Best Payroll Services of 2025

Compare top-rated payroll providers to streamline operations, ensure compliance, and support your business growth

Staff Writer

Arorix Editorial Team

Updated: June 14, 2025, 5:29pm

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Patriot Payroll – Best Budget Payroll for LLCs

2

9.5

Square Payroll – Great for Contractors & Retailers
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*We strive to keep pricing and service details accurate and up to date. However, actual pricing, features, and availability may vary by provider and are subject to change. Always confirm the latest details directly with the provider. Our rankings and reviews are based on independent research and real user feedback.

How Payroll Services Work

Payroll services help small businesses pay employees and contractors accurately and on time. A quality payroll provider will handle wage calculations, direct deposits, tax withholdings, and government filings for both W-2 and 1099 workers.

Most modern systems also include:

  • Automated payroll runs
  • Filing of federal, state, and local taxes
  • Year-end W-2s and 1099s
  • Direct deposit and check options
  • Employee portals to access pay stubs and tax documents

Some services bundle payroll with HR tools, benefits administration, and time tracking.

What To Look For in a Payroll Provider

Not all payroll systems are created equal. Here are the key features to look for when choosing the right service for your LLC, Corporation, or small team:

  • Transparent pricing – Know what you’re paying per month and per employee

  • W-2 and 1099 support – Ensure the platform can handle both employee and contractor types

  • Tax filing and compliance – Look for automatic state and federal tax handling

  • Integrations – Check for compatibility with accounting tools like QuickBooks or Xero

  • Ease of use – A simple, modern dashboard will save hours every month

  • Customer support – Live chat, phone, or a dedicated rep can make onboarding much smoother

Key Features of Payroll Services

The best payroll systems do more than just process paychecks. These are the essential features small business owners should look for when choosing a provider:

Automated Payroll Processing
Calculates wages, deductions, and taxes automatically—no manual entry required.

Tax Filing and Compliance
Files federal, state, and local payroll taxes on your behalf, including W-2 and 1099 forms.

Direct Deposit and Pay Options
Supports direct deposit, mailed checks, and sometimes pay cards to suit your team’s needs.

W-2 and 1099 Generation
Automatically generates year-end tax documents and delivers them to your employees and contractors.

Employee Self-Service Portals
Employees can view pay stubs, tax forms, and update information without involving admin staff.

Multi-State Payroll Support
Manages tax compliance and filings for remote workers in different states.

Time Tracking and PTO Management
Some platforms offer built-in tools to track hours, vacations, and sick days—automatically syncing with payroll.

Benefits Integration
Enables you to offer benefits like health insurance and 401(k), with automated deductions and compliance features.

Accounting & HR Integrations
Syncs with accounting tools like QuickBooks or Xero, and may connect to HR platforms for onboarding and compliance.

Common Payroll Mistakes to Avoid

First-time employers often make costly mistakes when setting up payroll. Here’s what to watch out for:

  • Missing tax deadlines – Late filings can lead to IRS penalties
  • Misclassifying workers – Know the difference between W-2 employees and 1099 contractors
  • Not reporting in multiple states – If your team is remote, you may owe taxes in multiple jurisdictions
  • Skipping payroll for yourself – As an S-Corp owner, you’re required to pay yourself a reasonable salary

A good payroll service will help you avoid these issues and stay compliant from day one.

How Arorix Helps You Choose the Right Payroll Solution

At Arorix, we analyze and compare the top payroll platforms across price, features, and real-world performance—so you don’t have to. Whether you’re forming your first LLC or scaling a small corporation, we break down:

  • What each provider includes (and what it doesn’t)

  • Where the hidden fees are

  • Which payroll tools are best for your size and structure

We only recommend services we’d use ourselves—and many include affiliate discounts to help you save.

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