Best Payroll Software for SMBs in 2026: Gusto vs Rippling vs Paylocity vs Deel vs Multiplier (Full Comparison Guide)

Why This Matters

Let’s be honest — payroll used to be about making sure everyone got paid on time. That’s still important, but now? It’s so much more.

Your payroll system is the backbone of your entire people operations. It handles compliance (so you don’t get fined), manages benefits, tracks time off, and connects to your accounting tools. When you pick the right one, everything just… works. When you pick the wrong one? You’ll know it within the first pay cycle.

This guide breaks down five solid payroll system options for HR tech stacks supporting growing businesses. We’ll look at what makes each one different and help you figure out which fits your situation.

About This Guide

Our research process: The recommendations in this guide are based on extensive HR Launcher Lab research, including analysis of publicly available product documentation, user reviews across multiple platforms (G2, Capterra, TrustRadius), vendor feature comparisons, pricing structures, and compliance capabilities. We’ve spent dozens of hours testing demos, reading case studies, and analyzing real user experiences to bring you accurate, practical guidance.

Affiliate disclosure: Some of the links in this guide are affiliate links, which means HR Launcher Lab may earn a small commission if you sign up through these links. This comes at no additional cost to you and helps us continue creating free resources like this guide. Our recommendations are based solely on research and merit — we only recommend products we believe will genuinely help your business.

The TL;DR Version

Just starting out? U.S.-only team under 100 people? Go with Gusto. It’s simple, affordable, and handles all the compliance stuff automatically.

Growing fast? Need HR and IT in one place? Check out Rippling. You can manage payroll, benefits, and even laptops from one dashboard.

Hit the mid-market stage? Need serious analytics? Look at Paylocity. It’s built for HR teams who need detailed reporting and compliance tools.

Hiring globally? Working with international contractors? Try Deel. They cover 100+ countries with transparent pricing.

Building a truly global team with employees in multiple countries? Consider Multiplier. They handle local benefits and compliance in 150+ countries.

Before You Start Shopping: Know Your Requirements

Here’s the thing about payroll software — what works for a 15-person marketing agency in Denver is completely different from what a 75-person SaaS company with remote workers in 12 countries needs. So before you book a single demo, get crystal clear on your situation.

Your Current Payroll Reality

How many people are you paying? This matters more than you think. Under 50 employees? You’ve got tons of options. Over 100? Some platforms won’t even talk to you, while others finally start making financial sense.

Where is everyone located? • Single state: Simple • Multi-state: Moderately complex (different state tax rates, labor laws) • Multi-country: Complex (different currencies, employment laws, benefits requirements)

What’s your worker mix? • All full-time W-2 employees • Mix of employees and contractors • Mostly contractors (1099s) • International contractors • International employees through EOR

Each scenario needs different features. Don’t pay for global EOR capabilities if everyone’s in Ohio.

How often do you run payroll? • Weekly • Bi-weekly (most common) • Semi-monthly • Monthly

Some platforms charge per payroll run. Others include unlimited runs. Know your cadence.

Your Pain Points (Be Honest)

What’s actually broken? Not what you think should be better — what’s causing real problems right now?

Common pain points we see:

• Manual data entry: Copying hours from timesheets into payroll, then into accounting
• Tax filing stress: Worrying if you filed everything correctly, on time
• Multi-state complexity: Trying to stay compliant as you hire in new states
• Benefits administration: Tracking deductions, managing enrollment, coordinating with vendors/carriers
• Time tracking: No integration between when people clock in and what they get paid
• Reporting nightmares: Can’t easily pull the data your accountant needs
• Global hiring roadblocks: Want to hire internationally but don’t know how
• Onboarding chaos: New hires filling out the same info on multiple forms
• PTO tracking: Still using spreadsheets or (worse) not tracking at all
• Year-end panic: W-2s, 1099s, and year-end reports taking days to compile

Write down your top three pain points. These will guide your evaluation.

Your Growth Plans

Where will you be in 12-18 months?

Questions to ask yourself:

• Will you hire in new states?
• Will you need to hire internationally?
• Will your headcount double?
• Are you planning to add benefits or upgrade your benefits package?
• Will you need more sophisticated reporting for investors or board meetings?
• Are you moving from contractors to full-time employees?

Switching payroll providers mid-year is painful. Pick something that can grow with you.

Your Budget Reality

Be realistic about what you can afford — both upfront and ongoing.

Hidden costs to consider:

• Implementation fees (some vendors charge $1,000+ for setup)
• Per-employee monthly fees
• Per-contractor fees (often less than employee fees)
• Add-on modules (time tracking, benefits admin, performance management)
• International/EOR fees (usually $400-600 per international employee)
• Year-end processing fees
• Off-cycle payroll fees
• Support fees (some charge extra for phone support)
• Integration fees

Get the full pricing picture before you commit. A platform that looks cheap at $8/employee might cost triple that once you add the features you actually need.

The Complete Evaluation Process

Based on our research and conversations with HR leaders who’ve been through this process, here’s a thorough framework for evaluating payroll software.

Phase 1: Discovery & Requirements Gathering (Week 1)

Step 1: Audit your current process

Map out exactly how payroll works today. Get specific:

• Who enters the data? How long does it take?
• Where does time/attendance data come from?
• How do you handle PTO requests and tracking?
• Who approves payroll before it runs?
• How do you file taxes? Who’s responsible?
• What reports do you run regularly?
• How do new hire and termination workflows work?

Step 2: Identify your stakeholders

Who needs to weigh in on this decision?

• Finance/accounting (they care about integrations and reporting)
• HR/People Ops (they care about ease of use and employee experience)
• IT (they care about security, integrations, and device management)
• Leadership (they care about cost and scalability)
• Your accountant or bookkeeper (they care about data accuracy and export capabilities)

Don’t skip getting input from the people who’ll use this daily.

Step 3: Create your requirements matrix

Divide requirements into three categories:

• Must-haves (deal-breakers)
  • Examples: Automated tax filing, multi-state support, QuickBooks integration
• Nice-to-haves (valuable but not critical)
  • Examples: Mobile app, employee self-service portal, custom reporting
• Future needs (you’ll want within 18 months)
  • Examples: Global payroll, benefits administration, performance management

Phase 2: Shortlist & Demos (Week 2-3)

Step 1: Build your shortlist

Based on your requirements, narrow down to 3-4 platforms. Use this guide as a starting point, but also consider:

• Company size match (is the platform designed for businesses your size?)
• Industry fit (some platforms specialize in specific industries)
• Geographic coverage (do they support all your locations?)
• Integration requirements (do they connect with your existing tools?)

Step 2: Schedule focused demos

Request demos with specific scenarios ready:

• “Show me how we’d run payroll for our multi-state team”
• “Walk me through onboarding a new employee in California”
• “How would we handle an off-cycle bonus payment?”
• “Show me the reports our accountant would need”
• “What happens if an employee updates their withholdings mid-month?”

Step 3: Ask the hard questions

Questions that separate good platforms from great ones:

On implementation:

• How long does implementation typically take for companies our size?
• What data do you need from us?
• Do you migrate our historical payroll data?
• Who’s responsible for testing before we go live?
• What’s included in setup vs. what costs extra?

On compliance:

• How do you stay current with changing tax laws?
• What happens if there’s a tax filing error on your end?
• Do you offer a tax filing guarantee?
• How do you handle new state registrations?
• What compliance alerts or notifications do you provide?

On support:

• What are your support hours?
• How quickly do you respond to urgent issues?
• Is phone support included or extra?
• Do we get a dedicated rep or go through general support?
• What happens if we have a payroll emergency at 4pm on Friday?

On data and security:

• How is our data encrypted?
• What certifications do you have (SOC 2, ISO 27001, etc.)?
• Can we export all our data if we leave?
• How often do you backup data?
• What’s your uptime guarantee?

On pricing:

• What’s the all-in monthly cost for our current setup?
• What would it cost if we added [specific feature]?
• Are there any fees you haven’t mentioned yet?
• How much notice for price increases?
• What’s included in our first year vs. ongoing?

Phase 3: Deep Dive & Testing (Week 3-4)

Step 1: Check references and reviews

Don’t just read reviews — filter them smartly.

On G2 and Capterra:

• Read reviews from companies your size (filter by company size)
• Focus on recent reviews (last 6-12 months)
• Look for patterns in complaints (one bad review is noise, ten similar complaints is a signal)
• Read both 5-star and 1-star reviews (the truth is usually in the middle)

Red flags in reviews:

• Consistent complaints about support response times
• Hidden fees or surprise charges
• Difficulty getting data out when leaving
• Tax filing errors
• Poor communication during implementation
• Features that don’t work as advertised

Green flags in reviews:

• Responsive support team
• Smooth implementation process
• Accurate tax filings
• Regular product updates
• Proactive compliance notifications
• Strong integration performance

Step 2: Request trial access or sandbox environment

Many platforms will give you test access. Use it to:

• Run a mock payroll with your actual employee data
• Test the employee self-service portal
• Try generating the reports you need
• Test integrations with your accounting software
• See how mobile experience works
• Review the admin interface with your team

Step 3: Calculate total cost of ownership

Build a spreadsheet with your actual numbers:

Cost Category	Platform A	Platform B	Platform C
Implementation/Setup
Base monthly fee
Per-employee fees (x # employees)
Per-contractor fees (x # contractors)
Time tracking module
Benefits administration
International payroll/EOR
Support/training
Year 1 Total
Year 2+ Annual

Don’t forget to factor in soft costs:

• Staff time saved on manual processes
• Reduced risk of compliance penalties
• Improved employee experience
• Faster closing times for accounting

Phase 4: Final Decision & Negotiation (Week 4-5)

Step 1: Narrow to your top choice

By now, one platform should stand out. But before you sign:

Create a scorecard for your top 2-3:

Criteria	Weight	Platform A Score (1-10)	Platform B Score (1-10)	Platform C Score (1-10)
Meets must-have requirements	25%
Ease of use	15%
Support quality	15%
Total cost (3 years)	15%
Integration capabilities	10%
Scalability	10%
Implementation ease	10%
Weighted Total	100%

Step 2: Negotiate the contract

Yes, you can often negotiate, especially if you’re bringing 30+ employees.

Things to negotiate:

• Waived implementation fees
• Discounted first year
• Free add-on modules for the first year
• Extended trial period
• Flexible contract length (try to avoid multi-year commitments initially)
• Locked-in pricing for 2-3 years

Contract terms to review carefully:

• Auto-renewal clauses
• Price increase caps
• Termination notice period (some require 60-90 days)
• Data export rights
• Service level agreements (SLAs)
• What happens if they make an error

Step 3: Plan your implementation

Work backward from your target go-live date.

Typical implementation timeline (6-8 weeks):

Week 1-2: Data gathering

• Compile employee data
• Document current pay schedules, benefits, deductions
• Gather historical payroll reports
• Identify all tax accounts and registrations

Week 3-4: System setup

• Configure pay schedules
• Set up departments, locations, positions
• Enter employee data
• Configure integrations
• Set up benefits and deductions
• Establish approval workflows

Week 5-6: Testing

• Run parallel test payroll
• Verify tax calculations
• Test integrations
• Review reports
• Employee portal testing
• Identify and fix issues

Week 7: Training

• Admin team training
• Manager training (if approving time)
• Employee communication
• Create internal documentation

Week 8: Go-live

• Run first live payroll
• Monitor closely
• Gather feedback
• Address any issues immediately

Pro tip: Don’t go live right before a holiday or in December. Pick a quiet time when you can focus.

---

What Actually Matters When Choosing Payroll Software

Now that you know the process, let’s talk about what really matters in a payroll platform.

Compliance & Accuracy (Non-Negotiable)

This is the foundation. Everything else is secondary.

Tax filing automation: The platform should automatically calculate, file, and pay:

• Federal income tax
• State income tax (all states where you have employees)
• Local/city taxes • FICA (Social Security and Medicare)
• Federal unemployment (FUTA)
• State unemployment (SUTA)
• Workers’ compensation deposits

What “fully automated” really means:

• System calculates withholdings correctly
• Files all taxes electronically
• Remits payments on your behalf
• Generates all required quarterly reports (941, state quarterlies)
• Produces year-end documents (W-2s, W-3s, 1099s)
• Sends you notifications of filings
• Provides proof of filing

Questions to ask:

• Do you guarantee tax accuracy?
• What happens if you file incorrectly?
• Do you cover penalties from your errors?
• How quickly do you adapt to new tax law changes?

Ease of Use (You’ll Touch This Every Pay Period)

A powerful platform that’s painful to use will make your life miserable.

Admin experience:

• Can you run payroll in under 10 minutes?
• Is the interface intuitive or do you need training for basic tasks?
• Can you easily make corrections?
• How many clicks to run an off-cycle payment?
• Can you bulk upload changes?

Employee experience:

• Can employees view and download paystubs easily?
• Can they update their own information (address, withholdings, direct deposit)?
• Is the mobile app actually functional?
• Can they access year-end documents without asking you?

Manager experience (if applicable):

• Can managers approve time without entering the payroll system?
• Do they get clear notifications?
• Can they see their team’s PTO balances?

Integration Capabilities (Your Tech Stack Needs to Talk)

Payroll doesn’t exist in isolation. It needs to connect with other enterprise tools.

Accounting software:

• QuickBooks Online/Desktop
• Xero
• NetSuite
• Sage
• FreshBooks

What to verify:

• Does data sync automatically or do you export/import?
• How often does it sync (real-time, daily, manual)?
• What data transfers (journal entries, expense categories, etc.)?
• Can you map to your chart of accounts?

Time tracking tools:

• Clockify
• TSheets/QuickBooks Time
• Deputy
• When I Work
• Built-in time tracking

What to verify:

• Do hours flow automatically into payroll?
• Can you review/approve hours before payroll runs?
• Does it handle overtime calculations?
• Can you track time by project or department?

Other common integrations:

• Benefits providers (for deduction syncing)
• 401(k) providers
• Workers’ comp insurance
• Applicant tracking systems (ATS) for onboarding
• HR information systems (HRIS)
• Expense management tools
• Learning management systems

Scalability (Plan for Growth)

Some platforms are built for specific company sizes:

• Gusto: Great for 1-100 employees, works up to 200+
• Rippling: Sweet spot is 20-500 employees
• Paylocity: Best for 50-500 employees
• Deel/Multiplier: Can handle 1-1,000+ employees globally

Geographic expansion:

• Can you easily add new states?
• What about international expansion?
• Do EOR capabilities exist or can be added?

Feature expansion:

• Can you add modules later without switching platforms?
• Benefits administration
• Performance management
• Learning and development
• Recruiting/ATS
• IT/device management

Support Quality (When Things Break)

Payroll problems need immediate attention. Your support options matter.

Support channels:

• Phone support (critical for urgent issues)
• Live chat (good for quick questions)
• Email support (fine for non-urgent matters)
• Dedicated rep (ideal for complex setups)

Response times:

• What are guaranteed response times?
• Is support 24/7 or business hours only?
• What’s covered in base support vs. premium tiers?

Based on our review research:

• Gusto: Generally praised for responsive support; phone and chat available
• Rippling: Dedicated rep for most customers; strong support ratings
• Paylocity: Dedicated rep model; implementation support highly rated
• Deel: 24/7 chat support; strong marks for responsiveness
• Multiplier: 24/7 support; good reviews for global support coverage

Reporting & Analytics (Data-Driven Decisions)

You need more than just “payroll ran successfully.”

Standard reports you should be able to generate easily:

• Total payroll cost by department
• Labor cost as percentage of revenue
• Overtime trends
• PTO accrual and usage
• Benefits enrollment and costs
• Tax liability summary
• Headcount reports
• Turnover analysis
• Custom reports for board meetings or investors

Export capabilities:

• Can you export to Excel/CSV?
• Can you schedule reports to run automatically?
• Can you create custom report templates?

---

Break Down of Each payroll Platform

🟢 Gusto — The Small Business Favorite

In plain English: Gusto makes U.S. payroll simple. If you want to stop worrying about tax filings and just pay your team correctly, this is your answer.

Based on our research: Gusto consistently receives high marks in user reviews (4.5+ stars across platforms) for ease of use and reliability. Users particularly praise the intuitive interface and automated compliance features. Common feedback: “Just works” and “Great for small teams who need simple, reliable payroll.”

What makes it great:

• All tax filings happen automatically (federal, state, local — they handle it)
• Your team gets a self-service portal where they can update their info
• Time tracking and PTO management included in the higher plans
• Benefits marketplace for health insurance, dental, 401(k)
• Can add international contractors through their Global add-on

What it costs:

Starting at $49/month base + $6 per person. They also have a contractors-only plan if that’s all you need. Want to hire internationally? That starts around $699 per person per month through their partner, Remote.

Real user feedback highlights:

• “Setup took less than an hour”
• “Tax filings are completely hands-off”
• “Employee portal is clean and simple”
• “Support responds quickly when we need help”

Potential drawbacks noted in reviews:

• Limited customization for complex pay structures
• Reporting could be more robust
• International capabilities are through a partner (not native)

Perfect for: Small U.S. teams (under 100 people) who want set-it-and-forget-it payroll that just works.

👉 Learn more about Gusto here.

---

🟣 Rippling — The All-In-One Powerhouse

In plain English: Rippling thinks bigger than just payroll. They want to be your HR system, payroll provider, AND IT department all rolled into one platform.

Based on our research: Rippling receives strong reviews (4.3+ stars) from fast-growing tech companies. Users highlight the powerful integration capabilities and unified platform approach. Common feedback: “Game-changer for scaling companies” and “Finally, everything in one place.”

What makes it great:

• Everything lives in one dashboard — payroll, benefits, time tracking, device management
• Compliance updates happen automatically as you expand to new states or countries
• Connects with 500+ other apps (QuickBooks, Slack, Google Workspace, you name it)
• You can manage who has access to what apps and tools
• Handles employee laptops and software access

What it costs:

Starts at $8 per person per month for the base platform. Then you add what you need — payroll, global hiring, IT management, benefits — each module costs extra.

Real user feedback highlights:

• “Onboarding new employees is incredibly smooth”
• “Love managing software licenses in the same place as payroll”
• “Workflow automation saves us hours every week”
• “Scales effortlessly as we’ve grown”

Potential drawbacks noted in reviews:

• Can get expensive once you add multiple modules
• Learning curve for the full platform
• Pricing isn’t transparent upfront
• Some features feel overwhelming if you don’t need them

Perfect for: Fast-growing companies (think startup to Series B) who want one system to rule them all.

👉 Learn more about Rippling.

---

🟠 Paylocity — The Mid-Market Leader

In plain English: Paylocity is what you graduate to when Gusto feels too basic but you’re not quite enterprise-level yet. It’s powerful without being overwhelming.

Based on our research: Paylocity scores well with mid-market HR teams (4.2+ stars), particularly those focused on compliance and analytics. Users appreciate the comprehensive feature set and configurability. Common feedback: “Built for HR professionals” and “Strong reporting and compliance tools.”

What makes it great:

• • Seriously good compliance features and automated tax filing
• Analytics that actually help you make decisions (not just data dumps)
• Time tracking, benefits, and performance reviews all integrated
• Plays well with your accounting and ERP systems
• Solid U.S. payroll with global options through partners

What it costs:

They don’t list prices — you’ll need to get a quote. Generally makes sense once you hit 50+ employees.

Real user feedback highlights:

• “Implementation team was thorough and professional”
• “Reports are exactly what our CFO needs”
• “Benefits administration is comprehensive”
• “Great for staying compliant across multiple states”

Potential drawbacks noted in reviews:

• UI feels dated compared to newer platforms
• Mobile app could be better
• Customer service can be hit or miss
• Some features require workarounds

Perfect for: Companies moving from startup chaos to actual processes. HR teams who need data to back up their decisions.

👉 Explore payroll with Paylocity.

---

🔵 Deel — The Global Contractor Expert

In plain English: Deel makes hiring people anywhere in the world actually possible. Contractors in the Philippines? Full-time employees in Portugal? Deel handles the compliance nightmare so you don’t have to.

Based on our research: Deel receives strong reviews (4.5+ stars) from distributed teams and global-first companies. Users emphasize the ease of international hiring and transparent pricing. Common feedback: “Made global hiring simple” and “Transparent pricing is refreshing.”

What makes it great:

• Clear, upfront pricing (no hidden fees)
• Employer of Record (EOR) services in 100+ countries
• They handle visas, local compliance, benefits, and taxes
• Great reporting and expense management tools
• Integrates with QuickBooks, Xero, NetSuite, and most HR tools

What it costs:

• Contractors: $49 per person per month
• Full employees (through their EOR): $599 per person per month
• You can also add global payroll if you already have entities set up in other countries.

Real user feedback highlights:

• “Hired our first international employee in less than a week”
• “Contractor payments are seamless across currencies”
• “Compliance documentation gives us peace of mind”
• “Support understands global employment law”

Potential drawbacks noted in reviews:

• Can be overkill if you’re U.S.-only
• Some country-specific features are still developing
• Interface can feel complex at first
• Best for companies committed to global hiring

Perfect for: Startups and SMBs building remote or hybrid teams across multiple countries. Especially good if you work with lots of contractors.

👉 Learn more about international payroll with Deel.

---

🟡 Multiplier — The Global Team Builder

In plain English: Multiplier is built for companies who want to hire full-time employees internationally without the headache of setting up legal entities in each country.

Based on our research: Multiplier receives positive reviews (4.3+ stars) from companies building international teams, with users highlighting local benefits and fast onboarding. Common feedback: “Local benefits are genuinely local” and “Onboarding is faster than competitors.”

What makes it great:

• Fast international employee onboarding
• Local employment contracts that actually comply with local laws
• Local benefits packages (not just U.S.-style benefits)
• Multi-currency payroll without the conversion headaches
• Built-in expense and leave management

Real-world example: You’re a 30-person startup. You need to hire software engineers in India and the Philippines. Multiplier lets you hire them as actual employees (not contractors), with proper local benefits and compliant contracts — no need to set up companies in those countries.

What it costs:

• EOR services: Around $400 per person per month (varies by country)
• Contractors: From $40 per person per month

Real user feedback highlights:

• “Localized benefits are actually relevant to each country”
• “Onboarding was faster than we expected”
• “Multi-currency payroll is straightforward”
• “Support understands regional employment nuances”

Potential drawbacks noted in reviews:

• Smaller company means fewer established processes
• Some features still being built out
• Country coverage still expanding
• Less name recognition than competitors

Perfect for: Companies committed to building an international team with full-time employees who get proper local benefits.

👉 Explore international payroll and benefits with Multiplier.

---

Feature Comparison Tables

Core Payroll & HR Features

Feature	Gusto	Rippling	Paylocity	Deel	Multiplier
U.S. Payroll	Full-service	Full-service	Full-service	Via partners	Via partners
Global Payroll/EOR	Via Remote (partner)	Add-on module	Through partners	Built-in (100+ countries)	Built-in (150+ countries)
Benefits Administration	Marketplace	Full module	Integrated	Local benefits	Local benefits
Time & Attendance	Add-on	Full module	Integrated	Limited	Leave management
Performance Management	Basic	Module available	Integrated	No	No
Employee Self-Service	Yes	Yes	Yes	Yes	Yes

Technical & Integration Capabilities

Feature	Gusto	Rippling	Paylocity	Deel	Multiplier
IT/Device Management	No	Yes	No	No	No
Accounting Integrations	QuickBooks, Xero	500+ apps	ERP & HRIS tools	QuickBooks, Xero, NetSuite	HR & finance tools
API Access	Yes	Yes	Yes	Yes	Yes
Custom Reporting	Basic	Advanced	Advanced	Good	Good
Mobile App	Yes	Yes	Yes	Yes	Yes

Pricing & Support

Feature	Gusto	Rippling	Paylocity	Deel	Multiplier
Starting Price	~$40/mo + $6/employee	$8/employee (base) + add-ons	Custom quote	$49/contractor, $599/EOR employee	$40/contractor, $400/EOR employee
Pricing Transparency	Clear, published	Quote-based	Quote-based	Clear, published	Clear, published
Free Trial	Demo available	Demo available	Demo available	Demo available	Demo available
Support Options	Chat & phone	Dedicated rep	Dedicated rep	24/7 chat	24/7 support
Onboarding Assistance	Standard	White-glove	White-glove	Standard	Standard

Global Capabilities Comparison

Feature	Gusto	Rippling	Paylocity	Deel	Multiplier
Countries Covered	80 (via partner)	~50 (add-on)	Varies	100+	150+
Direct EOR Service	No (partnered)	Add-on	No	Yes	Yes
Local Compliance	Partner-managed	Good	Limited	Excellent	Excellent
Multi-Currency	Limited	Yes	Limited	Yes	Yes
Visa Support	No	Limited	No	Yes	Yes
Local Benefits	Limited	Good	Limited	Yes	Yes

User Satisfaction Summary (Based on Review Research)

Platform	Overall Rating	Ease of Use	Support Quality	Value for Money	Best For Company Size
Gusto	4.5/5	Excellent	Very Good	Excellent	1-100 employees
Rippling	4.3/5	Good	Excellent	Good	20-500 employees
Paylocity	4.2/5	Good	Good	Good	50-500 employees
Deel	4.5/5	Very Good	Excellent	Very Good	Any (global focus)
Multiplier	4.3/5	Very Good	Very Good	Very Good	Any (global focus)

---

Common Mistakes to Avoid

Based on our research and documented experiences, here are the pitfalls to watch out for:

Mistake #1: Picking Based on Price Alone

The cheapest option usually costs more in the long run.

What happens: You pick a platform because it’s $3/employee cheaper. Then you realize:

• Tax filing isn’t actually automatic (they just generate forms you have to file)
• Integration with QuickBooks costs extra
• Support is email-only with 48-hour response times
• You can’t export historical data if you leave

Better approach: Calculate total cost including your time. If a platform saves your admin person 5 hours per month, that’s worth $100-250/month in labor costs alone.

Mistake #2: Not Testing With Real Data

Demos look great. Reality is messier.

What happens: The demo goes smoothly with their sample data. Then you try to:

• Enter your actual pay structure (base + commission + bonus)
• Handle your multi-state team
• Deal with your union vs. non-union employees
• Integrate with your 5-year-old version of QuickBooks Desktop

Suddenly nothing works like it did in the demo.

Better approach: Ask for sandbox access. Run a real payroll with your actual employees (test environment). See what breaks before you commit.

Mistake #3: Ignoring Your Accountant’s Input

Your accountant will use this data. Get them involved.

What happens: You pick a platform with beautiful reports that your accountant can’t actually use. Now you’re manually entering payroll data into their system every month.

Better approach: Before you demo, ask your accountant:

• What data do you need from payroll?
• What format works best for you?
• Are there any platforms you prefer (or hate)?
• How do you want year-end information delivered?

Mistake #4: Underestimating Implementation Time

“We’ll switch next month” becomes “We’re still working on it three months later.”

What happens: You signed the contract assuming you’d be up and running in two weeks. Reality:

• Historical data migration takes longer than expected
• You discover payroll errors in your old system that need fixing
• Testing reveals integration issues
• Training gets pushed back
• You end up running parallel payroll for three months

Better approach: Double the implementation timeline they give you. If they say 4 weeks, plan for 8. Don’t switch during busy season or right before year-end.

Mistake #5: Not Reading the Contract

Those terms matter when things go wrong.

What happens: Twelve months in, you realize:

• You’re locked into a 3-year contract with auto-renewal
• They can raise prices 20% annually
• You need 90 days notice to cancel
• You can’t export all your data
• They’re not liable for their own tax filing errors

Better approach: Actually read the service agreement. Have your lawyer review if it’s a significant contract. Negotiate before signing, not after.

---

Making Your Final Decision

If you’re U.S.-only: Start with Gusto. Don’t overthink it. Easy setup, good compliance, affordable.

If you’re scaling quickly: Try Rippling. The modular approach means you can add what you need as you grow.

If you’ve hit mid-market: Go with Paylocity. You need the analytics and compliance features.

If you’re hiring globally: Pick between Deel and Multiplier.

Deel works better if you have a mix of contractors and employees and want transparent pricing from day one.

Multiplier is better if you’re committed to hiring full-time international employees with proper local benefits.

---

Red Flags to Watch For

Based on documented user experiences, here are warning signs to look out for during your evaluation:

During the sales process:

• They won’t give you actual pricing without multiple meetings
• They pressure you to sign immediately (“this price expires tomorrow”)
• They bad-mouth competitors instead of explaining their strengths
• They promise features “coming soon” without timelines
• They can’t explain how they handle your specific situation
• References are all from 3+ years ago

During implementation:

• Your implementation team changes multiple times
• They miss scheduled calls or deadlines repeatedly
• They don’t respond to questions for days
• They can’t answer technical questions about your setup
• Testing reveals features don’t work as described
• They push to go live before you’re comfortable

After go-live:

• Tax filings are consistently late
• Payroll errors occur regularly
• Support takes days to respond to urgent issues
• They don’t honor the terms of your agreement
• They announce surprise price increases
• They keep adding fees that weren’t in the contract

If you see these red flags, pause and reconsider. Switching payroll providers is painful, but it’s more painful to stick with a bad one.

---

Frequently Asked Questions

---

Related Resources

Based on your needs, these HR Launcher Lab resources might help:

• HR Tech Stack Readiness Quiz — Assess if you’re ready to upgrade your HR technology
• HR Technology Launch Hub — Comprehensive guides for building your HR tech stack
• Compliance Calendar for Multi-State Employers — Track important payroll compliance dates

---

Final Thoughts

Picking payroll software isn’t glamorous, but it’s one of the most important operational decisions you’ll make. The right platform becomes invisible — it just works. The wrong platform becomes a constant source of stress, errors, and wasted time.

Based on our extensive research of product documentation, user reviews, and real-world implementations:

• For small U.S. teams: Gusto consistently delivers the best balance of simplicity, reliability, and cost • For fast-growing companies: Rippling’s unified platform approach scales exceptionally well • For mid-market needs: Paylocity provides the analytics and compliance tools HR teams require • For global contractors: Deel makes international contractor management straightforward • For global employees: Multiplier excels at compliant international full-time hiring

The “best” platform isn’t the one with the most features or the lowest price — it’s the one that fits your specific situation and will grow with you.

Take your time with this decision. Do the demos. Test with real data. Talk to your accountant. Read recent reviews. And remember: you’re not just buying software, you’re choosing a partner for one of your most critical business functions.