I've been running payroll for small teams for the past six years across three different companies. The tools have changed, the team sizes have changed, but one thing hasn't: most founders have no idea how much payroll software actually costs them until they're ready to switch.
This is a transparent breakdown of what I learned after 14 months with OnPay — and what I'd tell any small business owner evaluating payroll options today.
Why I Switched to OnPay
We were on Gusto for three years. It worked fine for the first 18 months. Then we hired our first multi-state employees, and the compliance management got more complex than Gusto's base tier was designed for. We also had a run-in with their support that took longer to resolve than it should have.
I started looking at Gusto alternatives that could handle our growth without jumping to a mid-market platform with a sales-led purchase process. OnPay kept coming up in the comparison.
What OnPay Actually Delivers
The pricing is genuinely transparent. $40/month base + $6/employee/month, full stop. No module pricing, no "call for a quote." At 18 employees, we're at $148/month. I can calculate our cost in 30 seconds.
Multi-state compliance is handled automatically. We have employees in California, Texas, and New York. OnPay handles the state tax filings and registrations without us having to do anything extra. This was the number one reason we made the switch.
The OnPay payroll review I put together covers the full feature set, but what you won't find in most reviews: the customer support is genuinely good. We had a state tax notice in month three, called their support line, and had a human on the phone within four minutes who walked us through it. I've had much worse experiences at 3x the price.
What OnPay doesn't do well: The UI isn't as polished as Gusto. Benefits administration is more limited — if you want a full employee benefits marketplace with health insurance options, Gusto or Rippling is a better choice. And the mobile app is functional but not great.
The Comparison That Actually Matters
When I'm helping other founders choose payroll software, the question isn't which tool is "best" — it's which tool fits your specific situation. For us, that was OnPay because:
- We needed multi-state compliance without enterprise pricing
- We didn't need a full HRIS or benefits marketplace
- We wanted direct-line support, not a ticket queue
If your priorities are different — robust benefits, more HR features, polished employee experience — Gusto or Rippling might be a better fit.
One Thing Worth Thinking About
Payroll software is unusually sticky. Migrating is annoying (historical data, tax IDs, direct deposit setup) and teams only do it when the pain is high enough. That means the initial choice matters more than people realize.
Before you commit, I'd specifically ask about: multi-state compliance handling if you hire remote, W-2 vs 1099 handling if you have contractors, and what the support escalation path looks like when something goes wrong.
On the finance side: if you're also evaluating AP tools alongside payroll, the detailed Bill.com AP automation review covers the adjacent workflow — some teams find it useful to evaluate these together since they interact at the accounting layer.
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