Best Payroll Software for Small Business (2023)

Small businesses have a lot to gain from reliable payroll software, like saving time and money. Automating your company’s payroll process and tax filing, for example, can give you hours of your day back to put into building your business. According to Intuit QuickBooks, it can take nearly five hours each pay period to manage payroll taxes.

However, what is good for one company may not be good for another. Our Best Payroll Software for Small Businesses rating can help you navigate some of those small business-specific factors that go into choosing payroll software.

If you have a larger business or are interested in learning about features and plans that are less specifically tailored to small businesses, check out our Best Payroll Software of 2023 ratings.

Our Best Payroll Software for Small Business of 2023 Rating

The best payroll software for small businesses streamlines payroll processes. It automatically calculates payroll taxes and may file and deposit them with state, federal, and local taxing agencies depending on the plan. Base prices range from $17 to $125 monthly, whereas per-employee fees range from $4 to $10. Many payroll providers will file new hire paperwork with your state, and some include onboarding features, like e-signature for hiring documents.

After businesses complete payroll, employees receive funds via direct deposit in two to four days. Certain payroll solutions offer next-day or same-day services for eligible employers. And while most vendors have live customer support, hours vary by provider and subscription plan. Explore our top picks for small business payroll.

Gusto

Monthly Fee

$40.00 & $6/Employee

Best Overall Payroll Software

Gusto Is Recommended For:

  • Businesses that want payroll options that scale as they grow

  • Those who want time tracking options bundled in with full-service payroll

  • Employers who want multiple direct deposit options

Gusto Isn’t Recommended For:

  • Businesses that prefer multi-state payroll as a standard option

  • Those who want withholding options included in a contractor-only service plan

  • Large companies with more than 1000 employees

Direct Deposit

Trial Period
N/A

Priority Support

more detailsNo. 1 in our small business rating is Gusto. It offers three plans (Simple, Plus, and Premium), with pricing starting at $40 monthly plus $6 per person. Gusto Simple provides single-state full-service payroll, basic onboarding tools, and limited live support hours. It pays employees via direct deposit or paper check. In addition, Gusto automatically files your payroll taxes and creates 1099s and W2s for tax season.
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You won’t pay extra to configure multiple pay rates for your staff or handle child support and garnishment deductions. Under the Run Payroll tab, you can view what your employees took home, how much you paid, and what gets taxed and debited. All subscriptions include employee portals with lifetime access to their paystubs and tax forms. Business owners use Gusto to onboard new employees by completing the onboarding checklist and letting new hires e-sign their documents.

Along with payroll, all Gusto plans include benefits administration. The free, low-cost, and premium options enable entrepreneurs to provide benefits and perks to employees, such as retirement accounts, health insurance, and Gusto Wallet cash accounts. The payroll software integrates with accounting and time-tracking tools including Xero and WhenIWork.

OnPay

Monthly Fee

$40.00 & $6/Employee

Best Value

OnPay Is Recommended For:

  • Small and midsized companies

  • Companies that only need full-service payroll and a few additional HR features

  • Anyone who prefers to not have to upgrade plans to access features

OnPay Isn’t Recommended For:

  • Companies seeking greater integration options

  • Companies that want to bundle accounting and timekeeping features

  • Businesses that plan to scale significantly

Direct Deposit

Trial Period
1 Month

Priority Support

more detailsOnPay ranks No. 2 on our small business rating. It has a single plan that costs $40 per month plus $6 per employee, and your first month is free. The full-service payroll plan includes unlimited pay runs, automated tax payments, and filings. OnPay withholds your federal, state, and local payroll taxes, sends tax payments, and files form 940 and 941. It doesn’t cost extra for multi-state payroll; you can deduct garnishments with two clicks.
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OnPay will withhold state and federal unemployment insurance payments and process employer contributions. The employee self-service portal provides lifetime access to paystubs and tax documents. OnPay integrates with QuickBooks Online, Xero, and several HR and time-tracking tools. The vendor helps set up your integrations, and customer service is available via phone, chat, and email.

Like competitors, OnPay offers basic HR capabilities, including e-signatures and online I9 and W2 forms. Small businesses can keep HR conversations in one spot using OnPay’s direct messaging tools, which are ideal for audit trails. It also provides organization charts, allowing companies to classify workers by location, team, or department. Also, employers can find 401(k), health, and life insurance policies through OnPay partners and in-house brokers.

Intuit QuickBooks

Monthly Fee

$45.00 & $5/Employee

Best Integration with QuickBooks Products

Intuit QuickBooks Is Recommended For:

  • Small to medium-sized businesses

  • Those who want to pair QuickBooks accounting software with payroll

  • Anyone who wants federal and state taxes filed automatically

Intuit QuickBooks Isn’t Recommended For:

  • Business owners who want to pay as little as possible for basic payroll

  • Business owners who’d prefer local taxes to also be automated

  • Those who want numerous integration options for payroll outside of Intuit products

Direct Deposit

Trial Period
30 Days

Priority Support

more detailsIntuit QuickBooks ties for the No. 3 place in our small business payroll ratings. Existing QuickBooks Online users can add payroll to their plan, whereas new users can choose between payroll-only, payroll, and accounting, or contractor-only subscriptions. The base payroll-only plan, Payroll Core, costs $45 plus $5 per employee monthly. It calculates payroll taxes, then files and pays state and federal taxes on your behalf. Business owners can create 1099s, but QuickBooks charges an additional fee for e-filing.
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For $30 more, you get payroll with QuickBooks Simple Start. This all-in-one package has basic accounting and invoicing tools. The Contractor Payments plan includes unlimited 1099 e-filing and free next-day payments. The $15 base fee covers 20 contractors, and your freelancers can set up a free account to submit tax forms and banking information. You can also bundle accounting software with the contractor-only plan for an extra $30 monthly.

Intuit QuickBooks has fewer HR tools than competitors, offering an HR support center to Premium and Elite users. But it partners with third parties to offer retirement and health plans. The workforce portal lets employees view paid time off (PTO) balances, pay stubs, and W2s.

Patriot

Monthly Fee

$17.00 & $4/Employee

Best Cheap Payroll Software

Patriot Is Recommended For:

  • Businesses with tighter budgets

  • Business owners primarily based in the United States

  • Those who prefer the option of upgrading for tax services

Patriot Isn’t Recommended For:

  • Companies either outside the United States or with employees located abroad

  • Those who want payroll, accounting, and HR features automatically bundled

  • Larger companies with many employees to manage

Direct Deposit

Trial Period
30 Days

Priority Support

more detailsTying for the No. 3 position in our small business ratings is Patriot. It’s also among the Best Cheap Payroll Software of 2023. Patriot payroll software starts at $17 plus $4 per person monthly. The Basic Payroll plan includes unlimited payrolls for contractors and employees, all pay frequencies, and up to five pay rates per hourly worker. Your team can view pay history, W2s, pay stubs, and time-off balances in the employee portal.
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Select the Full Service plan ($37 plus $4 per employee monthly), and Patriot will collect, deposit, and file federal, state, and local payroll taxes. This version includes quarterly or year-end tax filings (Forms 940, 941, W2, and W3) and free 1099 e-filing. Both packages support QuickBooks Online or QuickBooks Time integrations, or you can add Patriot’s accounting, time and attendance, or HR software for an all-in-one experience.

The payroll software includes 12 payroll reports for Basic Payroll users and 14 for Full Service subscribers. Patriot doesn’t transfer funds for garnishments, child support, and health insurance. But you can use Vestwell for free 401(k) integration or automatically pay workers’ compensation insurance premiums through Next Insurance.

Paychex

Monthly Fee

$39.00 & $5/Employee

24/7 Support for All Plan Tiers

Paychex Is Recommended For:

  • Small businesses that want HR features included in their payroll plan

  • Those wanting 24/7 support by telephone, chat, and online form

  • Those that want a wide range of integration options with accounting and other business software

Paychex Isn’t Recommended For:

  • Businesses with only a few employees looking for a basic, inexpensive payroll solution

  • Those seeking transparent pricing for higher-tier plans

  • Those wanting a free trial period

Direct Deposit

Trial Period
N/A

Priority Support

more detailsPaychex ties for the No. 3 spot in our small business payroll rating. It offers three Paychex Flex plans (Essentials, Select, and Pro). The base fee ranges from $39 to $89 monthly, and the per-employee fee is $5 for Essentials and $3 for Select and Pro. Paychex has several add-ons, including garnishment payment service, document management, and integrations. All subscriptions come with full-service payroll administration and new-hire reporting.
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With Paychex, small business owners save time with voice assistant integrations, the Paychex Flex Assistant chatbot, and text notifications. The employee self-service tools let your staff view compensation and deductions. They can edit their tax information and view notifications if forms need to be updated. Workers can also choose various payment options, such as direct deposit, pay cards, paper checks, or tip disbursement for tipped employees.

For companies wanting to switch payroll providers, Paychex works with you to transfer information, and it can take as little as 48 hours. In addition to being a payroll provider, Paychex is an insurance agency and 401(k) recordkeeper. It offers retirement plan options and group health insurance.

Square

Monthly Fee

$35.00 & $5/Employee

Best Contractor-Only Option

Square Is Recommended For:

  • Small businesses looking to combine payroll processing with other Square services

  • Companies that rely solely on contractors for paid positions

  • Integrated time tracking and importing workers’ tips and commission amounts

Square Isn’t Recommended For:

  • Very small firms looking for a low-cost payroll service provider

  • Businesses that don’t use Square’s POS or other services

  • Those wanting faster payment options without setting up a special Square account

Direct Deposit

Trial Period
N/A

Priority Support

more detailsSquare ties for No. 7 in our small business ratings. It offers an Employees & Contractors plan or a Contractors Only version. Unlike competitors, Square doesn’t charge a base fee for companies with only contractors. Instead, you’ll pay $5 monthly for each independent contractor you pay via direct deposit, check, or Cash App. The Employees & Contractors plan costs $35 plus $5 per person monthly. It includes automatic payroll tax calculations and federal, state, and local tax filings and payments.
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Square doesn’t require a contract, meaning you can pause services for months without payroll obligations. Other providers require small businesses to pay the base fee, even if they don’t run payroll. You can run multi-state payroll, use pay-as-you-go workers’ compensation insurance, and manage activities on the Square Payroll App. Employees can access digital copies of tax forms through the Square Team app or the online Team Member Dashboard. Alternatively, you can request physical copies be sent to your staff for no additional charge.

The online Payroll dashboard has a benefits tab where owners can set up retirement plans, pretax spending accounts, or health insurance. It integrates with QuickBooks Online, third-party time card systems, and Square products like Square POS (point of sale) and Team Management.

SurePayroll

Monthly Fee

$19.99 & $4/Employee

Best for Businesses With Less Than 10 Employees

SurePayroll Is Recommended For:

  • Small businesses with basic payroll needs

  • Companies that want payroll services but wish to file their tax returns themselves

  • Firms that are looking for an inexpensive payroll package

SurePayroll Isn’t Recommended For:

  • Businesses that want to combine payroll with time tracking

  • Organizations that need a variety of third-party integrations for their payroll processing

  • Small businesses looking for a payroll solution that will grow with their company

Direct Deposit

Trial Period
6 Months

Priority Support

more detailsSurePayroll ties for No. 7 in our Best Payroll Software for Small Businesses rating and places No. 2 in our Best Cheap Payroll Software rating. Paychex owns SurePayroll. It offers plans for full-service payroll, no tax filing, and household services. SurePayroll is for companies with less than 10 employees. With a No Tax Filing subscription ($19.99 plus $4.00 per employee monthly), SurePayroll calculates your payroll taxes and reports new hires, but you must file taxes and payments yourself.
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The Full Service package costs $29.99 plus $5.00 per employee. With this plan, SurePayroll handles tax calculations, files tax forms, and pays taxes on your behalf. It also includes two-day payroll processing, whereas the No Tax Filing option takes four days. Eligible customers who have completed at least six payroll runs without any non-sufficient funds in the previous six months can request same-day or next-day payroll. Regardless of the plan, you can make unlimited payroll runs and calculate multiple pay rates or bonuses.

SurePayroll stands behind its calculations and tax filing services, with tax calculation and no penalty tax filing guarantees. However, accounting and timeclock software integrations cost extra for both plans. Small businesses can add workers’ compensation, 401(k) plans, health insurance, and pre-employment screening services.

Best for Combining Payroll and HR

ADP Is Recommended For:

  • Small, midsized, and large businesses

  • Businesses that want to integrate payroll software with other HR and business management functions

  • Companies that want free and fee-based add-ons and apps from third parties

ADP Isn’t Recommended For:

  • Companies that want transparent pricing for payroll software packages

  • Businesses that want free trials or money-back guarantees

  • Very small businesses with a handful of employees that want a low-cost option

Direct Deposit

Trial Period
3 Months

Priority Support

more detailsNo. 9 in our small business payroll ratings is ADP. It has four plans for companies with one to 49 employees (Essential, Enhanced, Complete, and HR Pro). ADP provides price quotes but doesn’t publish fees on its website. All RUN Powered by ADP subscriptions include full-service multi-jurisdictional payroll and new-hire reporting. ADP calculates, files, deposits, and reconciles payroll taxes on your behalf. It also communicates with taxing agencies regarding payroll documents or payments that ADP processes.
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It supports paper checks and direct deposits. Your staff can sign up for a Wisely Direct Debit Card, and this program doesn’t require management on your end. Employees can access their pay history and up to three years of tax forms through an online portal. You can export general ledger journal entries directly to Xero, QuickBooks, Creative Solutions, and Wave. Or download a generic output file.

Unlike competitors, ADP provides 24/7 customer support with RUN Powered by ADP subscriptions. It also provides ADP Workforce Now plans for companies with 50 or more employees. These solutions offer intelligent self-service, digital recordkeeping, learning management, and advanced HR tools.

Even for the non-tech savvy business owner, working with payroll software is an easy process that will save you time and effort in managing your payroll calendar. First, you will want to set up your payroll software. And while this is generally a simple process, and many payroll providers offer help or even set up your account for you, you may find our guide on How to Choose a Payroll Software System helpful.

While setting up your account, you or a customer support representative will enter banking details for your business and employees. The information provided allows the payroll software to directly deposit wages into your staff’s bank accounts, calculate your payroll taxes, and keep track of employee’s’ wages, PTO, personal records, and more. Then, you will set up your payroll calendar, deciding the day of the week and the frequency at which your employees are paid.

Once your payroll calendar is squared away, you can integrate your payroll software with accounting, time and attendance, and HR software provided by your payroll provider or a third-party vendor. Integrations with time and attendance tools can pull time card data into your payroll system, whereas accounting integrations transfer payroll general ledger entries to your bookkeeping software. Both options reduce manual labor and the possibility of errors. This makes automating your payroll calendar even easier. However, you will still want to check over everything even if you decide to automate your payroll.

With your account set up, you can now process payroll quickly while on the go. Many payroll providers offer mobile apps or mobile-optimized websites. And at this point, you can run payroll with a few quick clicks on your cell phone.

Best Small Business Payroll Softwares Features

Company
Monthly Fee
Direct Deposit
W2
1099
Tax Services
HR Add-Ons
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Company
Monthly Fee
Direct Deposit
W2
1099
Tax Services
HR Add-Ons
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Company
Monthly Fee
Direct Deposit
W2
1099
Tax Services
HR Add-Ons
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Company
Monthly Fee
Direct Deposit
W2
1099
Tax Services
HR Add-Ons
Learn More
Company
Monthly Fee
Direct Deposit
W2
1099
Tax Services
HR Add-Ons
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Company
Monthly Fee
Direct Deposit
W2
1099
Tax Services
HR Add-Ons
Learn More
Company
Monthly Fee
Direct Deposit
W2
1099
Tax Services
HR Add-Ons
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Company
Monthly Fee
Direct Deposit
W2
1099
Tax Services
HR Add-Ons
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Several payroll software services There are several payroll software services that will help a small business. Among those, here are some of the most important features and options for your company to consider:

  • Automated tax filing
  • HR tools, like PTO and benefits management
  • Direct deposit
  • 1099s and W2s
  • Time tracking software

For many small businesses, taxes can be overwhelming. A study conducted by Intuit QuickBooks reports that 25% of business owners feel unprepared for tax season, and 22% are worried about paying more in taxes due to a lack of knowledge on deductions.

Small business owners may choose payroll services instead of hiring additional HR or accounting employees to manage tax filings and payments. This route can cut costs while guaranteeing timely employee paychecks and tax compliance.

However, companies with fewer employees or seasonal work may want to file annual or quarterly tax forms and pay local, state, and federal taxes themselves. Some payroll software providers offer a no-tax filing option at a lower cost. Patriot and SurePayroll have full-service and no-tax filing plans.

HR add-ons can be another important feature for businesses without an HR team. Many payroll subscriptions come with HR tools, from offer letter templates to document storage. Other options may include onboarding checklists, organizational charts, staff directories, vacation time tracking, and employee benefits administration.

Payroll software uses a pricing model that starts with a base monthly fee. For example, Gusto, our No. 1 Best Small Business Payroll Software, charges $40 monthly. You also pay an additional monthly fee for each person you pay. It costs $6 per employee per month for Gusto’s payroll software. That means that if you pay a team of 20 people, it costs $120 plus the $40 monthly fee for a total cost of $160 per month.

For this price, you can automate your payroll and taxes, process your payroll unlimited times at any frequency, and reallocate the hours you would have spent on payroll to another area of your small business.

The first step to picking a system is identifying how you currently run your company’s payroll and how new tools can improve your approach. Choose the right payroll software for your small business by thinking about the following:

  1. How big is your business? Do you run a small company with fewer than 50 employees or a microbusiness with less than 10 people on staff?
  2. Who works for your small business? Do you pay your staff an hourly wage? Or do you employ salaried workers, tipped employees, or contractors?
  3. How frequently do you pay your team? Is payday weekly, bi-weekly, or monthly? Does your company operate seasonally and not run payroll for 12 months a year?
  4. What can my small business afford? What does your budget look like for payroll software, and are there any must-have payroll features that your company needs?
  5. Who will run your payroll calendar? Will the company owner, dedicated staff member, or HR team manage your small business payroll?

Every company works differently. Therefore the best small business payroll software should meet your unique needs. For instance, a well-established small organization with over 20 employees may prefer payroll solutions like OnPay, offering HR tools for managing hiring and onboarding documents on one platform. On the other hand, startups may want the option to handle tax payments themselves. In this case, no-tax filing plans from Patriot or SurePayroll could fit the bill.

However, if your small business only hires contractors, you could save a lot of money by going with Square, which provides payroll software for only $5 per payee per month with its contractor-only option. But if you pay more than three independent workers monthly, QuickBooks’ $15 Contractor Payments subscription may be a better deal since it covers up to 20 contractors for one fee.

Accounting integrations also affect your decision. Some providers charge fees for integrations or may not sync to your bookkeeping software. With a service like Patriot or QuickBooks, you can purchase payroll and accounting software that works seamlessly together.

You can objectively compare payroll providers by understanding how your payroll currently works and where you want to improve it. Look at prices, features, and add-ons that support your small business needs today and in the future.

Small business payroll software lets owners or HR staff process payroll with fewer manual calculations. It computes tax rates, withholds the correct amounts from paychecks, and pays employees via direct deposit or paper checks. Full-service solutions file tax forms and payments with government agencies on your behalf. When choosing payroll software, companies look for features that save time while ensuring tax compliance.

Most payroll providers offer a guarantee against errors, meaning they will fix mistakes and cover penalties if their service is at fault. Since 42% of American Payroll Association survey respondents cite compliance challenges as their most significant payroll pain point, a guarantee can ease these concerns. Automation features also help companies run payroll quicker, with Gusto customers saving, on average, five hours monthly. Automation also addresses the 27% of respondents who see inefficient processes as their biggest payroll issue.

Modern payroll software is cloud-based, meaning you can set up your account through an online portal. Some providers like Patriot will configure your system for free, or you can use a payroll startup wizard. Payroll systems may offer mobile apps for employers and employees. For instance, business owners can download the SurePayroll app to process payroll from their cell phones while employees can use it to view pay stubs.

This all depends on the payroll software you choose. Patriot, for example, doesn’t require a software to be downloaded to your device. All you need to have is a web browser and an internet connection. For those that do, you will need to check your device compatibility with the company’s requirements.

HR add-ons can help small businesses onboard employees and manage benefits. Many payroll systems offer essential HR tools, like an onboarding checklist. Higher-priced subscriptions may have advanced services, such as access to HR experts. Some of these tools include:

  • Offer letters for prospective employees
  • Onboarding services
  • Document storage and electronic signature tools
  • Organizational charts
  • Staff directories
  • PTO and vacation tracking capabilities
  • Benefits management and administration

Payroll software can be used for independent contractors and seasonal employees. Independent contractors must complete IRS Form W-9, Request for Taxpayer Identification Number and Certification. Then you can enter this information and banking details into your payroll system to pay the contractor. Also, if you pay an independent contractor more than $600 in one year, you have to fill out a 1099-NEC form.

Payroll for seasonal workers uses the same method as for part-time and full-time employees. They complete I-9 and W-4 forms, and you input their information into your payroll system.

When setting up your payroll software, you will need some general information from each employee. Some of those items include:

  • Full name
  • Address
  • Social security number
  • Birthdate 

You will also need some of the following tax information:

  • Federal W-4 form
  • State W-4 form, if applicable
  • Other withholding forms

There will also be other information you will eventually have on each employee’s record, including pay rate, any overtime hours worked, time cards, employer contributions, and pay stubs.

Most payroll companies offer security protocols already included in their packages. Companies like Gusto have detailed web pages about their security protocols.

But there are also things you can do as a small business owner that can help with security.
Those include:

  • Frequently updating your payroll software
  • Assigning responsibilities for user permissions
  • Using two-factor or multi-factor authentication
  • Setting clear rules for individual employees regarding security
  • Regularly conducting payroll audits
  • Providing mandatory training on security protocols

Other Ratings from 360 Reviews

The following describes our 360 approach to researching and analyzing Payroll Software to provide guidance to prospective consumers.

1. We researched the companies and products people care most about.U.S. News analyzed and compared a variety of publicly available data, including internet search data, to determine which payroll software Americans are most interested in. We found 15 companies that consumers search for the most and that are the most reviewed by credible third -parties. Once we identified these companies, we narrowed our list, filtering out certain companies based on preliminary qualifications and criteria such as product availability. Finally, we established our top picks and reviewed the different plans and product features available by each company at the time of publication.

With the companies determined, we compared available plans and packages offered by each payroll software across several criteria to help consumers make more tailored and informed decisions. We reviewed fees, direct-deposit, tax form creation and filing, and tech features such as mobile applications, technical support, and other plan-specific features. We then highlighted the base plan offered by each company.

2. We created objective 360 Overall Ratings based on an analysis of third-party reviews.Our scoring methodology is based on a composite analysis of the ratings and reviews published by credible third-party professional and consumer review sources. The ratings are not based on the personal opinions, tests, or experiences of U.S. News. To calculate the ratings:

(a) We compiled two types of third-party ratings and reviews:

  • Professional Ratings and Reviews: Many independent payroll software-evaluating sources have published their assessments of payroll software companies and products online. We consider several of these third-party reviews to be reputable and well-researched. However, professional reviewers often make recommendations that contradict one another. Rather than relying on a single source, U.S. News believes consumers benefit most when these opinions and recommendations are considered and analyzed collectively with an objective, consensus-based methodology.
  • Consumer Ratings and Reviews: U.S. News also reviewed published consumer ratings and reviews of payroll software. Sources with a sufficient number of quality consumer ratings and reviews were included in our scoring model.

Please note that not all professional and consumer rating sources met our criteria for objectivity. Therefore, some sources were excluded from our model.

(b) We standardized the inputs to create a common scale.

The third-party review source data was collected in a variety of forms, including ratings, recommendations, and accolades. Before including each third-party data point into our scoring equation, we had to standardize it so that it could be compared accurately with data points from other review sources. We used the scoring methodology described below to convert these systems to a comparable scale.

The 360 scoring process first converted each third-party rating into a common 0 to 5 scale. To balance the distribution of scores within each source’s scale, we used a standard deviation (or Z-Score) calculation to determine how each company that a source rated was scored in comparison to the source’s mean score. We then used the Z-Score to create a standardized U.S. News score using the method outlined below:

  • Calculating the Z-Score: The Z-Score represents a data point’s relation to the mean measurement of the data set. The Z-Score is negative when the data point is below the mean and positive when it’s above the mean; a Z-Score of 0 means it’s equal to the mean. To determine the Z-Score for each third-party rating of a company, we calculated the mean of the ratings across all companies evaluated by that third-party source. We then subtracted the mean from the company’s rating and divided it by the standard deviation to produce the Z-Score.
  • Calculating the T-Score: We used a T-Score calculation to convert the Z-Score to a 0-100 scale by multiplying the Z-Score by 10. To ensure that the mean was equal across all data points, we added our desired scoring mean (between 0 and 10) to the T-Score to create an adjusted T-Score.
  • Calculating the common-scale rating: We divided the adjusted T-Score, which is on a 100-point scale, by 20 to convert the third-party rating to a common 0-5 point system.

(c) We calculated the 360 Overall Score based on a weighted-average model.

We assigned “source weights” to each source used in the consensus scoring model based on our assessment of how much the source is trusted and recognized by consumers and how much its published review process indicates that it is both comprehensive and editorially independent. The source weights are assigned on a 1-5 scale. Any source with an assigned weight less than 2 was excluded from the consensus scoring model.

Finally, we combined the converted third-party data points using a weighted average formula based on source weight. This formula calculated the consensus score for each product, which we call the 360 Overall Rating.

A small business is a company that has a maximum of 50 employees. Products that qualify for our Best Payroll Software for Small Businesses rating must meet a few criteria. First, the company must be on our overall Best Payroll Software rating list. Next, we sort the remaining companies by overall score, highlighting which of their plans is tailored to small businesses. We reviewed automated payroll functions, mobile applications, and considered pricing data in our small business determinations. Finally, we took note of whether or not each company represented their base service as designed for small businesses.

U.S. News 360 Reviews takes an unbiased approach to our recommendations. When you use our links to buy products, we may earn a commission but that in no way affects our editorial independence.

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