GITNUXBEST LIST

Non Profit Public Sector

Top 10 Best Nonprofit Payroll Software of 2026

Discover top nonprofit payroll software to streamline operations, ensure compliance, and save time. Find your perfect fit—explore now!

Min-ji Park

Min-ji Park

Feb 11, 2026

10 tools comparedExpert reviewed
Independent evaluation · Unbiased commentary · Updated regularly
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Effective payroll management is vital for nonprofits, as it ensures compliance with tax laws, tracks grant funds, and supports transparent reporting to donors—making the selection of the right software a cornerstone of operational efficiency. This comprehensive guide highlights the top 10 tools tailored to these unique needs, offering options to suit organizations of all sizes.

Quick Overview

  1. 1#1: Gusto - Streamlined payroll and HR platform designed for small to mid-sized nonprofits with easy compliance, unlimited payroll runs, and integrations for nonprofit accounting.
  2. 2#2: ADP - Comprehensive payroll solutions with nonprofit-specific features like grant tracking, fund accounting integration, and robust compliance for organizations of all sizes.
  3. 3#3: Paychex - Flexible payroll and HR services tailored for nonprofits, offering tax compliance, multi-state payroll, and reporting for donors and grants.
  4. 4#4: QuickBooks Payroll - Integrated payroll with QuickBooks accounting, ideal for nonprofits needing seamless W-2/1099 filing and expense tracking tied to funds.
  5. 5#5: OnPay - Affordable full-service payroll with expert support, custom reporting, and nonprofit-friendly pricing for accurate tax handling.
  6. 6#6: Patriot Software - Simple, low-cost payroll software with in-house support, multi-state filing, and easy setup for small nonprofits.
  7. 7#7: Payroll4Free - Free payroll software for nonprofits with under 25 employees, handling direct deposit, W-2s, and basic compliance.
  8. 8#8: Rippling - All-in-one HR, payroll, and benefits platform with automation for nonprofit employee management and compliance.
  9. 9#9: Paycor - Cloud-based HCM with payroll tailored for nonprofits, featuring analytics, grant fund allocation, and mobile access.
  10. 10#10: Paylocity - Modern payroll and talent management suite supporting nonprofit-specific needs like volunteer tracking and customized reporting.

Tools were ranked based on nonprofit-specific features (such as grant tracking, fund accounting integration, and donor reporting), reliability, ease of use, and overall value, ensuring a balanced mix of functionality and accessibility for diverse organizational requirements.

Comparison Table

Choosing the right nonprofit payroll software is key to efficient staff management and alignment with organizational goals; this comparison table explores top tools like Gusto, ADP, Paychex, QuickBooks Payroll, OnPay, and more, guiding readers in evaluating features, costs, and fit for their specific needs.

1Gusto logo9.4/10

Streamlined payroll and HR platform designed for small to mid-sized nonprofits with easy compliance, unlimited payroll runs, and integrations for nonprofit accounting.

Features
9.5/10
Ease
9.7/10
Value
9.1/10
2ADP logo9.1/10

Comprehensive payroll solutions with nonprofit-specific features like grant tracking, fund accounting integration, and robust compliance for organizations of all sizes.

Features
9.4/10
Ease
8.2/10
Value
8.7/10
3Paychex logo8.8/10

Flexible payroll and HR services tailored for nonprofits, offering tax compliance, multi-state payroll, and reporting for donors and grants.

Features
9.2/10
Ease
8.5/10
Value
8.3/10

Integrated payroll with QuickBooks accounting, ideal for nonprofits needing seamless W-2/1099 filing and expense tracking tied to funds.

Features
8.2/10
Ease
8.1/10
Value
7.4/10
5OnPay logo8.6/10

Affordable full-service payroll with expert support, custom reporting, and nonprofit-friendly pricing for accurate tax handling.

Features
8.4/10
Ease
9.2/10
Value
9.0/10

Simple, low-cost payroll software with in-house support, multi-state filing, and easy setup for small nonprofits.

Features
7.4/10
Ease
8.6/10
Value
9.1/10

Free payroll software for nonprofits with under 25 employees, handling direct deposit, W-2s, and basic compliance.

Features
6.5/10
Ease
8.5/10
Value
9.5/10
8Rippling logo8.4/10

All-in-one HR, payroll, and benefits platform with automation for nonprofit employee management and compliance.

Features
9.1/10
Ease
8.2/10
Value
7.6/10
9Paycor logo8.1/10

Cloud-based HCM with payroll tailored for nonprofits, featuring analytics, grant fund allocation, and mobile access.

Features
8.4/10
Ease
7.9/10
Value
7.6/10
10Paylocity logo7.8/10

Modern payroll and talent management suite supporting nonprofit-specific needs like volunteer tracking and customized reporting.

Features
8.2/10
Ease
7.5/10
Value
7.0/10
1
Gusto logo

Gusto

enterprise

Streamlined payroll and HR platform designed for small to mid-sized nonprofits with easy compliance, unlimited payroll runs, and integrations for nonprofit accounting.

Overall Rating9.4/10
Features
9.5/10
Ease of Use
9.7/10
Value
9.1/10
Standout Feature

Automated nonprofit-specific payroll compliance with seamless reimbursements and stipend tracking treated as non-taxable

Gusto is an all-in-one payroll, HR, and benefits platform tailored for small to mid-sized nonprofits, automating payroll processing, tax compliance, and employee management. It supports nonprofit-specific needs like reimbursements, stipends, board member payments, and integrations with accounting tools such as QuickBooks and Aplos. With features for time tracking, benefits administration, and ACA compliance, Gusto simplifies operations while ensuring regulatory adherence for 501(c)(3) organizations.

Pros

  • Intuitive interface with quick setup and automated payroll runs
  • Robust nonprofit compliance including tax filings, reimbursements, and 1099 handling
  • Excellent integrations with nonprofit accounting software and strong customer support

Cons

  • Pricing scales up quickly for larger teams or with add-ons
  • Advanced grant tracking and fund accounting require third-party integrations
  • Limited built-in reporting for complex nonprofit financials

Best For

Small to mid-sized nonprofits seeking a user-friendly, full-service payroll and HR solution without needing extensive IT resources.

Pricing

Simple: $40 base + $6/person/month; Plus: $80 base + $12/person/month; Premium: Custom quote; nonprofit discounts available.

Visit Gustogusto.com
2
ADP logo

ADP

enterprise

Comprehensive payroll solutions with nonprofit-specific features like grant tracking, fund accounting integration, and robust compliance for organizations of all sizes.

Overall Rating9.1/10
Features
9.4/10
Ease of Use
8.2/10
Value
8.7/10
Standout Feature

Grant and fund allocation tracking that automatically codes payroll expenses to specific funding sources for accurate nonprofit financial reporting.

ADP offers comprehensive payroll and HR solutions tailored for nonprofits through its ADP Workforce Now platform, handling payroll processing, tax compliance, benefits administration, and time tracking. It includes nonprofit-specific features like grant and fund allocation for payroll expenses, multi-entity support for organizations with multiple programs, and automated reporting for Form 990 and donor restrictions. This scalable solution integrates with popular nonprofit accounting software such as QuickBooks, Sage Intacct, and Blackbaud, ensuring seamless financial management.

Pros

  • Robust nonprofit-specific tools like grant/fund payroll allocation and compliance reporting
  • Scalable for small to enterprise-level nonprofits with strong integrations
  • Dedicated support and 24/7 U.S.-based customer service

Cons

  • Higher pricing may strain smaller nonprofits' budgets
  • Steeper learning curve and longer implementation times
  • Custom quotes make upfront cost comparison challenging

Best For

Mid-sized to large nonprofits (50+ employees) needing an enterprise-grade payroll system with HR and compliance features.

Pricing

Custom quote-based pricing; typically $4-$12 per employee per pay period for payroll, plus $50-$200/month base fees and add-ons for HR/benefits.

Visit ADPadp.com
3
Paychex logo

Paychex

enterprise

Flexible payroll and HR services tailored for nonprofits, offering tax compliance, multi-state payroll, and reporting for donors and grants.

Overall Rating8.8/10
Features
9.2/10
Ease of Use
8.5/10
Value
8.3/10
Standout Feature

Nonprofit-specific grant reimbursement and multi-fund payroll allocation

Paychex provides comprehensive payroll and HR software tailored for nonprofits, handling payroll processing, tax compliance, direct deposits, and W-2/1099 filings with nonprofit-specific considerations like grant reimbursements and stipends. The platform includes time tracking, benefits administration, and HR tools to manage employees and volunteers efficiently. It ensures compliance with nonprofit regulations, including Form 941 adjustments for exempt organizations, and integrates with popular accounting software.

Pros

  • Strong compliance tools for nonprofit tax filings and grant tracking
  • Integrated HR and benefits management
  • Reliable customer support with dedicated nonprofit specialists

Cons

  • Pricing can be steep for very small nonprofits
  • Steeper learning curve for advanced customization
  • Limited free tier or trial options

Best For

Mid-sized nonprofits needing robust, compliant payroll integrated with HR and accounting systems.

Pricing

Custom quotes starting at ~$59/month base + $5/employee; nonprofit discounts available upon request.

Visit Paychexpaychex.com
4
QuickBooks Payroll logo

QuickBooks Payroll

enterprise

Integrated payroll with QuickBooks accounting, ideal for nonprofits needing seamless W-2/1099 filing and expense tracking tied to funds.

Overall Rating8.0/10
Features
8.2/10
Ease of Use
8.1/10
Value
7.4/10
Standout Feature

Deep integration with QuickBooks Online Nonprofit edition for effortless syncing of payroll data to accounting books

QuickBooks Payroll is an integrated payroll solution from Intuit that works seamlessly with QuickBooks accounting software, automating payroll processing, tax calculations, filings, and direct deposits for businesses including nonprofits. It supports employee self-service portals, time tracking, and benefits management, making it suitable for handling W-2s, 1099s, and compliance needs. While not exclusively designed for nonprofits, it offers reliable general payroll features with some accommodations for nonprofit tax forms and reporting.

Pros

  • Seamless integration with QuickBooks accounting for unified financial management
  • Automated federal and state tax filings with nonprofit-compatible forms
  • Employee self-service portal and mobile app for easy access

Cons

  • Pricing can be expensive for very small nonprofits with few employees
  • Lacks deep nonprofit-specific features like fund accounting or grant payroll tracking
  • Best suited for users already in the QuickBooks ecosystem, limiting flexibility

Best For

Mid-sized nonprofits already using QuickBooks accounting that need reliable, integrated payroll without specialized nonprofit tools.

Pricing

Core: $45/mo + $6/employee; Premium: $80/mo + $9/employee; Elite: $125/mo + $11/employee (nonprofit discounts may apply; billed annually).

Visit QuickBooks Payrollquickbooks.intuit.com
5
OnPay logo

OnPay

specialized

Affordable full-service payroll with expert support, custom reporting, and nonprofit-friendly pricing for accurate tax handling.

Overall Rating8.6/10
Features
8.4/10
Ease of Use
9.2/10
Value
9.0/10
Standout Feature

Unlimited payroll runs and expert tax filing handled by OnPay specialists

OnPay is a user-friendly payroll platform tailored for small to mid-sized nonprofits, offering automated payroll processing, tax calculations, and filings compliant with nonprofit regulations like Form 941 and state unemployment exemptions. It includes HR tools, benefits administration, and seamless integrations with accounting software such as QuickBooks and Xero. With unlimited payroll runs and expert support, it simplifies compliance for organizations with variable employee counts.

Pros

  • Affordable flat-rate pricing with unlimited payroll runs
  • Excellent customer support including payroll experts
  • Strong integrations and nonprofit tax compliance

Cons

  • Limited built-in time tracking (requires integrations)
  • Fewer advanced HR analytics for larger nonprofits
  • Setup may require initial assistance for complex multi-state payroll

Best For

Small to mid-sized nonprofits seeking simple, cost-effective payroll without needing extensive enterprise-level features.

Pricing

$40 base fee + $6 per active employee/month; nonprofit discounts available upon inquiry.

Visit OnPayonpay.com
6
Patriot Software logo

Patriot Software

specialized

Simple, low-cost payroll software with in-house support, multi-state filing, and easy setup for small nonprofits.

Overall Rating7.8/10
Features
7.4/10
Ease of Use
8.6/10
Value
9.1/10
Standout Feature

Tax penalty guarantee covering up to $50,000 for errors in filings if using Full Service Payroll

Patriot Software offers affordable online payroll solutions designed for small to mid-sized nonprofits, including specialized handling for clergy housing allowances, designated gifts, and 501(c)(3) compliance. It provides in-house processing, automated tax filings (941s, 944s, W-2s), direct deposit, and basic HR tools like onboarding and time-off tracking. Ideal for organizations seeking straightforward payroll without complex enterprise features.

Pros

  • Highly affordable pricing with transparent per-employee fees
  • Excellent U.S.-based customer support with live chat and phone
  • Nonprofit-specific features like housing allowance tracking and tax guarantees

Cons

  • Limited advanced reporting and analytics compared to enterprise solutions
  • Fewer third-party integrations (e.g., no native QuickBooks Online sync)
  • Basic HR module lacks robust employee self-service portals

Best For

Small to mid-sized nonprofits with 1-100 employees needing simple, compliant payroll without advanced HR complexities.

Pricing

Basic Payroll: $17 base + $4/employee/month; Full Service Payroll: $37 base + $4/employee/month (includes tax filing); Enhanced options add $10-20/month.

Visit Patriot Softwarepatriotsoftware.com
7
Payroll4Free logo

Payroll4Free

specialized

Free payroll software for nonprofits with under 25 employees, handling direct deposit, W-2s, and basic compliance.

Overall Rating7.2/10
Features
6.5/10
Ease of Use
8.5/10
Value
9.5/10
Standout Feature

Lifetime free payroll processing for qualifying small nonprofits and businesses

Payroll4Free is a web-based payroll platform designed for small businesses and nonprofits, offering free processing for organizations with up to 25 employees per company. It automates payroll calculations, federal/state tax withholdings, paycheck printing or direct deposit, and generates W-2s and 1099s. While suitable for basic nonprofit payroll needs, it lacks advanced features like fund accounting integration or grant-specific reporting.

Pros

  • Completely free for small teams up to 25 employees
  • Straightforward setup and intuitive interface
  • Handles essential tax forms and multi-state payroll

Cons

  • Strict 25-employee limit per company
  • Limited integrations and reporting for nonprofits
  • No advanced HR or compliance tools for complex orgs

Best For

Small nonprofits with 25 or fewer employees needing a no-cost, basic payroll solution without advanced accounting needs.

Pricing

Free for single-company use with up to 25 employees; optional paid add-ons for direct deposit ($1/check) or multi-company support.

Visit Payroll4Freepayroll4free.com
8
Rippling logo

Rippling

enterprise

All-in-one HR, payroll, and benefits platform with automation for nonprofit employee management and compliance.

Overall Rating8.4/10
Features
9.1/10
Ease of Use
8.2/10
Value
7.6/10
Standout Feature

Real-time policy engine that automates compliance and payroll rules across all 50 states without manual updates

Rippling is an all-in-one HR, payroll, and IT platform designed to unify employee management, including payroll processing for nonprofits handling staff, contractors, and grant-funded roles. It automates payroll runs, tax compliance, and filings while integrating with accounting software like QuickBooks for nonprofit financial tracking. The platform supports nonprofit-specific needs such as multi-state payroll, 1099 processing, and customizable withholding for exempt organizations.

Pros

  • Comprehensive automation for payroll, HR, and compliance reduces manual work
  • Strong integrations with nonprofit accounting tools like QuickBooks and NetSuite
  • Real-time syncing across HR, payroll, and IT for efficient workforce management

Cons

  • Pricing can be high for small nonprofits with limited budgets
  • Overkill for basic payroll needs, with a learning curve for advanced features
  • Fewer nonprofit-specific templates compared to dedicated solutions

Best For

Mid-sized nonprofits with complex HR and payroll needs seeking an integrated platform.

Pricing

Starts at $8/user/month for core HR, with payroll add-ons bringing total to $10-20/user/month; custom enterprise pricing for nonprofits.

Visit Ripplingrippling.com
9
Paycor logo

Paycor

enterprise

Cloud-based HCM with payroll tailored for nonprofits, featuring analytics, grant fund allocation, and mobile access.

Overall Rating8.1/10
Features
8.4/10
Ease of Use
7.9/10
Value
7.6/10
Standout Feature

Fund-level payroll allocation to track expenses across grants and budgets seamlessly

Paycor is a full-service HCM platform with robust payroll capabilities designed to meet the needs of nonprofits, including processing for employees, contractors, and stipends for volunteers. It ensures compliance with nonprofit tax regulations, multi-state payroll, and IRS Form 941/990 support. The software integrates HR functions like onboarding, time tracking, and benefits management, making it suitable for organizations managing complex workforce structures.

Pros

  • Comprehensive payroll compliance tailored for nonprofits including W-2/1099 and multi-fund allocation
  • Integrated HR tools for recruiting, performance, and onboarding
  • Strong mobile app and analytics for workforce insights

Cons

  • Pricing can be higher than nonprofit-specific alternatives
  • Implementation may take longer for complex setups
  • Fewer direct integrations with niche nonprofit accounting software like Aplos

Best For

Mid-sized nonprofits seeking an all-in-one payroll and HR solution with scalable features.

Pricing

Custom quote-based; typically starts at $175/month base + $8-12 per active employee/pay period, with nonprofit discounts available.

Visit Paycorpaycor.com
10
Paylocity logo

Paylocity

enterprise

Modern payroll and talent management suite supporting nonprofit-specific needs like volunteer tracking and customized reporting.

Overall Rating7.8/10
Features
8.2/10
Ease of Use
7.5/10
Value
7.0/10
Standout Feature

Grant and fund source payroll allocation with customizable reporting for compliance and auditing.

Paylocity is a cloud-based human capital management (HCM) platform offering payroll processing, HR tools, benefits administration, and time tracking tailored for nonprofits with features like grant-funded payroll allocation and compliance reporting. It supports complex nonprofit structures with multi-entity management and custom fields for funding sources. The software emphasizes mobile accessibility and employee self-service, integrating with popular accounting systems for seamless financial workflows.

Pros

  • Robust payroll automation with nonprofit-specific allocation for grants and funds
  • Strong mobile app for employee self-service and time tracking
  • Excellent customer support and onboarding assistance

Cons

  • Pricing can be steep for small nonprofits
  • Less specialized nonprofit features compared to dedicated solutions
  • Initial setup and implementation may require significant time

Best For

Mid-sized nonprofits needing an integrated HCM platform with reliable payroll and HR capabilities beyond basic processing.

Pricing

Quote-based pricing, typically starting at $20-$40 per employee per month plus base fees and add-ons.

Visit Paylocitypaylocity.com

Conclusion

Gusto leads as the top nonprofit payroll software, boasting streamlined operations, HR integration, and robust compliance—ideal for small to mid-sized organizations. ADP and Paychex follow strongly: ADP excels in comprehensive grant tracking and fund accounting for larger groups, while Paychex offers flexibility for multi-state needs and donor-focused reporting. Each tool addresses unique nonprofit priorities, ensuring efficient payroll management alongside compliance.

Gusto logo
Our Top Pick
Gusto

Take the next step for your organization: explore Gusto to leverage its tailored features and simplify payroll processes, freeing more time to focus on your mission.