For most United States startups with 1 to 25 people, Gusto Simple and OnPay give the clearest starting point, at $49 per month plus $6 per person, with federal, state, and local tax filing included. Patriot Full Service is the lowest cost full-service option in this list, at $37 per month plus $5 per worker, but each extra state adds $12 per month. Square Payroll fits startups that already use Square for sales and timecards, at $35 per month plus $6 per person, while Rippling fits startups that want payroll inside a wider HR and IT system.
We compared 7 options for what payroll software is best for startups. Each profile below lists the price, free plan, pros and cons as published by the company.
On this page
What payroll software is best for startups: comparison table
Swipe the table sideways on a phone to see every column.
| # | Name | Best for | Starting price | Free plan / trial | Link |
|---|---|---|---|---|---|
| 1 | Gusto | United States startups that want simple payroll and benefits | $49 per month | No | Visit |
| 2 | Rippling | Startups that want payroll, HR, and IT in one system | $8 per user/month | No | Visit |
| 3 | Deel | Startups with workers in several countries | $29 per user/month | No | Visit |
| 4 | OnPay | Startups that want one plan with multi-state payroll | $49 per month | Free trial (30 days) | Visit |
| 5 | Square Payroll | Shops and restaurants already using Square | $35 per month | No | Visit |
| 6 | Patriot Payroll | Very small teams on a tight budget | $37 per month | Free trial (30 days) | Visit |
| 7 | Justworks | Startups that want payroll plus HR help | $8 per user/month | No | Visit |
The 7 best what payroll software is best for startups, in detail
Gusto
Best for: United States startups that want simple payroll and benefits
Gusto is a payroll, benefits, and HR platform built for small United States businesses, and its Simple plan is a clear starting point for a startup that wants payroll handled without a long setup. The plan includes unlimited payroll runs, direct deposit, employee self-service, and federal, state, and local tax filing. Simple costs $49 per month plus $6 per person, Plus costs $80 per month plus $12 per person, and Premium costs $180 per month plus $22 per person.
- Plus adds multi-state payroll, time tracking, and next-day direct deposit, while Premium adds custom admin roles, same-day pay, and instant pay where
- Gusto charges only for active employees, and for contractors only in months when they receive a payment.
- Gusto also works as a benefits broker, so a startup can compare medical, dental, and vision plans and manage a 401(k) in the same system.
- The main limit is the single-state rule on Simple, so a startup that hires in a second state needs Plus.
Pros
- Unlimited payroll runs on every plan
- Federal, state, and local tax filing included on Simple
Cons
- Simple covers payroll in one state only
- Faster pay options cost extra on lower plans
Rippling
Best for: Startups that want payroll, HR, and IT in one system
Rippling combines payroll with HR, IT, and finance tools in one platform, and that shared employee record is the reason a startup would choose it over a payroll-only tool. When a new hire joins, the same record can drive payroll, benefits, device setup, and access to apps. United States payroll includes federal, state, and local tax filing, direct deposit, and year-end forms.
- Rippling states on its pricing page that plans start at $8 per employee per month, with a monthly base fee, and that the total depends on the products
- Its small business page lists a $40 monthly base fee with that $8 starting rate.
- Benefits, time tracking, IT device management, and global payroll are priced through a quote, so $8 per person plus the base fee is a starting point,
- Rippling also offers a startup program that gives eligible United States venture-backed startups free access for 6 months.
Pros
- One employee record feeds payroll, HR, and IT
- Payroll covers all 50 states
Cons
- Most modules need a custom quote
- Total cost is hard to predict before a quote
Deel
Best for: Startups with workers in several countries
Deel is a global employment platform that covers hiring, payroll, HR, and compliance for teams spread across countries. Its global payroll service starts at $29 per employee per month for companies that already have their own local entity, and it covers payroll in 130 or more countries. Deel also offers contractor management from $49 per contractor per month and employer of record service from $599 per employee per month.
- The two services are different purchases: payroll applies when the startup employs the worker through its own entity, while employer of record applies
- Deel HR plans start at $5 per employee per month for Core, with higher plans at $19 and $29.
- The main limits are cost and setup.
- Global payroll is far more expensive per person than a United States-only tool, and each entity carries a $1,000 one-time setup fee.
Pros
- Global payroll covers 130 or more countries
- Contractor management starts at $49 per contractor per month
Cons
- Employer of record costs $599 per employee per month
- A $1,000 one-time setup fee applies per entity
OnPay
Best for: Startups that want one plan with multi-state payroll
OnPay runs one payroll plan instead of a tiered ladder, and that single plan is the main reason a startup would pick it. Payroll Essentials costs $49 per month plus $6 per worker, and it includes unlimited payroll runs, multi-state payroll, federal, state, and local tax filing, direct deposit, and year-end W-2 and 1099 forms. There is no implementation fee, and the first month is free for new accounts.
- The $6 per-person rate applies in the same way to W-2 employees and 1099 contractors.
- A 5-person team costs $79 per month, a 10-person team costs $109 per month, and a 25-person team costs $199 per month, before add-ons.
- HR support costs $15 per month plus $2 per worker, and time tracking costs $15 per month plus $4 per worker.
- OnPay has fewer third-party integrations than some larger platforms, and its base plan does not include tools for managing time off.
Pros
- One plan includes multi-state payroll and tax filing
- Same $6 rate for employees and contractors
Cons
- PTO tools need the HR add-on
- Time tracking needs a separate add-on
Square Payroll
Best for: Shops and restaurants already using Square
Square Payroll is the payroll service from Square, and it fits a startup that already takes payments through Square POS or manages shifts through the Square Team App. Timecards, tips, overtime, and commissions flow from the register into payroll. Full-service payroll costs $35 per month plus $6 per person, and it includes unlimited pay runs, automated federal and state tax payments and filings, new-hire reporting, and digital delivery of W-2 and 1099 forms.
- Square also offers a contractor-only plan at $6 per contractor per month with no base fee.
- That plan suits a startup that pays only 1099 contractors, but it excludes auto payroll, multi-state payroll, and timecard features.
- A 5-person team on full-service payroll costs $65 per month, a 10-person team costs $95 per month, and a 25-person team costs $185 per month.
- The limits are scope and support hours.
Pros
- Timecards and tips flow from Square POS into payroll
- Lowest base fee in this list
Cons
- Contractor-only plan excludes auto payroll and multi-state payroll
- No free plan
Patriot Payroll
Best for: Very small teams on a tight budget
Patriot Payroll, from Patriot Software, offers two payroll plans with clear monthly prices. Basic Payroll costs $17 per month plus $4 per worker, and Full Service Payroll costs $37 per month plus $5 per worker. Basic is self-service, so the business files its own payroll taxes, while Full Service includes federal, state, and local tax filing and deposits, plus year-end filings at no extra fee.
- New accounts get a 30-day free trial, then 50 percent off for the next 3 months.
- A 5-person team costs $62 per month on Full Service, a 10-person team costs $87 per month, and a 25-person team costs $162 per month.
- Patriot charges the per-worker fee only once per month for each worker on that month payroll.
- Time and Attendance and HR Software are each $6 per month plus $2 per employee.
Pros
- Lowest full-service starting price in this list
- Per-worker fee applies only to workers on that month payroll
Cons
- Full Service adds $12 per month for each extra state
- Standard direct deposit takes 4 days
Justworks
Best for: Startups that want payroll plus HR help
Justworks offers payroll software and PEO services from one company, and that choice between software and co-employment is the key decision for a startup. The Payroll plan costs $8 per employee per month plus a $50 monthly base fee, and it includes payroll for all employees, HR tools, expert support, time-off reports, and access to time tracking. A 5-person team costs $90 per month, a 10-person team costs $130 per month, and a 25-person team costs $250 per month.
- The PEO plans cost more because they add a wider service.
- PEO Basic costs $79 per employee per month, and PEO Plus costs $124 per employee per month.
- Both include payroll, compliance support, HR consulting, 24/7 support, and a 401(k), while PEO Plus adds medical, dental, and vision administration, H
- Justworks is a certified professional employer organisation, so on a PEO plan it becomes a co-employer.
Pros
- Payroll plan includes HR tools and expert support
- PEO plans add large-group benefits through co-employment
Cons
- PEO Basic costs $79 per employee per month
- Workers compensation is required on PEO plans
How we chose
We compared vendor pricing pages, product pages, and help pages for each tool, and we used the prices shown on those pages on 12 November 2026. We kept only tools with a real homepage, a published payroll price or a clear starting price, and a payroll service that fits a startup with 1 to 25 people. We left out tools that hide all pricing behind a sales call.
We checked the starting price for each tool, what tax filing is included, whether multi-state payroll is included or costs extra, and whether HR, time tracking, and benefits sit in the starting price or in an add-on. We did not claim hands-on testing, and we did not use review scores, awards, or customer counts to rank the tools.
What to check before you buy
Check the total monthly cost at your own headcount, not the starting price alone. A base fee plus a per-person fee means a 5-person team and a 25-person team have very different bills, and add-ons for time tracking, HR, and faster pay can add more than the base fee. Ask which states are included, how much each extra state costs, and whether contractor payments use the same rate as employee payments.
Check pay speed and lead time. Some tools need 4 days for standard direct deposit, while others offer 2-day deposit or next-day deposit on higher plans or as an add-on. Check who files and deposits payroll taxes, who prepares year-end W-2 and 1099 forms, and whether the plan includes employee self-service and time-off tracking.
The table below shows the monthly cost at 5, 10, and 25 people, using each starting price in this article and before add-ons, benefits premiums, and promotions.
| Tool and plan | 5 people | 10 people | 25 people | | Gusto Simple | $79 | $109 | $199 | | Rippling, starting rate | $80 | $120 | $240 | | Deel Global Payroll | $145 | $290 | $725 | | OnPay Payroll Essentials | $79 | $109 | $199 | | Square Payroll, full-service | $65 | $95 | $185 | | Patriot Full Service | $62 | $87 | $162 | | Justworks Payroll | $90 | $130 | $250 |
Use this table as a budget check. If your team is in one state and you want the lowest full-service bill, Patriot Full Service is the lowest of the United States options at each headcount shown. If your team is in several states, OnPay keeps the same $49 plus $6 rate, while Gusto Simple needs Plus at $80 plus $12 per person. If your team is outside the United States, Deel is the only tool in this list with global payroll from $29 per person.
Frequently asked questions
What payroll software is best for startups with 5 employees?
Gusto Simple, OnPay, and Patriot Full Service are strong fits for a 5-person United States startup. Gusto Simple and OnPay both cost $79 per month, while Patriot Full Service costs $62 per month. OnPay includes multi-state payroll in that price, while Gusto Simple covers one state and Patriot Full Service covers one state plus $12 per extra state.
What is the cheapest payroll software for a startup?
Patriot Full Service is the cheapest full-service option in this list, at $37 per month plus $5 per worker, or $62 per month for 5 people and $87 per month for 10 people. Square Payroll is close, at $65 per month for 5 people. Basic self-service plans cost less, but they do not file payroll taxes for you, so most startups should compare full-service prices first.
Does payroll software file taxes for a startup?
Most full-service plans in this list file federal, state, and local payroll taxes and prepare year-end W-2 and 1099 forms. Gusto Simple, OnPay, Square full-service payroll, Patriot Full Service, and Rippling payroll include tax filing. Patriot Basic does not file taxes for you, so read the plan page and confirm which filings are included before you buy.
Can a startup use payroll software for contractors?
Yes, most tools in this list pay contractors as well as employees. Gusto, OnPay, Square, and Deel all cover contractor payments, with different rates and limits. OnPay charges the same $6 rate for employees and contractors, Square offers a contractor-only plan at $6 per contractor, and Deel charges $49 per contractor per month for contractor management.
Is Deel worth it for a small startup?
Deel is worth it when a startup has workers in more than one country and needs payroll, contracts, and compliance in one place. Global payroll starts at $29 per employee per month, which is higher than United States-only tools. A startup with only United States workers will usually find a lower bill with Gusto, OnPay, Square, or Patriot.
Should a startup choose a PEO or payroll software?
Payroll software fits a startup that wants to run pay and taxes with software support, while a PEO fits a startup that wants a co-employer to handle benefits, compliance, and HR. Justworks Payroll costs $8 per employee per month plus a $50 base fee, while PEO Basic costs $79 per employee per month.
Sources
- https://www.gusto.com/
- https://gusto.com/product/pricing
- https://www.rippling.com/
- https://www.rippling.com/pricing
- https://www.deel.com/
- https://www.deel.com/pricing/
- https://www.onpay.com/
- https://www.onpay.com/pricing
- https://squareup.com/us/en/payroll
- https://squareup.com/us/en/payroll/pricing
- https://www.patriotsoftware.com/
- https://www.patriotsoftware.com/pricing
- https://www.justworks.com/
- https://www.justworks.com/pricing
Prices and features were read on each company’s own website in November 2026. They change often, so confirm the current offer on the official site before you sign up or buy.