Sofware

Choosing payroll software requires evaluating your specific business requirements against software capabilities. Identify what matters most for your organization before comparing platforms:

• Match Your Payroll Type: List whether you have salaried employees, hourly workers, contractors, or a combination. Shift-based retail payroll differs from executive compensation with equity vesting. Software built for your employee type prevents overpaying for features you don’t need and avoids paying for missing capabilities when you do need them.
• Assess Tax and Compliance Requirements: Evaluate which countries or states where you operate and their specific tax rules. If you manage multiple locations, verify the software handles tax calculations and filings across all your operating areas. Confirm the software supports each location’s specific tax withholding requirements and filing deadlines.
• Evaluate System Connections: List the accounting platform, HR system, and time-tracking software you currently use. Test whether the payroll software can send data to and receive updates from these systems automatically. If data requires manual entry between systems, you’ve defeated the purpose of automation.
• Reporting and Analysis Features: Determine what payroll data your finance and HR teams require, labor costs by department, tax liability summaries, compliance documentation, or cost forecasts. Confirm the software generates the specific reports you need for budgeting, audits, and planning.
• Verify Data Security: Confirm the software encrypts employee financial data, restricts access based on job roles, and maintains records of all payroll changes. Review the provider’s security certifications and compliance with data protection laws relevant to your industry.
• Compare Pricing Models: Understand the total cost: base fees, per-employee fees, feature add-ons, and implementation charges. Calculate the full cost against your budget and compare value across platforms with similar capabilities.

Costs and Pricing Models for Payroll Software

Payroll software pricing varies significantly based on business size, employee count, and feature requirements. Understanding pricing models prevents overpaying for unused features or underpaying and missing critical capabilities.

• Per-Employee Pricing: Most payroll software charges a monthly base fee plus a per-employee rate. A business with 50 employees paying $40 base plus $6 per employee pays $340 monthly, while 100 employees at the same rate costs $640 monthly. This model scales with your business but becomes expensive as headcount increases.
• Flat Monthly Pricing: Some software charges a fixed monthly fee regardless of employee count. These plans work for businesses with stable, predictable headcount and suit small businesses with 1-50 employees. Flat rates typically include all standard features but may limit customization or exclude advanced reporting.
• Pay-Per-Feature Pricing: Software offering pay-per-feature models lets you pay only for the features you use – payroll processing, tax filing, benefits administration, or time-tracking integration. This suits startups and businesses wanting to avoid paying for features they don’t need initially.
• Tiered Feature Plans: Software organized by tiers offers increasing features at higher price points. Entry-level plans ($50-$100/month) handle basic payroll. Mid-tier plans ($150-$300/month) add benefits administration and compliance reporting. Enterprise plans require custom quotes but include unlimited customization.

Payroll Software Pricing Models Comparison

Trends In Payroll Software for 2025

Organizations managing payroll face increasing complexity, tax rules change across countries, remote work expands globally, and employees demand transparency. Payroll software trends address these challenges through automation, security, and accessibility.

• AI Automation: More payroll software platforms are adding AI capabilities automatically. Organizations are shifting from manual data entry and calculation review toward systems that process payroll without human intervention for routine tasks.
• Cloud-Based Systems: Businesses are moving away from on-premise payroll software toward cloud-based platforms that update automatically and work across multiple locations. This shift eliminates the need for IT staff to maintain local systems.
• On-Demand Pay: Payroll software now enables employees to access earned wages before standard pay dates. What started as a perk in tech companies is becoming standard across industries as employees demand more flexible payment timing.
• Multi-Country Payroll: Software that previously required separate systems for each country now handles multi-country payroll in one platform. International hiring is becoming simpler as payroll software expands country coverage and automates multi-currency payments.
• System Integration: Companies increasingly expect payroll software to connect automatically with HR, accounting, and time-tracking systems. Manual data entry between disconnected tools is becoming unacceptable as businesses prioritize efficiency.
• Employee Self-Service: Organizations are using payroll software to give employees direct access to compensation details, tax information, and payment history. They report better retention when employees understand their compensation clearly through self-service access.

How HRBS Can Help With Payroll Outsourcing

Managing payroll across multiple locations requires staying current on tax regulations and employment requirements to avoid costly errors. HRBS simplifies payroll by combining local expertise with automated systems so that you can process payments confidently.

• Compliant Payroll Setup. Our solution helps you establish payroll that meets all regulatory requirements and protects you from misclassification within days. We handle contract requirements, employment classifications, and statutory compliance upfront.
• Payroll Analytics: We extract meaningful data from your payroll to reveal labor cost trends, overtime patterns, and staffing efficiency. These insights help you identify cost-saving opportunities, forecast future labor expenses, and make data-driven decisions about hiring and workforce allocation.
• Payroll Audits Every wage entry is checked against your records before processing payments. We maintain detailed transaction logs and deliver monthly reports that match wage costs with your accounting records, keeping your books audit-ready and preventing discrepancies.
• Compliance Support: Our in-house specialists are always available to help you manage employment classifications, updated tax rates, and emerging compliance issues.

Partner with HRBS to simplify payroll. Whether you’re hiring employees or contractors, we handle the complexity so your HR and finance teams can focus on retention, cost management, and financial reporting. Schedule a consultation with our team to understand how HRBS payroll outsourcing fits your organization’s needs.

FAQs 

Who uses payroll software?

Payroll software serves HR departments, payroll managers, business owners, and finance teams across startups, mid-market companies, and enterprises. Organizations with remote employees, multi-location operations, and international workforces rely on payroll software to automate wage calculations, tax withholding, and compliance reporting. Small businesses use payroll software to reduce manual processing errors. Large enterprises deploy multi-currency payroll systems for global workforce management. Regardless of company size or structure, payroll software eliminates time-intensive manual calculations and ensures employees receive accurate, timely payments while maintaining regulatory compliance.

What integrations are the most important for payroll software?

HR management system integration synchronizes employee records so hiring changes, status updates, and deduction modifications apply automatically across payroll without manual re-entry. Accounting software integration posts salary expenses directly to general ledger accounts, preventing reconciliation discrepancies during audits. Time-tracking tool integration feeds verified employee hours into payroll calculations, eliminating manual timesheet data transfer and overtime calculation errors. Organizations implementing these core integrations report reduction in payroll processing time and fewer calculation errors compared to manual workflows.

What data security features are included in payroll software?

Payroll software protects sensitive employee financial data through AES-256 encryption for data in transit and at rest. Multi-factor authentication restricts access to authorized users only, requiring both credentials and verification codes. Secure cloud infrastructure maintains automatic backup systems so employee records survive hardware failures. Most payroll providers maintain SOC 2 Type II certification, demonstrating regular security audits by independent third parties.

What is the best payroll software for small businesses?

The best payroll software for small businesses is affordable, easy to use, and offers essential features like automated tax filing, direct deposit, and compliance management. Solutions such as RUN Powered by ADP, Gusto, and OnPay are top-rated for small businesses. They are user-friendly, cost-effective, and provide automated payroll processing to ensure that your team gets paid accurately and on time.

Can payroll software help with tax compliance?

Yes. Payroll software automatically applies current federal, state, and local tax withholding rates to each employee salary based on W-4 information and filing status. The system generates required tax documents monthly including federal withholding reports and unemployment filings. Tax rate updates apply automatically on effective dates without manual reconfiguration, ensuring withholding reflects current law.

How much does payroll software cost?

The cost of payroll software varies based on the features you need and the size of your business. For small businesses, the price typically ranges from $20 to $150 per month. More advanced solutions with additional features like global payroll or multi-currency payroll can cost more. Custom pricing is often available for larger organizations or those with specific payroll needs.

Can payroll software handle multiple currencies for global teams?

Yes, many modern payroll systems support multi-currency payroll to facilitate payments for global teams. With global payroll software, businesses can pay employees in their local currencies, ensure tax compliance in different countries, and manage international payroll efficiently. This feature is ideal for businesses with remote employees or operations across multiple regions.