You just hired your first employee. Or your tenth. Either way, payroll just became a real job. Taxes need to be withheld, filings need to be made, and direct deposits need to hit bank accounts on time. The three platforms you'll hear about most are Gusto, ADP, and Paychex. They all run payroll. The differences are in who they're built for and what else they do.
Gusto
Gusto is designed for small businesses that want simplicity. The interface is clean, setup takes less than an hour, and it handles federal, state, and local tax filings automatically. Benefits administration (health insurance, 401(k)) is built in. Pricing starts around $40/month base plus $6 per employee. The sweet spot is companies with 1–50 employees who want modern software without a sales call.
ADP
ADP is the enterprise giant that also serves small businesses through its RUN platform. It's more feature-rich and more complex. If you need multi-state payroll, advanced compliance reporting, or HR tools at scale, ADP can handle it, but you'll pay for it, and pricing isn't publicly listed (you'll need a sales consultation). Best for companies planning to grow past 50 employees or those in heavily regulated industries.
Paychex
Paychex sits between the two. More robust than Gusto for mid-sized businesses, more approachable than ADP for small ones. Their Flex platform handles payroll, HR, benefits, and time tracking. Pricing is quote-based but generally competitive with ADP. Best for businesses with 20–200 employees who need a dedicated account representative.
What to Prioritize
For most small businesses, the decision comes down to three things: how many employees you have, whether you need benefits administration bundled in, and how much hand-holding you want. Gusto wins on ease of use. ADP wins on scale. Paychex wins on the middle ground.
Best for small teams: Gusto. Full-service payroll with automatic tax filing, benefits, and a clean interface. No sales calls, no enterprise complexity. See pricing →
Regardless of which platform you choose, use our Paycheck Calculator to verify the numbers. Enter an employee's salary or hourly rate and compare the calculated take-home pay against what the payroll system generates. It's a simple sanity check that takes two minutes.