Cheapest Payroll Services for Small Business (2026)
We priced ten payroll services from their own pricing pages and worked out what each one really costs at 1, 5, 10 and 20 employees.
Updated October 26, 2026
15 min read
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The cheapest payroll service depends on how many people you pay. Base fees run from $29 to $50 a month and per-person fees from $5 to $8, so a plan that is cheapest for one employee can be among the dearest at twenty. Free months, year-end charges and local-tax gaps move the order again. We priced every plan the same way so you can see the real number for your team.
The short answer
Cheapest full-service payroll for most teams:Patriot Software, $37/mo + $5 per employee ($62 a month for five people).
Cheapest first year:Roll by ADP with 3 free months, or Homebase if you have five or fewer people and set up by December 15, 2026.
Cheapest for one employee:SurePayroll, Square and Patriot, all about $41–$42 a month with taxes filed.
Cheapest if you file taxes yourself: Patriot Basic, $17/mo + $4 per employee.
Cheapest for contractors only:Square Payroll, $6 per contractor paid and no base fee.
What You'll Actually Pay Each Month
Payroll services charge a monthly base fee plus a fee for each person you pay. Here is the full-service monthly cost (taxes filed for you) at four team sizes, sorted by the five-employee price.
List prices on each provider's pricing page, October 26, 2026. Lowest cost in each column in bold. SurePayroll includes its year-end fee ($50 + $5 per W-2) spread across 12 months. Homebase payroll sits on a Homebase plan; the free Basic plan covers up to 10 employees at one location, so the 20-employee figure adds the $30 Essentials plan. ADP RUN and Paychex are left out because they only quote prices.
Patriot Software has the lowest full-service price in our table once you have more than a couple of employees. Full Service Payroll is $37 a month plus $5 per worker paid, and Patriot deposits and files your federal, state and most local payroll taxes. If you are comfortable filing taxes yourself, Basic Payroll costs $17 a month plus $4 per worker, the cheapest do-it-yourself plan we found. The per-worker fee is charged once a month however many payrolls you run, so weekly, biweekly and off-cycle runs cost nothing extra.
Full Service
$37/mo + $5/ee
Basic (DIY)
$17/mo + $4/ee
Free Trial
30 days
Key Features
Unlimited payroll runs, including off-cycle
Free direct deposit (4-day, or 2-day if you qualify)
Full Service files federal, state and most local taxes
W-2 and 1099 filing included in Full Service
Per-worker fee charged once a month, not per run
Free setup help from Patriot's team
Time and attendance add-on: $6/mo + $2 per employee
Pros
Lowest full-service cost at 5, 10 and 20 employees in our table
Cheapest do-it-yourself plan we found
No per-run or direct deposit fees
Simple, quick payroll runs
Cons
HR tools cost extra
Fewer benefits and HR features than Gusto or OnPay
Basic plan leaves deposits and filings to you
Why We Picked It
At five employees Patriot Full Service costs $62 a month, the lowest of the ten full-service plans we priced, and it stays lowest at 10 and 20 employees. It also has the cheapest way to run payroll yourself, so you can start on Basic and move to Full Service when you would rather not file taxes.
Roll by ADP is ADP's app-based payroll for small businesses. It costs $39 a month plus $5 for each employee or contractor paid that month, and new customers currently get the first three months free. Over a first year that makes it the cheapest full-service option for most small teams. You run payroll through a chat-style mobile app, and Roll calculates, pays and files federal, state and local payroll taxes, plus W-2s and 1099-NECs.
Starting Price
$39/mo + $5/ee
Free Months
3 (new clients)
Contract
None
Key Features
Unlimited payroll runs
Next-day direct deposit if you submit by 7 p.m. ET
Federal, state and local tax filing in all 50 states
W-2 and 1099-NEC filing
Chat-based mobile app
Pays employees and contractors
Free 30-minute tax consultation with 1-800Accountant
Pros
Three free months cut first-year cost
Backed by ADP's payroll tax operation
Per-person fee only for people paid that month
Fast deposits at no extra cost
Cons
The free months are a limited-time offer, and you lose any left if you cancel
Same-day deposit costs extra per transaction
Fees must be paid by direct debit
Cancelling takes 30 days' notice
Why We Picked It
Roll's list price sits a few dollars above Patriot's, but the three free months bring its first-year cost for a three-person team to $486. That is lower than every plan we priced except Homebase's limited small-team offer.
Cheapest for One or Two Employees and for Contractors Only
Square Payroll is $35 a month plus $6 per person paid, one of the three lowest full-service prices for a single employee. If you only pay contractors, its contractor-only plan has no base fee at all: you pay $6 for each contractor paid that month. The full-service plan pays and files federal and state payroll taxes, including state unemployment, and handles new-hire reporting in all 50 states and DC.
Full Service
$35/mo + $6/ee
Contractors Only
$6/person
Contract
None
Key Features
Unlimited payroll runs, including off-cycle
Federal and state tax filing, including state unemployment
New-hire reporting
Contractor-only plan with no base fee
Instant deposit to Cash App
Free seasonal inactivity
Digital W-2s and 1099s included
Pros
Cheapest way to pay contractors only
Low cost for one to three employees
No contract
Fits naturally if you already take payments with Square
Cons
Standard direct deposit takes 4 days unless you are approved for faster
Mailed paper W-2s cost $3 each
Contractor-only plan does not file taxes
Cannot handle one employee working across several tax jurisdictions
Why We Picked It
For one employee Square costs $41 a month, within a dollar of the cheapest plan we priced, and its contractor-only plan is the lowest-cost way we found to pay 1099 workers.
SurePayroll, owned by Paychex, has the lowest base fee of any full-service plan we priced: $29 a month plus $7 per employee. Its No Tax Filing plan is $20 a month plus $4 per employee if you file taxes yourself. The catch is year-end: W-2 and 1099 processing is billed once a year at $50 plus $5 per form, so the real cost climbs as your team grows. SurePayroll was also testing a higher price for some visitors when we checked, so confirm the price you are shown.
Full Service
$29/mo + $7/ee
No Tax Filing
$20/mo + $4/ee
Year-End Forms
$50 + $5/form
Key Features
Unlimited payroll runs, no charge for off-cycle
Free 2-day direct deposit
Federal and state tax filing on Full Service
First state included; each extra state $9.99/mo
Free onboarding
Accounting software integration ($4.99/mo)
Pros
Lowest base fee we found
Fast free direct deposit
A cheap no-filing plan if you want to file yourself
Paychex behind it
Cons
Year-end fee adds $55 or more a year
Extra fees for more states and local tax areas
Per-employee fee is higher than most
Prices may differ by visitor
Why We Picked It
For a single employee SurePayroll is the cheapest full-service plan even after its year-end fee, at about $41 a month. With more than a few employees the $7 per-person fee and per-form charges push it behind Patriot, Roll and Square.
Cheapest for Small Hourly Teams (Limited-Time Offer)
Homebase is a scheduling and time-clock app with payroll built in. Payroll is $49 a month plus $6 per employee paid, on top of a Homebase plan; the free Basic plan covers one location and up to 10 employees. Right now Homebase has an offer for teams of five or fewer, owner included: six months of payroll free, then $29 plus $6 per employee instead of $49. To qualify you need to finish payroll setup by December 15, 2026 and run your first payroll by January 20, 2027. If you later pay more than five people, standard pricing applies.
Payroll Price
$49/mo + $6/ee
Small-Team Offer
$29/mo + $6/ee
Free Trial
14 days
Key Features
Scheduling, time clock and payroll in one app
Federal, state and supported local tax filing
W-2s, 1099s and amendments included
Unlimited payroll runs
Payroll in all 50 states and DC
Free setup and data transfer
Free Basic plan: 1 location, up to 10 employees
Pros
Lowest first-year cost we found for teams of five or fewer
Good fit for shift-based and hourly teams
No card needed for the trial
Free scheduling plan to start
Cons
The offer has deadlines and an employee cap
Some local taxes and forms are not supported
Standard price is no cheaper than Gusto or OnPay
Bigger teams need a paid Homebase plan
Why We Picked It
If you have five or fewer people and can set up before mid-December, six free months and a $29 base fee make Homebase the cheapest first year on this list: $282 for a three-person team.
Wave Payroll costs $40 a month plus $6 per employee and $6 per contractor paid. Since April 2025 Wave files payroll taxes in all 50 states at the same price, so the old split between tax-service and self-service states is gone. It connects to Wave's accounting software, which makes it the easy low-cost choice if your books already live there. Wave does not file local taxes or 1099s, though it prepares 1099-NEC forms for you to file.
Starting Price
$40/mo + $6/ee
Contractors
$6/person
Free Trial
30 days
Key Features
Federal and state tax filing in all 50 states
W-2 and W-3 filing
Unlimited free direct deposits
Pays employees and contractors
Trial starts when you approve your first payroll
No setup fees
Pros
Same price in every state
Works with Wave accounting
Trial covers a real payroll
No setup or hidden fees listed
Cons
No local tax filing
Does not file 1099s
Direct deposit funding takes about 3 business days
Why We Picked It
Wave is $46 a month for one employee and $70 for five, a little above Patriot and Square, but it is the natural cheap option for the many small businesses that already keep their books in Wave.
OnPay is $49 a month plus $6 per worker, and that single plan includes federal, state and local tax filings, year-end W-2s and 1099s, multi-state payroll and unlimited pay runs. It is not the lowest sticker price here, but it has the fewest extra fees of any plan we priced, and your first month is free.
Starting Price
$49/mo + $6/ee
First Month
Free
Setup Fees
None
Key Features
Unlimited pay runs and schedules
Federal, state and local tax filing
W-2s, 1099s and year-end filings included
Multi-state payroll included
Benefits administration
White-glove setup with no implementation fees
HR add-on: $15/mo + $2 per worker
Pros
No surprise fees for forms, states or local taxes
First month free
Strong for growing teams
Free data migration
Cons
Higher base fee than Patriot, Square or Roll
HR tools are now a paid add-on
Direct deposit speed not published
Why We Picked It
If you have employees in more than one state or in a city with local payroll taxes, the cheaper plans start adding fees or leave filings to you. OnPay's $55 for one employee covers all of it.
Cheapest in Your First Year
Free months and launch discounts change the order. Here is what a three-employee business would pay over its first 12 months with the offers available today.
Offers as listed on October 26, 2026. They change often, so check the provider's page before you sign up. Patriot's free trial is not counted because a trial is not the same as free live payroll.
Cheapest If You File Taxes Yourself
Self-service plans calculate paychecks and withholding, but you make the tax deposits and file the returns. They cost about half as much as full-service plans.
Prints checks and tax forms; 941/940 e-file $5.95 each; W-2 e-file needs ezW2 ($119 a year)
Monthly cost. ezPaycheck is an annual licence ($189 list, $159 on sale through December 31) for Windows and Mac, up to 500 employees per company.
What about free payroll?
Payroll4Free is free for businesses that pay nine or fewer employees no more than once a month. It earns money from ads inside the software and charges extra, at prices it does not publish, if you want it to deposit and file your taxes or run direct deposit through its bank. It runs on Windows only. Recent Trustpilot reviews, all one-star, report missed tax filings and support that could not be reached. We do not recommend relying on it for tax filing.
Homebase's Basic plan is free, but payroll is a paid add-on.
What can go wrong when you file yourself
The IRS charges a failure-to-deposit penalty when payroll tax deposits are late: 2% if you are 1 to 5 days late, 5% at 6 to 15 days, 10% after 15 days, and 15% if the tax is still unpaid more than 10 days after an IRS notice. A $2,000 deposit made a week late costs $100. One missed deposit can wipe out a year of savings from a do-it-yourself plan.
Small employers do get some slack. New employers deposit monthly in their first year, by the 15th of the following month, and if your tax for a quarter is under $2,500 you can pay it with your quarterly return (IRS Publication 15). If your annual payroll taxes are $1,000 or less, the IRS may tell you to file Form 944 once a year instead of Form 941 every quarter.
Fees That Make Cheap Payroll Less Cheap
Year-end forms. SurePayroll bills W-2 and 1099 processing at $50 plus $5 per form. Square includes digital forms but charges $3 for each mailed paper copy.
Extra states. QuickBooks Workforce charges $12 a month for each additional state on its Payroll and Premium plans. SurePayroll charges $9.99 a month for multi-state payroll.
Local taxes. Wave does not file local payroll taxes. QuickBooks Workforce Payroll, its cheapest plan, leaves local filings to you.
Faster deposits. Gusto's Simple plan charges $15 a month plus $3 per person for next-day pay. Roll charges a per-transaction fee for same-day deposits.
Per-run pricing. ADP RUN quotes its prices and says payroll fees increase with how often you pay.
HR add-ons. OnPay's HR tools are $15 a month plus $2 per worker. Patriot's HR software is also extra.
Promotions that end. Free months and discounted base fees revert to list price. Budget for the list price.
Frequently Asked Questions
What is the cheapest payroll service for a small business?
For full-service payroll, where the provider files your taxes, Patriot Software is cheapest for teams of five or more at $37 a month plus $5 per employee. For a single employee, SurePayroll, Square and Patriot all cost about $41 to $42 a month. If you file taxes yourself, Patriot Basic at $17 plus $4 per employee is the cheapest plan we found.
Is there a completely free payroll service?
Payroll4Free is free for up to nine employees paid monthly, but it is ad-supported, runs only on Windows, charges extra to file your taxes and has poor recent reviews. Other free tools cover scheduling or calculations only. Dependable do-it-yourself payroll costs about $13 to $21 a month, such as ezPaycheck or Patriot Basic.
Do cheap payroll services file payroll taxes for you?
Full-service plans do. Patriot Full Service, Roll, Square, Wave, SurePayroll Full Service, Homebase and OnPay all deposit and file federal and state payroll taxes. Self-service plans such as Patriot Basic and SurePayroll No Tax Filing calculate the tax but leave deposits and filings to you. Wave and the cheapest QuickBooks plan do not file local taxes.
How much does payroll cost per month for a small business?
Full-service plans charge a base fee of $29 to $50 a month plus $5 to $8 per person paid. For five employees that works out to between $62 and $90 a month across the ten plans we priced.
What is the cheapest way to pay contractors?
Square Payroll's contractor-only plan has no base fee: you pay $6 for each contractor paid in a month. It does not handle tax filings, so you still need to report contractor payments on Form 1099-NEC.
Is it cheaper to do payroll yourself?
It can be. Depositing tax through the IRS EFTPS system is free, and a self-service plan costs about half as much as full service. The risk is penalties: a late deposit costs 2% to 15% of the tax, so a few late payments can cost more than a year of full-service payroll.
How We Chose and Priced These Services
We compared ten full-service payroll plans and three do-it-yourself options. Every price comes from the provider's own pricing page, checked on October 26, 2026. Patriot's site blocked automated access, so we confirmed its prices against Forbes Advisor (audited October 2, 2026) and TechRepublic (September 7, 2026), which match each other and our earlier review.
Cost first. We ranked on total monthly cost at 1, 5, 10 and 20 employees with taxes filed for you, including fees that apply to everyone, such as SurePayroll's year-end charge.
What the price includes. Federal, state and local tax filing, year-end forms, unlimited payroll runs and direct deposit.
First-year offers. Free months and discounts are shown separately because they expire.
Left out. ADP RUN and Paychex quote prices individually, so we could not compare them like for like.
Affiliate links do not change the cost figures. Prices change often, so check the provider's page before signing up. This guide is general information, not tax advice.
Summary: Cheapest Payroll Services for 2026
1.Patriot Software— Cheapest full-service payroll for most teams
2.Roll by ADP— Lowest first-year cost thanks to 3 free months
3.Square Payroll— Cheapest for tiny teams and contractor-only payroll
4.SurePayroll— Lowest base fee; watch the year-end charges
5.Homebase— Cheapest first year for teams of five or fewer (offer ends Dec 15, 2026)
6.Wave Payroll— Cheapest if you already use Wave accounting
7.OnPay— Cheapest all-inclusive plan, first month free
