Best Payroll Software for Startups (2026): Payroll, PEO or All-in-One?

Gusto is the payroll most founders set up first, and it holds up well as the team grows. Setup is guided, payroll runs are unlimited, and Gusto files federal, state and local payroll tax forms, including W-2s, 1099s, 940s and 941s. It also syncs payroll to QuickBooks and Xero, the two most common systems in our startup accounting guide.

For a startup, the real decision is between Simple and Plus. Simple is enough while everyone works in the same state. As soon as you hire a remote employee elsewhere, you need Plus, which adds multi-state payroll and time tracking.

Which plan to pick: Simple at $49 per month plus $6 per person for a single-state team; Plus at $80 per month plus $12 per person once you hire across state lines. For 10 employees that is $109 or $200 a month.

Watch out for: the per-person fee on higher plans. At 30 or 40 employees on Plus, compare the total against a PEO quote, which may include benefits you are paying for separately.

Rippling is built for the moment a startup’s tools start to sprawl. Payroll, benefits administration, time and attendance, expense management, and IT tasks such as device management and app access all run from the same employee record. When you hire someone, one workflow can set up their payroll, benefits enrollment, laptop and software logins.

Everything is modular: you buy the core Rippling Platform and add products such as Payroll, Benefits or Device Management. Rippling says most products are billed per employee per month, and some include a monthly base fee.

Which plan to pick: request a quote for Payroll plus the platform first, then add modules as you need them. If your investors partner with Rippling, ask whether they have a startup offer.

Watch out for: price creep. Because every module is priced separately, the total grows as you add products. Get a written quote that covers the modules you expect to use in the next year, not just payroll.

Justworks is the best-known PEO for small companies. As a PEO, it becomes the co-employer of your staff, which lets a ten-person startup offer health insurance at rates normally reserved for large companies, along with HR consulting and 24/7 support. For a startup competing with bigger companies for engineers, that can matter more than the payroll fee.

There are three plans. Payroll is payroll software with a $50 monthly base fee plus a per-employee charge. PEO Basic adds compliance support, HR tools and 24/7 support. PEO Plus adds medical, dental and vision administration, HSA and FSA accounts, and mental health and fertility benefits.

Which plan to pick: Payroll if you only need to pay people. PEO Plus if benefits are part of your hiring pitch.

Watch out for: how you are billed. On PEO plans, Justworks charges a monthly admin fee for each active employee, each employee paid that month and each unpaid owner, and benefits-eligible part-timers are billed at the full-time rate. Ask for a quote with your real headcount before you commit.

OnPay is the cheapest way to run full-service payroll for a team spread across states. Its single plan includes unlimited pay runs, federal, state and local tax filings, year-end forms and payroll in all 50 states, so hiring a remote employee in a new state does not change your price. Gusto charges for the same thing through its Plus plan.

It also syncs with leading accounting software with customizable line-item mapping, so payroll costs can post to the right departments.

Which plan to pick: there is one base plan. Add time tracking or HR tools only if you need them.

Watch out for: add-ons. Time tracking, HR tools and live HR support each add to the monthly bill. OnPay sells bundles if you need several.