Cheapest Payroll Services Under $50/month (2026)
Payroll doesn't have to break the bank. Here are the most affordable options for small teams.
Quick Verdict:
Patriot Software is the only option here that stays under $50 per month with several employees: Basic is $17 plus $4 per worker, Full Service is $37 plus $5. Wave stays under $50 for one employee.Gusto Contractor Only is $35 plus $6 per contractor, with the base fee waived for the first 6 months. OnPay andQuickBooks Payroll Core start at $55 and $56.50 per month with one employee.
Top Budget Payroll Options Comparison
| Service | Base Fee | Per Employee | Best For | Limitation |
|---|---|---|---|---|
| Gusto (contractors only) | $35 ($0 for first 6 months) | $6/contractor | Contractor teams | No employees |
| OnPay | $49 | $6/person | Mixed employee and contractor teams | Over $50 from the first employee |
| QuickBooks Payroll Core | $50 | $6.50/employee | QuickBooks users | Limited features |
| Patriot Software | $17 (Basic) | $4/worker | Budget-conscious | Basic support |
| Wave Payroll | $40 | $6/employee, $6/contractor | Freelancers, very small | Over $50 at 2 plus employees |
1. Gusto: Best for Contractor-Only Teams
Gusto has a Contractor Only plan for businesses that pay only 1099 contractors: $35 per month plus $6 per contractor, and Gusto currently waives the base fee for the first 6 months. You are only billed for contractors in months you pay them.
Pricing
- Contractor Only: $35 per month plus $6 per contractor ($0 base for the first 6 months)
- Simple (with employees): $49 per month plus $6 per person
At 2 contractors: $47 per month (under $50)
At 5 contractors: $65 per month ($30 during the 6-month offer)
At 1 employee (Simple): $55 per month (over $50)
What You Get
- 1099-NEC generation and e-filing
- Contractor payments via direct deposit
- Automatic 1099 tracking
- Contractor onboarding portal
- State tax filing (for employees)
Who Should Choose This
Gusto's contractor pricing works for agencies, consultancies, and businesses running on 1099 talent. At the standard price, up to 2 contractors keeps you under $50 per month; during the 6-month offer, up to 8 does. Add W-2 employees and you move to Simple at $49 base plus $6 per person.
2. OnPay: Best for 1-2 Employee Teams
OnPay charges $49 per month base fee plus $6 per person, and contractors count as people. One employee costs $55 per month, so OnPay is over $50 from the first hire.
Pricing
- Base fee: $49 per month
- Per person: $6 per employee or contractor per month
At 1 employee: $55 per month
At 2 employees: $61 per month
At 1 employee plus 5 contractors: $85 per month
What You Get
- Full-service payroll with tax filing
- W-2 and 1099 generation
- Direct deposit and check printing
- Employee self-service portal
- QuickBooks and Xero integrations
Who Should Choose This
OnPay fits small teams that want full-service payroll with automatic tax filing for employees and contractors on one simple per-person price, and can spend a little over $50 per month.
3. QuickBooks Payroll Core: Best for QuickBooks Users
QuickBooks Payroll Core is $50 per month plus $6.50 per employee. If you already use QuickBooks for accounting, the integration makes payroll seamless.
Pricing
- Core: $50 per month plus $6.50 per employee per month
- Higher tiers: Premium and Elite cost more; check Intuit's pricing page
At 1 employee (Core): $56.50 per month
At 2 employees (Core): $63 per month
Intuit often discounts the first months; check the current offer
What You Get
- Payroll processing with tax filing
- Direct deposit
- QuickBooks Online integration
- W-2 and 1099 generation
- Same-day direct deposit (Core and above)
Who Should Choose This
QuickBooks Payroll Core works for businesses already using QuickBooks Online. The integration eliminates duplicate data entry. It is over $50 per month from the first employee.
4. Patriot Software: Best Budget Option
Patriot Software offers some of the lowest pricing in the payroll space: Basic is $17 per month plus $4 per worker paid. This keeps you under $50 for up to 8 workers.
Pricing
- Basic: $17 per month plus $4 per worker per month
- Full Service: $37 per month plus $5 per worker per month
At 1 employee (Basic): $21 per month
At 4 employees (Basic): $33 per month
At 8 employees (Basic): $49 per month
At 1 employee (Full Service): $42 per month
At 2 employees (Full Service): $47 per month
What You Get
- Payroll processing
- Tax filing (Full Service only)
- Direct deposit
- Time tracking integration
- Basic reporting
Who Should Choose This
Patriot fits budget-conscious businesses willing to trade features for lower cost. Basic plan requires manual tax filing. Full Service adds automatic tax filing at $37 base. Best for teams prioritizing cost over features.
5. Wave Payroll: Best for Freelancers
Wave Payroll is $40 per month plus $6 per active employee and $6 per contractor paid. It stays under $50 for one employee and pairs with Wave's accounting software.
Pricing
- Payroll: $40 per month plus $6 per active employee per month
- Contractors: $6 per contractor paid
At 1 employee: $46 per month (under $50)
At 2 employees: $52 per month (over $50)
At 5 contractors: $70 per month
What You Get
- Payroll processing
- Tax filing (federal and state)
- Direct deposit
- Contractor payments
- Wave accounting integration
Limitations
Wave says automatic tax payments and filings now cover all 50 states, but notes that in rare cases a tax payment can't be transferred automatically. Its pricing climbs past $50 at the second employee.
Who Should Choose This
Wave works for freelancers and very small businesses that already use Wave for accounting and are hiring their first employee.
Cost Comparison: 5 Employee Scenarios
| Scenario | Gusto | OnPay | QuickBooks | Patriot | Wave |
|---|---|---|---|---|---|
| 5 contractors | $65 | $79 | N/A | $37 | $70 |
| 1 employee | $55 | $55 | $56.50 | $21 | $46 |
| 2 employees | $61 | $61 | $63 | $25 | $52 |
| 3 employees | $67 | $67 | $69.50 | $29 | $58 |
| 4 employees | $73 | $73 | $76 | $33 | $64 |
Patriot Basic prices are shown; Patriot Full Service adds tax filing for $37 plus $5 per worker. Gusto contractor figures use the standard $35 base, and employee figures use Gusto Simple. Patriot is the only option that stays under $50 beyond one employee.
Trade-offs: Budget vs Features
Cheaper payroll services typically sacrifice features. Here's what you give up at lower price points:
- Benefits administration: Budget options rarely include benefits
- HRIS features: Onboarding, PTO tracking, org charts usually excluded
- Support: Phone support often limited to higher tiers
- Integrations: Fewer third-party app connections
- Mobile app: Basic or no mobile access
- Compliance: Manual tax filing on basic plans
If you need benefits, HRIS, or robust support, budget options may cost more long-term when adding separate tools.
When to Upgrade Beyond Budget
Consider upgrading from budget payroll when:
- You hit 5 plus employees (cost difference narrows)
- You need benefits administration
- You want HRIS features (onboarding, PTO, performance)
- You need multi-state payroll automation
- You want better customer support
- You need extensive integrations
At 10 employees, Gusto Simple ($109 per month) vs Patriot Full Service ($87 per month) is a $22 difference. The added benefits and HRIS features often justify the upgrade.
Final Recommendations
Best for contractors: Gusto Contractor Only at $35 plus $6 per contractor, with the base fee waived for the first 6 months.
Best for 1-2 employees: Patriot Basic at $21-25 per month if you file taxes yourself. Wave at $46 for one employee.
Best for QuickBooks users: QuickBooks Payroll Core at $56.50-63 per month for 1-2 employees.
Best overall value: Patriot Full Service at $42-47 per month for 1-2 employees with automatic tax filing.
FAQ: Budget Payroll Services
What is the absolute cheapest payroll service?
Patriot Software Basic is the cheapest option here at $17 per month plus $4 per worker paid, but you file payroll taxes yourself. Patriot Full Service, which files taxes for you, is $37 per month plus $5 per worker. Wave Payroll is $40 per month plus $6 per employee and $6 per contractor paid.
Can I run payroll for free?
Free payroll software exists but typically lacks tax filing, compliance, or support. None of the services here pays contractors for free: Gusto, OnPay, Patriot and Wave all charge per contractor paid. Gusto currently waives the Contractor Only base fee for the first 6 months. For employees, paid services are recommended for compliance and peace of mind.
Do budget options handle taxes automatically?
It depends on the plan. Gusto, OnPay, and QuickBooks include automatic tax filing at all tiers. Patriot Basic requires manual tax filing. Wave says its automatic tax payments and filings cover all 50 states. Always verify tax filing inclusion before signup.
How many employees can I have under $50?
Patriot Basic stays under $50 per month for up to 8 workers, and Patriot Full Service for up to 2. Wave stays under $50 for 1 employee. Gusto Simple, OnPay and QuickBooks Payroll Core are over $50 from the first employee.
Can I upgrade later if I grow?
Yes, all payroll services support plan upgrades. You can start with budget pricing and upgrade as headcount grows. Data migrates seamlessly within the same provider. Switching providers requires 2-4 hours of data migration.
Related Articles
- Best Payroll Software for Small Business 2026
- Gusto vs OnPay: Payroll Pricing, HR, and Benefits Compared
- Best Benefits Administration for Startups
- PEO vs HRIS: Which Do You Need?
- Time Tracking Software for Hourly Teams
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