Cheapest Payroll Software for Small Business (2026)
Full-service payroll doesn't have to break the budget. Here are the most affordable options.
Quick Answer:
Gusto/OnPay tie at $40 + $6/employee (best value).Zoho Payroll at $4/employee (cheapest but limited).Wave free for contractors only. Avoid "cheap" options that charge hidden fees or lack tax filing.
Top 5 Budget Payroll Options
1. Gusto Core - Best Value
Pricing: $40/month + $6/employee
Gusto offers the best balance of price and features. Full-service payroll, automatic tax filing, W-2/1099, and unlimited payroll runs. At 10 employees: $100/month. At 50 employees: $340/month.
Best for: Most small businesses wanting full-service at fair price
2. OnPay - Same Price, Less Features
Pricing: $40/month + $6/employee
OnPay matches Gusto on core payroll pricing. Same $100/month at 10 employees. Less robust on benefits and HRIS, but excellent for pure payroll needs.
Best for: Budget-conscious businesses needing payroll only
3. Zoho Payroll - Lowest Per-Employee
Pricing: $4/employee/month (no base fee)
Zoho Payroll is cheapest per-employee but limited features. Basic payroll processing, tax calculations, but less robust on compliance and support. At 10 employees: $40/month. At 50 employees: $200/month.
Best for: Micro-teams already using Zoho ecosystem
4. Wave Payroll - Free for Contractors
Pricing: Free (contractors only), $20 + $6/employee (W-2)
Wave is free for 1099 contractor payments. For W-2 employees, $20 base + $6/employee. Limited features but genuinely free for contractor-only teams.
Best for: Businesses with only contractors
5. Patriot Software - Budget Alternative
Pricing: $17/month + $5/employee
Patriot is a budget alternative to Gusto/OnPay. Full-service payroll, tax filing, but less polished UX and smaller integration ecosystem. At 10 employees: $67/month. At 50 employees: $267/month.
Best for: Businesses wanting to save $30-70/month vs Gusto
Price Comparison Table
| Platform | At 5 emp | At 10 emp | At 50 emp | Tax Filing | Best For |
|---|---|---|---|---|---|
| Gusto | $70/mo | $100/mo | $340/mo | ✅ | Best value |
| OnPay | $70/mo | $100/mo | $340/mo | ✅ | Payroll only |
| Zoho | $20/mo | $40/mo | $200/mo | ✅ | Lowest cost |
| Patriot | $42/mo | $67/mo | $267/mo | ✅ | Budget alternative |
| Wave | Free* (1099) | Free* (1099) | Free* (1099) | Limited | Contractors only |
* Wave free for contractors only. W-2 employees: $20 + $6/employee.
What to Watch For
Some "cheap" payroll providers cut corners:
- ❌ No automatic tax filing (you file manually)
- ❌ No tax payment inclusion (you pay IRS separately)
- ❌ Hidden fees (W-2 charges, direct deposit fees, etc.)
- ❌ Poor support (email only, slow response)
- ❌ Limited integrations (no accounting sync)
Always verify: automatic tax filing AND tax payments are included. This is where cheap options often fail.
Our Recommendation
Best overall value: Gusto or OnPay at $40 + $6/employee. Full-service payroll, automatic tax filing, no hidden fees, good support.
Cheapest legitimate option: Zoho Payroll at $4/employee. Legit tax filing but limited features and support.
Avoid: Any provider under $30/month total that doesn't include automatic tax filing and payments. Not worth the compliance risk.
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