Payroll software for the trades

Our picks by business type

What to look for

• Automatic tax filing paired with your own deposit responsibilities. Employers must still deposit federal employment taxes on a monthly or semi-weekly schedule and file the matching forms, so confirm exactly what the provider automates versus what you are still on the hook for.

• Combined W-2 and 1099 handling, since most trades crews mix employees and subcontractors on the same jobs and year-end forms need to cover both.

• Automatic sync between HR changes and payroll, so a new hire, raise, or benefits change updates the next pay run without manual re-entry.

• A fee structure that fits your peak headcount, not just your slow-season numbers, since most providers charge per employee per month.

• Real support access if you want it, weighing self-serve speed against having a person to call when a payroll question comes up mid-cycle.

• Modular pricing if you also need HR or IT tools, so you are not forced to buy a full HR suite just to run payroll.

Why mixed crews make payroll harder than a typical small business

A trades business rarely has a clean, single-type roster. A plumbing outfit might run a few W-2 techs, bring in a 1099 subcontractor for overflow work during a busy season, and add a temporary helper for a few weeks in summer. Each of those worker types has different tax withholding, different year-end forms, and different rules for overtime and minimum pay. A payroll tool built for a uniform office staff often treats contractor payments as an afterthought bolted onto the main product, while the platforms compared here build combined W-2 and 1099 handling into the core service. That difference matters most exactly when a crew is scaling up or down with the season, which is when payroll mistakes are most likely and most costly to fix after the fact.

Gusto

Gusto runs payroll and files payroll taxes automatically, and it manages contractor payments alongside regular employee pay, which suits a crew that mixes W-2 staff and 1099 subcontractors on the same jobs. It is built to be self-serve, so an owner can run payroll without bringing in an accountant every cycle, and plans add HR and compliance tools as the business grows.

RUN Powered by ADP

RUN Powered by ADP creates and delivers W-2 and 1099 forms and e-files them with the IRS directly, handling federal, state, and local payroll tax deductions and filings across all fifty states.

Support includes twenty-four-hour access to real-person payroll professionals, and ADP Assist is an AI-powered feature that flags potential payroll errors before a run is processed.

Employees can be paid through direct deposit or a debit card option, and the platform includes a mobile app, time tracking, and integrations with accounting software and POS systems.

Paylocity

Paylocity combines payroll, HR, benefits administration, and workforce management for a business that has outgrown the most basic payroll apps. It is more configurable than entry-level tools, which suits a business with multiple pay rates, several locations, or seasonal staffing swings rather than a single flat pay schedule. Pricing is quoted per business through a sales conversation rather than published directly.

Rippling

Rippling connects HR data directly to payroll, so that "new hires, salary changes, and benefits deductions flow directly and automatically into Payroll" without manual re-entry.

It automatically calculates payroll taxes and files them "with the correct federal, state, and local agencies at precisely the right time," and it supports customizable pay types beyond the defaults for one-off or recurring pay.

Beyond payroll, Rippling's modules extend to IT device and identity management, and finance tools like corporate cards and bill pay, all built on one unified platform that a business can adopt module by module.

What is the best software for employee payroll?

There is no single best option; the right pick depends on how much support you want and how complex your crew is. Among the payroll tools in this guide, Gusto suits an owner who wants a self-serve setup, RUN Powered by ADP suits one who wants real people to call, Paylocity suits multiple locations or seasonal swings, and Rippling suits payroll tied to HR and IT. Homebase is a fourth route for hourly teams: its payroll is an add-on to scheduling and time tracking rather than a standalone product.

See Gusto, RUN Powered by ADP, Paylocity, Rippling, and Homebase for full profiles, and the pricing table on each page for current costs.

Can I do payroll in Excel?

Yes, you can calculate pay in a spreadsheet, but it does not remove your legal responsibilities. The employer stays accountable for withholding the right amounts, depositing employment taxes on schedule, and filing the required forms, whether a spreadsheet or software does the math. A spreadsheet will not deposit or file anything for you, so every deadline stays manual.

That manual burden is the main reason most employers beyond a handful of staff move to a payroll service. See how payroll software works for what gets automated.

Is ADP or QuickBooks better for payroll?

Neither is better for everyone: ADP fits an owner who wants human support, while QuickBooks payroll fits a business whose books already live in QuickBooks. RUN Powered by ADP offers real-person payroll professionals around the clock and direct W-2 and 1099 e-filing. QuickBooks payroll runs payroll and files payroll taxes automatically, offers same-day direct deposit, and syncs with QuickBooks accounting.

Compare the accounting side in QuickBooks Online vs Xero and the QuickBooks Online profile.

Related reading

• Compare the leading payroll platforms directly: Gusto vs Paylocity, Gusto vs Rippling, Gusto vs RUN Powered by ADP, Paylocity vs Rippling
• Full tool profile and alternatives: /tools/gusto/alternatives, /tools/rippling/alternatives
• New to the category? Read how payroll software works
• Pair payroll with field team management software so hours logged in the field feed directly into pay