Running payroll for a small team shouldn't be a headache. We compared the top payroll services — Gusto, Square, OnPay, Deel, and Justworks — across pricing, features, and who they serve best. Whether you need full-service US payroll, global contractor payments, or integrated benefits, here's our honest take on what works.
Running payroll for a small team is one of those tasks that seems simple — until you miss a tax deadline, misclassify a worker, or realize you're not compliant in a state you just hired in. The stakes are real: the IRS charges up to 10% of the unpaid balance for late payroll taxes, and state-level penalties add up fast.
Modern payroll software handles the heavy lifting: automated tax filings, multi-state compliance, direct deposit, and year-end forms. But not every service fits every team. Here's our breakdown of the best payroll services for small teams in 2025.
| Service | Best For | Base Price | Per-Employee Cost |
|---|---|---|---|
| Gusto | Overall small business payroll + HR | $40/mo | $6/employee |
| Square Payroll | Retail/restaurants using Square POS | $35/mo | $5/employee |
| OnPay | Value-focused multi-state payroll | $40/mo | $6/employee |
| Deel | Global/remote-first teams | Custom | Custom |
| Justworks | PEO with premium benefits | Custom | Custom |
Gusto is the most well-rounded payroll service for small businesses. It automates payroll taxes in all 50 states, handles W-2s and 1099s, and folds in HR basics like onboarding, time-off tracking, and benefits administration.1 The interface is clean and approachable — you don't need a CPA to run payroll.
It integrates with major accounting tools like QuickBooks and Xero, and employees get a self-service portal for pay stubs, tax documents, and direct deposit setup. For most US-based small teams, Gusto is the default recommendation.
If you already run your business on Square POS, Square Payroll is the natural fit. It offers simple, flat-priced payroll that syncs seamlessly with your point-of-sale data — tip pooling, hourly wages, and shift differentials are handled automatically.2
It handles both W-2 employees and 1099 contractors, files federal and state taxes, and offers faster direct deposit options. The pricing is straightforward: $35/month plus $5 per employee, with no hidden fees. Best for teams that want payroll as an extension of their existing Square workflow.
OnPay is a no-nonsense payroll provider that covers everything a small business needs without upselling you on features you don't want. It includes multi-state payroll, automated tax filings, year-end W-2 and 1099 preparation, and HR tools like PTO tracking and employee onboarding — all at a transparent $40/month plus $6 per person.3
It also integrates with popular accounting platforms (QuickBooks, Xero) and offers a dedicated account manager. If you want full-service payroll without the premium price tag, OnPay is the pick.
Deel is built for teams that hire across borders. It handles international payroll, contractor payments, and employer-of-record (EOR) services in over 150 countries, ensuring legal compliance and accurate payments in local currencies.4
For small teams with remote workers abroad, Deel eliminates the complexity of navigating foreign labor laws, tax treaties, and payment logistics. It's more specialized than the others on this list — but if you need global payroll, it's the clear leader.
Justworks operates as a PEO (Professional Employer Organization), meaning it co-employs your team to give you access to Fortune-500-level benefits — health insurance, 401(k), commuter benefits, and more — bundled with payroll and compliance. It's ideal for small businesses that want to offer great benefits without the administrative burden of managing them separately.
Pricing is custom and higher than the others, but for teams that prioritize benefits as a hiring differentiator, Justworks delivers real value.
| Feature | Gusto | Square Payroll | OnPay | Deel | Justworks |
|---|---|---|---|---|---|
| Base Price | $40/mo | $35/mo | $40/mo | Custom | Custom |
| Per-Employee Cost | $6 | $5 | $6 | Custom | Custom |
| Tax Filing | All 50 states | All 50 states | All 50 states | Global | All 50 states |
| Global Payroll | No | No | No | Yes (150+ countries) | No |
| Benefits Admin | Yes | No | Limited | No | Yes (PEO) |
| Best For | General SMBs | Retail/restaurants | Value seekers | Remote teams | Benefits-focused teams |
Multi-state support. If you have employees in more than one state — or plan to — make sure the service handles state-level tax registration, withholding, and filings automatically. Not all providers cover all 50 states equally.
Accounting integrations. Your payroll should talk to your books. Look for native integrations with QuickBooks, Xero, or FreshBooks so you're not manually importing journal entries.
Employee self-service. A portal where employees can view pay stubs, update tax withholdings, and download W-2s saves you from being the go-between for every basic request.
Scalability. The software you pick for a team of 5 should still work when you're at 50. Check whether pricing scales linearly and whether features like PTO tracking, performance reviews, or hiring workflows are available when you need them.
Disclosure: We may earn a commission if you purchase through our links. We only recommend services we've researched and believe deliver real value to small teams.
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