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Choosing a payroll and HR solution provider for your small business
Last updated: January 05, 2026
With so many options and a wide range of features, choosing a small business payroll and HR solution provider can be confusing and even intimidating. As with any big decision, doing solid research will increase the likelihood of making the right choice.
Key takeaways: Choosing a small business payroll and HR solution in five steps
- Conduct a needs assessment that identifies payroll pain points and priorities.
- Find potential payroll providers by reading third-party reviews, demoing software and talking to product representatives.
- Consider features beyond basic payroll, like timekeeping, benefits and insurance, and compliance tracking and alerts.
- Prioritize payroll platforms that can easily integrate with other solutions and have robust client support networks.
- Confirm pricing and onboard with the payroll provider that best meets all business needs.
Start with a needs assessment
Begin by identifying your priorities. Are you looking to reduce time spent on manual tasks? Improve payroll accuracy? Access HR expertise for benefits or help managing payroll and tax compliance?
In addition to your needs, think about your current pain points. Are constantly changing compliance laws frustrating? Is the time it takes to run payroll cutting into your other work? Is keeping track of employee time and PTO a challenge? The right small business payroll and HR platform can address most or all of these issues.
Know where to look for small business payroll and HR solution information
The best place to start is online. Visiting websites for providers like ADP®, Gusto, Paychex and Paycor will help you understand what each company offers. Then, consult expert third-party review sites like Capterra, G2, TrustRadius, and NelsonHall. These sources use structured methodologies to score providers and outline pros and cons clearly.
Did You Know
ADP’s payroll software is rated 4.5 out of 5 stars (849) by Capterra and GetApp, 9.1 out of 10 (738) by TrustRadius.
Ratings include incentivized reviews and are accurate as of 11/15/25
RUN Powered by ADP® was named a BIG Innovation Award Winner (2025) and Best Software Product for Small Businesses on G2’s 2025 list.
RUN has been ranked among G2’s Top 50 Best Small Business Products from 2021 to 2025.
Be cautious when reading employee-submitted reviews. For companies like ADP, the client is the employer, not individual employees. Employees who need help should make their requests to their employer, and the employer should handle them.Often times the source of concerns voiced by employees has to do with how their records were set up. Proper setup by administrators usually resolves these issues.
Finally, seeing product demos and speaking with a product representative is an important step. Time spent having a conversation with a representative is small compared to the considerable time that could be saved with the right payroll solution.
For full-featured small business payroll and management systems like RUN Powered by ADP, demos are the best way to see what a solution offers. Demo calls are also a great time to hear how product experts answer your questions. A good conversation can make the difference between a semi-informed decision and a fully informed one.
What to look for in a small business payroll and HR management platform
Most small business payroll service providers will cover the basics, like calculating withholding taxes and processing payroll. But leading platforms like RUN go further.
Look for features such as:
- Compliance tracking and alerts
- Time and attendance management
- Time-off tracking
- Benefits and insurance administration
- Full HR functionality in a unified system
As you look deeper, there are other qualifications to consider. Compliance is a big one. ADP has active experts in all 50 states. These experts monitor national, regional, and local compliance laws to ensure that ADP’s systems are current.
Products like RUN are flexibly designed, allowing businesses to choose only the needed features and expand over time. This makes it a powerful all-in-one HR and payroll hub for growing companies.
Don’t forget the employee experience
If your employees find the platform helpful and easy to use, they’ll embrace it, and that will mean you can both get the most from the platform and also spend less time answering questions and troubleshooting issues.
Many aspects of small business payroll and HR - from new employee onboarding to getting pay stubs and even requesting time off or handling retirement and healthcare details - can be accomplished in a self-service manner with a powerful payroll and HR platform like RUN.
Mobile apps - and ADP’s is an award-winning example - have features that make it easy for employees to get what they need, and provide the information you need (think everything from electing benefits packages to simply clocking in and out of shifts).
Look into integration and support
Integration with tools like accounting software and time-tracking platforms is key. It ensures smooth data flow, reduces manual data entry, and simplifies reporting. The quality of support is also important to achieving overall success with a small business payroll and HR platform. ADP offers support through a variety of methods depending on the selected product and service level:
- 24/7 live phone and online chat payroll support
- Dedicated account representatives who learn a client’s business
- Specialized subject matter experts for compliance, benefits, and HR
- Do-it-yourself help centers and documentation
“I love the call back feature and that the ADP team works crazy hours like I do. Someone is there to help after 5:00 pm!”
Jennifer Bauer, Director of Human Resources, PRM Trucking Inc
Understand pricing—and what’s included
Some providers offer online pricing, which often reflect only the base price. Platforms like RUN Powered by ADP are customizable. So while some providers may list basic pricing based on the number of employees, types of employees (W-2 vs 1099), and how frequently you run payroll, these estimates don’t usually cover all the costs.
Instead of online pricing, ADP uses a consultative approach. Representatives ask targeted questions to match you with the right set of features, then provide accurate, inclusive pricing that reflects your actual intended use of the RUN platform.
Payroll and HR provider checklist
Use this checklist to help you determine which payroll and HR services you may need to best support your organization.
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In-house payroll vs. outsourced payroll providers
If you don’t have the bandwidth to spend valuable hours on payroll, outsourcing the task may be right for your business. See how in-house and outsourced payroll compare:
| In-house payroll | Outsourced payroll | |
|---|---|---|
| Processes | Manual intervention on behalf of HR staff leads to inefficiencies that hinder business growth. | Team members are relieved of manual tasks, allowing them to focus on more strategic initiatives. |
| Integrations | Integrating payroll with time and attendance and other HR functions may require customization. | Integrations between payroll and HR solutions, including those form third parties, are seamless. |
| Compliance | In-house efforts to comply with payroll and tax regulations can be expensive and time-consuming. | HR’s workload is reduced thanks to compliance assistance from the payroll provider. |
| Analytics | Workforce analytics may be obsolete or inaccessible when it’s most needed. | A unified source of accurate data makes strategizing and decision-making easier. |
| Expertise | A lack of skills or resources may increase the stress of payroll practitioners. | Expert support from the payroll provider helps ease the strain of complex problems. |
| Experience | Employees may have poor experiences accessing their pay or pay statements. | Mobile accessibility and flexible payment options help improve employee engagement. |
| Cost | Expense management can be difficult if there are multiple service contracts. | A holistic view of payroll costs is more achievable with a single contract. |
“ADP Payroll services was an excellent choice to switch over from Quickbooks Payroll. They handle all my payroll taxes and anytime I have a question, they are very informative and prompt handling it. They have very competitive pricing with a variety of other services.”
Brittani Silchia, Office Manager, Conner Construction Co.
Frequently asked questions
Can I switch payroll providers mid-year?
Yes, switching providers mid-year is common, and ADP can help you gather the information you need to make the switch as easy as possible.
What is payroll compliance?
Payroll compliance means adhering to federal, state and local regulations pertaining to employee compensation, taxes and withholding, and reporting payroll information to the correct agencies, as well as adhering to labor laws.
Can I transfer my data from another payroll provider?
Very likely, yes, the majority of payroll providers make it possible to export data from their platforms.
How difficult is it to switch payroll providers?
Switching payroll providers can be done smoothly with minimal disruption to your day-to-day operations. Even if you have complex payroll processes, like multiple pay frequencies or different employee classifications, a reputable provider should be able to transition your data into their system efficiently.
Take the next step
See firsthand how intuitive and user-friendly payroll and HR management can be. Schedule a conversation with an ADP expert today to compare package options and find the right fit for your business.
ADP has your small business payroll covered
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