Payroll for startups: Top 7 services in 2025

For startups, processing payroll is probably the least favorite activity. It’s typically complex and takes too much time, especially if you’re doing everything manually. Salary calculations, tax withholdings, sending payslips, paying contractors and doing this all on time and with no errors sounds pretty tedious. And even more tedious it may sound for first-time founders. 

That’s why many entrepreneurs prefer to shift all the nitty-gritty stuff to third-party payroll software for startups, so they can focus more on developing their products and actually growing their businesses.

There are many different payroll systems for startups, you just need to know how to choose the best payroll software for your startup. 

In this article, we’ll speak about the top seven companies that provide payroll for startups, their pros and cons, and prices. We’ll also mention why startup owners should use payroll systems.

Let’s dive in!

Best payroll software for startups

We’ve checked many startups’ payroll services and come up with a list of top payroll companies you may find helpful while dealing with salaries, taxes, and documents.

1. Gusto

Gusto is one of the top payroll companies because it’s affordable, easy to use, and has a solid feature set. It can be the best option for small to mid-sized businesses that are looking for a simple and comprehensive payroll solution. 

Gusto helps with payroll for startups, taxes, benefits, and onboarding. The company runs payroll automatically given its Guesto’s Autopilot. Also, you can easily integrate this software with tools like QuickBooks and Xero. 

Pros:

• You can run payroll for your startup as many times as you need. 

• Tax filings are done automatically.

• You can customize pay schedules.

• It also manages employee benefits like health insurance and paid time off.

• You’ll have onboarding support.

• Employees can check their pay details online.

Cons:

• International support is limited.

• This payroll service for startups has a slow setup process, and you may need to enter some data manually.

Pricing: 

The cost of the Simple plan starts at $49 per month + $6 per person.

2. Rippling

It’s a perfect service for payroll for startups that need a unified workforce platform. Rippling automates IT, HR, and finance tasks, so if you’re a startup targeted at scaling and with complex needs or global hiring plans, you can land on Rippling. 

Pros:

• Payroll is done very fast—it takes only 90 seconds.

• You can pay your contractors anywhere in the world. 

• Rippling software connects easily with other tools like Slack, QuickBooks, Xero, etc.

• It offers reports so you can track company data and trends.

• Employees can work with their data and requests on a mobile app.

• This startup payroll service automates many HR tasks like employee paperwork, for instance. 

Cons:

• Rippling’s customer support is not as fast as Gusto’s if you compare these payroll services.

• As it has so many features, you’ll need more time to learn everything. 

Pricing:

The price starts from $8 per month, as stated on the website, but if you want to know more details, you need to contact the company directly.  

3. Plane

Plane (formerly Pilot) is one of the best software for payroll for startups paying international contractors. If you want to hire globally, this platform will make contractor payments and compliance across 100+ countries much easier. Additionally, Plane offers an employer of record (EOR) service if you want to turn contractors into full-time employees. 

Pros:

• You can pay your employees and contractors globally at low fees.  

• This payroll for startups service gives compliance-ready contracts and document management.

• Plane offers EOR service if you want to hire globally.

• With this software, you can pay both—your full-time employees and contractors. 

Cons:

• If you compare it with other payroll services, Plane doesn’t offer such a feature-rich toolkit.

• As this payroll company is more focused on global hiring, it’s not ideal for domestic-only businesses. 

• This platform has limited HR tools outside of global hiring. 

Pricing: 

The price for this startup payroll software starts from $19 per month. The company has plans for US employees, international contractors, and international employees (prices differ). 

4. Justworks

Justworks isn’t just a payroll for startups service; it’s a PEO (professional employer organization)—a company that “co-employes” your team. When you choose this software, you’ll get payroll, compliance, benefits, and HR in one package. It’s perfect for startups that have US teams and look for good support. You can try a payroll-only version, but it’s available in select states. 

Pros:

• You can make direct deposits to your employees’ bank accounts.

• This payroll service for startups automatically does all the tax filings and works for full-time and part-time employees (W-2 form) and freelancers (1099-NEC form).

• It calculates payroll for hourly and salaried workers.

• There’s HR support and a self-service portal.

Cons:

• Justworks doesn’t offer international payroll—for startups that hire globally, it’s not convenient, as they won’t be able to pay their employees and contractors who are outside of the US. 

• Its payroll-only version is available in certain US states.

• It’s not so automated if we compare it to other payroll services like Rippling, for example. 

Pricing: 

The cost typically starts from $50 per month + $8 per employee per month. But it’s better to check with the company, as they have different prices depending on the features you plan to use.

5. Intuit QuickBooks

If you already use QuickBooks for accounting, QuickBooks payroll for startups can be your next step. This software is a good option for those who want to keep all their finances under one roof. 

Pros:

• You’ll get full-service, automated payroll for your startup (taxes, forms, fillings).

• It offers health benefits, 401(k) options, and 1099 contractor support.

• You can pay your employees via direct deposits on the same or the next day. 

• If you turn to a Premium plan, you’ll get GPS job tracking—know your employees’ work locations. 

Cons:

• There are no deep HR tools in lower-tier plans. If you need them, you’ll have to upgrade to a higher tier, which costs more. 

Pricing:

Although the price for the simple plan starts at $50 per month + $6 per employee, this payroll company often offers discounts (for example, 50% off for 3 months).

6.Patriot Software

Patriot is a cheap payroll service for small businesses, especially bootstrapped. This software has all the basic features you may need for an affordable price. 

Pros:

• You’ll have unlimited payroll for your startup.

• You can pay your employees directly to their accounts. 

• Employees can check their pay details online at any time. 

• You can print W-2 forms for employees when the tax time comes. 

• This payroll company offers easy integration with workers’ compensation insurance. 

• You can sync payroll data with your accounting software. 

Cons: 

• You can’t access tax filing services if you have the basic plan—you need to upgrade and pay more. 

• Patriot has limited options for syncing with other software. If you need a more complex feature set, you’ll need to get additional software or simply choose another service for payroll for your startup.

Pricing:

The basic plan costs $17 per month + $4 per person. If you want to have a full-service package (with tax filling), you’ll need to pay $37 per month + $5 per person. The company may offer discounts, so it’s better to check the information on the website.

7. Square Payroll

Square Payroll is one of the top-rated payroll services and can be of much use to companies that already use Square software for POS (point of sale) and payments. You can integrate it easily with Square POS to sync hours and pay hourly employees with no extra headache. If you work in retail, restaurant, or service-based verticals, this software is a good choice for you. 

Pros: 

• Startup payroll is done automatically, so you don’t need to calculate everything manually each time. 

• You can track how many hours your employees work, as it syncs with timecards. 

• You can pay your employees directly to their bank accounts.

• You can also pay freelancers and independent contractors.

• Your employees will have the ability to manage their schedules and pay details through the mobile app.

• Square payroll includes tax filing.

Cons:

• Some users note that this service for payroll for startups has an outdated interface, and it may be hard to navigate.

• It doesn’t offer complex HR tools.

Pricing: 

If you need full-service, you’ll pay $35 per month + $6 per person. But if you want to choose a contractors-only plan, it will cost you $6 per person per month. 

Once we’ve flashed out the details on each of the companies, let’s compare these payroll services, so you can see which one fits your startup needs best:

Here, we’ve compared payroll services based on their pricing:

So, how can you choose the best payroll software for your startup? You can either ask other founders which software they use and why or look through our list once again and then try a couple of variants to understand which one you like more. 

Why should you use startup payroll services? 

If you plan to manage payroll for your startup alone, be ready to face different problems. You can make mistakes in calculations, have issues with compliance or even miss deadlines for tax fillings and get fines or have unhappy, complaining employees. 

It’s actually a time-consuming and challenging activity; that’s why many entrepreneurs prefer to shift this responsibility to third-party experts.

Related read:  1) Top 10 Business Plan Consultants ranking 2) Top 10 Market Research Consultants 3) Top 9 venture studios that help build and fund startups

Startups use payroll services to:

1. Save their time: Startup payroll services automate calculations, tax filings, and payments so you can focus more on growing and scaling your business. 

2. Be accurate: If you use the best software for payroll, you won’t have mistakes in paychecks and tax calculations or filings. 

3. Be compliant: Different payroll systems always stay updated with the latest federal, state, and local tax laws so that you won’t have any legal issues with them. 

4. Make their employees happy: Timely and accurate payments can surely boost workers’ mood. Also, with top payroll systems, employees have easy access to pay stubs and tax forms (which makes their working lives easier). 

Wrap-up on payroll for startups

When you only start your company, doing payroll manually may seem easy and okay, but once your company and team grow, you’ll stop thinking like that. Without a good service for payroll for startups, calculating salaries, dealing with taxes, etc., may become a total nightmare that will keep you awake at night. 

Why not shift this burden to one of the top payroll companies? You’ll free your mind for other important founder tasks, such as product development, growing your business, or fundraising, while knowing that your startup payroll is in good hands. 

Consider the top-rated payroll services from our list to help you handle team salary matters, and we can help you with other founder-related headaches, such as preparing investment documents, building a startup financial model, and raising capital to grow your business. Our Waveup experts have years of experience in venture capital, business, and finance, so if you need help at any stage of your startup development, reach out to us.