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Cheapest Payroll Software: The Short Answer
Payroll4Free.com is the cheapest payroll software for small businesses with 9 or fewer employees, costing $0 per month. It runs unlimited payroll runs and free direct deposit at no charge. Most other providers use a base fee plus a per-employee fee, so your bill grows with every person you hire.
That pricing model is why “cheapest” has no single answer. A solo owner filing 1099s pays far less than a team of 10 spread across two states. Multi-state payroll adds registration fees, local tax filing, and sometimes a monthly surcharge per extra state.
So the real question isn’t the sticker price. It’s the true 12-month cost. Below, we compute that number for three business profiles: one solo filer, one team of 5 W-2 employees in a single state, and one team of 10 across two states.
We fold in every line item that shows up on a real invoice: base fee, per-employee charge, year-end W-2 and 1099 form fees, multi-state surcharges, and time and attendance add-ons. Each price carries a “verified on” date so you can trust the math.
Top Cheap Payroll Software Compared: Pricing at a Glance
Payroll4Free.com is the cheapest payroll software for small businesses with 9 or fewer employees, costing $0 per month. Most other providers use the same model: a monthly base fee plus a per-employee charge. Here is how the main options stack up.
- Payroll4Free — $0 base, $0 per employee (up to 9 employees). Best for tiny teams that can run payroll by hand elsewhere. No free trial needed because it’s free.
- Wave — $0 base, $20 per employee per month. Best for solo owners and very small teams. Free trial available.
- Square Payroll — $35 base plus $5 per employee per month. Best for businesses already using Square for payments. 30-day free trial.
- Patriot Payroll — $17 base plus $4 per employee per month. Best for small teams that want full service payroll on a budget. Free trial offered.
- OnPay — $40 base plus $6 per employee per month. Best for teams mixing employees and contractors. Free trial available.
- SurePayroll — $19.99 base plus $4 per employee per month. Best for simple, single-state payroll. Free trial offered.
- Gusto — $49 base plus $6 per employee per month. Best for teams that want payroll and HR in one place. Free trial available.
- HR.my — $0 base, $0 per employee. Best for micro-businesses that only need basic payroll records. Free to use.
A few notes on reading this list. Base fees cover payroll tax filing, W-2 and forms, and free direct deposit. Per-employee fees apply to each worker every pay period, so a team of 10 costs far more than a team of 1 at the same provider. Some tools add charges for same-day direct deposit, time and attendance, or local payroll tax filing in extra states.
If you want to test before you buy, most of these offer a free trial payroll software period. Gusto, Square, and Patriot all let you run a real payroll before committing. Payroll4Free and HR.my skip the trial because there’s nothing to pay.
The table above shows sticker prices. The next sections break down what each one actually costs over a full year.
Payroll4Free.com: The Only Truly Free Option for Up to 9 Employees
Payroll4Free.com is the cheapest payroll software for small businesses with 9 or fewer employees, costing $0 per month. It charges no monthly base fee and no per-employee fee — you only pay if you want the add-ons. That makes it the best free payroll software for a micro-business that runs payroll on its own.
The catch: tax filing and direct deposit each cost $40 per month extra. So if you want Payroll4Free to handle federal and state payroll tax filing and pay workers by direct deposit, you’re looking at $80/month, not $0.
Does Payroll4Free.com include free direct deposit for employees?
No. Free direct deposit is not part of the $0 plan. You can print checks or hand out pay stubs at no cost, but paying employees via direct deposit runs $40 per month. That fee covers unlimited pay runs, so you can pay your whole team as often as you like for one flat price. If you only have a few workers, printing checks keeps your cost at zero.
How does Payroll4Free.com handle federal and state payroll tax filing?
It calculates your federal and state payroll taxes and fills out the forms, but it does not file them for you on the free plan. You download the forms and send them in yourself. Full-service payroll tax filing — where the software files and pays on your behalf — costs $40 per month. This is the biggest tradeoff: you save money, but you own the filing deadlines.
Can Payroll4Free.com manage employees and contractors in the same account?
Yes. You can run both employees and contractors in one account at no charge. The software handles W-2 and 1099 forms, new hire reporting, and year-end paperwork. Contractors don’t count toward the 9-employee limit, so you can pay an unlimited number of them.
What are the limitations of Payroll4Free.com’s ad-supported model?
The free version shows ads, which is how the company makes money. It also lacks time and attendance, an employee self-service portal, and integration with QuickBooks. There’s no free trial because there’s nothing to pay. It’s best for small business owners who want free payroll software for small business and can file taxes themselves.
Patriot Payroll: $17/Month + $4 per Employee (Basic) or $37 + $5 (Full-Service)
Patriot Payroll starts at $17/month plus $4 per employee for Basic, or $37/month plus $5 per employee for Full-Service. That base fee plus per-employee model keeps costs low for small teams, and this Patriot Payroll pricing makes it easy to see what you’ll pay. Setup is free, and you get a 30-day trial.
Does Patriot Payroll offer free direct deposit and same-day direct deposit?
Yes. Direct deposit is free on both plans, and Patriot offers same-day direct deposit for an extra fee. Standard next-day direct deposit costs nothing. Employees can also access pay stubs through an employee self-service portal.
How does Patriot Payroll handle multi-state payroll tax filing and local tax filing?
Full-Service handles federal and state payroll tax filing for you. Multi-state filing costs an extra $12/month per additional state. That covers state and local payroll taxes, so you don’t have to track local labor laws yourself. Basic leaves tax filing to you.
Can Patriot Payroll process payroll for both employees and contractors?
Yes. You can pay employees and contractors in the same account, and the software handles W-2 and 1099 forms. It also covers new hire reporting. Unlimited pay runs are included, so you can run payroll as often as you like.
What is included in Patriot Payroll’s full service payroll vs. Basic self-service?
Full-Service includes automated payroll processing, payroll tax filing, and payments and filings handled for you. Basic gives you the software but you file your own taxes. Both plans include free direct deposit, unlimited pay runs, and US-based support.
Does Patriot Payroll integrate with QuickBooks for accounting and payroll?
Yes. Patriot offers integration with QuickBooks, so your accounting and payroll data stay in sync. It also has time and attendance and time tracking tools. For small business payroll software under $40/month, that’s a strong feature set.
Square Payroll: $35/Month + $6 per Employee, with Free Multi-State Filing
Square Payroll costs $35 per month plus $6 per employee. That base fee plus per-employee model is common for small business payroll, but Square stands out because multi-state tax filing costs nothing extra. Many rivals charge $12 or more per added state. Square does not. That matters if you hire across state lines. For a clear breakdown of Square payroll pricing, the base fee plus per-employee model is easy to budget for.
Does Square Payroll include free direct deposit and next-day direct deposit?
Yes. Direct deposit is free, and Square offers next-day direct deposit. Employees get paid by direct deposit at no added cost to you. You also get unlimited pay runs, so you can pay weekly, biweekly, or on any schedule. Each run is included in the $35 base fee. For small business owners who run payroll often, that keeps costs flat.
How does Square Payroll handle federal and state payroll tax filing at no extra cost?
Square files your federal and state payroll taxes for you. It also handles local payroll tax filing where it applies. This is full service payroll: Square calculates, files, and pays your payroll tax filings every pay period. New hire reporting is included too. The $35 base fee covers all of it, with no per-state surcharge. That is a real difference from Patriot Payroll, which adds $12 per extra state.
Can Square Payroll manage employees and contractors under one plan?
Yes. The standard $35/month plan pays both employees and contractors. You can run W-2 employees and 1099 contractors from one account. Square also handles year-end W-2 and 1099 forms. The software is easy to use, with an employee self-service portal where staff access pay stubs. Time and attendance tools are built in as well.
What are the contractor-only plan fees and features in Square Payroll?
If you only pay contractors, Square charges $6 per month per contractor. There is no base fee on this plan. You get automated payroll processing and payments via direct deposit. Square files and pays contractor 1099s too. This is one of the cheapest ways to pay contractors. It fits small businesses that hire freelancers instead of employees.
OnPay: $49/Month + $6 per Employee, All-Inclusive with No Hidden Fees
OnPay starts at $49 per month plus $6 per employee, and that single price covers unlimited pay runs, payroll tax filing, multi-state payroll, and year-end W-2 and 1099 forms. There are no extra charges for those services. That makes OnPay pricing simple to predict: one base fee plus one rate per worker, whether that worker is an employee or contractor.
Does OnPay include free direct deposit and same-day direct deposit options?
Yes. OnPay includes free direct deposit for every employee, so you never pay a per-deposit fee. Standard direct deposit lands in accounts on the next business day. OnPay also offers same-day direct deposit for an added fee if you need money to arrive faster. Employees can also use the employee self-service portal to access pay stubs and update their own details.
How does OnPay handle multi-state payroll tax filing and local tax filing?
OnPay files and pays federal, state, and local payroll taxes for you at no extra cost. That includes local payroll tax accounts in cities and counties, not just state-level filings. If you hire in a new state, OnPay registers the account and tracks that state’s rules. It also handles new hire reporting. This full service payroll approach saves small business owners from chasing local labor laws by hand.
Can OnPay process payroll for employees and contractors with unlimited pay runs?
Yes. OnPay runs payroll for employees and contractors in the same account, with unlimited pay runs every pay period. You can pay W-2 staff and 1099 contractors together. At year end, OnPay files W-2 and 1099 forms for both groups. Automated payroll processing handles the math, so you avoid running payroll by hand.
What integrations does OnPay offer, such as QuickBooks and time tracking tools?
OnPay integrates with QuickBooks, so accounting and payroll data sync without double entry. It also connects to time tracking tools, which pull hours straight into each pay run. Other integrations cover HR and payroll tasks, plus payments and filings. The software is known for ease of use, which suits small business payroll. OnPay is best for small teams that want predictable pricing and strong support.
SurePayroll: $19.99/Month + $4 per Employee (No Tax Filing) or $29.99 + $5 (Full-Service)
SurePayroll starts at $19.99/month plus $4 per employee on its self-service plan, where you handle payroll tax filing yourself, or $29.99/month plus $5 per employee for full-service, where SurePayroll files federal and state taxes for you. That base fee plus per-employee structure makes SurePayroll pricing one of the lowest entry points among major providers.
Does SurePayroll offer free direct deposit and next-day direct deposit?
Yes. Direct deposit is free for employees on both plans, and SurePayroll offers next-day direct deposit once you run payroll. You can also print checks or hand out pay stubs if a worker prefers paper. There is no extra charge for the deposit itself.
How does SurePayroll’s six-month free trial compare to competitors?
Six months free is the longest trial in this comparison. Patriot Payroll gives 30 days, and most others offer 14 to 30 days. That long window lets small business owners run several real pay periods, including quarterly filings, before paying anything. It is the main reason to pick SurePayroll over a cheaper-looking rival.
What are SurePayroll’s fees for multi-state payroll tax filing?
Multi-state payroll costs $9.99/month extra. That covers local payroll taxes and local tax filing in additional states. If you only pay workers in one state, you skip this fee. Businesses with staff in several states should add it to the base price before comparing.
Can SurePayroll handle employees and contractors in the same account?
Yes. You can pay W-2 employees and 1099 contractors from one account with unlimited payroll runs. Year-end W-2 and 1099 forms are billed separately, though: $50 base plus $5 per form. That is a real cost to plan for, since full-service rivals like OnPay include forms at no extra charge.
Is SurePayroll easy to use for small business owners filing taxes themselves?
The self-service plan suits owners who want to file their own payroll taxes and save the $10/month difference. The dashboard is simple, and automated payroll processing handles the math. If tax filing feels risky, the full-service plan does it for you. SurePayroll is best for small teams that want a long free trial and a low base cost.
Wave Payroll: $20/Month + $6 per Employee (Self-Service) or $40 + $6 (Tax Filing)
Wave Payroll costs $20/month plus $6 per employee in self-service states, where you file payroll taxes yourself. In tax-service states, it costs $40/month plus $6 per employee, and Wave handles federal and state payroll tax filing for you. That makes Wave accounting payroll pricing simple: one base fee plus a per-employee charge, with no setup fees.
Wave is best for freelancers and micro-businesses that already use Wave accounting. If your books live in Wave, adding payroll keeps accounting and payroll in one login. It is also a strong pick for payroll for freelancers who hire a helper or two.
Does Wave Payroll include free direct deposit for employees?
Yes. Employees get paid by direct deposit at no extra cost, and you can run unlimited payroll runs. Workers can access pay stubs through an employee self-service portal. Wave also offers next-day direct deposit, so money lands quickly without a premium fee.
How does Wave Payroll handle payroll tax filing in tax-service states?
In tax-service states, Wave calculates, files, and pays federal and state payroll taxes for you. That covers new hire reporting and local payroll tax filing where required. In self-service states, Wave still does the math, but you file and pay the taxes yourself. Check which group your state falls into before you sign up.
Can Wave Payroll process payroll for both employees and contractors?
Yes. You can pay W-2 employees and 1099 contractors from the same account. Contractors are paid for free in most cases, so you only pay the $6 per employee fee for actual staff. Wave also handles year-end W-2 and 1099 forms.
What are the limitations of Wave Payroll’s availability in only 14 states?
Full-service tax filing only works in 14 states. Everywhere else, you are stuck with the self-service plan and must file your own payroll tax filings. That means tracking due dates, payments, and local labor laws on your own. If you operate in many states, Square Payroll or OnPay cover all 50 with filing included, which may cost less in time and penalties.
HR.my: Free for Unlimited Employees, But You File Taxes Yourself
HR.my is the cheapest payroll software for teams of any size, because it costs $0 per month for unlimited employees. There is no base fee and no per-employee charge. You get free hr and payroll software that covers payroll, attendance, and leave management in one place. The catch: HR.my does not file your payroll taxes. You handle every federal, state, and local tax filing yourself.
Does HR.my include free direct deposit for payroll payments?
No. HR.my does not move money to your employees. It calculates net pay and shows you the numbers, but you pay people yourself, by check or through your own bank. So there is no free direct deposit and no same-day direct deposit here. If you want payments sent via direct deposit automatically, you need a paid tool like Patriot Payroll or Square Payroll.
How does HR.my handle time and attendance tracking for employees?
HR.my tracks time and attendance for free, with no cap on headcount. Employees clock in and out through the employee self-service portal, and the hours flow into your payroll runs. You can also manage leave requests and balances in the same system. For small business owners who track hours by hand, this alone can save real time each pay period.
Can HR.my manage payroll for both employees and contractors?
Yes. HR.my handles employees and contractors in one account, and it supports unlimited payroll runs. It also stores W-2 and 1099 data so you can print year-end forms. What it will not do is send those forms to the IRS or Social Security. You file them. That makes HR.my best for very small businesses that are comfortable handling tax filings manually, or that already pay an accountant to do it.
The True Annual Cost: 1, 5, and 10 Employees Compared
Every provider on this list charges a monthly base fee plus a per-employee fee, so the sticker price you see is never the full story. Add year-end form fees and multi-state surcharges, and the cheapest option can change with each scenario.
How do base fees and per-employee fees add up over 12 months for each provider?
Multiply the base fee by 12, then add the per-employee fee times your headcount times 12. Patriot Payroll Basic runs $204 per year in base fees plus $48 per employee per year. Square Payroll is $420 per year plus $72 per employee. OnPay is $588 per year plus $72 per employee. SurePayroll’s self-service plan is about $240 per year plus $48 per employee. Wave Payroll is $240 per year plus $72 per employee. Payroll4Free.com and HR.my charge $0 in base and per-employee fees.
What is the annual cost for a solo business owner or 1099-only contractor?
A solo owner with no W-2 employees pays almost nothing at most providers. Square Payroll’s contractor-only plan is $6 per contractor per month, or $72 per year. Payroll4Free.com and HR.my cost $0. Patriot Payroll charges $17 per month even with zero employees, or $204 per year. If you only pay yourself and file a Schedule C, you don’t need payroll software at all.
How much does payroll software cost for 5 W-2 employees in one state?
For 5 employees in one state, Patriot Payroll Basic costs $444 per year ($204 base + $240). SurePayroll self-service costs about $480. Square Payroll costs $840. Wave Payroll costs $600. OnPay costs $1,020. Payroll4Free.com costs $0 for processing, but adding tax filing and direct deposit brings it to $480 per year. Patriot Payroll is the cheapest paid option that still files nothing for you at the Basic tier.
What is the true annual cost for 10 employees across two states?
This is where multi-state surcharges bite. Patriot Payroll adds $12 per month per extra state, so two states cost $144 more per year: $204 base + $480 employee fees + $144 = $828. SurePayroll adds $9.99 per month, or about $120 per year: $240 + $480 + $120 = $840. Square Payroll and OnPay charge no multi-state surcharge, so they stay at $1,140 and $1,308. Payroll4Free.com stays at $480 with tax filing, making it the cheapest if you can live with its limits.
Which provider is cheapest for micro-businesses with 1 employee?
Payroll4Free.com and HR.my tie at $0 per year for processing. If you want tax filing handled for you, Patriot Payroll Basic is cheapest at $252 per year ($204 base + $48). Square Payroll is $492, SurePayroll is about $288, and Wave Payroll is $312. For one employee, the gap between free and paid is small enough that full-service tax filing is often worth the extra cost.
How do year-end W-2 and 1099 form fees impact the total annual cost?
Most providers charge extra for year-end forms. SurePayroll bills $50 base plus $5 per form, so 10 employees adds $100. Patriot Payroll charges similar per-form fees. Square Payroll and OnPay include W-2 and 1099 filing at no extra cost, which can save $100 or more per year. Payroll4Free.com and HR.my store form data but don’t file it, so you print and mail forms yourself.
What multi-state surcharges apply to Patriot, SurePayroll, and others?
Patriot Payroll charges $12 per month for each additional state. SurePayroll charges $9.99 per month per extra state. Square Payroll and OnPay include multi-state filing free. Wave Payroll only operates in 14 states for full-service, so multi-state isn’t an option there. If you hire in two or more states, the surcharge alone can erase Patriot’s and SurePayroll’s price advantage over Square and OnPay.
What Is the Best Free Payroll Software?
Payroll4Free.com is the best free payroll software for small businesses with 9 or fewer employees, costing $0 per month for unlimited pay runs. That price comes with one catch: it does not file your payroll taxes. You calculate and file federal and state taxes yourself.
HR.my is the other real free option. It costs $0 for unlimited employees and adds time and attendance tracking, but it also skips payroll tax filing. If you want free payroll software with direct deposit, both tools handle it — Payroll4Free.com includes free direct deposit for employees, and HR.my pays workers via direct deposit too.
So can you run payroll for free? Yes, if you’re willing to handle tax compliance on your own. Truly free full-service payroll doesn’t exist, because filing payroll taxes, handling local payroll tax rules, and sending payments and filings to agencies all cost real money. Someone has to pay for that work, and free tools push it onto you.
The trade-off is time and risk. Free software saves you the monthly base fee plus per-employee fees, but you’re responsible for every pay period’s tax deposits, quarterly forms, and new hire reporting. Miss a deadline and penalties can cost more than a year of paid software. For a solo owner or a business with one or two employees in one state, that trade can be worth it. For a growing team, a paid plan like Patriot Payroll or Square Payroll usually costs less than the mistakes.
Can I Run Payroll for Free?
Yes, you can run payroll for free with Payroll4Free.com or HR.my, but you’ll calculate and send payroll taxes yourself. Neither tool files a single federal or state form for you. That’s the catch behind every free option.
Payroll4Free.com costs $0 per month for up to 9 employees. HR.my costs $0 for unlimited employees. Both handle the math: gross pay, net pay, and free direct deposit via direct deposit. Both let you run unlimited pay runs every pay period. Both give employees an employee self-service portal to access pay stubs. What neither does is payroll tax filing.
That means you handle federal and state payroll tax deposits, quarterly forms, local payroll tax rules, and new hire reporting on your own. You can do it by hand or pay a tax pro. Either way, the work lands on you, every pay period, in every state where you have workers.
The risk is real. IRS penalties for late deposits start at 2% of the unpaid tax, and they climb the longer you wait. State penalties stack on top. One missed quarterly filing can cost more than a year of paid software. So free payroll works best for a solo owner or a one-employee business in a single state who is comfortable with payroll and tax rules. If you have several employees, or workers in more than one state, a paid plan is usually the cheaper path once you count the risk.
How Much Does ADP Payroll Cost a Month?
ADP Run starts at around $79 per month plus $4 per employee for its Essential plan, making ADP one of the pricier options on this list. That base fee is more than four times Patriot Payroll’s $17 starting price, and ADP’s exact adp payroll cost depends on your quote.
That last point matters. ADP does not publish full adp run pricing online. You have to call a sales rep, answer questions about your headcount, states, and services, and wait for a custom quote. The $79 figure is just the entry point for the simplest setup. Add features like time and attendance, HR tools, or 401(k) administration, and the monthly bill climbs fast. Because pricing is quote-based, two businesses with the same number of employees can pay very different rates.
For a small team, the gap adds up. A 5-employee business might pay ADP roughly $99 per month before add-ons, while Patriot Payroll’s full-service plan covers the same team for about $62. Square Payroll handles 5 employees for $65 with tax filing included. ADP counters with scale: it supports large workforces, multi-state and local payroll tax filing, and 24/7 customer support.
So if you want the cheapest payroll software, ADP is not it. It fits growing companies that need payroll and HR in one system and don’t mind paying for depth. If cost is your main concern, Patriot Payroll or Square Payroll will stretch your budget further.
Can ChatGPT Do Payroll?
No, ChatGPT cannot run payroll. It can help you draft a job description or explain how Social Security taxes work, but it cannot calculate payroll taxes, file federal and state forms, or send money to employees via direct deposit. Payroll needs specialized software that connects directly to tax agencies and banks.
The gap comes down to what ChatGPT actually is. It’s a text tool. It has no bank account, no tax ID, and no way to submit a payroll tax filing on your behalf. It also can’t store sensitive data like Social Security numbers securely, which every real payroll system must do. Ask it to process a pay run and it will write you a nice paragraph about one instead.
So what is it good for? ChatGPT can answer basic payroll questions, help you write a payroll policy, or explain terms like new hire reporting or local payroll taxes. For anything that touches money or compliance, you still need real software. Options like Payroll4Free.com, Patriot Payroll, or Square Payroll handle automated payroll processing, same-day direct deposit, and year-end W-2 and forms. Use ChatGPT for the words, and payroll software for the payments and filings.
How to Choose the Cheapest Payroll Software for Your Business
The cheapest payroll software is the one with the lowest total annual cost, not the lowest sticker price. A $0 plan that charges $50 per W-2 form and $12 per extra state can cost more than a $49 all-inclusive plan by December. Add up base fees, per-employee fees, tax filing, and forms before you decide.
How important is price transparency when comparing payroll software?
Price transparency means you can see every fee before you sign up. Patriot Payroll and Square Payroll publish their rates online. ADP Run does not — its pricing is quote-based, so you have to call for a number. When a provider hides prices, budget surprises follow. Ask for the full fee list in writing.
Should you choose self-service or full-service payroll tax filing?
Self-service means you file federal and state payroll taxes yourself. Full-service means the software handles payments and filings for you. Self-service saves money each month, but one late deposit can trigger an IRS penalty of 2% or more. If you are comfortable with payroll tax filings, self-service works. If not, pay the extra for full service payroll.
How do multi-state surcharges affect the total cost of payroll software?
Each extra state usually adds a monthly fee. Patriot Payroll charges $12 per additional state, and SurePayroll charges $9.99. Square Payroll includes multi-state filing at no extra cost. If you hire in a second state, run the math for 12 months — a small surcharge can add $120 or more per year.
What year-end form fees should you watch out for?
Some providers charge separately for W-2 and 1099 forms. SurePayroll bills $50 plus $5 per form. OnPay and Square Payroll include year-end forms in their plans. For 10 employees, that difference alone can reach $100. Always check whether W-2 and forms are bundled or billed à la carte.
How does ease of use impact the true cost of payroll software?
Clunky software costs you time, and time is money. Easy to use tools let small business owners run payroll in minutes, not hours. Look for automated payroll processing, an employee self-service portal where staff access pay stubs, and unlimited pay runs. If payroll by hand takes you two hours every pay period, that is real money lost.
What customer support options are available with cheap payroll software?
Cheap does not have to mean no help. Patriot Payroll offers US-based phone and email support. OnPay includes support with its flat fee. Others limit you to chat or knowledge-base articles. Check support hours and whether tax questions get answered by a real person before you commit.
How do scalability and integrations factor into your decision?
Think about next year, not just today. Will the software still fit when you reach 10 employees or add contractors? Check integrations too — QuickBooks integration with QuickBooks keeps your accounting and payroll in sync. A cheap plan you outgrow in six months is not cheap at all.
Frequently Asked Questions
The cheapest payroll software overall is Payroll4Free.com at $0 per month for up to 9 employees, though you’ll pay $40 per month extra if you want them to handle tax filing and direct deposit. Most other providers use a base fee plus a per-employee charge, so your real cost depends on how many people you pay.
Can you really run payroll for free? Yes, but only if you’re willing to handle the tax side yourself. Payroll4Free.com and HR.my both let you process unlimited pay runs at no cost. Neither one files your federal and state payroll tax forms. You calculate what you owe, you send the payments, and you file the returns. If that sounds fine, free is genuinely free. If you’d rather not touch it, budget for a paid plan.
What about DIY payroll — doing it by hand or in a spreadsheet? It works for a solo owner with no employees. Once you add even one W-2 employee, you’re dealing with withholding tables, Social Security and Medicare matching, unemployment insurance, and local payroll taxes that vary by city and county. One missed deposit can trigger IRS penalties that start at 2% of the unpaid amount and climb from there. For most small business owners, the few dollars a month for software is cheaper than one mistake.
How much does ADP cost? ADP Run starts around $79 per month plus $4 per employee, but ADP doesn’t publish full pricing. You have to request a quote, and the final number depends on your headcount, states, and services. It’s a solid product with 24/7 support, but it is not the cheapest payroll software for a small team. Patriot Payroll at $17 per month plus $4 per employee does the core job for far less.
Can ChatGPT do payroll? No. It can explain how payroll works or help you draft a policy, but it cannot calculate withholding, file forms, or send direct deposits. Payroll software connects to tax agencies and banks. A chatbot does not.
Which free option is better, Payroll4Free.com or HR.my? Payroll4Free.com caps you at 9 employees and shows ads. HR.my has no employee limit and adds time and attendance tracking, but its interface is less polished and support is thin. Both leave tax filing to you.
What should you check before picking the cheapest plan? Add up the base fee, the per-employee fee, year-end W-2 and 1099 charges, and any multi-state surcharge. A plan that looks cheap at $20 per month can cost more than a flat-rate competitor once you factor in $50 base plus $5 per form at year end. Run your own numbers for your headcount and states before you commit.
