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Best HR Software for Startups in the United States (2026)

Startup HR software is priced per head, as a base fee plus per head, or as a flat monthly minimum. Deel's HR plan is $5 an employee with no minimum, and Gusto's entry plan is $49 a month plus $6 an employee, payroll included. A PEO such as Justworks is a different purchase. A first hire needs payroll first.

Independent guide by SMB Compare. How we compare

Our top picks for startups

1Best for paying per head with no minimum
Deel logo

Deel

4.8G2$5/emp/mo

Deel's entry HR plan is $5 an employee a month and nothing else, so a team of three pays for three people and the bill grows in a straight line with each hire. It holds the employee record, onboarding, time off and documents. The same account can later employ someone abroad through Deel's Employer of Record without a second vendor.

  • $5 an employee a month from the first hire, with no base fee
  • Employer of Record at $599 an employee a month on the same account
  • Payroll and PEO options compared in the payroll table below

Watch out: The HR plan does not run payroll, which Deel sells separately. Check the payroll and hiring tables below for what sits outside the entry plan.

Visit Deel
2Best for payroll and HR in one plan
Gusto logo

Gusto

4.6Capterra$6/emp/mo

Gusto is a payroll company first. Its entry plan, $49 a month plus $6 an employee, runs payroll and files federal and state payroll taxes, and puts onboarding and the employee record next to the pay run. For a founder who has not chosen payroll yet, that is one system for the W-4, the paycheck and the W-2.

  • $49 a month plus $6 an employee, with payroll and tax filings on that plan
  • Payroll and HR on the plan the cost table prices
  • Benefits and contract terms compared in the tables below

Watch out: The entry plan runs payroll in one state; multi-state payroll and time tracking start on a higher plan, so a hire in a second state changes the bill. The base fee is a fixed cost a three-person team pays in full, and the hiring table below covers applicant tracking.

Visit Gusto
3Best for HR, IT and payroll in one system
Rippling logo

Rippling

4.8G2From $12/user/mo

Rippling sells HR, payroll and IT as modules on one employee record, so a new hire's laptop, apps and payroll can be set up from the same screen. What it publishes is a starting point: a $35 a month platform fee plus from $12 a user, with payroll and the other modules quoted on top.

  • HR, IT and payroll modules on one record
  • Applicant tracking and a PEO option compared in the hiring and PEO tables below

Watch out: The cost table shows only Rippling's published floor, so your quote will be higher once you add modules. Check the contract column below if you might switch within a year.

4Best for a startup that is hiring every month
BambooHR logo

BambooHR

4.6CapterraFrom $10.25/emp/mo

BambooHR keeps applicant tracking in the same system as the employee record, so a candidate becomes an employee without retyping anything. Its entry plan has a flat $250 a month minimum that covers a small team before the per-employee rate of $10.25 takes over, so it suits a team already hiring steadily more than a founder and one hire.

  • A flat $250 a month minimum, then $10.25 an employee
  • Applicant tracking in the same system as the employee record (hiring table below)

Watch out: The minimum is the whole bill until the team outgrows it, payroll is an add-on (payroll table below), and the contract column below is worth reading before you sign.

5Best for large-group benefits through a PEO
Justworks logo

Justworks

4.6Capterra$79-$124/emp/mo

Justworks is a PEO, a co-employer that takes on payroll, payroll tax filing and benefits for your employees while you direct their work. That lets a small startup offer health, dental and vision through Justworks' large-group plans. Its entry PEO plan is $79 an employee a month, with no base fee.

  • $79 an employee a month for payroll, tax filing and benefits administration together
  • Benefits and contract terms compared in the PEO and contract tables below

Watch out: The fee is per head for a full service, not for software, so compare it with an HR plan plus payroll plus your own benefits broker, not with an HR seat alone. The hiring table below covers applicant tracking.

Compare the picks at your numbers

Enter your business details to see what each option would cost you. Prices are live from our database and shown in US dollars.

Staff overseas?
5 ProvidersDeel logoDeelGusto logoGustoRippling logoRipplingBambooHR logoBambooHRJustworks logoJustworks
Est. Cost /mo (USD)$75/moCheapest$139/mo$215/mo$250/mo$1,185/mo
Visit Deel
Visit Gusto
Ratings
4.8G2 (13,922)4.6Capterra (4,100)4.8G2 (8,000+)4.6Capterra (3,000+)4.6Capterra (760)
Costs & Pricing
Best$5/emp/mo$6/emp/moFrom $12/user/moFrom $10.25/emp/mo$79-$124/emp/mo
$0$49/mo$35/mo$0No base fee (PEO)
None$49/mo$35/mo$250/moNo base fee
Per-employee (no minimum) + modular payrollBase fee + per employeeBase fee + per user (published floor)Per-employee published ($250/mo min under 25 emp)Published PEO PEPM (Basic $79 / Plus $124/emp/mo)
NoNoNoNoNo
NoNoAnnualAnnualMonthly
US Compliance & Payroll
YesYesYesYesYes
YesYesYesYes (add-on)Yes
YesYesYesYes (add-on)Yes
Native (US + global)Native (US)Native (US)Native (add-on)Native (US)
YesYesYesYes (add-on)Yes (large-group)
Yes (PEO)NoYesNoYes
YesYesYesVia integrationYes
YesYesYesYesYes
YesYesYesYesYes
YesYesYesYes (add-on)Yes (add-on)
Yes (Advanced+)YesYesYesLimited
YesYesYesYesYes
Yes (150+ countries)Yes (contractors)Add-on (own entities or EOR)NoYes (EOR)
$599/emp/moQuoteQuote—Quote
AI
Native + add-ons (Deel AI, Akai agents)Native (Gus AI assistant, basic)Native (Rippling AI)Native (Ask BambooHR / AI)Limited
Native MCP (official)Via 3rd-party (Zapier)Via 3rd-party (StackOne)Via 3rd-party (community)API only
Features & Integrations
YesYesYesYesYes
Add-onVia integrationYesYesVia integration
Yes (Advanced+)LimitedYesVia integrationNo
YesYesYesYesYes
QBO, NetSuite, XeroQBO, Xero, 200+QBO, NetSuite, 600+QBO, Xero, 125+QBO, Xero, Slack
24/7Phone, chat, emailOnlineEmail, chat24/7
Estimates based on 15 employees. Rates can change without notice, confirm current pricing with the provider before signing on.
How we calculate this
  • Estimated cost: each provider’s published prices and rates applied to the inputs you set above (such as volume, team size, or invoices), plus any fixed monthly fees.
  • Providers with an incomplete cost and quote-only providers are never ranked as the cheapest while a complete-cost option exists. A figure marked “from” is the vendor’s starting price, so it keeps its place in price order but is never badged as the cheapest.
  • These are estimates. Published rates can change and your final pricing depends on your business, so confirm current pricing with the provider before switching.

How we chose. We priced every HR platform we list on its entry plan at 3, 15, 50 and 100 employees, through the same cost engine as the HR software comparison. The picks are the providers with a published price that suit a salaried, mostly office-based startup team. The table above ranks them live at your headcount. The cost table also prices Connecteam and Homebase, which are built for hourly and shift-based teams; our guide to HR software for small business covers them. Affiliate status never changes the order.

Founders tend to look at HR software at one of two awkward moments. Some sign up before the first offer letter, when the only system the law cares about is payroll. Others wait until the fifteenth hire, when I-9s live in a drawer, offer letters sit in three inboxes and the paid time off spreadsheet has two versions. This guide covers the stretch in between: what federal law asks of a new employer, what HR software costs from 3 employees to 100, and the headcounts where the rules change.

Do you need HR software before your first hire?

No. Your first hire needs an EIN, a payroll system that withholds and deposits federal tax, and a short stack of federal and state paperwork. HR software can wait until that paperwork becomes a weekly chore.

Here is what federal law asks of every new US employer, whatever software you use. State law adds to it, and the state rules vary, so treat this as the federal floor.

ObligationWhenSource
Get an Employer Identification Number (EIN)Before your first payroll. It is free from the IRS, and the online application gives you the number at once if it is approvedIRS
Collect Form W-4From each new employee, so you withhold the right federal income tax from their payIRS
Complete Form I-9The employee fills in Section 1. You check their documents and complete Section 2 within 3 business days of their first day of work for payUSCIS
Report the new hireTo the state where the employee works, within 20 days of hire. Some states require it soonerHHS Office of Child Support Services
Pay at least the minimum wageThe federal minimum is $7.25 an hour. Many states set a higher one, and you pay whichever is higherDepartment of Labor
Pay overtimeTime and a half for hours over 40 in a workweek, for every employee who is not exemptDepartment of Labor
Keep payroll recordsPayroll records for at least 3 years, and time cards and other records wages are worked out from for 2 yearsDepartment of Labor
Carry workers' compensationWorkers' comp is run by each state, and each state sets which employers must carry it and how. Start with your state's workers' comp officeDepartment of Labor
Pay state unemployment insurance taxState unemployment insurance is also state-run: your state's agency sets the tax and how you sign upDepartment of Labor
File Form 941Every quarter, by the last day of the month after the quarter endsIRS
File Form 940 and give Forms W-2Form 940 by January 31 each year. Forms W-2 to employees, and to the Social Security Administration with Form W-3, by January 31IRS
Keep each Form I-9For 3 years after the date of hire, or 1 year after employment ends, whichever is laterUSCIS

Federal rules checked against the cited agency pages in October 2026.

Everything in this table applies to employees on a W-2. A 1099 contractor is a different relationship with different tax forms, and calling an employee a contractor does not make them one; our payroll guide for contractors covers paying contractors.

The W-4, the withholding, the 941, the 940 and the W-2 are payroll jobs, which is why payroll comes first. If you have not picked one, our guides to payroll software for small business and payroll for a single employee price the options. The I-9, the new hire report and the records are where HR software starts to earn its fee: one onboarding flow per hire, with the forms collected and stored, instead of a checklist you rebuild every time.

HR software pricing for startups at 3, 15, 50 and 100 employees

At 3 employees a base fee or a flat minimum can be most of the bill. By 100, the per-employee rate is most of the bill wherever a provider charges one. The table prices every HR platform we list at four team sizes, through the same cost engine as the comparison above.

Provider3 employees15 employees50 employees100 employees
Connecteam logoConnecteam$0$29 min$39$64
Homebase logoHomebase$0$30 min$30 min$30 min
Deel logoDeel$15$75$250$500
Gusto logoGusto$67$139$349$649
Rippling logoRipplingfrom $71from $215from $635from $1,235
Justworks logoJustworks$237$1,185$3,950$7,900
BambooHR logoBambooHR$250 min$250 min$512.50$1,025
ADP logoADPGet quoteGet quoteGet quoteGet quote
Multiplier logoMultiplierGet quoteGet quoteGet quoteGet quote
Oyster HR logoOyster HRGet quoteGet quoteGet quoteGet quote
Papaya Global logoPapaya GlobalGet quoteGet quoteGet quoteGet quote
Payoneer Workforce Management logoPayoneer Workforce ManagementGet quoteGet quoteGet quoteGet quote

Estimated monthly cost in US dollars on each provider's entry plan, at the price each provider publishes; we do not add sales tax. Some providers headline the monthly equivalent of an annual plan, and that is the figure we store for them. Plans and pricing checked October 2026. "from" means the provider publishes only a starting price, and your quote will be higher. "min" means a monthly minimum is the whole bill at that size. Get quote means the provider does not publish a price we can cost.

Of the 12 HR platforms we list, the table can price BambooHR, Connecteam, Deel, Gusto, Homebase, Justworks and Rippling. The rest price on request: ADP, Multiplier, Oyster HR, Papaya Global and Payoneer Workforce Management. Several of those are Employer of Record services with no standalone HR plan; the Pricing model row in the full HR software comparison says which.

The providers that publish a price use five pricing shapes, and for a team that is growing, the shape tells you more than any single figure:

  • Free to a cap. Connecteam and Homebase are both free for a small team, and the free-plan limits are in the full comparison. Above its cap, Connecteam's paid HR hub is a flat $29/mo (Basic) for the first 30 users. Homebase then charges by location, not by head.
  • Per head with no minimum. Deel's HR plan is $5/emp/mo from the first employee, with no base fee. Payroll is a separate Deel product.
  • A base fee plus a per-head charge. Gusto's entry plan is $49/mo plus $6/emp/mo, with payroll included. Rippling publishes only a starting point: a $35/mo platform fee plus a per-user charge, before the modules it quotes, which is why its row reads "from".
  • A flat minimum, then per head. BambooHR's entry plan has a monthly minimum of $250/mo, so a small team pays the same whatever its size, and the per-employee rate takes over once the team outgrows it.
  • A PEO fee per head. Justworks charges $79-$124/emp/mo, depending on the plan, for payroll, tax filing and benefits administration together. That is a different purchase from HR software, so read its row with that in mind.

Free HR software for a startup: what the free plans cover

The platforms we list with a free plan are Connecteam and Homebase, and each one caps it:

ProviderFree planBuilt for
ConnecteamYes (up to 10 employees)US deskless and shift-based teams (hospitality, retail, trades, healthcare)
HomebaseYes (1 location, up to 10 employees)US hourly and shift-based teams (restaurants, retail, services)

Connecteam's free plan opens all of its hubs and features up to that cap, with exceptions it marks on its pricing page. Homebase's free plan covers basic scheduling and time tracking; employee onboarding and its HR and compliance tools sit on its top plan. Both are built around shift work rather than salaried office HR. A free plan is a cap, not a recommendation: check that its limits cover the team you expect in a year, and use the cost table above to see what each costs once you pass it.

Federal HR thresholds at 15, 20, 50 and 100 employees

Federal employment law adds duties as the team grows. Each one below is the federal rule only. Many states start earlier or add their own, so check your state as you approach each count.

  • 15 employees. Title VII and the Americans with Disabilities Act apply once you have 15 or more employees for 20 or more calendar weeks in this year or last (EEOC).
  • 20 employees. The Age Discrimination in Employment Act applies at 20 employees on the same 20-week test (EEOC), and COBRA generally requires an employer with 20 or more employees in the prior year to offer continuation coverage under its group health plan (Department of Labor).
  • 50 full-time employees, counting full-time equivalents. You become an applicable large employer under the Affordable Care Act for the next calendar year, with its employer health coverage rules and reporting; full-time means an average of at least 30 hours a week (IRS).
  • 50 employees. The Family and Medical Leave Act covers a private employer with 50 or more employees in 20 or more workweeks in the current or previous calendar year, and an employee qualifies only where you have 50 employees within 75 miles (Department of Labor). This count is employees, not full-time equivalents.
  • 100 employees. Private employers with 100 or more employees file the annual EEO-1 Component 1 report of workforce demographics, and some federal contractors file from 50 (EEOC).

Counting toward these tests is fiddly. The ACA test runs on hours and full-time equivalents, while the EEOC and FMLA tests count employees week by week. Before you sign, ask the vendor how its headcount and hours reports handle part-time staff, because a spreadsheet tends to get exactly that wrong.

HRIS, payroll or a PEO: three ways a startup buys HR

A US startup can buy HR three ways. An HRIS holds the employee record and leaves payroll to another tool. A payroll provider with HR runs the pay and keeps the record beside it. A PEO goes further and becomes the co-employer, taking on payroll tax filing and offering its own benefits plans.

ProviderPayrollBenefits administrationPEO option
DeelNative (US + global)YesYes (PEO)
GustoNative (US)YesNo
RipplingNative (US)YesYes
BambooHRNative (add-on)Yes (add-on)No
JustworksNative (US)Yes (large-group)Yes

The Payroll column says whether the company sells its own payroll, not whether the plan in the cost table includes it. Gusto's entry plan and Justworks' PEO fee include payroll; Deel, Rippling and BambooHR sell it as a separate product or add-on, so add it to their figures if you need it.

The choice mostly comes down to benefits. A startup that wants to offer group health insurance to a handful of people often finds a PEO such as Justworks the simplest route, because the PEO brings its own group plans. A startup that does not offer benefits yet, or already has a broker, pays less per head for an HRIS plus payroll, or for a payroll provider with HR such as Gusto. If you already run payroll, keep it and choose an HRIS that connects to it; our BambooHR vs Gusto comparison covers that pairing.

Exempt or non-exempt: the FLSA call HR software cannot make for you

Startups pay most early staff a salary and often assume that settles overtime. It does not. Under the Fair Labor Standards Act, most exemptions from minimum wage and overtime require a salary of at least $684 a week and a duties test: the employee's actual work has to meet the test for that exemption, such as executive, administrative or professional. Job titles decide nothing. Not every exemption has the salary part: outside sales staff have a duties test but no salary test (Department of Labor).

A salaried office manager whose main work is routine and does not involve their own judgment on matters of significance can fail the duties test and be owed overtime. For a startup hiring engineers, the computer employee exemption is the one to read: it has its own duties test, and it can be met on a salary of at least $684 a week or an hourly rate of at least $27.63 (Department of Labor). Some states set a higher salary level or stricter duties tests than federal law, and you follow whichever protects the employee more.

HR software records the classification you choose and can keep the time records a non-exempt employee needs. It does not make the decision for you, so settle each role's classification before the first pay run, with an employment lawyer if a role is borderline. This guide is general information, not legal advice.

Hiring tools and contract terms in startup HR software

Applicant tracking starts to matter once several roles are open at the same time. Contract terms matter the day you want to leave.

ProviderApplicant trackingContract
DeelAdd-onNo
GustoVia integrationNo
RipplingYesAnnual
BambooHRYesAnnual
JustworksVia integrationMonthly

"Yes" here means the company offers applicant tracking, not that the plan in the cost table includes it; "Via integration" means you connect a separate recruiting tool. If you expect to hire steadily over the next year, price the plan that includes it now, because on a per-employee plan an upgrade raises the rate for the whole team.

Whichever you choose, keep your own copy of every signed offer letter and I-9, and export everything before you cancel. Your duty to keep payroll records for 3 years and each I-9 for its retention period does not end with the subscription.

What if your first hire is outside the US?

Then you need an Employer of Record, a company that employs your hire in their own country so you do not have to open an entity there. Deel's Employer of Record, on the same account as its HR plan, is $599/emp/mo. That is a different purchase from an HR seat, priced per person, so it does not show in the cost table above.

Our guide to HR software for hiring overseas compares the Employer of Record providers, the remote teams guide covers managing a team spread across countries, and the payroll guide for contractors covers paying people abroad who are not employees.

Frequently asked questions

How much does HR software cost a US startup?

It depends on your headcount and on the pricing shape. A per-head plan with no minimum costs $5 an employee a month at Deel. A base fee plus a per-head charge, as at Gusto ($49 plus $6), costs more for a small team but includes payroll. A flat monthly minimum, as at BambooHR ($250), is the whole bill for a small team and stops being the whole bill once the team outgrows it. The cost table on this page prices each one at 3, 15, 50 and 100 employees.

PEO vs HRIS for a startup: which should you choose?

Not better, different. A PEO such as Justworks takes on payroll, payroll tax and benefits as a co-employer and charges per employee for the whole service ($79 an employee a month on its entry plan). HR software only holds the record, and you run payroll and buy benefits yourself. A PEO is worth pricing when you want to offer group health insurance with a small team.

When does a startup have to offer COBRA or FMLA leave?

Federal COBRA generally applies to the group health plan of an employer with 20 or more employees in the prior year. Federal FMLA covers private employers with 50 or more employees in 20 or more workweeks in the current or previous calendar year. Many states have their own versions with lower thresholds, so check your state labor department as well.

Is HR software the same as payroll software?

No. Payroll software pays people, withholds and deposits tax and files Forms 941, 940 and W-2. HR software holds the employee record: onboarding, I-9 and W-4 paperwork, time off, documents and reviews. Some providers here do both: payroll is part of Gusto's entry plan and of Justworks' PEO fee, and a separate purchase at Deel, Rippling and BambooHR.

Can a startup pay a salary and skip overtime?

Only if the job meets an FLSA exemption. Most exemptions need a salary of at least the federal level and duties that pass that exemption's test, and a computer employee can also qualify on a high enough hourly rate. A salary alone does not make anyone exempt, and some states set a higher salary level than federal law.

How does SMB Compare choose the best hr software for startups?

We are independent and not owned by any provider. Our picks weigh price, features and US fit for startups, using live pricing from our database, last checked October 4, 2026. The comparison table lets you estimate each option at your own numbers. See How we compare for our full method.

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