Note: Most software and service comparisons are written backward — the commission is chosen first, then the copy is written to justify it. This one is not. Think of it as advice from someone who has seen what works for small businesses and what does not. We cover what each platform actually does well, where it genuinely falls short, and who it is right for. Some links are affiliate links — at no cost to you. That does not change what we write.
Quick Answer
For most small businesses with under 50 employees, Gusto is the right choice — full-service payroll, automatic tax filings, and a clean interface without enterprise complexity. Use QuickBooks Payroll if you already run your books in QuickBooks Online. Consider Paychex if you have 25+ employees and a dedicated payroll person. ADP is built for large enterprises and is rarely the right fit for small businesses.
There Is No Single Best Payroll Software
The right choice depends on how many employees you have, how complex your payroll is, whether you already use accounting software, and how much hands-on support you need when something goes wrong. A platform with a lower overall rating might be exactly right for your business. A highly rated one might frustrate you if it was built for someone else's situation.
Alaska has no state income tax, which removes one layer of complexity — but you still have federal withholding, FICA, FUTA, and New York SUI (2026 wage base: $13,000) to manage. The right software handles all of this automatically so you are not manually tracking deposit deadlines or filing schedules.
In This Comparison
Gusto
Best for: Small businesses with 1–100 employees who want full-service payroll without complexity
Gusto is the platform we recommend most often for small business owners who are running payroll themselves without a dedicated HR or payroll person on staff. It was built from the ground up for small businesses, and that shows in almost every part of the product.
What Gusto Does Well
Setup is genuinely fast — most employers can run their first payroll in under an hour. Gusto files and pays your federal and New York SUI taxes automatically, including year-end W-2s and 1099s, so you are not manually tracking deposit deadlines. New hire onboarding is clean: employees complete their W-4, direct deposit authorization, and offer letter through a self-service portal. Support is available by phone, chat, and email.
Where Gusto falls short: Month-to-month pricing adds up — the Simple plan is around $40/month plus $6 per employee, which is fine for a 5-person team but less so at 50. Advanced HR features (performance reviews, complex benefits administration) require higher tiers. Support can be inconsistent during peak periods like tax season.
Trustpilot rating: 4.4/5 — consistently positive. Most complaints are about edge-case tax situations or wait times during busy periods.
Right for you if: You are running payroll yourself, you want taxes handled automatically, and you do not want to spend hours learning complex software.
Not the right fit if: You have complex multi-state payroll, union employees, or need enterprise-grade HR tools.
Try Gusto free. Gusto handles federal and state payroll taxes, SUI filings, and year-end W-2s automatically — no manual deposit tracking required.
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QuickBooks Payroll
Best for: Businesses already using QuickBooks Online for accounting
QuickBooks Payroll earns its place not because it is the most powerful standalone payroll platform, but because of one thing: if you are already running your books in QuickBooks Online, the integration is smooth in a way no other platform can match. Payroll entries sync to your general ledger automatically. You run payroll and your profit & loss updates in real time.
What QuickBooks Payroll Does Well
The QuickBooks ecosystem integration is the standout feature. Automatic tax payments and filings on Core and Premium plans, same-day direct deposit on higher tiers, and a familiar interface for anyone already in QuickBooks. Backed by Intuit, the infrastructure is solid and well-maintained.
Where QuickBooks Payroll falls short: Pricing can be confusing — features you actually need (same-day direct deposit, HR support, time tracking) require the Premium plan at a noticeably higher price. If you are not using QuickBooks for accounting, there is no compelling reason to choose this over Gusto. Support quality is mixed on complex tax issues.
Trustpilot rating: The broader Intuit brand rates 2.0/5, primarily reflecting QuickBooks Desktop billing complaints. The payroll module within QuickBooks Online rates considerably better on G2 and Capterra.
Right for you if: You use QuickBooks Online as your accounting platform and want payroll to sync without manual journal entries.
Not the right fit if: You use a different accounting platform, or you want the cleanest standalone payroll experience.
Our QuickBooks affiliate link is being finalized. You can explore QuickBooks Payroll directly at quickbooks.intuit.com/payroll.
Paychex
Best for: Growing businesses with 20–500+ employees who need dedicated payroll support
Paychex has been around since 1971. It is not built for the solo founder running five-person payroll on a Sunday evening. It is built for a growing business with complexity — multiple pay schedules, benefits administration, time and attendance tracking, workers' compensation management — ideally with someone in-house who owns the payroll function.
What Paychex Does Well
The breadth of services is genuinely impressive. Paychex Flex handles payroll, HR, benefits, time tracking, retirement plans, and compliance in one platform. You get a dedicated payroll specialist assigned to your account — a meaningful differentiator from a general support queue. Paychex is also strong for multi-state payroll complexity.
Where Paychex falls short: Pricing is not transparent — you have to call for a quote. Small business owners consistently report that contracts, auto-renewals, and cancellation fees catch them off guard. The interface is functional but dated. Support quality varies considerably depending on your assigned specialist.
Trustpilot rating: 1.2/5 — among the lowest of any major payroll provider. The volume and consistency of complaints about billing errors, contract disputes, and poor support are worth reading before you sign anything.
Right for you if: You have 25+ employees, a dedicated person managing payroll and HR, and need a platform that goes well beyond basic payroll.
Not the right fit if: You are a small business owner without payroll experience, or you want transparent pricing and easy cancellation.
Our Paychex affiliate link is being finalized. Explore Paychex at paychex.com. If you contact them, ask about pricing and contract terms upfront before signing anything.
ADP
Best for: Mid-to-large enterprises with dedicated payroll and HR staff
ADP is the largest payroll company in the world and processes payroll for roughly one in six American workers. If you need a platform that can handle 500 employees across 20 states with complex benefits and HR integration, ADP can do it. For a small business with ten employees, it is very likely the wrong tool.
What ADP Does Well
Scale, depth, and reliability. ADP's infrastructure is enterprise-grade. For a company with a payroll administrator on staff who has used ADP before, the familiarity and platform breadth is a genuine asset. ADP Run (their small business product) is more accessible, but even that is noticeably more complex than Gusto or QuickBooks.
Where ADP falls short: Opaque pricing, aggressive sales tactics, automatic contract renewals, and support routed through call centers rather than someone who knows your account. Trustpilot reviews are overwhelmingly negative for small business users. ADP is not a bad product — it is a product designed for large organizations that is frequently sold to small ones who may not realize the mismatch until they are locked in.
Trustpilot rating: 1.3/5 — the pattern of complaints is strikingly consistent. Read the reviews before making any decision.
Right for you if: You are a mid-to-large company with a dedicated payroll and HR team and staff experienced with ADP specifically.
Not the right fit if: You are a small business owner running payroll yourself. Start with Gusto or QuickBooks Payroll and consider ADP only if your business genuinely outgrows them.
Side-by-Side Comparison
| Feature | Gusto | QuickBooks | Paychex | ADP |
|---|---|---|---|---|
| Best for | 1–100 employees | QB Online users | 20–500+ | Enterprise |
| Starting price | ~$40/mo + $6/ee | ~$45/mo + $6/ee | Quote only | Quote only |
| Auto tax filing | Yes (all plans) | Yes (Core+) | Yes | Yes |
| Transparent pricing | Yes | Yes | No | No |
| No long-term contract | Yes | Yes | No | No |
| Ease of use | Excellent | Good | Moderate | Complex |
| Trustpilot rating | 4.4 / 5 | 2.0 / 5* | 1.2 / 5 | 1.3 / 5 |
| HR & benefits tools | Basic to moderate | Basic | complete | Enterprise-grade |
| Handles Alaska SUI | Yes (auto) | Yes (auto) | Yes | Yes |
* QuickBooks Payroll's Trustpilot rating reflects the broader Intuit brand; the payroll module rates higher on G2 and Capterra.
Our Recommendation
For most small businesses running payroll without a dedicated payroll person, Gusto handles the job well — automatic tax filings, clean onboarding, and month-to-month pricing with no contract. New York has both state income tax withholding and SUI to manage — verify your chosen platform handles both automatically on every payroll run. But it is not the right answer for everyone.
If you already run your books in QuickBooks, use QuickBooks Payroll. The integration saves real time and the setup is minimal.
If you have 25 or more employees and a person in-house who owns the payroll function, Paychex is worth a serious look. The platform is deeper and the dedicated specialist model works well at that scale — just understand the contract terms before you sign.
ADP is a capable platform built for large organizations. If someone is recommending it for a small business without a strong reason specific to your situation, ask why.
Whatever you choose: get pricing in writing, verify the contract length, and verify the platform handles New York payroll taxes automatically. New York has SUI, SDI, PFL, and MCTMT (for NYC metro area employers) — verify your platform handles all four automatically.