Payroll for Solo Tradespeople: Gusto vs Rippling vs ADP for Self-Employed Roofers, Plumbers, and Contractors
You've mastered the craft—now it's time to master the books. Moving from an employer to running your own specialty trade business means handling payroll and taxes yourself. Mistakes here can cost you time and money, pulling you away from the job site. Gusto, Rippling, and ADP offer different tools: simple payroll, full HR/IT platforms, and enterprise solutions. For first-time self-employed roofers, plumbers, and flooring installers, the right choice depends on your focus: keeping it simple and compliant.
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The Quick Answer
For solo tradespeople, Gusto is almost always the best fit. It handles everything a new self-employed contractor needs: paying yourself, managing any 1099 helpers, and filing taxes correctly. Rippling and ADP are built for bigger companies with many employees and dedicated HR staff. Think of it this way: Gusto is like your trusty impact driver – it gets the job done reliably. Rippling is a full-blown fleet management system – way more than you need for one work truck. ADP is for a company with 50+ crews.
Side-by-Side Breakdown
Gusto: Starts around $40-$46/month for a solo owner. This covers paying yourself (as W-2 if you set up an S-Corp, or managing your owner's draws and 1099 forms). It automatically files your self-employment payroll taxes and handles any 1099 contractors you bring on for a big roofing job or a tricky plumbing repair. Think of this cost like one high-quality specialty tool – it pays for itself by saving you hours. Rippling: Starts around $8/person/month, but that's just the basic payroll module. To get what Rippling is known for (HR, IT, benefits), the cost quickly climbs past $100/month. This is designed for businesses hiring quickly, not usually for a solo plumber or electrician. It's like buying a heavy-duty excavator when all you need is a shovel for a small trench. ADP Run (small business): Plans start around $79/month plus extra per person. ADP offers solid payroll with deep tax compliance, but its interface can feel old-fashioned. For a solo tradesperson, this cost is likely too high, and many features won't be used. It's built for established small businesses with a few employees already, not typically your first payroll software as a solo operator. It's a large, complex tool for a job that needs a simple, precise one.
When to Choose Gusto
You're a solo tradesperson starting out: Whether you're a self-employed plumber, roofer, or flooring installer, Gusto makes payroll simple. You pay yourself: If you've set up an S-Corp, Gusto helps you pay yourself a W-2 salary and handles all the tax filings. If you're a sole proprietor, it helps track your owner's draws and sends out the right 1099-NEC forms at year-end for your income. You hire temporary helpers or subcontractors: Need an extra hand for a big drywall job or to lift heavy tile? Gusto can easily manage payments and send 1099-NEC forms to your contract labor. This avoids year-end tax surprises. You want easy tax filing: Gusto automatically calculates and files federal and state self-employment taxes (if applicable) or payroll taxes for any W-2 employees you might hire later. This saves you headaches and keeps you compliant, letting you focus on jobs like installing a new kitchen or fixing a leaky roof. You need simple workers' comp integration: Gusto can often integrate with workers' compensation policies, helping you keep insurance costs tied to your actual payroll.
When to Choose Rippling
You plan to hire a full crew quickly: If your plan is to go from solo to having 5-10 W-2 employees (not just 1099 helpers) within the next year and you need to manage company phones, email accounts, and project management app access for them, Rippling might be an option. You need to automate IT for employees: For example, if you're providing company tablets for job site plans or specialized software licenses to each employee. You have a budget for a comprehensive system: Rippling costs more and has a steeper learning curve. For a solo tradesperson focused on their craft, the time and money spent on Rippling's setup often outweigh the benefits. This is rarely the right starting point for a self-employed roofer or plumber.
When to Choose ADP
You're an established trade business with 10+ W-2 employees: If you've grown well beyond the solo phase and have a significant W-2 workforce (not just 1099 contractors) that needs deep compliance reporting or multi-state payroll, ADP might be worth looking into. You need extensive HR support: ADP offers HR advisors, which can be useful for larger crews dealing with complex employee relations or specific union contracts. Your trade has very specific, unusual compliance rules: While Gusto handles standard tax compliance, some highly specialized trades with unique state-level or federal reporting might find ADP's deep compliance features beneficial. However, for most first-time self-employed roofers, plumbers, or electricians, this level of complexity is far beyond what's needed.
The Verdict
For the vast majority of first-time self-employed tradespeople, start with Gusto. It's built for small businesses and is easy to use for managing your own pay, 1099 contractors, and taxes. Think of it as your essential toolbelt – simple, effective, and always ready. Rippling and ADP are usually overkill. You can always switch later if your solo roofing business suddenly grows into a multi-crew operation employing dozens. The time saved avoiding tax mistakes or complex setup is worth far more than the monthly fee, letting you focus on installing that new kitchen or finishing that big commercial plumbing rough-in.
How to Get Started
Gusto: Go to gusto.com. You'll need your business name, address, and EIN (Employer Identification Number – you can get this for free from the IRS in minutes). Gusto guides you through setting up payments for yourself or any 1099 contractors. You can typically run your first payroll within a week. Gusto handles registering your business for state payroll taxes if you ever decide to hire W-2 employees. Rippling: This isn't your typical starting point. If you somehow determine you need it, you'll need to request a demo and expect a long setup process. Don't waste valuable job site time on this unless you're truly scaling fast. ADP Run: You can start online, but for a solo trade business, it's usually best to call sales to clarify pricing and features, as many options will be unnecessary. Be prepared for a longer setup than Gusto.
RECOMMENDED TOOLS
Gusto
Full-service payroll from $40/month + $6/person
Rippling
Unified HR, payroll, and IT from $8/person/month
ADP Run
Enterprise payroll and HR compliance
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FREQUENTLY ASKED QUESTIONS
Does payroll software file my payroll taxes automatically?
Gusto, Rippling, and ADP all offer full-service payroll that calculates, files, and remits federal, state, and local payroll taxes automatically. Verify that auto-filing is included in your plan tier before you commit.
Can Gusto handle contractors (1099s) and employees (W-2s) together?
Yes. Gusto supports both contractor and employee payroll in the same account. Contractors are paid via direct deposit and receive 1099-NEC forms at year-end.
How hard is it to switch payroll providers mid-year?
Possible but annoying. You need to transfer year-to-date payroll totals so W-2s are accurate at year-end. The cleanest migration point is January 1st. Mid-year is doable if you have complete YTD records from the old provider.