If you’ve decided manual payroll calculations aren’t worth the risk anymore, the next question is which tool to use. Most “best payroll software” lists lead with platforms built for companies planning to scale past 50 or 100 employees — useful information, but not what a freelancer with one new hire actually needs.
Here’s how the options that actually fit a small team compare.
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What to Look For at This Size
- Flat or low per-employee pricing — you shouldn’t need an enterprise sales call to get a quote
- Full-service tax filing — the software should handle federal, state, and local filings automatically, not just calculate numbers for you to file yourself
- Simple setup — you don’t have HR staff, so the tool needs to be usable without training
Comparing Your Options
Gusto — Widely considered the standard for very small teams and first-time employers. Full-service tax filing, automated W-2s and 1099s, direct deposit, and integrations with QuickBooks, Xero, and FreshBooks. Also handles S-corp compliance tools if you’re set up that way. Pricing starts with a base monthly fee plus a per-employee charge — not the cheapest option, but the most complete for someone who wants to set it up once and not think about it again.
Patriot Payroll — The budget-conscious option. Lower starting price than Gusto, with full-service tax filing included on its higher tier. Fewer bells and whistles (no built-in benefits administration), but for a single employee where you just need accurate, compliant payroll without extra features, it’s a solid, no-frills fit.
OnPay — Flat-rate pricing with no upsells, which makes costs predictable as you (maybe) add a second or third employee. Full-service tax filing included at every tier. A reasonable middle ground between Gusto’s completeness and Patriot’s bare-bones pricing.
QuickBooks Payroll — The obvious choice if you’re already using QuickBooks for accounting, since payroll data flows directly into your books without manual entry. If you’re not already a QuickBooks user, there’s less reason to start here specifically for payroll.
Zoho Payroll — One of the more competitively priced options here, with full-service U.S. tax filing and automatic W-2/1099 generation included. Where it stands out is integration: if you’re already using Zoho Books for accounting or Zoho People for HR, payroll data flows between them without manual re-entry. It’s a newer product than the others on this list, so the feature set is still filling out — worth factoring in if you need something more established. Best fit for someone already in, or open to, the Zoho ecosystem. Check current Zoho Payroll pricing here.
What About Rippling, ADP, or Paychex?
These are excellent products — for companies further down the road. They’re built around unifying payroll with IT management, device provisioning, and multi-department HR, which is genuinely useful once you have a real HR function to support. For one employee, you’d be paying for infrastructure you don’t need yet. If you scale well past a handful of employees, they’re worth revisiting then.
Who Each Option Fits
- Want everything handled with no ongoing thought? Gusto
- Watching every dollar and just need compliant payroll? Patriot Payroll
- Want predictable flat pricing as you might add a second hire? OnPay
- Already running QuickBooks for accounting? QuickBooks Payroll
- Already using Zoho Books or Zoho People, or want the most budget-friendly option? Zoho Payroll
Frequently Asked Questions
Do I need payroll software for just one employee?
Not strictly — some very small employers calculate and file manually. But the risk of a missed deadline or incorrect withholding usually costs more than the software would have.
What if my one employee is actually a contractor?
Contractors don’t require payroll tax withholding — you typically just issue a 1099 at year-end. Full payroll software isn’t necessary unless you also have actual employees.
Can I switch payroll tools later if I outgrow one?
Yes. Most small-business payroll platforms support data export, and switching is generally straightforward if you’re moving to a similar tier of product.
Still deciding whether you need an employee at all versus staying with contractors? Start with: Do You Need Payroll Software If You Only Have One Employee?