Top 7 Cloud-Based HR and Payroll Software Transforming Businesses in 2026

Handling payroll for your business used to involve drowning in spreadsheets, missing deadlines, and praying that you don’t mess up someone’s paycheck.

Some days, it’ll take an entire weekend just to get the numbers right. Not anymore. That kind of administrative nightmare is fading into the distance thanks to the rise of cloud-based HR and payroll software.

According to GlobeNewsWire, as of 2024, 70% of all HR software investments were cloud-based. That’s not just a number. It’s a clear indication of what the future of HR and payroll will look like. Why? Because businesses want automation, analytics, AI, and seamless integration with the other programs they use. Honestly, who wouldn’t?

The problem? Out of the hundreds of options out there, finding the one that actually fits your business needs can be tricky.

So, to save you hours of trial and error, here’s a close look at the top 7 cloud-based HR and payroll software transforming businesses in 2026, so you can pick what works for you.

Choosing the Right Payroll System

Before we get into specific platforms, we must first talk about what choosing a cloud-based HR and payroll software involves.

In 2023, roughly 47% of UK employees received incorrect payslips, according to a report cited by Wales Online. That’s almost half the workforce! If that doesn’t highlight how important accuracy is, nothing will.

You don’t just throw a dart at the wall and hope for the best. You’ve got to know exactly what you’re looking for. Here are a few things that really matter:

Simplicity: This one is simple. If you need a computer science degree to use your HR software, then something is wrong. The best systems are very simple to use.

AI and Automation: In 2026 and beyond, this one is non-negotiable. You should be able to carry out your most important activities with little or no manual input.

Scalability: This is another non-negotiable. Sure, you have just eight employees now. What happens when your workforce hits 50 or 200? Pick a system that grows with you.

Integration: Your payroll system needs to be able to talk to your ERP, accounting, and other programs you use. Integration is vital.

Compliance: Tax laws change constantly. You need a platform that updates automatically and keeps you current, without you really doing anything.

7 Cloud-Based HR and Payroll Software for Businesses

Now, let’s look at the leaders setting the pace for HR and payroll management in 2026.

1. Paylocity – Best Overall Platform for Payroll and HR Growth

Founded: 1997
Headquarters: Schaumburg, Illinois, USA
Users: Over 41,650 clients

Paylocity is a leading provider of cloud-based payroll and HR solutions and has been serving thousands of businesses for almost three decades.

The Paylocity platform provides holistic HR solutions that cover everything from recruiting and onboarding to payroll and benefits administration, while staying on top of state and federal laws. If you want a system that combines payroll, HR, and workforce management in one place, is easy to use, highly scalable, and feature-rich, then Paylocity is it.

Key features:

Automated tax filing and benefits administration
Built-in support for compliance
Mobile access for on-the-go HR management
Intuitive and user-friendly design

Paylocity has consistently maintained high ratings across various review sites, including a “Top Rated Award” and a “Buyer’s Choice Award” on TrustRadius in 2025.

2. Gusto – Best for First-Time Employers

Founded: 2012
Headquarters: San Francisco, California, USA
Users: Over 400,000 businesses.

Gusto is another platform to consider if you’re shopping for cloud-based HR and payroll software. It started life as ZenPayroll and has been providing automated payroll, benefits administration, and other HR services to small and medium businesses for more than a decade.

If you’re in the market for a payroll and HR solution that’s easy to set up and use, then Gusto is it.

Key features:

Automated payroll management with in-built tax filings and reporting
Employee benefits administration, including health insurance and 401(k)
Integrates with QuickBooks, Xero, FreshBooks, and other business applications

Gusto is ideal for small and medium-sized businesses across industries that need to streamline their HR functions.

3. Paycor – Best for HR-Focused Small Businesses and Workforce Insights

Founded: 1990
Headquarters: Cincinnati, Ohio, USA
Users: Over 30,000 businesses

Paycor is a cloud-based HR software company that has been helping businesses streamline their HR operations since 1990. Just recently, in 2025, it was acquired by Paychex, although it still runs as an independent unit.

Paycor is known for its user-friendly platform that allows businesses to handle a wide range of HR functions throughout the employee lifecycle.

Key features:

Full HR solution, including payroll and talent management
Reporting and analytics
Employee self-service feature, including on-demand pay options
Built-in tax and compliance feature

Paycor is ideal for businesses in industries where employees typically earn per hour, such as in healthcare, retail, and restaurants.

4. Rippling – Best for Startups and Technology-Driven Teams

Founded: 2016
Headquarters: San Francisco, California, USA
Users: Over 20,000 companies

Rippling provides cloud-based payroll and HR solutions targeted at businesses in the tech niche. It helps startups and growing tech firms manage HR, IT, and finance in one place, essentially providing a single source of truth for employee data. This makes the entire HR function a seamless process.

Key features:

Unified platform for HR, payroll, and IT
Payroll automation with federal, state, and local taxes reporting
Single point of truth for employee data, apps, and devices
Seamless integration with existing enterprise tools

Rippling is ideal for startups and tech firms that need an integrated system for their HR functions, especially those managing remote or hybrid teams.

5. Onpay – Best for Small Employers

Founded: 2011
Headquarters: Atlanta, Georgia, USA
Users: N/A

Onpay is a cloud-based software company that helps businesses simplify their HR and payroll processes. It’s primarily targeted at small businesses that just need straightforward and affordable payroll, tax filing, and HR tools that work.

Onpay’s biggest selling point is its single-plan price structure. It also integrates well with other business and accounting software.

Key features:

Flat monthly pricing (no hidden fees)
Automatic tax filing across the 50 states, including W-2 delivery
Support for employee onboarding and benefits management
Employee lifetime accounts

If you run a small business and just need dependable, budget-friendly payroll software, then Onpay is perfect for you.

6. RUN by ADP – Best for Compliance

Founded: 1949
Headquarters: Roseland, New Jersey, USA
Users: Over 1.1 million clients

ADP has been in the business of providing HR and payroll services for decades and is actually one of the leaders in the industry. Its RUN platform is specifically designed for small businesses that need reliable HR and payroll tools and compliance support.

If you prefer an established provider with years of support and a robust infrastructure, then RUN by ADP is it.

Key features:

Automates payroll, including calculations and deductions
Provides federal, state, and local tax filing support
Supports HR functions throughout the employee lifecycle
Provides AI-powered assistance for preventing payroll errors

RUN by ADP is ideal for small businesses (typically 50 employees or less), especially multi-state or regulated, that are willing to pay for the dependability of an established provider.

7. Quickbooks Payroll – Best Choice for Quickbooks Users

Founded: 1992 (QuickBooks software), Payroll launched in 1999
Headquarters: Mountain View, California, USA
Users: Over 1.4 million users

QuickBooks Payroll is an add-on feature for the QuickBooks software, which is part of the Intuit product range. It provides powerful features for small businesses to manage their HR and payroll functions.

QuickBooks Payroll automates the payroll process so that employees get exactly what they’re due on time. It’s also relatively easier to use compared to other platforms, with a user-friendly interface that even first-time users can grasp in no time.

Key features:

Quick and seamless integration with QuickBooks accounting
Automated payroll processing with tax filing and compliance
Seamless integration with QuickBooks Time for employee time tracking
Benefits administration, including health insurance, retirement, and workers’ comp

If you already use QuickBooks for accounting, then QuickBooks Payroll is a natural fit. It keeps everything in one system, so that your employee functions are simpler and faster.

Which One Is Best for You

An HR and payroll system is one of the best investments you can make for your business. Apart from the fact that it helps you streamline HR functions, it also helps ensure that your workers get paid accurately. That usually means a happier workforce and a more productive business.

But which of the 7 cloud-based HR and payroll software discussed here is right for you?

There’s no one-size-fits-all when it comes to HR and payroll software. Your choice will largely depend on a number of factors:

The size of your business
The industry you operate in
The size of your workforce
Your budget
The features that matter to you

The point is simple: pick software that simplifies your work.

Take your time to study this list of top 7 cloud-based HR and payroll software transforming businesses in 2026, do your own research, and choose the platform that gives you confidence to run payroll, stay compliant, and focus on growing the business.