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Best HR Software for Small Businesses

Best HR Software for Small Businesses

There are 32.2 million small businesses in the U.S., which accounts for 99.9% of all companies. When a new one comes along, the competition is intense, so it must go at it hammer and tongs to find ways to adapt, evolve, and stand out.

HR software for small businesses can be just what this kind of company needs. Essential HR tasks may be repetitive and time-consuming, so small businesses often overlook them due to budget constraints and limited staff.

Best HR software for small businesses

However, small business HR software has the power to streamline and automate, freeing up the team for more important responsibilities. Still, signing up for a service without doing research can be dangerous, so it’s worth ensuring you’ve found the most appropriate HR software for small businesses.

Best HR software for small businesses in 2025

Editors' choice

Justworks PEO

Editor's rating:
Advanced payroll
Reliable compliance
Premium benefits
Thorough HR tools
Start-ups

Gusto

Editor's rating:
Plenty of extra functionalities
User-friendly interface
Tax solutions
Payout customization
Free

Deel

Editor's rating:
Free version
Extensive list of features
Responsive customer service
Simple payroll
Nonprofits

Paycor

Editor's rating:
Unlimited payruns
Automated payroll
On-demand pay
Trustworthy tax compliance
All-in-one HR

Zenefits

Editor's rating:
Large number of integrations
Feature-filled apps
Useful for businesses of any size
International employees included
IT teams

Rippling

Editor's rating:
All-in-one HR solution
Customizable
Unique features
Global payroll solution
Growing businesses
Namely logo

Namely

Editor's rating:
Thorough compliance reports
Compliance templates
Global payroll support
Benefits and time-tracking tools integration
Editors' choice

Justworks PEO

Editor's rating:
Starting price: $59/emp/mo
Main features
  • Advanced payroll
  • Reliable compliance
  • Premium benefits
  • Thorough HR tools
  • Advanced payroll
  • Reliable compliance
  • Premium benefits
  • Thorough HR tools
  • Two apps
  • Lack of employee engagement tools
Summary
View summary

Justworks PEO is a comprehensive solution that provides a full suite of HR services, perfect for businesses looking to streamline administrative duties and improve efficiency. It extends Justwork Payroll’s capabilities by offering benefits administration, compliance support, HR consulting, time tracking, and employee self-service.

Subscribing to Justworks PEO requires companies to pay a monthly fee per employee, which can be as low as $59, depending on the company size. In addition, Justworks has a referral program where customers can earn up to $10,000.

Special offers
View offers
Justworks PEO demo
Referral program with Justworks
Start-ups

Gusto

Editor's rating:
Starting price: $6/mo
Main features
  • Plenty of extra functionalities
  • User-friendly interface
  • Tax solutions
  • Payout customization
  • Plenty of extra functionalities
  • User-friendly interface
  • Tax solutions
  • Payout customization
  • Could have more accounting software integrations
  • Healthcare not available in all states
  • Not possible to use with international workers
Summary
View summary

W2s, 1099 forms, 940 forms… so many fun things to think about when you own a company! If you run a business that operates with employees, then you and them probably have very different ideas of what payday means. For them, payday may be one of the best days of the month, while for you, the reality of it may be more of a tedious, stressful, and even chaotic frenzy. Given that we live in a time of convenience and instant solutions, when it comes to payroll woes, the situation is no different – luckily this administrative pain can be alleviated with the aid of a payroll software like Gusto that specializes in helping small to medium-sized businesses in the U.S. Beyond being a payroll solution, Gusto assists with other HR areas like health insurance and retirement management, as well as offering integrations with third-party tools.

Special offers
View offers
$100 discount for yourself and a friend with the Gusto referral program
Free 30-day trial of Gusto without prior payment
Free

Deel

Editor's rating:
Starting price: $49/mo
Main features
  • Free version
  • Extensive list of features
  • Responsive customer service
  • Simple payroll
  • Free version
  • Extensive list of features
  • Responsive customer service
  • Simple payroll
  • No mobile app
  • Steep learning curve
  • Expensive
Summary
View summary

From smooth onboarding and employee relocations to efficient and compliant payroll, Deel lets you meticulously keep all HR tasks in check. Particularly well-suited for global teams, the service has subsidiaries in over 150 countries. Along with facilitating international hires and employee management without the need for a local entity, the service handles visa sponsorships.

Deel supports over 120 currencies, integrates with apps like Slack and Teams, and offers a free version for businesses. The company provides discounts through package bundling, although most prices are only disclosed once you contact the sales team.

Special offers
View offers
$1,000 off Deel
Free HR software with Deel
Nonprofits

Paycor

Editor's rating:
Starting price: $99/mo
Main features
  • Unlimited payruns
  • Automated payroll
  • On-demand pay
  • Trustworthy tax compliance
  • Unlimited payruns
  • Automated payroll
  • On-demand pay
  • Trustworthy tax compliance
  • High subscription price
  • No refunds
  • Unresponsive email support
Summary
View summary

On the market since 1990, Paycor is a cloud-based solution designed to help businesses with payroll processing, HR and workforce management, and benefits administration. As a human capital management service, Paycor stands out as an all-in-one platform where companies recruit, onboard, and set up payments for new hires.

The platform provides businesses with greater access to their payroll process, allowing them to ensure all payments are accurate, compliant, and on time. Prices start at $99 plus $10 per employee each month, with setup fees occasionally waived. All plans include multiple payment options, employee self-service, and unlimited payruns. Also, the software can be tested for free for 14 days, so administrators can have a glimpse of how much time and hassle they can save if they trust Paycor with their payroll.

Special offers
View offers
50% off the first year with Paycor
No setup fees with Paycor
14-day free trial of Paycor
3-month free trial of Paycor
All-in-one HR

Zenefits

Editor's rating:
Starting price: $8/mo
Main features
  • Large number of integrations
  • Feature-filled apps
  • Useful for businesses of any size
  • International employees included
  • Large number of integrations
  • Feature-filled apps
  • Useful for businesses of any size
  • International employees included
  • No 24/7 support
  • Payroll only sold as an add-on
Summary
View summary

Good payroll software should save you time so you can get more done in your day. Ideally, it should also be as simple to use as possible. Since 2013, San Francisco company Zenefits has aimed to do just that with its payroll solution. Now serving over ten thousand companies, Zenefits gains from the vast number of integrations it offers that not only streamline the payroll experience but can enhance just about every aspect of a business. For example, the comprehensive Zenefits mobile app allows employees to access every bit of payroll information they need, clock in and out, request holiday time, and so on. It also serves as an all-round work hub to keep everyone connected. The payroll software is also very reasonably priced, but it’s only available as a $6-per-month-per-employee add-on to any other Zenefits subscription. You can test it out first though: Zenefits provides a 14-day demo version so you can take a look at everything it has to offer.

Special offers
View offers
Up to 29% on your Zenefits subscription
Free 14-day trial of Zenefits
IT teams

Rippling

Editor's rating:
Main features
  • All-in-one HR solution
  • Customizable
  • Unique features
  • Global payroll solution
  • All-in-one HR solution
  • Customizable
  • Unique features
  • Global payroll solution
  • Price
  • No free trial
Growing businesses
Namely logo

Namely

Editor's rating:
Main features
  • Thorough compliance reports
  • Compliance templates
  • Global payroll support
  • Benefits and time-tracking tools integration
  • Thorough compliance reports
  • Compliance templates
  • Global payroll support
  • Benefits and time-tracking tools integration
  • Unclear pricing
  • Poor customer support
  • Only supports U.S.-based businesses
Summary
View summary

All businesses are subject to local, state, and federal regulations, and not complying with these can result in paying back taxes or suffering financial penalties like fines and interest. With Namely, all this can be avoided with its robust compliance resources that prevents any damage to a business’s reputation or finances.

Namely offers an extensive compliance resource library with local policies and current and pending regulations and notifies managers if the company is not following the law to the T. Moreover, there’s unlimited access to certified HR advisors who can provide clarifications and help.

Understanding the HR needs of a small business

Unfortunately, 50% of small businesses fail within the first five years, and human resources software for small businesses can be invaluable in preventing this. It can help a company avoid collapse and even increase the chances of success considerably.

The main reasons a business may go belly-up are connected, and often, tackling one can solve others. The most common challenges faced by small companies are:

  • Finding and accessing top talent.
  • Employee retention.
  • Regulatory changes.
  • Endless administrative paperwork.
  • Over-reliance on employee multitasking.
  • Failure to handle rapid growth.
  • Limited resources.

HR software gives you the power to handle all these challenges, starting with something as simple and time-saving as automation to complex regulatory compliance in different countries. It can do most of the time-consuming tasks of an HR department, freeing the team to focus on what it’s important.

Key features to look for in HR Software for a Small Business

When looking for small business HR software, it’s common to be tempted by expensive solutions with countless features. However, most small businesses don’t require a broad range of tools and may be working on a tight budget, so choosing a service that accurately reflects the company’s needs is imperative.

Small businesses should look for the following key features to ensure a smooth road to success:

  • Workflow automation: This simplifies repetitive and laborious tasks by automating them, which decreases the number of employees needed.
  • Scalability: A decent HR software can adjust to a company of any size.
  • Centralized data: This reduces the risk of errors and provides robust data security.
  • Recruitment and ATS: This helps to source, recruit, and onboard new employees.
  • Benefits administration: A strong benefits policy ensures a satisfied workforce.
  • Payroll processing: This makes sure that payroll includes accurate calculations and tax deductions.
  • Compliance tools: HR software ensures global regulatory compliance with country and industry-specific laws and regulations.
  • Extras: Attendance and time tracking, employee database management, mobile app, and customer support.

Benefits of Implementing HR Software in Your Small Business

Purchasing or subscribing to HR software will make everyone’s job easier, building a happier workplace environment. The benefits are numerous:

  • Easy access to a talented workforce.
  • Simplified staffing and onboarding.
  • Precise payroll management.
  • Effortless compliance adherence.
  • High-level data security.
  • Informed decision-making.
  • Enhanced employee satisfaction.
  • Efficient document management.
  • Versatile scalability.
  • Trouble-free remote workforce management.
  • Efficient and effective operations.

When chosen correctly, HR software can catapult a business to unprecedented heights. There are plenty of affordable solutions out there, and some can even be had for free forever or trialed for a limited time.

However, while there are plenty of top-notch HR solutions for small businesses to choose from, it’s never a one-size-fits-all situation. Each business has different needs, so it’s worth making that extra effort to find the perfect match.

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