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What is the cheapest payroll software for small business?
Patriot Payroll starts at $8.50 per month plus $2 per employee, making it the cheapest full-service payroll software for most small businesses. That price covers unlimited pay runs, direct deposit, and payroll tax filing. For a solo owner, the total is just $10.50 a month.
Cheap does not always mean limited. Patriot handles federal and state tax calculations, files your payroll taxes, and runs direct deposit for every pay period. You give up some extras at this price, like same-day direct deposit and built-in time tracking. Those cost more elsewhere.
If free matters more than full service, free payroll software exists. Gusto and Square both offer free self-service plans where you run payroll yourself and handle your own tax filings. Wave Payroll is free in some states, but you pay for tax filing in others. These plans work well for very small teams with simple payroll.
Contractor-only businesses have their own cheap path. Roll by ADP and similar tools charge per contractor, not per month, so a team of 1099 workers can cost less than any full-service plan. For 5 or 10 employees, though, Patriot usually wins on total monthly cost.
The right pick depends on your setup. Solo owners, small teams, and contractor-heavy businesses each have a different cheapest option.
Cheapest payroll software compared: pricing at a glance
Patriot Payroll starts at $8.50 per month plus $2 per employee. For most small businesses, it is the cheapest full-service payroll software. The base fee covers unlimited pay runs, direct deposit, and federal and state tax filing.
Gusto’s full-service plan costs $40 per month plus $6 per employee. You pay more. But you get automated tax filing, new hire reporting, and HR tools in one place.
Square Payroll charges $35 per month plus $5 per employee. It fits best for Square POS users who want payroll and time tracking together.
QuickBooks Payroll starts around $45 per month plus $6 per employee. It works well if you already run payroll and accounting in QuickBooks.
| Software | Base fee/month | Per employee | Tax filing included | Best for |
|---|---|---|---|---|
| Patriot Payroll | $8.50 | $2 | Yes | Cheapest full-service payroll |
| Wave Payroll | $10.50 | $2 | In some states | Very small teams |
| Square Payroll | $35 | $5 | Yes | Square POS users |
| Gusto | $40 | $6 | Yes | HR and benefits |
| QuickBooks Payroll | $45 | $6 | Yes | Payroll and accounting together |
At these prices, the cheapest option is not always the best fit. A business with 10 employees pays about $28.50 per month with Patriot. The same business pays $100 with Gusto.
1. Patriot Payroll — Cheapest starting price at $8.50/month + $2 per employee
Patriot Payroll starts at $8.50 per month plus $2 per employee, making it the cheapest full-service payroll software for most small businesses. For a team of five, that’s just $18.50 per month. For a closer look at the platform, see our full Patriot Payroll review.
Patriot Payroll pricing: Basic vs Full Service
The Basic plan runs $8.50 per month. You get unlimited pay runs, direct deposit, and free employee and contractor payments.
Full Service costs $17 per month. It adds payroll tax filing and automated tax payments. That’s still less than most rivals charge for the same thing.
What you give up at $8.50/month
You file your own federal and state payroll taxes on Basic. Patriot calculates them for you, but you handle the paperwork.
You also skip new hire reporting and year-end W-2 filing. Full Service covers those.
Does Patriot Payroll include new hire reporting?
Yes, but only on Full Service. Basic users must report new hires themselves.
How does Patriot Payroll handle multi-state tax filing?
Full Service handles filings across multiple states. Basic does not file anything, so multi-state teams should upgrade.
At $17 per month, Full Service is still one of the cheapest ways to get tax filing included.
2. Square Payroll — Cheapest full-service payroll at $35/month + $6 per employee
Square Payroll costs $35 per month plus $6 per employee. That makes it the cheapest full-service payroll that files your taxes for you. In our Square Payroll review, that price point is the headline.
You get automated tax filing, unlimited pay runs, and direct deposit. Square files federal and state forms every pay period.
Square Payroll pricing and contractor-only plan
Square charges $6 per person each month. A team of five runs about $65 per month.
Contractors cost less. The contractor-only plan is $6 per contractor per month, with no base fee. You only pay when you pay someone.
Square Payroll limitations for non-Square users
You don’t need Square POS to use Square Payroll. But the software works best with it.
Without Square, you lose time tracking and scheduling. You also can’t sync sales data to payroll. You still get tax filing and direct deposit.
Square’s HR tools are thin. Gusto offers more HR and benefits support for a bit more money.
Square Payroll for Square POS users: integration benefits
If you already run Square POS, this is the best payroll service for you. Hours flow from Square time tracking straight into payroll. No spreadsheets.
Square also handles new hire onboarding and local tax filing. For Square sellers, it’s hard to beat at this price.
3. Payroll4Free.com — Best free payroll software with limits
Payroll4Free.com is the best free payroll software for small business owners with up to 9 employees. It costs $0 per month. You get unlimited payroll runs and free payroll direct deposit at no charge.
What Payroll4Free.com includes for free
You can pay employees and contractors by direct deposit or paper check. There are unlimited pay runs, so you can run payroll every pay period without extra fees. The software handles payroll tax calculations and prints W-2s and 1099s. It also supports new hire reporting.
Paid add-ons: tax filing and direct deposit
Free payroll direct deposit is included, but same-day direct deposit costs extra. So does automated tax filing. You pay a setup fee plus a monthly fee per tax filing. You can also add workers’ comp and time and attendance for a fee.
Payroll4Free.com payroll tax calculations and filings
The software calculates federal and state taxes for free. But it does not file them for you unless you pay. That means you’re still on the hook for payroll tax filing deadlines. If you want tax filing included, a paid plan like Patriot Payroll’s Full Service is simpler.
So: is it cheaper to do your own payroll? Yes, and Payroll4Free.com is how you do it for free.
4. OnPay — Cheapest transparent all-in-one at $40/month + $6 per employee
OnPay costs $40 per month plus $6 per employee, and it’s the cheapest all-in-one payroll service with no hidden fees. That base fee covers full-service payroll including tax filing.
OnPay pricing and what’s included
One flat price covers payroll tax calculations, filings, and payments. Federal, state, and local tax filing are all included.
There are no setup fees and no extra charges for W-2s or 1099s. That makes OnPay pricing easy to predict each month.
This OnPay review found the same thing: what you see is what you pay.
OnPay vs. Patriot: cost vs. features
Patriot Payroll starts lower at $8.50 per month. But its cheap plan leaves tax filing out.
Add Full Service to Patriot and the price climbs near OnPay’s. OnPay also files taxes across multiple states at no extra cost.
So Patriot wins on price. OnPay wins on features per dollar.
OnPay unlimited pay runs and every pay period flexibility
OnPay gives you unlimited pay runs. Run payroll weekly, biweekly, or monthly at no extra charge.
It handles employees and contractors in one place. Direct deposit is included, and new hire reporting is automatic.
For small business owners who want payroll and HR in one tool, OnPay is the cheapest way to get it.
5. Gusto — Cheapest for payroll, HR, and contractor support at $49/month + $6 per employee
Gusto’s Simple plan costs $49 per month plus $6 per employee. That makes it the cheapest payroll software that also handles HR tools and contractor payments in one place. For a full breakdown, see our Gusto payroll review.
Gusto pricing and contractor-only plan
Gusto pricing has three tiers. Simple is $49 monthly plus $6 per person. Plus is $80 monthly plus $12 per person. Premium is custom-priced.
The contractor-only plan costs $35 monthly. You pay nothing per contractor. It covers 1099 workers only, not employees.
When Gusto is worth the extra cost
You give up low pricing at Gusto. Patriot and OnPay both start cheaper.
But Gusto bundles HR and benefits, hiring, and onboarding. It runs unlimited payroll runs and handles payroll tax filing in all 50 states.
Gusto contractor payments are simple too. Pay contractors by direct deposit or check, and Gusto files their 1099s.
Gusto contractor-only plan: pricing and features
For $35 monthly, the contractor-only plan sends unlimited contractor payments. It handles W-9 collection and year-end 1099 filing.
No employees allowed. If you hire W-2 staff, you must upgrade to Simple.
6. SurePayroll — Cheapest budget payroll with traditional support at $19.99/month + $4 per employee
SurePayroll starts at $19.99 per month plus $4 per employee. That makes it the cheapest payroll service with real phone support and no tax filing. You run payroll, and you handle the taxes.
SurePayroll pricing: with and without tax filing
The no-tax-filing plan is $19.99 monthly plus $4 per employee. The full-service plan costs more and adds automated tax filing. It also covers federal and state payments. Check current surepayroll pricing before you pick a plan.
SurePayroll free trial and add-on costs
You get a 6-month free trial. That is a long test window for a small business payroll tool. Add-ons cost extra. These include same-day direct deposit and time and attendance.
SurePayroll unlimited pay runs and pay frequency
Both plans include unlimited payroll runs. You can pay weekly, biweekly, or monthly. It also runs direct deposit for employees and contractors.
7. Roll by ADP — Cheapest mobile payroll at $39/month + $5 per employee
Roll by ADP starts at $39 per month plus $5 per employee, making it the cheapest mobile-first payroll app for small business owners who run payroll from a phone.
Roll by ADP pricing and mobile features
Roll by ADP pricing covers full-service payroll including automated tax filing. You get unlimited pay runs, so every pay period is covered at no extra cost. The ADP mobile payroll app handles payroll and tax tasks in a chat. You type plain questions, and the AI answers them.
Roll by ADP limitations for complex payroll
This tool is built for simple payroll. It handles employees and contractors, but it lacks deep HR and benefits tools. It also skips time and attendance and scheduling time tracking. Businesses that need human capital management features should look elsewhere.
Roll by ADP same-day direct deposit and deposit time tracking
Roll by ADP runs direct deposit, and same-day direct deposit is available. Deposit time tracking shows you exactly when workers get paid. Payroll tax calculations and filings happen on ADP’s side, so you never file federal and state forms yourself.
How much does payroll software cost for 1, 5, and 10 employees?
Patriot Payroll starts at $8.50/month plus $2 per employee. That makes it the cheapest full-service payroll software for most small businesses. Here is what you actually pay each month at three common sizes.
Cost for 1 employee: Patriot vs Square vs OnPay
Patriot Basic costs $10.50 total. That is $8.50 plus $2 for one worker. Square Payroll costs $41. That is $35 plus $6. OnPay costs $46. That is $40 plus $6. Patriot wins on price. Square and OnPay include payroll tax filing. Patriot Basic does not.
Cost for 5 employees: full-service vs self-service
Patriot Basic costs $18.50. Patriot Full Service costs $28.50. Square costs $65. OnPay costs $70. Gusto costs $79. SurePayroll costs $39.99 without tax filing. With tax filing it costs more. The gap between self-service and full-service payroll is about $10 to $20 a month at this size.
Cost for 10 employees: when cheap plans get expensive
Patriot Basic costs $28.50. Patriot Full Service costs $38.50. Square costs $95. OnPay costs $100. Gusto costs $109. Per-employee fees now drive most of the bill. A $2 per-employee fee saves $40 a month versus a $6 fee. That adds up to $480 a year.
Cost for 1 contractor: Square vs Gusto vs Payroll4Free
Square charges $6 per contractor per month. Gusto charges $6 per contractor per month. Payroll4Free.com is free for up to 9 employees or contractors. For one contractor, Payroll4Free.com costs $0. Square and Gusto both run direct deposit and handle contractor tax forms.
What hidden fees should you watch for with cheap payroll software?
Patriot Payroll’s $8.50 base plan has no setup fee, but many cheap providers charge $25 to $200 just to get started. That fee hits before you run a single paycheck.
Setup and implementation fees
Some providers waive setup if you import your own data. Others charge for it.
Ask before you sign up. A low monthly price means little if month one costs $150.
Year-end W-2 and 1099 fees
This is the most common surprise. Several budget plans print W-2s and 1099s for an extra $2 to $5 per form.
For 10 employees, that is $20 to $50 each January. Some plans include these forms. Check yours.
Multi-state and local tax filing fees
Filing in one state is often included. Each extra state can cost $5 to $15 more per month.
Local tax filing, like city or school district taxes, sometimes costs extra too. If you hire across multiple states, add this up first.
Faster direct deposit is another add-on. Same-day direct deposit often costs $2 to $5 per pay run. Contractor payments can carry their own per-person fee.
Is it cheaper to do your own payroll?
Doing payroll yourself is cheaper only if your time is free. Manual payroll costs $0 in software fees. But it eats 2 to 5 hours every pay period.
DIY payroll costs: software vs manual
Manual payroll means hand-building payroll tax calculations. You track hours, figure withholding, and write checks or send payments yourself.
Cheap payroll software starts at $8.50 to $40 per month. It runs direct deposit, handles tax calculations filings, and covers federal and state forms. At $40 per month, that is about $1.33 per day.
Your time is the real cost. Ten hours a month at $25 per hour is $250. That is far more than any plan on this list.
Penalties for payroll tax mistakes
Late deposits trigger IRS payroll penalties. The IRS charges 2% to 15% of the unpaid tax, based on how late you pay. The penalty grows the longer you wait.
You also owe interest on top. A single missed deposit on a $5,000 payroll can cost $100 to $750.
Manual payroll invites these errors. Software with automated tax filing sends deposits on time, every pay period. For most small business owners, that alone pays for the subscription.
Full-service vs self-service payroll: which is cheaper?
Self-service payroll is cheaper upfront. Full-service payroll costs more but files your taxes for you. The gap is real: you save money, but you take on the work.
Self-service payroll: lower upfront cost, more work
With self-service, you run payroll yourself. You enter hours, approve pay, and handle payroll tax calculations and filings on your own. Patriot Basic is the classic example at $8.50 per month plus $2 per employee. It runs direct deposit and handles employees and contractors. But you file federal and state taxes yourself. That is where the savings stop.
Full-service payroll: higher cost, tax filing included
Full-service plans handle automated tax filing, new hire reporting, and year-end W-2s. Square Payroll starts at $35 per month plus $6 per employee with tax filing included. OnPay and Gusto sit just above that. You pay more each month, but you skip the manual tax work and the IRS penalty risk. For a payroll service comparison, this is the main tradeoff: cost versus time.
Mix-and-match options to save money
You do not have to pick one extreme. Patriot Full Service adds tax filing to the cheap base plan. SurePayroll offers a no-tax-filing tier and a full-service tier. Payroll4Free.com is free for up to 9 employees, with paid add-ons for tax filing and direct deposit. That middle ground is often the cheapest payroll service for small business owners who want low cost without doing every filing by hand.
How to choose the right cheap payroll service
Start with your employee count, because that number decides which plan is actually cheap. A $40 base fee hurts a one-person shop. Split across ten workers, it barely shows up.
Business size and number of employees
One or two employees? Patriot Payroll at $8.50/month plus $2 per employee is hard to beat.
Five to ten employees? Compare total cost, not base price. A low base fee with a high per-employee charge can cost more than a higher base with cheaper workers.
Growing past ten? Check scalability first. Some cheap plans add fees as you hire. Others, like OnPay, keep pricing flat and simple.
Contractors are different from W-2 staff. Gusto and Square Payroll both offer contractor-only plans, so you never pay full employee rates for a 1099 worker.
Pay frequency and unlimited pay runs
Weekly pay means 52 runs a year. Some providers charge per run. That adds up fast.
Look for unlimited payroll runs. Patriot, OnPay, Gusto, and SurePayroll all include them. You can pay weekly, biweekly, or monthly without extra charges.
If you run payroll every pay period without thinking about cost, you picked the right plan.
Accounting and time tracking integrations
Check what your books already use. QuickBooks Payroll fits QuickBooks users. Square Payroll fits Square POS users. Wave Payroll fits Wave.
Time tracking matters too. OnPay and Gusto both connect time and attendance tools, so hours flow straight into payroll. That kills manual data entry and the mistakes that come with it.
Support quality is the last check. Cheap plans often mean email-only help. If you file federal and state taxes yourself, ask how fast you can reach a human when something breaks.
Frequently asked questions about cheap payroll software
What is the best free payroll software?
Payroll4Free.com is the best free payroll software for very small teams. It costs $0 for up to 9 employees and handles payroll tax calculations. You pay extra for tax filing and direct deposit. Wave Payroll also has a free tier, but only in some states.
How much does ADP payroll cost per month?
ADP doesn’t post standard prices. Roll by ADP starts at $39/month plus $5 per employee. Full ADP Payroll costs more and usually needs a custom quote. For the cheapest payroll for small business, Roll by ADP is the budget pick.
Is it cheaper to do your own payroll?
Not always. DIY saves the software fee but costs you hours every pay period. One missed deposit or late tax payment can trigger IRS penalties worth more than a year of software. Cheap payroll software often wins once you count your time.
How can I do my own payroll for free?
Use free payroll software like Payroll4Free.com or Wave. You run pay runs and print checks or send direct deposit yourself. You also file federal and state taxes on your own. That’s the trade: no monthly fee, more of your time.
What is the cheapest payroll service with tax filing included?
Square Payroll is the cheapest full-service plan with tax filing included, at $35/month plus $6 per employee. Patriot Payroll’s Full Service plan is close behind at $17 more per month. Both handle automated tax filing and new hire reporting.
