Prices checked October 2026 · 9 payroll services compared

Best payroll services for small business: 9 compared, 1 free

Free downloadable payroll software vs paid cloud payroll providers. Compared honestly, with real pricing.

Picking the best payroll service for small business comes down to cost, tax-filing help, and data privacy. This guide compares the top payroll services for small business in 2026: Gusto, QuickBooks Payroll, Patriot, Xero, Sage, ADP RUN, Paychex, Wave, and the free downloadable option, Timeline Payroll, which costs $0 for life and runs offline on any Windows PC.

Short answer

If you want automated US tax filing and direct deposit, Gusto ($49/month + $6 per person on the Simple plan) is a common paid pick, and Patriot has the lowest published base price ($17/month + $4 per worker). If you are cost-sensitive or want to keep payroll data on your own machine, Timeline Payroll is free for life, runs offline on Windows, and handles attendance, payslips, and reports. You file taxes yourself. Below: the full 9-service breakdown with real pricing.
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Short answer: what are the best payroll services for small business?

For small businesses that want zero monthly fees and complete data privacy, Timeline Payroll, a free downloadable Windows application, is the strongest pick in 2026. For US businesses that want automatic tax filing, Gusto and QuickBooks Payroll are the strongest paid picks. For UK businesses on Xero or Sage accounting, the native payroll add-ons are usually the cleanest fit. Teams that already pay an accountant to file often do better with the free downloadable option than with a cloud subscription that charges a base fee plus a fee for every employee, every month.

Want the free option first? See the Timeline Payroll download page for screenshots, install steps, and the file checksum.

Timeline Payroll payroll run
Product screenshotTimeline Payroll payroll run
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9 best payroll services for small business, compared

Published pricing, the type of business each fits, and the catch behind the claim. Prices checked on each vendor's site in October 2026.

Small business payroll services compared: type, published pricing (checked 20 October 2026) and best fit
ServiceTypePricingBest for
Timeline PayrollDownloadable DesktopFree for lifetime. No subscription, no per-employee fee.Small businesses, startups, and freelancers in the USA, UK, Canada, and Australia wanting zero monthly cost and local data storage.
GustoCloud SaaSSimple plan: $49/month base + $6 per person/month (gusto.com, checked 20 Oct 2026)US-based small businesses (1 to 50 employees) that want automated tax filing and benefits administration
QuickBooks PayrollCloud SaaSSold bundled with QuickBooks Online accounting (Workforce plans): a monthly base fee plus a per-employee fee; see quickbooks.intuit.com for the current bundle priceQuickBooks accounting users in the USA wanting one vendor for bookkeeping and payroll
Patriot PayrollCloud SaaSBasic Payroll $17/month + $4 per worker paid; Full Service Payroll $37/month + $5 per worker paid (patriotsoftware.com, checked 20 Oct 2026)US small businesses wanting the cheapest paid cloud payroll
Xero PayrollCloud SaaSUK: payroll is included in Xero accounting plans, with the number of people paid set by the plan; see xero.com/uk for current plansUK, AU, NZ small businesses already using Xero accounting
Sage PayrollCloud SaaSUK: Payroll Essentials from £12/month excl. VAT for 5 employees, extra employees from £2.40 each (sage.com, checked 20 Oct 2026)UK small businesses with established Sage accounting workflows
ADP RUNFull-ServiceQuote-based: ADP does not publish RUN pricesGrowing US businesses (20+ employees) that want a big-brand payroll provider
Paychex FlexFull-ServiceQuote-based: ask Paychex for a price for your teamUS small-to-mid businesses wanting a dedicated account manager
Wave PayrollCloud SaaSUS: $40/month base + $6 per active employee and per contractor paid, all states; Canada: CA$25 base (waveapps.com, checked 20 Oct 2026)US and Canadian sole-proprietors and very small teams already using Wave accounting

Published prices checked on each vendor's own pricing page on 20 October 2026 (regular prices, not introductory discounts). Prices change and differ by country; check the vendor's local site before switching.

About this comparison: written by Usama Asif and published by Timeline Digital, a custom software development company founded in 2013 in Islamabad, Pakistan. Timeline Payroll is our own free product, which is why it is listed first; the other services are not affiliated with us, and no vendor paid to be included.

Real monthly cost at 15 employees

Base fees look small until you multiply the per-employee charge. Here is what the services that publish their US list prices cost per month for a 15-person team, using the regular (not promotional) prices on each vendor's pricing page, checked on 20 October 2026. QuickBooks sells payroll bundled with its accounting plans, and ADP and Paychex quote on request, so they are left out of the maths.

ServiceThe mathMonthlyPer year
Timeline Payroll$0 base + $0 per employee$0$0
Patriot (Basic Payroll)$17 + 15 × $4$77/mo$924/yr
Patriot (Full Service Payroll)$37 + 15 × $5$112/mo$1,344/yr
Wave Payroll (US)$40 + 15 × $6$130/mo$1,560/yr
Gusto (Simple)$49 + 15 × $6$139/mo$1,668/yr

Vendor list prices change and promotional rates differ; confirm current pricing on each vendor's site before you commit. The paid totals exclude add-ons such as time tracking or benefits administration.

Payroll service reviews: strengths and real weaknesses

One-screen verdicts on each payroll service. What it does well, where it falls short, and the type of team it actually fits.

Timeline PayrollDownloadable Desktop

Free for lifetime. No subscription, no per-employee fee.

A free downloadable Windows payroll application that covers employees, attendance, tax calculation, payslips, and reports. No login, no cloud, no subscription.

Best for: Small businesses, startups, and freelancers in the USA, UK, Canada, and Australia wanting zero monthly cost and local data storage.

Pros

  • Truly free for lifetime, not a 30-day trial
  • Runs fully offline on Windows 10/11
  • Unlimited employees and payroll runs
  • Data stays on your own PC (private)
  • Built-in timekeeping service

Cons

  • Windows-only desktop app
  • Does not file taxes with IRS/HMRC for you
  • No built-in direct deposit service
See Timeline Payroll, free download

GustoCloud SaaS

Simple plan: $49/month base + $6 per person/month (gusto.com, checked 20 Oct 2026)

Popular full-service cloud payroll for US small businesses. Filing, direct deposit, and HR perks baked in.

Best for: US-based small businesses (1 to 50 employees) that want automated tax filing and benefits administration

Pros

  • Automatic federal and state tax filing
  • Clean employee onboarding flow
  • Strong integration ecosystem

Cons

  • US payroll only
  • Per-person fee adds up as the team grows
  • Cloud-only, no offline mode

QuickBooks PayrollCloud SaaS

Sold bundled with QuickBooks Online accounting (Workforce plans): a monthly base fee plus a per-employee fee; see quickbooks.intuit.com for the current bundle price

Tight integration with QuickBooks Online makes this a common default for small US businesses already on the platform.

Best for: QuickBooks accounting users in the USA wanting one vendor for bookkeeping and payroll

Pros

  • Native QuickBooks integration
  • Direct deposit and tax filing included
  • Strong mobile app

Cons

  • US product; payroll is sold as a bundle with QuickBooks accounting
  • Base plus per-employee pricing climbs with headcount
  • Some features locked to higher tiers

Patriot PayrollCloud SaaS

Basic Payroll $17/month + $4 per worker paid; Full Service Payroll $37/month + $5 per worker paid (patriotsoftware.com, checked 20 Oct 2026)

Budget-friendly US cloud payroll with optional full-service tax filing upgrade. Strong value for 1 to 10 employee teams.

Best for: US small businesses wanting the cheapest paid cloud payroll

Pros

  • Lowest published base price among the US services checked here
  • Full-service tier handles tax filing
  • Clean interface, minimal learning curve

Cons

  • Fewer integrations than Gusto/QuickBooks
  • USA-only coverage
  • Still charges per employee every month

Xero PayrollCloud SaaS

UK: payroll is included in Xero accounting plans, with the number of people paid set by the plan; see xero.com/uk for current plans

Integrated payroll module inside Xero. A good pick if you already use Xero for bookkeeping in the UK or Australia.

Best for: UK, AU, NZ small businesses already using Xero accounting

Pros

  • Native Xero integration
  • Good UK RTI and AU STP compliance
  • Clean modern UI

Cons

  • Requires a Xero accounting subscription
  • Number of people you can pay depends on the plan
  • Not a standalone payroll product

Sage PayrollCloud SaaS

UK: Payroll Essentials from £12/month excl. VAT for 5 employees, extra employees from £2.40 each (sage.com, checked 20 Oct 2026)

UK-focused payroll with strong HMRC compliance. Often bundled with Sage accounting.

Best for: UK small businesses with established Sage accounting workflows

Pros

  • Strong UK HMRC RTI support
  • Trusted brand for UK accountants
  • Pension auto-enrolment handled

Cons

  • UK / IE / ZA focus, weak outside those markets
  • Interface feels dated compared to Gusto/Xero
  • Tiered pricing climbs quickly

ADP RUNFull-Service

Quote-based: ADP does not publish RUN prices

Enterprise-grade payroll scaled down for small businesses. Strong compliance, but not cheap and not transparent on pricing.

Best for: Growing US businesses (20+ employees) that want a big-brand payroll provider

Pros

  • Enterprise-quality compliance and reporting
  • Large support organisation
  • Benefits and HR add-ons available

Cons

  • Pricing not publicly listed
  • Overkill for micro-businesses
  • Contract commitments common

Paychex FlexFull-Service

Quote-based: ask Paychex for a price for your team

Full-service US payroll provider with strong support and extensive HR services. Sales-driven onboarding.

Best for: US small-to-mid businesses wanting a dedicated account manager

Pros

  • Dedicated account manager option
  • Broad HR and benefits suite
  • Strong tax compliance

Cons

  • Sales-led, pricing not transparent
  • More complex than a small business usually needs
  • USA focus

Wave PayrollCloud SaaS

US: $40/month base + $6 per active employee and per contractor paid, all states; Canada: CA$25 base (waveapps.com, checked 20 Oct 2026)

Payroll add-on to Wave’s free accounting platform. Good for very small US/Canadian teams.

Best for: US and Canadian sole-proprietors and very small teams already using Wave accounting

Pros

  • Integrates with free Wave accounting
  • Reasonable cost for micro-teams
  • Decent UI for beginners

Cons

  • USA / Canada only
  • Support is email-led
  • Still a per-employee subscription

How to pick the best payroll service for your small business

A short, practical checklist. Work through these four questions and the right payroll service usually falls out of the list.

1. What is your monthly budget?

If $0/month is the goal, a free downloadable tool is the only shape that fits. Published US base fees run from $17 (Patriot Basic) and $37 (Patriot Full Service) to $40 (Wave) and $49 (Gusto Simple), each plus a per-employee fee. QuickBooks bundles payroll with its accounting plans, and ADP RUN and Paychex quote on request.

2. Which country do you pay in?

US: Gusto, QuickBooks, Patriot, Wave, ADP, Paychex. UK: Sage, Xero. Elsewhere, Timeline Payroll lets you set your own currency and tax brackets, but you stay responsible for checking the rules and filing in your country.

3. Do you need tax filing done for you?

If yes, a full-service SaaS option (Gusto, QuickBooks Full Service, Patriot Full Service) is worth the monthly fee. If your accountant files anyway, paying twice for the same work is waste. A free downloadable tool plus an accountant wins on cost.

4. How sensitive is your data?

Founders and family-owned businesses often prefer salary data to stay off third-party clouds. If that matters, Timeline Payroll keeps records on your own Windows PC. If you do not mind vendor cloud storage, any cloud SaaS option is fine.

Illustrative exampleA payroll run with salaries, deductions and payslips.

What "automated payroll" actually means

Vendors use "automated payroll" to describe four very different levels of automation. Knowing which level you actually need is the fastest way to avoid overpaying.

Level 1, Calculation automation

The tool calculates gross pay, taxes, overtime, bonuses, and net pay automatically. No manual maths each month. Timeline Payroll and every serious paid option include this as standard.

Level 2, Payslip automation

Payslips are generated and formatted in one click, ready to print or save as PDF. Timeline Payroll does this. Some "free" tools charge per payslip or cap the number per month.

Level 3, Direct deposit automation

The tool sends salaries to employee bank accounts without you logging into banking separately. Available only on paid SaaS (Gusto, QuickBooks, ADP) and usually bundled with a monthly fee.

Level 4, Tax filing automation

The tool files federal, state, and local tax returns with the IRS, HMRC, CRA, or ATO on your behalf. Only available on full-service paid plans. Most small businesses cover this through an accountant for less.

For many small businesses, Levels 1 and 2 cover most of the monthly work, and that is what Timeline Payroll does for free. Levels 3 and 4 save real time, especially across several states or countries, but at 5 employees compare their monthly cost with what your accountant already charges to file.

Illustrative exampleAn automated workflow routing each step to the right place.

Which payroll service type fits your team?

A quick guide to which payroll service fits which kind of small business.

Freelancers and solopreneurs

A free downloadable tool like Timeline Payroll is usually enough. 1 to 3 contractors, a few monthly payments, payslips for records. No subscription needed.

Early-stage startups

Free downloadable payroll while cash is tight; move to Gusto (US) or Xero Payroll (UK) once you have more than 15 to 20 staff and investors expect audited records.

Retail and restaurants

Shift-based teams with variable hours. A payroll and timekeeping service in one place (Timeline Payroll or Gusto plus a time add-on) reduces disputes and speeds up the cycle.

Construction and trades

Weekly pay, overtime, and site-based workers. Timeline Payroll plus our free labor management system handles this without a subscription stack.

Professional services

Law firms, accountancies, clinics, and consultancies on Xero or QuickBooks often benefit from the native payroll add-on for one-click reconciliation.

Growing SMBs (20 to 100 staff)

Full-service providers (Gusto, ADP RUN, Paychex) start to earn their monthly fee. Tax-filing automation and dedicated support save real hours at this scale.

What is the best payroll service for startups?

The best payroll service for startups is the one that costs nothing until revenue arrives. Startups need per-run flexibility, contractor support, and zero per-employee minimums. A free desktop payroll like Timeline Payroll covers the first hires at $0, with payslips, tax calculation, and attendance included.

Most startups outgrow free desktop payroll at a predictable point. Watch for three signals. First, headcount passes 15 to 20 and running payroll manually starts eating a founder's afternoon every month. Second, you raise institutional funding and investors or auditors expect payroll records with automated tax filing behind them. Third, you hire across US states or in multiple countries, where per-jurisdiction filing rules make a full-service cloud provider worth its monthly fee.

Until one of those happens, paying a monthly base fee plus a fee per employee buys convenience you may not need yet. Start free, keep clean records, and export your year-to-date totals when you switch; the move to a cloud service takes a weekend, not a quarter. There is no single best vendor for every startup. The right pick depends on where your team sits and who files your taxes.

Timeline Payroll reports
Product screenshotTimeline Payroll reports

Payroll service questions, straight answers

Straight answers to the questions small business owners ask before picking a payroll service.

What is the best payroll service for small business in 2026?

The best payroll service for a small business depends on whether you need the provider to file taxes and pay staff for you. For automated US tax filing and direct deposit, Gusto (from $49/month + $6 per person), QuickBooks Payroll and Patriot are the common paid picks; in the UK, Sage and Xero. For $0 and data kept on your own PC, Timeline Payroll is a free offline Windows app that calculates pay and payslips, while you or your accountant file the taxes.

Is there a free payroll service provider for small business?

Yes. Timeline Payroll is a free downloadable payroll tool with no subscription, no trial limit, and no per-employee fee. It is not a SaaS provider, it is a Windows desktop application you install and own. Most paid providers (Gusto, QuickBooks, Patriot, ADP) do not offer a genuinely free tier. Their published US entry prices, checked on 20 October 2026, run from $17 a month (Patriot Basic Payroll) to $49 a month (Gusto Simple), plus $4 to $6 per employee. If monthly cost is the reason you are searching, a free downloadable tool is the right shape of answer.

What is the difference between a payroll service and payroll software?

A payroll service (Gusto, ADP, Paychex) is a subscription where the vendor calculates pay, files taxes, and issues direct deposits on your behalf. Payroll software (Timeline Payroll, Sage desktop, QuickBooks Desktop Payroll) is a tool you use to calculate payroll yourself; filing and payments happen through your bank or accountant. Services cost more and take work off your plate; software costs less and gives you more control.

What payroll software fits a business with under 50 employees?

For under 50 employees, pick by who files the taxes. If you want the provider to file and pay staff, a full-service cloud plan such as Gusto, Patriot Full Service Payroll or Wave (US), or Sage or Xero (UK), fits most teams. If your accountant files, free desktop software such as Timeline Payroll calculates pay, payslips and reports at $0 with no employee cap.

How much does payroll cost for a small business?

From $0 to a few hundred dollars a month. A free desktop app like Timeline Payroll costs $0. Published US cloud plans checked on 20 October 2026 charge a base fee plus a per-employee fee: for 15 employees that is $77 a month on Patriot Basic Payroll, $130 on Wave and $139 on Gusto Simple. Full-service providers such as ADP and Paychex quote on request.

Which payroll service has no monthly fee?

Cloud payroll services all charge a monthly fee: the published US entry plans checked on 20 October 2026 start at $17 to $49 a month plus $4 to $6 per employee. The only way to avoid the monthly fee entirely is to use a downloadable payroll application like Timeline Payroll. You pay $0, run payroll yourself on a Windows PC, and either file taxes with an accountant or submit directly through free government portals (IRS, HMRC, CRA, ATO).

Can I switch from a paid payroll service to free payroll software?

Yes. Export your employees, year-to-date payroll totals, and bank details from your current provider as CSV. Install Timeline Payroll on a Windows PC, add the same employees, keep the old provider's year-to-date reports on file for your accountant, and run your first payroll cycle. Keep the paid subscription for one extra month as a safety net. Most small businesses complete the switch in a single weekend.

Does the best payroll service for small business handle tax filing?

Full-service payroll providers like Gusto, ADP, QuickBooks Payroll, and Patriot Full-Service file federal, state, and local taxes on your behalf. Free downloadable payroll software (Timeline Payroll) calculates tax deductions from the brackets you set and generates reports, but filing happens through your accountant or via free government portals. For micro-businesses this is usually cheaper overall. For businesses with complex multi-state or multi-jurisdiction payroll, a full-service provider saves meaningful time.

Is free payroll software safe for my employees' data?

Yes, when downloaded from an official source. Timeline Payroll stores every record, names, salaries, bank accounts, tax IDs, locally on your own Windows PC. Nothing is uploaded to a third-party cloud. That is typically safer than a SaaS provider because your data never leaves your premises, you control backups, and there is no shared breach risk with other customers on the same cloud tenant.

Is free downloadable payroll software safe to install?

Yes, provided you download from the official vendor site. Timeline Payroll is distributed directly from timelinedigi.com. The installer is not code-signed, so Windows SmartScreen may ask once the first time you run it; choose "More info", then "Run anyway". You can verify the file against the SHA-256 checksum published on the Timeline Payroll download page before installing. All employee data is stored locally on your computer, which is typically safer than uploading it to a third-party cloud.

What is the best payroll service for startups?

The best payroll service for startups is one with no per-employee minimums and no monthly subscription while the team is small. Timeline Payroll, a free downloadable Windows application, handles the first hires and contractors at zero cost, including payslips, tax calculation, and attendance. Most startups switch to a cloud service such as Gusto (US) or Xero Payroll (UK) once headcount passes 15 to 20 or investors expect automated tax filing behind the payroll records. Timeline Digital also builds custom payroll modules for startups that outgrow off-the-shelf tools.

Can a payroll service also handle timekeeping?

Yes. A good payroll and timekeeping service tracks attendance, overtime, and leaves and feeds those hours directly into the payroll run, avoiding a second tool and duplicate data entry. Timeline Payroll includes attendance and timekeeping in the free download. Cloud payroll vendors often sell time tracking as an add-on or only on higher plans, so check whether it is included before comparing prices.

Do I need a payroll service if I only have 1 to 3 employees?

No, you do not need a paid service. For 1 to 3 employees, a free downloadable payroll tool is almost always enough. Timeline Payroll calculates gross pay, tax deductions, net salary, and prints payslips for free. File quarterly or annual returns through your accountant or directly with the tax authority. Paid cloud subscriptions are rarely worth the monthly cost at this team size.

How do I pick the best payroll service provider for my small business?

Work through four questions: (1) Country, does it support your tax jurisdiction? (2) Budget, is a monthly base fee plus a per-employee fee sustainable? For 15 employees the published US plans checked here cost $77 to $139 a month. (3) Tax filing, do you need the provider to file for you, or is exporting a report enough? (4) Data privacy, are you comfortable hosting salary data on a vendor's cloud? If you answer "no" to any of 2 to 4, a free downloadable tool like Timeline Payroll is usually the better fit.

Can Timeline Digital build a custom payroll service for my business?

Yes. Timeline Digital, a custom software development company founded in 2013 and headquartered in Islamabad, builds payroll and HR modules inside custom ERP and business systems, and it publishes the free Timeline Payroll app. If you need multi-branch cloud sync, bank file exports, your own pay rules, or links to your accounting system, it can build a tailored version; you see 2 to 3 key modules working in a free pilot first, and prices are quoted after scoping because every project is custom.

Free option · v1.0.0 · Windows 10 and 11

Start with the free payroll option that never charges monthly

Skip the trials and the per-employee fees. Get Timeline Payroll, install it on any Windows PC, and run your first payroll in 15 minutes. If you outgrow it, move to a paid provider later. You will not have wasted a dollar in the meantime.

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Made in Islamabad, Pakistan

Free Payroll Software for Small Business in Pakistan

Most payroll services on this page are built for the USA. For Pakistani businesses paying salaries in PKR, Timeline Payroll is a free Windows app from Timeline Digital in Islamabad that handles employees, attendance, salaries and payslips offline, with no subscription and no per-employee fee.

Chat on WhatsApp in Urdu or English

  • Salaries in PKR

    Run payroll, deductions and payslips in Pakistani Rupees. Free, with no subscription and no per-employee charge.

  • FBR slabs you control

    Pakistan income tax slabs change with each Finance Act. You set income tax as a configurable deduction and update the rate when the law changes.

  • Your own deduction categories

    Set up deduction categories in Settings so every payslip itemises them. The app does not hold statutory EOBI or social security rates and does not file with them.

  • Works offline

    A desktop app that runs without the internet, so payroll is not blocked by load-shedding or a dropped connection.

  • Urdu setup help

    WhatsApp the Islamabad team to set up payroll for your business, in Urdu or English.

Common questions from Pakistan

Is Timeline Payroll free for businesses in Pakistan?

Yes. Timeline Payroll is a free Windows app from Timeline Digital in Islamabad. It has no subscription and no per-employee fee, and it runs offline, so a small Pakistani business can manage employees, attendance, salaries and payslips at no cost.

Does it handle FBR income tax slabs for Pakistani salary calculations?

Income tax is set as a configurable deduction, so you enter the rate that applies under the current Finance Act and update it when FBR slabs change. The app does not file tax for you, but it produces salary and deduction records you can use for FBR reporting.

Does free payroll software in Pakistan calculate EOBI deductions?

Not automatically. Timeline Payroll lets you define your own deduction categories in Settings, so amounts you work out can be recorded and shown on each payslip and in reports, but it does not hold statutory EOBI or provincial social security rates and does not file with EOBI or PESSI. Rates are set by law and change, so confirm current figures with EOBI and your provincial social security institution.

Which payroll software works for small businesses in Pakistan without a monthly subscription?

Timeline Payroll is a free, offline Windows option with no monthly subscription, built and supported in Islamabad. Most cloud payroll services on this page charge a monthly fee and are aimed at the US market, so a free local app often fits a small Pakistani business better.