Cheapest Payroll Software for Small Business (2026)

Full-service payroll doesn't have to break the budget. Here are the most affordable options.

Prices checked October 25, 2026 on each vendor's own pricing page (Gusto, OnPay, Zoho Payroll, Wave and Patriot). Monthly list prices, before promotions and add-ons. See the Payroll Software Pricing Index 2026: 8 Vendors Checked for more vendors and headcounts.

Quick Answer:

Patriot Full Service at $37 + $5/employee is the lowest list price here at every headcount we checked. Zoho Payroll is close behind on annual billing ($29 + $5).Gusto Simple and OnPay tie at $49 + $6/employee with more HR features.Wave is $40 + $6/employee, plus $6 per contractor paid. Avoid "cheap" options that charge hidden fees or lack tax filing.

Compare low-cost payroll options:

Compare GustoBest value when low price still needs benefits, onboarding, accounting sync, and HR workflows.Compare OnPayBest for pure payroll, transparent pricing, automated taxes, and fewer HR add-ons.Compare Zoho PayrollBest for very cost-sensitive teams already using Zoho products.Compare Wave PayrollBest for contractor-heavy micro-businesses that also want simple accounting.

Top 5 Budget Payroll Options

1. Gusto Simple - Best Value

Pricing: $49/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: $109/month. At 50 employees: $349/month. Simple covers payroll in one state; multi-state payroll starts on Plus at $80 + $12 per person.

Best for: Most small businesses wanting full-service at fair price

2. OnPay - Same Price, Fewer HR Features

Pricing: from $49/month + $6/employee

OnPay matches Gusto on core payroll pricing. Same $109/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 - Low Price on Annual Billing

Pricing: Standard $39/month + $6/employee billed monthly, or $29 + $5 billed annually

Zoho Payroll is one of the cheapest options with limited features. Basic payroll processing, tax calculations, but less robust on compliance and support. At 10 employees: $99/month ($79 on annual billing). At 50 employees: $339/month ($279 on annual billing). Standard is single-state; Professional (multi-state) is $59 + $8.50.

Best for: Micro-teams already using Zoho ecosystem

4. Wave Payroll - Simple Payroll Next to Wave Accounting

Pricing: $40/month + $6/employee, plus $6 per contractor paid

Wave Payroll is no longer free for contractors: each independent contractor paid is $6 a month on top of the $40 base. At 10 employees: $100/month. At 50 employees: $340/month. Limited features, but simple if you already keep your books in Wave.

Best for: Micro-businesses already using Wave accounting

5. Patriot Software - Lowest Full-Service Price

Pricing: Full Service Payroll $37/month + $5/employee (Basic Payroll $17 + $4 per worker)

Patriot is a budget alternative to Gusto/OnPay. Full-service payroll, tax filing, but less polished UX and smaller integration ecosystem. At 10 employees: $87/month. At 50 employees: $287/month. New accounts currently get 30 days free and 50% off for 3 months.

Best for: Businesses wanting to save about $20-60/month vs Gusto

Price Comparison Table

Platform	At 5 emp	At 10 emp	At 50 emp	Tax Filing	Best For
Gusto	$79/mo	$109/mo	$349/mo	✅	Best value
OnPay	$79/mo	$109/mo	$349/mo	✅	Payroll only
Zoho	$69/mo ($54 annual)	$99/mo ($79 annual)	$339/mo ($279 annual)	✅	Low cost on annual billing
Patriot	$62/mo	$87/mo	$287/mo	✅	Lowest full-service price
Wave	$70/mo*	$100/mo*	$340/mo*	✅	Wave accounting users

* Plus $6 per independent contractor paid. Monthly list prices checked October 25, 2026; promotions and add-ons not included.

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 $49 + $6/employee. Full-service payroll, automatic tax filing, no hidden fees, good support.

Cheapest full-service option: Patriot Full Service at $37 + $5/employee, with Zoho Payroll close behind on annual billing ($29 + $5). 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.

Disclosure: We may earn commissions from qualifying purchases.