For most small businesses the shortlist starts with Gusto, which runs payroll and basic HR at published prices, and BambooHR if you have more than about 25 employees and want a dedicated HR system. Rippling fits companies that also want to manage laptops and app access from the same employee record, while ADP and Paychex suit owners who prefer a long-established provider and are comfortable with quote-based pricing. OnPay offers full-service payroll at a predictable price, Homebase is built for hourly shift teams, and Paylocity, HiBob and isolved make more sense as you grow past 50 employees or across countries. Before you sign, get the total monthly cost in writing — base fee, per-employee fee, add-ons such as payroll or time tracking, and any year-end form fees — and ask about contract length.
How much does HR software cost for a small business?
Published prices usually combine a monthly base fee with a per-employee fee. Gusto starts at $49 a month plus $6 per person with payroll included, OnPay at $49 plus $6 per worker for payroll and $15 plus $2 per worker for HR tools, and BambooHR at a flat $250 a month for up to 25 employees. Homebase has a free plan for one location with up to 10 employees. Rippling starts at $8 per employee a month plus a base fee, while ADP, Paychex, Paylocity, HiBob and isolved price by quote.
What is the difference between HR software, payroll software and a PEO?
HR software (an HRIS) stores employee records and runs HR tasks such as onboarding and time off. Payroll software calculates pay, withholds taxes and files them under your own company’s tax ID, so the legal responsibility stays with you. A professional employer organization (PEO) goes further: it co-employs your staff and becomes the employer of record for payroll taxes and benefits, often giving a small company access to larger-group health plans.
How long must a small business keep employee records?
Under the Fair Labor Standards Act, the Department of Labor requires employers to keep payroll records for at least three years and the records behind wage calculations, such as time cards, for two years. USCIS requires you to keep each employee’s Form I-9 for three years after the date of hire or one year after employment ends, whichever is later. An HR system makes these records easier to store and find when you need them.