The short answer
The most common alternatives to ADP for small-business payroll are online payroll software such as Gusto and OnPay, payroll built into your accounting software such as QuickBooks Payroll, another national provider such as Paychex Flex, and a local full-service payroll provider like SBS of SA here in San Antonio.
The real choice isn't between brand names. It's between software you run yourself and a team that runs payroll for you. Software works well when the owner is comfortable entering hours and approving each run. A local provider fits when you want payroll, payroll tax filings, and your books handled by people you can call by name.
A note before we start: SBS of SA offers payroll services in San Antonio, so we're one of the options in this guide. We run client payroll in-house on in-house software. We're also a QuickBooks ProAdvisor, which is worth knowing since QuickBooks Payroll is one of the options below. We've kept the comparison to how each kind of provider works rather than prices or feature lists, which change often. Always confirm current pricing and features with the provider before you sign.
Why small businesses look for an ADP alternative
ADP is one of the largest payroll companies in the country, and it serves businesses of every size. The owners we talk to who are looking elsewhere usually have a small team and one of these reasons:
- They want pricing that fits a business with a handful of employees.
- They want to reach the same person each time they have a question.
- They want payroll to tie directly to their books and their tax return.
- They're still doing much of the work themselves and want it off their plate.
Whichever reason fits you, it points to the kind of alternative you should look at.
Two kinds of alternative: software or a service
Payroll software you run
Online platforms like Gusto and OnPay, and accounting-software payroll like QuickBooks Payroll, calculate paychecks and withholding, pay employees by direct deposit, and file the payroll tax returns for you. You, or someone on your team, still enter hours, approve each payroll, set up new hires, and keep an eye on anything the platform flags.
A payroll service that runs it for you
National providers like Paychex Flex and ADP, and local firms like ours, can take more of the work off your hands. With a local provider, the same small team typically processes payroll, makes the deposits, files the returns, answers your employees' questions, and keeps payroll in step with your bookkeeping.
How the options compare
| Option | Type | Who runs each payroll | Often a fit for |
|---|---|---|---|
| Gusto | Online payroll software | You, with the software doing the math and filings | Owners comfortable with self-service software |
| OnPay | Online payroll software | You, with the software doing the math and filings | Small teams that want a straightforward platform |
| QuickBooks Payroll | Payroll inside your accounting software | You, inside the same program as your books | Businesses already keeping their books in QuickBooks |
| Paychex Flex | National payroll provider | You or the provider, depending on the service level | Growing companies that want payroll and HR from one large provider |
| Local full-service provider (SBS of SA) | Local payroll team | A dedicated team that knows your business | Owners who want payroll, filings, and books handled together, in English or Spanish |
What any provider needs to handle for a Texas employer
Texas doesn't have a state income tax, but Texas employers still have state payroll filings. Whatever you choose, make sure it covers all of this:
- Federal income tax withholding, Social Security, and Medicare
- Federal tax deposits on the monthly or semiweekly schedule the IRS assigns you
- Quarterly Form 941 and annual Form 940
- Texas unemployment tax and quarterly wage reports with the Texas Workforce Commission
- New hire reporting to the State of Texas within 20 days of the start date
- W-2s for employees by January 31, and 1099-NEC forms for contractors
Software platforms generally file these for you, but the data going in is still your responsibility. If an hour total or a new hire's details are wrong, the filing will be too.
Questions to ask before you switch
- Who enters hours and approves each payroll? You, or the provider?
- Who answers when an IRS or Texas Workforce Commission notice arrives? Will they help you respond, or just send you a copy?
- Will I talk to the same person each time? And can I reach them in Spanish if my team prefers it?
- How does payroll get into my books? Does someone reconcile wages and payroll taxes to the general ledger every month?
- What happens if I switch mid-year? Will the provider bring in year-to-date totals so the W-2s are complete?
- What does the full cost look like? Ask about per-employee fees, year-end forms, and any extra charges for direct deposit or tax filings.
Which kind of provider fits your business?
- You're a solo S corporation owner paying yourself: software can work if you're disciplined about it, but the salary itself is a tax decision. Get help setting a reasonable salary before you pick the tool.
- You have a few employees and like doing it yourself: an online platform like Gusto or OnPay is a reasonable fit.
- You already keep your books in QuickBooks: QuickBooks Payroll keeps everything in one program, as long as someone reviews the payroll entries each month.
- You're growing fast and want HR tools from one provider: a national provider like Paychex Flex is worth a look.
- You're behind on payroll filings, got a notice, or just want it off your plate: a local full-service provider will get you current and keep you there.
How SBS of SA handles payroll in San Antonio
We run payroll in-house, here in San Antonio, on in-house software. Your payroll isn't handed off to an outside processor or call center. The same team processes each payroll, makes the federal deposits, files Forms 941 and 940 and the Texas Workforce Commission wage reports, and prepares W-2s and 1099s at year-end.
Because we can also keep your books and prepare your business tax return, wages and payroll taxes land in the right accounts every month and your W-2s match the numbers on your return. If payroll taxes have already gotten behind, our Enrolled Agents can help through IRS representation. And if you're paying yourself through an S corporation, our owner's guide to payroll and paying yourself is a good place to start.
Disclaimer: This post is for general information only and isn't tax, legal, or financial advice. Provider names are trademarks of their respective owners. SBS of SA is a QuickBooks ProAdvisor. Features and pricing change, so confirm the details with each provider. For advice on your situation, talk with a qualified professional.