Payroll software exists to make sure people get paid correctly and on time, and that taxes get filed and paid without you having to track deadlines by hand. Beyond that baseline, the options differ quite a bit in price and how much HR support comes bundled in. Here is how the most common options for a small employer actually compare.
Gusto
Gusto is generally the default recommendation for a small business running payroll for the first time. Its entry-level Simple plan runs $49 a month plus $6 per person, with unlimited payroll runs, scaling up through tiers that add time tracking, multi-state payroll, and eventually a dedicated HR advisor at the top tier. It handles tax filing automatically and includes an employee self-service portal, which cuts down on the back-and-forth of answering basic pay questions yourself.
OnPay
OnPay covers most of the same ground as Gusto's entry-level plan, full-service payroll, tax filing, and benefits administration, at the same entry price of $49 a month plus $6 per person, and its base package includes multi-state payroll, which Gusto reserves for higher tiers. It has fewer bells and whistles at the higher end, but for a straightforward small team with no complex multi-state or advanced HR needs, it is worth comparing directly against Gusto's pricing before assuming the bigger name is the better deal.
ADP and Paychex
ADP and Paychex are the two largest names in payroll, and both offer far more than payroll alone: benefits administration, HR support, and in some cases full PEO services where they effectively co-employ your staff. Pricing is generally quote-based rather than published, and tends to run higher than Gusto or OnPay, but the tradeoff is a level of HR and compliance support that smaller platforms do not offer. These make the most sense once a business has grown past what a self-service payroll tool can comfortably handle.
QuickBooks Payroll
If you are already using QuickBooks Online for accounting, QuickBooks Payroll integrates directly into it, which can simplify your bookkeeping since payroll expenses flow straight into your books without manual entry. It covers the standard payroll basics well but generally offers less in the way of broader HR tools than Gusto or a dedicated PEO. It is a strong option specifically because of that integration, less so as a standalone choice if you are not already in the QuickBooks ecosystem.
The New York Rules Your Payroll Setup Has to Handle
Before comparing features, know what New York actually requires, because a couple of these catch Long Island employers out regularly.
The big one is pay frequency. Under Section 191 of New York Labor Law, manual workers must be paid weekly, with wages due no later than seven days after the pay period ends. A manual worker is generally someone spending more than a quarter of their time on physical labor, which pulls in a lot of retail, restaurant, landscaping, and construction staff. If you are running a Long Island restaurant or shop on a biweekly cycle because that is what your software defaulted to, you may be out of compliance. Large employers can apply to the State Department of Labor for permission to pay manual workers semi-monthly, but that is a request, not an assumption. Clerical and other workers must be paid at least semi-monthly on paydays set in advance.
The second is the Wage Theft Prevention Act. Every new hire gets a written pay notice covering their rate, how they are paid, the regular payday, and any allowances or deductions. It has to be provided in English and in the employee's primary language where the State Department of Labor offers a template, which now covers about ten languages, including Spanish, Chinese, Haitian Creole, Korean, Polish, and Russian. The employee signs it, you give them a copy, and you keep records for six years. If pay terms change and the change is not reflected on the next pay stub, notice is required within seven days.
These are not trivial to get wrong. Failing to provide the initial wage notice can run up to $50 per workday per employee, capped at $5,000, and pay statement violations up to $250 per workday, same cap. Late pay for manual workers carries its own exposure: a 2025 change limited damages for a first pay-frequency violation to interest on the late wages, but repeat violations can still bring damages equal to the full amount paid late. New York also added wage theft to its criminal larceny statute in 2023, meaning nonpayment or underpayment can carry criminal exposure rather than just civil penalties.
A few more New York items your payroll system needs to handle: New York Paid Family Leave, which is employee-funded through payroll deduction, state disability, and the Metropolitan Commuter Transportation Mobility Tax, which covers Nassau and Suffolk and applies once your quarterly payroll in the region tops $312,500. Any of the platforms above will handle these, but confirm it explicitly rather than assuming, particularly with cheaper tiers.
One practical consequence: if you have manual workers on weekly pay, per-payroll-run pricing matters more than it looks. A platform charging per run costs you 52 runs a year rather than 26. Gusto and OnPay include unlimited runs in their base price, but check how any other provider bills before you sign.
Which One Fits
For most small teams under about 20 people with no complex HR needs, Gusto or OnPay will cover what you actually need at a reasonable cost. If you are already on QuickBooks for accounting, the payroll integration is worth weighing against the feature gap. Once you are managing more complex compliance, multiple states, or want dedicated HR support on top of payroll, ADP or Paychex, or an outside PEO, becomes worth the higher cost.
Common Questions
Do I really have to pay some staff weekly?
If they qualify as manual workers under New York law, yes, unless you have approval from the State Department of Labor to do otherwise. The test is about the nature of the work, not the job title, so review what people actually do day to day rather than what the role is called.
Can I just use a bookkeeper instead of payroll software?
You can, and plenty of small businesses do. The question is who is responsible for filing and depositing payroll taxes on time, and what happens if a deadline is missed. Most payroll platforms take on tax filing directly, which is a meaningful part of what you are paying for.
What about paying 1099 contractors?
Most platforms handle contractor payments and year-end 1099 forms, often at a lower per-person rate than employees. The bigger risk is classification: if someone is treated as a contractor but works like an employee, the payroll software will not protect you from the consequences.
Is switching payroll providers mid-year a problem?
It is doable but requires care, since year-to-date wage and tax totals have to transfer accurately or year-end forms will be wrong. Many businesses switch at the start of a quarter or calendar year to keep it clean. Whoever you move to should walk you through migrating those totals.
You can browse HR and payroll options in our resources directory.
Pricing mentioned above reflects publicly listed rates at the time of writing and changes frequently. Confirm current pricing directly with each provider before making a decision.
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