The right HR software does payroll, benefits, time-off tracking, and compliance — all in one place. The wrong choice means manual data entry, payroll errors, and frustrated employees.
Step 1: Size Matters
Your employee count determines which HR tools are even worth considering:
- 1-5 employees: Gusto ($40/mo + $6/employee) — handles payroll, benefits, and compliance in one simple package
- 5-20 employees: BambooHR ($+ ask for quote) — adds performance management, time tracking, and employee self-service
- 10-50 employees: Rippling (custom pricing) — adds IT device management and app provisioning
- Remote / global teams: Deel ($49/mo per contractor, $599/mo per EOR employee) — handles international compliance and payments
Step 2: Must-Have Features
- Payroll processing: Automatic tax filing, direct deposit, and year-end forms (W-2, 1099)
- Time-off tracking: PTO accrual, sick leave, and vacation requests
- Benefits administration: Health insurance, 401(k), and COBRA integration
- Employee onboarding: Digital offer letters, e-signatures, and document collection
- Compliance: Federal, state, and local tax compliance. EEO reporting. ACA tracking.
- Time tracking: If you have hourly employees, this is non-negotiable
Step 3: Pricing & Hidden Costs
Gusto: $40/mo + $6/user. The most transparent pricing. Includes payroll, benefits, and compliance.
BambooHR: Custom quote (typically $6-10/employee/mo). Add-ons for performance management and time tracking cost extra.
Rippling: Custom pricing. Can bundle HR, IT, and finance. Powerful but expensive for small teams.
Deel: $49/mo per contractor. EOR starts at $599/mo per employee. Best for global teams.
Quick Picks by Scenario
Real Annual Cost by Team Size
| Team Size | Gusto | BambooHR | Rippling | Deel |
|---|---|---|---|---|
| 5 employees | ~$760/yr | Quote (~$500+/yr) | Custom | N/A (contractors $49/mo each) |
| 15 employees | ~$1,560/yr | ~$1,500+/yr | Custom (higher) | Contractors only |
| 50 employees | ~$4,760/yr | ~$4,800+/yr | Custom | EOR $599/mo per employee |
Watch the add-ons: BambooHR's performance management and time tracking are separate modules; Gusto's health benefits administration may carry per-employee admin fees beyond the base price.
Switching HR Systems: What to Plan For
- Payroll cutoff timing: Switch between payroll runs, never mid-cycle — a missed run means angry employees and late tax filings.
- Employee data: Export rosters, salaries, and PTO balances; most providers help with import templates, but verify every number.
- Benefits enrollment: Coordinate with benefits carriers before switching so open enrollment isn't disrupted.
- Run parallel: Keep the old system for one full payroll cycle and reconcile outputs before going live.
- Tax accounts: Federal and state tax accounts must be transferred properly — the provider handles it, but confirm filings are current.
FAQ
What's the cheapest HR software with payroll?
Gusto is the price leader for US businesses: $40/mo + $6/employee, all-inclusive for payroll, benefits, and compliance. For contractors, Deel at $49/contractor/mo handles international payments and compliance.
When should we upgrade from spreadsheets?
The moment payroll, PTO, or onboarding touches more than one person's memory. For 1–5 employees, Gusto; for 20+, BambooHR or Rippling — spreadsheets stop scaling at about 10 employees.
Do we need HR software if we outsource payroll?
You still need somewhere for time-off requests, onboarding documents, and employee records. A simple HRIS like BambooHR (or Gusto's HR features) covers this without full payroll.
Is Rippling worth it for a small team?
Only if you also want IT management (device provisioning, app access) in one place. For pure HR+payroll at small scale, Gusto or BambooHR deliver more value per dollar.
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