Quick answer: What is the cheapest payroll service for small businesses? Patriot Payroll is usually the lowest-priced paid option from a major provider, starting around $17 per month plus $4 per worker. Gusto and OnPay start around $49 per month plus $6 per worker, and QuickBooks Payroll starts around $50 per month plus a per-employee fee. Budget alternatives such as SurePayroll or Payroll4Free may cost less or nothing but often offer fewer features. The cheapest plan is only a good deal if it includes the tax filing, direct deposit, and forms you need, so compare the total monthly cost, not just the headline price.
What Makes a Payroll Service “Cheap”?
A low sticker price doesn’t always mean a low bill. Payroll providers charge in several layers:
A monthly base fee for the account
A per-employee fee that grows with your team
Add-ons such as contractor payments, W-2 and 1099 filing, extra states, or same-day direct deposit
Setup or per-run fees on some plans
The truly cheapest service for you is the one with the lowest total cost for your setup, while still handling payroll taxes correctly.
Cheapest Payroll Services Compared
Provider | Starting Price (Approx.) | Best For | Watch Out For |
|---|---|---|---|
Patriot Payroll | About $17/month + $4/worker | Lowest cost for very small teams | Lowest tier may leave tax filing to you, so check what each plan includes |
Payroll4Free and similar free tools | Free or near-free | Tiny teams with simple needs | Limited features, fewer integrations, thinner service |
SurePayroll | Budget-level pricing | Ultra-budget payroll | Fewer advanced tools |
OnPay | About $49/month + $6/worker | Simple, all-inclusive pricing and multi-state | Higher base fee than Patriot |
Gusto (Simple) | About $49/month + $6/employee | Ease of use and HR tools | Higher tiers cost more |
QuickBooks Payroll | From about $50/month + per-employee fee | QuickBooks users | Best value only if you already use QuickBooks |
ADP RUN and Paychex Flex | Quote-based | Scalability and service | Quote pricing, possible increases after promotions |
Prices change often and vary by plan, state, and promotion. Confirm current rates on each provider’s website.
Cheapest Payroll Service by Number of Employees
These estimates use published base and per-employee fees and exclude add-ons.
Team Size | Patriot (about $17 + $4) | Gusto Simple or OnPay (about $49 + $6) | Difference per Month |
|---|---|---|---|
1 employee | About $21 | About $55 | About $34 |
3 employees | About $29 | About $67 | About $38 |
5 employees | About $37 | About $79 | About $42 |
10 employees | About $57 | About $109 | About $52 |
25 employees | About $117 | About $199 | About $82 |
Annual savings with the cheapest option: about $500 per year for a 5-person team and about $620 per year for 10 employees, compared with the $49 plus $6 plans, before add-ons.
Is the Cheapest Payroll Service Always the Best Choice?
Not always. Consider these trade-offs before choosing on price alone.
When the Cheapest Option Works Well
You have one to five employees
Your payroll is simple: one state, regular pay, no complex benefits
You’re comfortable with basic software
You don’t need built-in HR, hiring, or benefits tools
When a Slightly Higher Price Is Smarter
You employ people in multiple states
You want full-service tax filing and payments handled for you
You need HR, onboarding, or benefits administration
You want fast, reliable live help when something goes wrong
You plan to grow quickly and don’t want to switch providers
A $30 monthly saving can disappear fast if a missed tax deposit triggers a penalty.
Hidden Costs That Can Make Cheap Payroll Expensive
Hidden Cost | What to Check |
|---|---|
Tax filing | Does the plan file and pay federal, state, and local taxes, or only calculate them? |
Year-end forms | Are W-2 and 1099 filings included or charged per form? |
Contractor payments | Is there a per-contractor fee? |
Extra states | Is there a charge for each additional state? |
Direct deposit speed | Is same-day or next-day deposit extra? |
Per-run fees | Does the provider charge each time you run payroll? |
Time tracking | Is it included or billed per user? |
Setup fees | Is there an onboarding charge? |
Contract terms | Are there cancellation fees or price increases after a promotion? |
Ask for a written quote that lists every fee for your exact setup.
Free and Ultra-Low-Cost Payroll Options
A few providers advertise free or very low-cost payroll. These can work for very small teams, but check the details:
Free tools often cover basic calculations and direct deposit, but may charge for tax filing, forms, or extra features.
Time-tracking platforms sometimes offer a free tier for scheduling and timesheets, with payroll as a paid upgrade.
Spreadsheets and manual payroll cost nothing directly, but they carry the highest risk of tax errors, late deposits, and penalties.
If you consider a free option, confirm who files and pays your payroll taxes, and what happens if something goes wrong.
How to Find the Cheapest Payroll Service for Your Business
List your needs: number of employees and contractors, states, and pay frequency.
Decide what you must have: tax filing, direct deposit, W-2 and 1099 forms, and accounting integration.
Request quotes from at least three providers, including one low-cost and one mid-range.
Calculate the total monthly and annual cost with all add-ons.
Check the price after any promotion ends.
Read reviews from businesses of your size.
Use a free trial or demo, if offered.
Check cancellation terms before you commit.
Cheapest Payroll Service for QuickBooks Users
If you use QuickBooks for accounting, the cheapest option isn’t always the QuickBooks Payroll plan. Compare:
QuickBooks Payroll (starting around $50 per month plus a per-employee fee) for the tightest sync with your books
Lower-cost providers such as Patriot, with a QuickBooks integration or manual export
The cost of your time to reconcile and correct entries if the integration is less seamless
Weigh the savings against the time you’ll spend on bookkeeping and corrections. If you use QuickBooks Desktop, confirm which payroll plan fits your version, since options and fees vary.
Mistakes to Avoid When Choosing a Cheap Payroll Service
Picking on the headline price without checking add-ons.
Assuming tax filing is included when it isn’t.
Ignoring state requirements for remote employees.
Missing promotional price expiry, which can double the monthly cost.
Skipping a trial and discovering usability problems later.
Switching mid-quarter without a plan for year-to-date data.
Choosing a service you’ll outgrow within a year.
Need Help Choosing the Cheapest Payroll Service?
Comparing payroll pricing involves base fees, per-employee charges, add-ons, and tax filing terms, and the lowest advertised price isn’t always the lowest real cost. For step-by-step guidance based on your business size and setup, call 1-866-513-4656.
Frequently Asked Questions
What is the cheapest payroll service for small businesses?
Patriot Payroll is usually the lowest-priced major provider, starting around $17 per month plus $4 per worker. Some budget and free tools cost less but offer fewer features.
Is there a free payroll service for small businesses?
A few providers advertise free or near-free plans, but they often charge for tax filing, forms, or extra features. Check what’s included before relying on one.
How much does the cheapest payroll cost for 5 employees?
Roughly $37 per month on the lowest published full-service plans, compared with about $79 on the $49 plus $6 plans.
Is the cheapest payroll service reliable?
Many low-cost providers are reliable for simple payroll. Verify tax filing coverage, accuracy guarantees, and service quality before committing.
Does the cheapest plan file my payroll taxes?
Not always. Some low tiers calculate taxes but leave filing to you. Confirm which plan includes full-service filing.
Is Gusto or OnPay cheaper?
Both start around $49 per month plus $6 per worker. OnPay includes most features in one plan, while Gusto uses tiers.
What is the cheapest payroll service for QuickBooks users?
It depends on your priorities. QuickBooks Payroll integrates most directly, while lower-cost providers may save money if you can handle some manual syncing.
Are there hidden fees in cheap payroll services?
Sometimes. Watch for charges on contractors, W-2 and 1099 filing, extra states, same-day deposits, and setup.
When should I upgrade from a cheap payroll plan?
When you add employees in new states, need HR and benefits tools, or spend too much time on manual tasks and corrections.
Key Takeaways
Patriot Payroll is typically the cheapest major option, from about $17 per month plus $4 per worker.
Gusto and OnPay start around $49 plus $6, and QuickBooks Payroll around $50 plus a per-employee fee.
The cheapest plan isn’t always the lowest total cost, so compare add-ons and tax filing coverage.
A 5-person team can save roughly $500 per year on the lowest-priced plan, before add-ons.
Check what happens after promotions end, and upgrade when your needs outgrow the plan.
Disclaimer: This article is for general informational purposes and is not tax or legal advice. Payroll pricing, features, and fees change often and vary by provider, plan, and location, so verify current details directly. All product names are trademarks of their respective owners.
