Cheapest Payroll Services Under $50/month (2026)

Payroll doesn't have to break the bank. Here are the most affordable options for small teams.

Top Budget Payroll Options Comparison

1. Gusto: Best for Contractor-Only Teams

Gusto offers unique pricing for contractor-only businesses: no base fee, just $6 per contractor per month. If you run a business with only 1099 contractors, this is the most cost-effective option.

Pricing

• Contractors only: $6 per contractor per month, no base fee
• With employees: $40 base plus $6 per employee per month

At 5 contractors: $30 per month (under $50)
At 10 contractors: $60 per month (over $50)
At 1 employee: $46 per month (under $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. Up to 8 contractors keeps you under $50 per month. Add full-time employees and pricing jumps to $40 base plus per-employee fees.

Try Gusto free for 30 days

2. OnPay: Best for 1-2 Employee Teams

OnPay charges $40 per month base fee plus $6 per employee. With 1-2 employees, you stay under $50 per month. At 3 employees, you hit $58 per month.

Pricing

• Base fee: $40 per month
• Per employee: $6 per employee per month
• Contractors: Included in base fee

At 1 employee: $46 per month (under $50)
At 2 employees: $52 per month (over $50)
At 1 employee plus 5 contractors: $46 per month (under $50)

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 solopreneurs hiring their first employee or teams with 1-2 employees plus contractors. The flat pricing with included contractors makes it cost-effective for mixed teams.

3. QuickBooks Payroll Basic: Best for QuickBooks Users

QuickBooks Payroll Basic starts at $35 per month plus $6 per employee. If you already use QuickBooks for accounting, the integration makes payroll seamless.

Pricing

• Basic: $35 per month plus $6 per employee per month
• Core: $50 per month plus $6 per employee per month
• Premium: $80 per month plus $6 per employee per month

At 1 employee (Basic): $41 per month (under $50)
At 2 employees (Basic): $47 per month (under $50)
At 3 employees (Basic): $53 per month (over $50)

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 Basic works for businesses already using QuickBooks Online. The integration eliminates duplicate data entry. Basic plan supports up to 2 employees under $50 per month.

4. Patriot Software: Best Budget Option

Patriot Software offers some of the lowest pricing in the payroll space: $30 per month base plus $4 per employee. This keeps you under $50 for up to 4 employees.

Pricing

• Basic: $30 per month plus $4 per employee per month
• Full Service: $40 per month plus $4 per employee per month

At 1 employee (Basic): $34 per month (under $50)
At 4 employees (Basic): $46 per month (under $50)
At 5 employees (Basic): $50 per month (at limit)
At 1 employee (Full Service): $44 per month (under $50)

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 $40 base. Best for teams prioritizing cost over features.

5. Wave Payroll: Best for Freelancers

Wave Payroll offers the lowest base fee at $20 per month plus $6 per employee. However, it's only available in certain states and has limited features.

Pricing

• Payroll: $20 per month plus $6 per employee per month
• Contractors: Free (unlimited)

At 1 employee: $26 per month (under $50)
At 4 employees: $44 per month (under $50)
At 5 employees: $50 per month (at limit)
Contractors only: $0 (free)

What You Get

• Payroll processing
• Tax filing (federal and state)
• Direct deposit
• Unlimited contractor payments (free)
• Wave accounting integration

Limitations

Wave Payroll is only available in: Arizona, California, Florida, Illinois, Indiana, Maryland, Michigan, New York, North Carolina, Ohio, Pennsylvania, Texas, Virginia, Washington, and Wisconsin. Check state availability before signing up.

Who Should Choose This

Wave works for freelancers in supported states hiring their first employees. Free contractor payments make it ideal for mixed employee-contractor teams. Limited availability restricts use.

Cost Comparison: 5 Employee Scenarios

For teams under 5 employees, Patriot and Wave offer the lowest costs. Gusto and OnPay exceed $50 at 2 plus employees. QuickBooks stays under $50 for up to 2 employees.

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 ($100 per month) vs Patriot ($70 per month) is $30 difference. The added benefits and HRIS features often justify the upgrade.

Final Recommendations

Best for contractors: Gusto at $6 per contractor, no base fee. Wave offers free contractor payments in supported states.

Best for 1-2 employees: Wave at $26-32 per month (supported states). Patriot at $34-38 per month (all states).

Best for QuickBooks users: QuickBooks Payroll Basic at $41-47 per month for 1-2 employees.

Best overall value: Patriot Full Service at $44-46 per month for 1-2 employees with automatic tax filing.

FAQ: Budget Payroll Services

What is the absolute cheapest payroll service?

Wave Payroll has the lowest base fee at $20 per month plus $6 per employee. Contractor payments are free. However, Wave is only available in 15 states. Patriot Software is the cheapest widely available option at $30 base plus $4 per employee.

Can I run payroll for free?

Free payroll software exists but typically lacks tax filing, compliance, or support. Wave offers free contractor payments. 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 includes tax filing in paid plans. Always verify tax filing inclusion before signup.

How many employees can I have under $50?

Wave and Patriot support up to 4-5 employees under $50 per month. Gusto and OnPay exceed $50 at 2 plus employees. QuickBooks stays under $50 for up to 2 employees on Basic plan.

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.

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