Payroll software makes it easy to manage payments, taxes, and compliance without stress. You don’t have to do tough calculations or worry about deadlines — these tools do it all for you. They calculate wages, create pay slips, and file taxes automatically, so you can focus on more important work.
We’ve picked the best payroll software made for businesses with just one employee. These options are simple to use, affordable, and include all the basic features you need to handle payroll smoothly.
Our Top 7 Payroll Software for One Employee
Gusto
Starting from:$49 /mo
Get 1 month free
- Used by over 400,000 SMBs globally
- Automated payroll with tax filing included
Paychex
Custom – Call for Quote
FREE for 3 months
- Award-Winning SMB Solution
- Over 45 years of excellence
QuickBooks
Starting from:$85 /mo
Save 50% for 3 months*
- All plans include extensive payroll features
- Offers third-party HR tools
Square
Starting from:$35 /mo
All-inclusive pricing
- Expert support team
- Payroll designed for small businesses
SurePayroll
Starting from:$20 /mo + $4/user
Get 6 months free*
- Payroll made easy for as little as $1 per day
- Automated payroll for business efficiency
Justworks
Starting from:$8 /mo per person
Payroll for small businesses
- Seamless payroll automation
- Financial insights in real-time
Paylocity
Custom /mo
Payroll software built for you
- Award-winning customer service
- Seamless international support
1:Gusto
Gusto is a cloud-based software that helps small and medium businesses manage payroll, HR, and employee benefits all in one place.
It makes paying your team easy with automatic tax filing, direct deposit, and compliance with labor laws.
You can also use Gusto to track time, onboard new employees, and manage health and retirement benefits.
It’s made to save business owners time and reduce mistakes in payroll and HR work.
Gusto also connects with popular accounting software like QuickBooks and Xero for smooth financial management.
Key Features
1. Automated Payroll and Tax Filing
Gusto automatically calculates and files your payroll taxes for you. It follows all federal, state, and local rules. You don’t need to worry about doing it manually, which saves you time and avoids mistakes.
2. Direct Deposit and Payroll Scheduling
You can pay your employees easily through direct deposit. Gusto also lets you set up a payment schedule in advance so your employees get paid on time every month or week without delay.
3. Benefits Management
Gusto helps you manage employee benefits like health insurance, retirement savings (401k), and worker’s compensation. This means your team gets all their benefits in one simple system.
4. Employee Self-Service Portal
Employees can log in anytime to see their pay stubs, download tax forms, and check their benefits. They don’t have to ask HR for these documents anymore — everything is online and easy to access.
5. Compliance and Reports
Gusto keeps your business safe and legal by following all labor laws. It also gives you detailed reports about payroll, taxes, and benefits so you always know what’s going on in your company.
6. Multiple Payment Options
Besides direct deposit, you can also pay your team using printed checks or even digital wallets. This gives more flexibility for different employee needs.
✅ Pros and Cons
| Pros | Cons |
|---|---|
| Very easy to use and understand | Price may feel a bit high for only one employee |
| Helpful customer support via phone, chat, and email | Some advanced HR tools may not be needed for very small businesses |
| Automates tax filing and year-end forms |
Who It’s For
Gusto is perfect for freelancers, solo business owners, and small business owners who want a simple, all-in-one payroll system.
It’s great for anyone who wants more than just basic payroll — offering an easy platform that manages payments, taxes, benefits, and compliance all together.
2:Paychex
Paychex is a trusted payroll and HR service provider that has been helping businesses since 1971. It offers reliable and scalable payroll solutions for all types of businesses — from small startups to large companies.
If you are running a small business or managing payroll for just one employee, Paychex can be a great choice. It helps with automatic salary calculations, tax filing, and accurate record keeping. Paychex is known for its strong automation, tax compliance tools, and trusted accuracy in the payroll industry.
Key Features
1. Automatic Payroll Calculations and Tax Filing
Paychex automatically calculates employee wages, deductions, and taxes. It follows all federal, state, and local tax laws, so you don’t have to worry about mistakes. This makes payroll simple and stress-free.
2. Direct Deposit and Check Payments
Paychex lets you pay your employees through direct deposit or printed checks. You can choose the payment method that works best for your business.
3. Mobile App for Payroll Management
The Paychex mobile app helps you manage payroll anytime, anywhere. You can process payments, check employee details, and view reports directly from your phone.
4.Tax Compliance and Reports
Paychex ensures your business stays tax-compliant. It automatically files taxes on time and provides easy-to-understand payroll reports for record keeping.
5. Employee Self-Service Portal
Employees can log in to their own accounts to download pay stubs, W-2 forms, and view benefits. This reduces your admin work and saves time.
6. 24/7 Customer Support
Paychex provides round-the-clock support, so if you ever face an issue, you can get help anytime.
Paychex Payroll Interface
The Paychex interface is easy to use, though it may look a little old-fashioned compared to some modern payroll tools. However, it’s very functional and beginner-friendly.
👍 Pros and Cons
| Pros | Cons |
|---|---|
| Over 50 years of payroll and HR experience | The design looks a bit outdated |
| Easy mobile app to manage payroll and HR tasks | Price may be high for small businesses with simple needs |
| Ensures full tax and legal compliance | Some advanced features need extra add-ons (extra cost) |
| Includes additional services like benefits and time tracking | No free plan available |
Who It’s For
Paychex is best for small to medium-sized businesses (SMBs) and growing companies that want a scalable, all-in-one payroll and HR system.
It’s especially helpful for businesses with more complex payroll needs — like managing employees in multiple states, handling various benefits packages, or staying compliant with changing tax laws.
If you want a system that saves time, reduces errors, and ensures compliance, Paychex is a safe and professional choice.
3:QuickBooks Payroll
QuickBooks Payroll works perfectly with QuickBooks Online. It is a great choice for small and medium businesses that already use QuickBooks for accounting. It helps you manage employee payments, taxes, and reports automatically. Even if you have only one employee, this software can save you time and make payroll easy.
Key Features
1. Automatic Tax Calculations and Filing:
QuickBooks Payroll calculates all federal, state, and local taxes for you. It also files them automatically on time. This helps reduce mistakes and avoid penalties.
2. Same-Day Direct Deposit:
You can pay your employees quickly with same-day direct deposit. It makes sure your team gets paid on time without any delay.
3. Works with QuickBooks Accounting:
This software connects directly with QuickBooks Online. You can manage accounting and payroll in one place without switching between systems.
4. Employee Self-Service Portal:
Employees can log in to view their pay stubs, tax forms, and direct deposit details easily. They don’t need to ask you every time.
5. Custom Payroll Reports:
You can create detailed payroll reports such as payroll summaries, tax filings, and year-end forms. These reports help you track money flow and stay organized.
6. Automatic Year-End Forms:
QuickBooks Payroll automatically creates and files W-2 and 1099 forms at the end of the year. This saves time during tax season.
Pros and Cons
| Pros | Cons |
|---|---|
| ✅ Works perfectly with QuickBooks Online | ❌ Can be hard for beginners to learn |
| ✅ Same-day direct deposit saves time | ❌ Some advanced tools cost extra (like HR or time tracking) |
| ✅ Automatic tax calculations and filing | ❌ Monthly cost may be high for small businesses |
| ✅ Helpful reports and easy access to data | |
| ✅ Reduces manual work and saves time |
Who Is It For?
QuickBooks Payroll is best for business owners who already use QuickBooks Online or QuickBooks Desktop. It’s perfect for small and medium businesses that want payroll and accounting in one place.
If you want to:
Pay employees quickly and on time,
Keep all tax records accurate,
Manage payroll without stress, and
Save time doing manual work —
then QuickBooks Payroll is a smart and reliable option for your business.
It helps you handle everything automatically — from tax filing to employee pay slips — so you can focus on growing your business instead of spending hours on payroll paperwork.
4:Square Payroll
Square Payroll is a payroll service made for small businesses, freelancers, and solo owners who want to pay employees easily and at a low cost.
It is very helpful for those who already use Square POS, because it connects perfectly with that system.
Since its launch, Square Payroll has become a trusted choice for people who want to manage employee and contractor payments without using a big, complicated payroll system.
Key Features
1. Automated Tax Filings and Payments
Square Payroll automatically files federal, state, and local taxes for you. This helps you stay compliant and saves time by reducing manual work.
2. Direct Deposit
You can pay your employees or contractors directly to their bank accounts on time. It’s fast, safe, and paper-free.
3. Works with Square POS
If you use Square Point of Sale, Square Payroll connects easily. It automatically tracks hours and calculates pay based on employee timecards.
4. Pay Employees and Contractors
Square Payroll supports both W-2 employees and 1099 contractors, making it flexible for different types of workers.
5. Time Tracking Integration
It connects with Square Timecards, helping you record hours accurately and calculate wages correctly.
6. Employee Self-Service Portal
Employees can log in anytime to see their pay stubs, payment history, and tax forms — without asking the admin every time.
7. Mobile Payroll App
You can run payroll directly from your phone using the Square Payroll app. Perfect for owners who are always on the move.
Pros and Cons
| Pros (Good Things) | Cons (Limitations) |
|---|---|
| ✅ Affordable for one-employee or small teams | ❌ No advanced HR or benefits management |
| ✅ Very easy to use, beginner-friendly | ❌ Not as useful if you don’t use Square POS |
| ✅ Perfect connection with Square POS | ❌ Limited reporting tools compared to big payroll systems |
| ✅ Supports both employees and contractors | ❌ Not ideal for large companies |
| ✅ Run payroll from mobile app anywhere | — |
Who It’s For
Square Payroll is best for small businesses, freelancers, and shop owners who want a simple, low-cost, and easy-to-use payroll tool.
It’s especially great for those in retail, restaurants, cafés, or small service businesses that already use Square POS for taking payments.
If you only need to pay one or a few people and don’t need advanced HR tools, Square Payroll is one of the easiest options available today.
5:SurePayroll
SurePayroll, a part of Paychex, is made for small businesses, freelancers, and one-person companies who need an easy and affordable payroll service.
It’s a trusted name in the small business world because it helps business owners save time, stay tax-compliant, and pay employees without stress.
Key Features
1. Automated Payroll & Tax Filing
SurePayroll automatically calculates employee pay and taxes for federal, state, and local laws. You don’t have to worry about doing any math — it files your taxes for you on time.
2. Mobile App for Payroll
You can run payroll anytime, anywhere using the SurePayroll mobile app. It’s great for business owners who travel or want to manage payments quickly.
3. Direct Deposit & Check Printing
You can pay employees directly to their bank accounts or print checks if you prefer physical payments.
4. Tax Accuracy Guarantee
SurePayroll guarantees that your taxes will be filed correctly. If there’s an error and you get a penalty, SurePayroll will cover it for you.
5. Employee Self-Service Portal
Employees can log in to see their pay stubs, tax forms, and payroll history — reducing your paperwork.
6. Year-End Tax Forms (W-2 and 1099)
At the end of the year, SurePayroll automatically creates and files W-2 and 1099 forms, helping you stay compliant during tax season.
🟩 Pros and Cons
| 👍 Pros | 👎 Cons |
|---|---|
| Budget-friendly for small businesses | Interface looks a bit old-fashioned |
| Helpful and quick customer support | No advanced HR tools (like benefits management) |
| Easy-to-use mobile app | Limited customization options |
| Tax accuracy guarantee for peace of mind | May not suit large companies |
Who Is SurePayroll For?
SurePayroll is perfect for:
Small business owners who don’t have a dedicated HR or accounting team
Freelancers and solopreneurs who want a simple way to handle payroll and taxes
Household employers who pay nannies, caretakers, or home workers
Startups looking for a budget-friendly and easy-to-use payroll tool
If your goal is to save time, avoid tax mistakes, and keep your business running smoothly, SurePayroll is an excellent choice.
6: Justworks
Justworks is an all-in-one HR and payroll platform that helps businesses manage their employees easily.
It works as a Professional Employer Organization (PEO) — that means it takes care of your company’s payroll, tax, benefits, and compliance needs so you can focus on growing your business.
Key Features
1. Payroll Automation
Justworks runs your payroll automatically.
It calculates employee wages, bonuses, and deductions, and sends direct deposits to their accounts.
You can also handle contractors and hourly workers easily.
2. Compliance Management
The platform helps your business stay legal and compliant.
It manages tax filings, labor laws, and reporting — making sure you don’t miss any important rule or deadline.
3. Employee Benefits
You can offer your employees great benefits like health, dental, and vision insurance.
Justworks makes it easy to manage and track these plans all in one place.
4. Time Tracking & PTO
It works with time-tracking tools to record employee hours, overtime, and time-off requests.
This keeps your payroll accurate and transparent.
5.Employee Self-Service
Employees get their own dashboard to:
View pay slips
Download tax forms
Manage direct deposit info
Check PTO balance
Everything is simple and clear for them.
6. Easy Onboarding
New hires can complete forms, sign documents, and enroll in benefits online.
No paperwork or confusion — everything is digital and fast.
Extra Details
Justworks offers 24/7 support through chat, email, and phone.
The platform is cloud-based, so you can manage your team from anywhere.
It also helps with HR compliance, saving you from penalties or mistakes.
Reports and analytics are available, though they are more basic than advanced HR systems.
✅ Pros and Cons
| Pros (What’s Good) | Cons (What’s Not So Good) |
|---|---|
| 🟢 Full HR tools – payroll, compliance, benefits, and more | 🔴 Pricing may be high for very small businesses |
| 🟢 Scales easily as your team grows | 🔴 Limited customization for complex HR needs |
| 🟢 Great customer support (chat, email, phone) | 🔴 Reporting tools are basic |
| 🟢 Clean and simple interface | 🔴 Some features require add-ons |
| 🟢 Saves time and reduces manual work | 🔴 No free plan, only paid options |
Who Should Use Justworks?
Justworks is perfect for:
Small and medium-sized businesses that want to grow fast.
Companies that don’t want to handle HR and payroll manually.
Startups looking for a simple, professional HR system.
Business owners who want peace of mind knowing taxes, compliance, and benefits are handled correctly.
If you’re tired of managing spreadsheets or dealing with HR paperwork, Justworks can make your life much easier.
7:Paylocity
Paylocity is a modern payroll and HR (Human Resources) software made for small and medium-sized businesses.
It helps companies manage employee payments, taxes, and HR tasks in one simple system.
Paylocity is known for its easy design, mobile access, and strong reporting tools that help business owners make smart decisions.
Key Features
1. Custom Reporting
You can make your own detailed reports to see payroll costs, employee performance, and compliance data.
These reports help you understand your business better and make decisions based on real numbers.
2. Tax Management
Paylocity handles all tax work for you.
It calculates, files, and stays up to date with federal, state, and local tax rules — helping you avoid mistakes or penalties.
3. Employee Self-Service Portal
Employees can log in anytime to see their pay slips, tax forms, and benefits.
This saves time and keeps everyone updated.
4. Mobile App
The mobile app lets employees and managers check payroll, approve time off, and view schedules on the go — anytime, anywhere.
5. Employee Engagement Tools
Paylocity helps make work more enjoyable.
It includes tools like team recognition, quick surveys, and internal chat to improve company culture and communication.
6. Third-Party Integrations
You can easily connect Paylocity with other software like accounting, time tracking, or HR tools.
This reduces manual work and keeps your data accurate everywhere.
Pros and Cons
| Pros | Cons |
|---|---|
| ✅ Easy to customize for your own business style | ❌ A bit expensive for very small businesses |
| ✅ Excellent reporting and analytics tools | ❌ Many features may feel too much for simple needs |
| ✅ Modern web and mobile apps that are simple to use | ❌ Takes some time to learn all options |
| ✅ Strong HR tools like time tracking and performance management | — |
Who Should Use Paylocity?
Paylocity is great for small and mid-sized companies that want more control and better insights from their payroll and HR data.
If your business needs custom reports, tax management, and mobile access, Paylocity is an excellent choice.
It’s best for business owners who want to use data to make smart decisions and improve the employee experience.
Best Payroll Software for One Employee – Full Guide (2025)
Managing payroll for just one employee may sound simple, but it still needs to be done carefully and correctly. A good payroll software can save you time, prevent mistakes, and help you stay compliant with tax laws.
Here, we’ll go over the main features, benefits, latest trends, and how to choose the best payroll software for one employee.
Best Payroll Software Features for One Employee
If you have only one employee, you still need to manage payroll properly. The right payroll software can make this job easy, fast, and 100% correct.
Here are the main features to look for when choosing payroll software for one employee:
1. Easy-to-Use Dashboard
You don’t need to be a tech expert to run payroll. Choose software that is simple and clear, with buttons and menus that are easy to understand.
A clean dashboard saves time and helps you finish payroll in minutes.
2. Automatic Calculations
Good payroll software automatically calculates everything — including gross pay, deductions, and net pay.
This feature helps you avoid mistakes and ensures your employee always gets the right payment.
3. Direct Deposit
Instead of writing checks, you can send money straight to your employee’s bank account.
It’s faster, safer, and more professional. Most payroll software makes this process automatic.
4. Tax Filing Help
Taxes can be confusing, but payroll software can make it simple.
It can calculate and file your federal and state payroll taxes for you.
Some tools even remind you of deadlines or send reports to tax agencies automatically.
5. Custom Pay Schedules
You can decide how often to pay your employee — weekly, biweekly, or monthly.
Flexible pay schedules make it easier to fit payroll into your business routine.
6. Reports and Record-Keeping
The software should create easy-to-read reports that show how much you paid, what taxes were deducted, and how much remains.
These records help with accounting, audits, and business planning.
7. Employee Self-Service
Your employee can log in and download pay stubs, tax forms, and payment history anytime.
This saves you from printing or sending documents manually.
8. Compliance Updates
Laws and tax rates change often. A good payroll system automatically updates itself to follow the latest rules.
This keeps your business safe and compliant.
9. Helpful Customer Support
If something goes wrong, you should be able to contact support easily by chat, phone, or email.
Fast support means fewer delays and stress.
10. Accounting Integration
Payroll and accounting should work together.
Choose software that connects with tools like QuickBooks, Xero, or FreshBooks — so your books stay clean and organized.
Benefits of Using Payroll Software for One Employee
Even if you have only one worker, payroll software can save you time, money, and trouble. Here’s how:
1. More Accurate Payments
The software does all the math for you. That means no more manual errors or wrong paychecks.
2. Saves Time
You don’t need to calculate taxes or fill forms by hand.
Everything is done automatically — so you can focus on your business.
3. Stay Legally Compliant
The software keeps you updated with tax laws and automatically files your taxes.
You’ll avoid penalties and stay compliant all year long.
4. Easy Record Management
All your payroll data is stored safely online.
If you need old records or reports, you can find them in seconds.
5. Budget-Friendly
Hiring a payroll expert or accountant for one employee can cost a lot.
Payroll software is cheaper and does the same job more efficiently.
✅ Bottom line: Payroll software makes your life easier, even if you’re paying just one person.
Payroll Software Trends for 2025
Payroll systems are becoming smarter every year. Here are the latest trends you’ll see in 2025 and beyond:
1. Artificial Intelligence (AI) and Automation
AI now handles routine payroll tasks — like calculating hours, taxes, and deductions.
It saves time, improves accuracy, and removes human error.
2. Real-Time Insights
Modern payroll tools show instant data about your payments, taxes, and employee costs.
You can use these reports to make better financial decisions.
3. Accounting Integration
More payroll software now connects directly with accounting systems.
This means no manual data entry — all payments and expenses sync automatically.
4. Mobile Payroll Apps
Mobile payroll is a big trend!
Business owners and employees can now check pay stubs, update info, or manage time-off from their phones.
5. Financial Wellness Tools
Some new payroll platforms include savings tips, budget planners, and financial education for employees.
It helps employees manage money better — which improves job satisfaction.
How to Choose the Right Payroll Software for One Employee
You don’t need to spend a lot or choose a complicated system.
Here’s how to pick the perfect payroll tool for your small setup:
1. Budget
Start with your budget.
Many payroll companies offer affordable plans for single employees.
Avoid expensive packages with features you’ll never use.
💡 Tip: Compare a few providers and check if they offer free trials.
2. Ease of Use
Pick software that is easy to understand.
You should be able to pay your employee, print reports, and handle taxes without frustration.
💡 Tip: Look for clear menus and a simple setup process.
3. Tax Compliance
Even for one person, tax compliance is essential.
Choose software that automatically calculates and files all taxes.
💡 Tip: Make sure it updates automatically when tax laws change.
4. Scalability
Maybe you’ll hire more people in the future.
Select software that lets you easily upgrade to add more employees or extra features later.
💡 Tip: Check if the pricing stays fair as you grow.
5. Customer Support
Good help matters!
If you ever get stuck, reliable support via chat, phone, or email can save you a lot of stress.
💡 Tip: Read reviews to see how helpful the support team is.
Final Thoughts
Running payroll for one employee doesn’t have to be hard.
The right software will do all the heavy work — from tax filing to direct deposits — so you can relax and focus on growing your business.
Choose a tool that’s simple, accurate, and affordable.
It will save you time, prevent costly mistakes, and keep your business fully compliant with tax laws.
✅ With the best payroll software, you can pay your employee quickly, confidently, and stress-free every time.