When should a business invest in a dedicated HR platform vs using payroll-only software?

Use payroll-only software (Gusto, Patriot, Wave Payroll) when you have simple payroll needs and fewer than 20 employees. Upgrade to a full HRIS when: you need structured onboarding/offboarding, you're managing performance reviews, PTO tracking is consuming too much manager time, or compliance documentation is becoming a risk. The tipping point for most companies is 20–30 employees or when HR becomes a dedicated role.