Cheapest Payroll Service Ranked by Price
Compare 8 payroll services ranked cheapest first. Enter your employee count and pay frequency to see your exact monthly cost across every provider side by side.
Payroll Services Ranked by Monthly Cost
Base fee + per-employee fee shown. Ranked cheapest first for a 5-employee business.
| # | Provider | Base / mo | Per employee | 5 employees | Tax filing included | W-2 included | Best for |
|---|---|---|---|---|---|---|---|
| 1 | Patriot Payroll Cheapest Base | $17/mo | +$4/ee | $37/mo | Add-on | Extra fee | Micro-businesses wanting the absolute lowest base cost |
| 2 | Wave Payroll | $20/mo | +$6/ee | $50/mo | ✓ Yes | Extra fee | Freelancers and sole proprietors already using Wave accounting |
| 3 | Gusto Simple Most Popular | $40/mo | +$6/ee | $70/mo | ✓ Yes | ✓ Yes | Small businesses wanting automated taxes without surprises |
| 4 | Homebase Payroll | $40/mo | +$6/ee | $70/mo | ✓ Yes | ✓ Yes | Hourly workforces in retail, food service, and hospitality |
| 5 | QuickBooks Payroll Core | $45/mo | +$6/ee | $75/mo | ✓ Yes | ✓ Yes | Businesses already using QuickBooks accounting |
| 6 | Paychex Flex Essential | $59/mo | +$4/ee | $79/mo | Add-on | Extra fee | Growing businesses needing dedicated HR support |
| 7 | ADP Run Essential | $79/mo | +$4/ee | $99/mo | ✓ Yes | Extra fee | Mid-size businesses wanting enterprise-grade reliability |
| 8 | Rippling Best All-in-One | $8/mo | +$8/ee | $48/mo | ✓ Yes | Extra fee | Tech companies managing payroll, IT, and HR in one platform |
Micro-businesses wanting the absolute lowest base cost
Freelancers and sole proprietors already using Wave accounting
Small businesses wanting automated taxes without surprises
Hourly workforces in retail, food service, and hospitality
Businesses already using QuickBooks accounting
Growing businesses needing dedicated HR support
Mid-size businesses wanting enterprise-grade reliability
Tech companies managing payroll, IT, and HR in one platform
What Each Provider Includes
Patriot Payroll
$17/mo base + $4/employee
Included
- ✓Unlimited payroll runs
- ✓Direct deposit
- ✓W-2 and 1099 filing (add-on)
- ✓Employee self-service portal
- ✓Free setup
Costs Extra
- +Federal and state tax filing: $30/mo add-on
- +W-2/1099 processing: $25 per form set
- +Workers comp integration: $5/mo
- +HR add-on: $6/mo per employee
Wave Payroll
$20/mo base + $6/employee
Included
- ✓Unlimited payroll runs
- ✓Direct deposit
- ✓Tax filing in tax-service states
- ✓Free Wave accounting integration
- ✓Employee portal
Costs Extra
- +Self-service states: you file taxes manually
- +W-2/1099 filing: $6 per form
- +Benefits administration: not available
- +Time tracking: not included
Gusto Simple
$40/mo base + $6/employee
Included
- ✓Unlimited payroll runs
- ✓Automated tax filing and payments
- ✓Direct deposit
- ✓W-2 and 1099 filing included
- ✓New hire reporting
- ✓Employee self-service app
Costs Extra
- +Health benefits admin: $6/mo per employee
- +401(k) integration: $8/mo per employee
- +Time tracking: $6/mo per employee
- +International contractors: $35/contractor/mo
Homebase Payroll
$40/mo base + $6/employee
Included
- ✓Unlimited payroll runs
- ✓Automated tax filing
- ✓Direct deposit
- ✓Built-in time tracking
- ✓Scheduling integration
- ✓W-2 filing included
Costs Extra
- +HR and compliance tools: higher tier required
- +1099 contractor payroll: $6/contractor/run
- +Benefits administration: not included
- +Priority support: premium plan only
QuickBooks Payroll Core
$45/mo base + $6/employee
Included
- ✓Automated tax filing
- ✓Same-day direct deposit
- ✓W-2 filing included
- ✓QuickBooks accounting sync
- ✓Workers comp administration
- ✓Health insurance via SimplyInsured
Costs Extra
- +HR support: Premium tier ($80/mo base) required
- +Time tracking: $10/mo per employee add-on or higher tier
- +Expert setup: $50 one-time fee
- +1099 e-file: $15.99 per contractor
Paychex Flex Essential
$59/mo base + $4/employee
Included
- ✓Automated payroll
- ✓Direct deposit
- ✓Tax administration
- ✓New hire reporting
- ✓Employee self-service
- ✓24/7 phone support
Costs Extra
- +W-2 year-end processing: $5 to $10 per form
- +Time and attendance: additional module fee
- +Benefits administration: quoted separately
- +HR compliance tools: Select tier required
ADP Run Essential
$79/mo base + $4/employee
Included
- ✓Automated payroll processing
- ✓Tax filing and deposits
- ✓Direct deposit
- ✓New hire onboarding
- ✓Employee self-service
- ✓Basic HR support
Costs Extra
- +W-2 filing: included but year-end admin fees apply
- +Background checks: $25 to $75 per check
- +Workers comp: third-party add-on
- +Retirement plans: quoted separately
- +Time tracking: Enhanced tier required
Rippling
$8/mo base + $8/employee
Included
- ✓Global payroll
- ✓Automated tax compliance
- ✓Direct deposit
- ✓IT and HR platform integration
- ✓Device management
- ✓Benefits administration
Costs Extra
- +Platform fee: $8/mo per user for the base platform
- +Each add-on module priced separately
- +W-2 processing: included
- +International payroll: $20 to $100 per employee/mo
Payroll Cost Calculator
Enter your details to see exact monthly costs across every provider, sorted cheapest first.
Cheapest option
$37/mo
Patriot Payroll
Most expensive
$99/mo
ADP Run Essential
Annual savings possible
$744
vs most expensive
$17/mo + $4 x 5 employees
$37/mo
$444/yr
$8/mo + $8 x 5 employees
$48/mo
$576/yr
130% of cheapest
$20/mo + $6 x 5 employees
$50/mo
$600/yr
135% of cheapest
$40/mo + $6 x 5 employees
$70/mo
$840/yr
189% of cheapest
$40/mo + $6 x 5 employees
$70/mo
$840/yr
189% of cheapest
$45/mo + $6 x 5 employees
$75/mo
$900/yr
203% of cheapest
$59/mo + $4 x 5 employees
$79/mo
$948/yr
214% of cheapest
$79/mo + $4 x 5 employees
$99/mo
$1,188/yr
268% of cheapest
Base fee + per-employee fee only. Does not include tax filing add-ons, W-2 processing, or benefits administration unless noted as included. Pay frequency does not affect most providers' monthly platform fees.
Why the cheapest is not always the best deal
Patriot Payroll has the lowest base fee at $17/mo, but tax filing costs an extra $30/mo. For most businesses with 5 or more employees, Gusto Simple works out cheaper once you factor in those automated tax filings, which are included in its $40/mo base.
The fee that catches most businesses off-guard
Year-end W-2 and 1099 processing is billed separately by most providers. If you have 10 employees, that can be $50 to $250 extra in January. Always check whether W-2 processing is included before committing to any plan.
When to upgrade from the cheapest option
Once you have 20+ employees, add benefits like health insurance, or need time tracking integration, the per-employee savings on cheap plans erode quickly through add-on fees. At that scale, a mid-tier plan from Gusto, Paychex, or ADP often costs less in total than a cheap plan with multiple add-ons.
Frequently Asked Questions
What is the cheapest payroll service for a small business?
Patriot Payroll is the cheapest payroll service at $17/mo base plus $4 per employee. For 5 employees it costs $37/mo. However, tax filing is a $30/mo add-on, so if you want fully automated taxes, Gusto Simple at $40 base plus $6/employee is the better value because W-2 filing and all federal and state tax filings are included in that price.
Are free payroll services actually free?
Free payroll options like Wave Payroll waive the platform fee in some states, but you typically pay per employee ($6/employee/mo for Wave) and take on the responsibility of filing your own payroll taxes. Completely free payroll is generally only viable for businesses with one or two owners who are salaried, not hourly, and who have accounting expertise to handle tax filings manually.
What hidden fees do payroll services charge?
The most common hidden fees are: year-end W-2 and 1099 processing (typically $5 to $25 per form), tax penalty protection guarantees, setup and implementation fees, off-cycle payroll run fees, garnishment processing fees, new hire reporting fees in some states, and fees to integrate with your accounting software or time tracking system.
How much does payroll cost per month for 10 employees?
Using the cheapest options: Patriot Payroll costs $57/mo for 10 employees (plus $30/mo for tax filing = $87 total). Gusto Simple costs $100/mo for 10 employees with all taxes and W-2s included. ADP Run costs $119/mo for 10 employees. Costs range from roughly $87 to $200/mo depending on the provider and features you need.
Is it cheaper to do payroll yourself?
For a solo business owner, doing payroll manually or with payroll software like QuickBooks Payroll can save money. But for businesses with 3 or more employees, the time cost of manual payroll, tax filings, and the risk of costly errors (IRS penalties can be 2 to 15 percent of unpaid taxes) typically makes a payroll service cheaper in practice than the apparent sticker savings of DIY.
Which payroll service is easiest to use for a first-time business owner?
Gusto consistently ranks highest for ease of use among small business owners who have never run payroll before. Its onboarding wizard walks you through every step, it automatically files all federal and state taxes, and its employee self-service portal handles onboarding paperwork. Patriot Payroll is also beginner-friendly despite its lower price point.