Small business payroll: what each service really costs

Cheapest for 5 employees in one state, taxes filed for you

1. 1.Patriot Payroll Full Service Payroll $62/mo$744 a year
2. 2.Roll by ADP Roll $64/mo$768 a year
3. 3.Square Payroll Full-service payroll $65/mo$780 a year

The catch that can change the order: Gusto’s cheapest plan covers one state only. SurePayroll bills W-2 and 1099 forms once a year ($50 + $5 per form). RUN Powered by ADP and Paychex Flex publish no price at all. Your own numbers: payroll cost calculator.

What payroll costs for 1, 5 and 10 employees

Every service below files your federal and state payroll taxes for you, except where the row says otherwise. Prices are each provider’s regular price; any promotion is a separate, labelled line that disappears when it ends.

Service and plan	1 persona month	5 peoplea month	10 peoplea month
Patriot Payroll ↗ Full Service Payroll Each extra state: $12 a month Basic Payroll: you file the taxes yourself Promotion: 30-day free trial, then 50% off for 3 months Who: Not stated beyond new customers. Ends: no end date published. After: The regular price above. Offer terms Visit Patriot Payroll	$42$504/yr	$62$744/yr	$87$1,044/yr
Roll by ADP ↗ Roll Promotion: 3 months free Who: US businesses that have never used Roll by ADP. Cancel during the trial and you lose the rest of it. Ends: no end date published. After: The regular price above. Offer terms Visit Roll by ADP	$44$528/yr	$64$768/yr	$89$1,068/yr
Square Payroll ↗ Full-service payroll Visit Square Payroll	$41$492/yr	$65$780/yr	$95$1,140/yr
Wave Payroll ↗ Wave Payroll (US) Does not file 1099s for you Visit Wave Payroll	$46$552/yr	$70$840/yr	$100$1,200/yr
SurePayroll (by Paychex) ↗ Small Business More than one state: $9.99 a month Year-end W-2 and 1099 forms: $50 + $5 per form, billed once a year Promotion: Payroll fees free in months 1, 3, 5, 7, 9 and 11 (ends Oct 31, 2026) Who: New clients who sign up during the offer. Year-end, multi-state and other fees are still charged. After: The regular price above. Offer terms Visit SurePayroll (by Paychex)	$36$487/yr	$64$843/yr	$99$1,288/yr
Gusto ↗ Simple Simple covers one state only Visit Gusto	$55$660/yr	$79$948/yr	$109$1,308/yr
Homebase Payroll ↗ Payroll add-on (to any Homebase plan, incl. $0 Basic) Requires a Homebase plan (the $0 Basic plan covers 1 location and up to 10 employees) Promotion: 6 months of free payroll, then $29 a month + $6 per employee paid instead of $49 + $6 (ends Dec 15, 2026) Who: Teams of 5 or fewer not already on a paid Homebase payroll plan, who finish payroll setup by Dec 15, 2026 and run a first payroll by Jan 20, 2027. Pay more than 5 people and the standard price applies. After: $29 a month + $6 per employee paid while you pay 5 or fewer people; $49 + $6 otherwise. Offer terms Visit Homebase Payroll	$55$660/yr	$79$948/yr	$109$1,308/yr
OnPay ↗ Payroll Essentials Promotion: One month free Who: Not stated (offer terms not on the pricing page). Ends: no end date published. After: The regular price above. Offer terms Visit OnPay	$55$660/yr	$79$948/yr	$109$1,308/yr
QuickBooks Payroll (QuickBooks Workforce) ↗ Workforce Payroll State tax filing fee exists but is not published Promotion: 50% off the monthly base price for the first 3 months (or a 30-day free trial instead) Who: New QuickBooks Workforce subscriptions. Per-employee, per-contractor and state tax filing fees are not discounted. Ends: no end date published. After: The regular price above ("the then-current price"). Offer terms Visit QuickBooks Payroll (QuickBooks Workforce)	$57$684/yr	$85$1,020/yr	$120$1,440/yr
Justworks ↗ Payroll Visit Justworks	$58$696/yr	$90$1,080/yr	$130$1,560/yr
Paycor ↗ Basic Prices shown only after you fill in a contact form Promotion: 50% off for 6 months, or 1 month of free payroll with setup fees waived (two offers shown) Who: New customers ("Limited Time Offer for New Customers"); the terms behind the asterisk were not on the page. Ends: no end date published. After: The regular price above. Offer terms Visit Paycor	$104$1,248/yr	$124$1,488/yr	$149$1,788/yr
Toast Payroll ↗ POS + Payroll bundle Requires Toast POS Promotion: $69 a month + $9 per employee for the POS + Payroll bundle Who: New restaurants (the page does not define who counts). Ends: no end date published. After: The regular price above ($90 a month base); the page does not say whether the $9 per employee also changes. Offer terms Visit Toast Payroll	$99$1,188/yr	$135$1,620/yr	$180$2,160/yr
Paychex Flex ↗ One-year agreement; leaving early can cost you Promotion: Pay nothing until April 2027 (up to 6 free months) (ends Oct 31, 2026) Who: Clients who pick a qualifying Paychex bundle and sign a one-year service agreement. Leave within the year and Paychex can recover the free months. After: Your quoted price (Paychex publishes none). Offer terms Visit Paychex Flex	Quote only. No price published.
Rippling ↗ Promotion: Free for 6 months Who: Eligible US startups backed by venture capital. Ends: no end date published. After: Your quoted price (Rippling publishes no base fee). Offer terms Visit Rippling	Quote only. No price published.
RUN Powered by ADP ↗ W-2 and 1099 forms cost extra (amount not published) Fees rise with how often you run payroll Promotion: Up to 6 free months, applied to months 4, 5, 6, 13, 14 and 15 (ends Nov 26, 2026) Who: New RUN clients who sign and start payroll by Nov 26, 2026 and keep running payroll for 3 months in a row. Essential Payroll clients who sign up online on their own get 3 free months. After: Your quoted price (ADP publishes none). Offer terms Visit RUN Powered by ADP	Quote only. No price published.

Regular prices for one state, employees only, from each provider's own pricing page (checked Oct 20 to 23, 2026; ↗ opens it). Sorted by the yearly cost for 5 people, which adds fees billed once a year. "Not offered" means that plan does not cover that team size. Promotions are shown as a separate line and disappear when they end; tap one for its terms, including its end date or that none is published.

Two things decide the order more than the headline price:

• The fee for each person. At 1 person the base fee is most of the bill. By 20 people, a $1 difference per person outweighs a $10 difference in base fee.
• What is billed outside the monthly price. Year-end forms, a second state and faster direct deposit are extra at some services and included at others. The calculator adds them for your team.

Cheapest that still files your taxes

For a small team in one state, three services sit within a few dollars of each other at regular prices: Patriot Payroll Full Service ($37 a month + $5 per employee), Roll by ADP ($39 a month + $5 per employee) and Square Payroll ($35 a month + $6 per employee). They differ in what you give up:

• Patriot Payroll has US-based support by phone, email and chat on weekdays. Each extra state you file in adds $12 a month, and its direct deposit is 4-day, or 2-day for customers who qualify.
• Roll by ADP runs in a phone app you chat with, includes payroll in all 50 states and states unlimited payroll runs. ADP’s only published price.
• Square Payroll includes multistate payroll on its full-service plan, and offers free seasonal inactivity for months when you pay no one. Support is weekdays only.

SurePayroll has the lowest base fee of the full-service plans, but its per-person fee and yearly form fee make it cost more for most teams, and a second state adds $9.99 a month.

If you file the taxes yourself, two options cost less still. Know what you take on: you make the tax deposits and file the returns on time, and the penalties are yours if you miss.

Service and plan	1 persona month	5 peoplea month	9 peoplea month
Payroll4Free ↗ Free (9 or fewer employees) Visit Payroll4Free	$0$0/yr	$0$0/yr	$0$0/yr
Patriot Payroll ↗ Basic Payroll (you file taxes) Promotion: 30-day free trial, then 50% off for 3 months Who: Not stated beyond new customers. Ends: no end date published. After: The regular price above. Offer terms Visit Patriot Payroll	$21$252/yr	$37$444/yr	$53$636/yr

Regular prices for one state, employees only, from each provider's own pricing page (checked Oct 20 to 23, 2026; ↗ opens it). Sorted by the yearly cost for 5 people, which adds fees billed once a year. "Not offered" means that plan does not cover that team size. Promotions are shown as a separate line and disappear when they end; tap one for its terms, including its end date or that none is published.

Our pick, by team

• For just starting: just you, the owner, on payroll · must have Files your payroll taxes, Registers your state tax accounts at a published price, No base fee in months you pay nobody, No setup fee and no contract

  Our pick

  None with a full price

  No option publishes every must-have with a full price.

  Lowest cost: Payroll4Free $0 in the first year (Free (9 or fewer employees) plan)

  Cheapest overall. It doesn't publish whether it meets these must-haves: payroll tax filing, state tax account registration at a published price and no setup fee and no contract.

  Visit Payroll4Free→
  Why not the others?

  Missing a must-have: 11 options miss: no base fee in months you pay nobody.

  Can't confirm here (a must-have or the full price isn't published): RUN Powered by ADP, Paychex Flex, Rippling, Square Payroll, Payroll4Free.

• For just starting: your first employee, one state · must have Files your payroll taxes, Registers your state tax accounts at a published price, No setup fee and no contract

  Our pick

  OnPay $660 in the first year

  Payroll Essentials plan

  Visit OnPay→

  Lowest cost of the options with every must-have.

  Lowest cost: Payroll4Free $0 in the first year (Free (9 or fewer employees) plan)

  Cheapest overall. It doesn't publish whether it meets these must-haves: payroll tax filing, state tax account registration at a published price and no setup fee and no contract.

  Visit Payroll4Free→
  Why not the others?

  Can't confirm here (a must-have or the full price isn't published): QuickBooks Payroll (QuickBooks Workforce), RUN Powered by ADP, Roll by ADP, Paychex Flex, SurePayroll (by Paychex), Rippling, Patriot Payroll, Square Payroll, Paycor, Justworks, Homebase Payroll, Wave Payroll, Toast Payroll, Payroll4Free.

• For 5 employees in one state · must have Files your payroll taxes

  Our pick

  Square Payroll $780 a year

  Full-service payroll plan

  Visit Square Payroll→

  Within 10% of the lowest option with every must-have ($780 vs $744 at Patriot Payroll), and it answers more hours a week (60 vs 50).

  Lowest cost: Payroll4Free $0 a year (Free (9 or fewer employees) plan)

  Cheapest overall. It doesn't publish whether it meets this must-have: payroll tax filing.

  Visit Payroll4Free→
  Why not the others?

  Can't confirm here (a must-have or the full price isn't published): RUN Powered by ADP, Paychex Flex, Rippling, Payroll4Free.

• For 5 employees and 3 contractors · must have Files your payroll taxes, Files 1099s for contractors

  Our pick

  Square Payroll $996 a year

  Full-service payroll plan

  Visit Square Payroll→

  Within 10% of the lowest option with every must-have ($996 vs $924 at Patriot Payroll), and it answers more hours a week (60 vs 50).

  Lowest cost: Payroll4Free $0 a year (Free (9 or fewer employees) plan)

  Cheapest overall. It doesn't publish whether it meets these must-haves: payroll tax filing and 1099 filing.

  Visit Payroll4Free→
  Why not the others?

  Missing a must-have: Wave Payroll (misses: 1099 filing).

  Can't confirm here (a must-have or the full price isn't published): QuickBooks Payroll (QuickBooks Workforce), RUN Powered by ADP, Roll by ADP, Paychex Flex, Rippling, Paycor, Homebase Payroll, Toast Payroll, Payroll4Free.

• For 5 employees across 2 states · must have Files your payroll taxes, Covers more than one state

  Our pick

  Square Payroll $780 a year

  Full-service payroll plan

  Visit Square Payroll→

  Within 10% of the lowest option with every must-have ($780 vs $768 at Roll by ADP), and it publishes its payout speed (4 business days; Roll by ADP doesn't).

  Lowest cost: Patriot Payroll $444 a year (Basic Payroll (you file taxes) plan)

  Cheapest overall on its Basic Payroll (you file taxes) plan, which doesn't include payroll tax filing; the plan that does costs $888.

  Visit Patriot Payroll→
  Why not the others?

  Can't confirm here (a must-have or the full price isn't published): QuickBooks Payroll (QuickBooks Workforce), RUN Powered by ADP, Paychex Flex, Rippling, Paycor, Homebase Payroll, Wave Payroll, Toast Payroll, Payroll4Free.

How we picked

Regular prices from each service's own page, for the team shown: base fee, per-person fees, extra states and once-a-year form fees, at the cheapest plan that has every must-have. For the just-starting rows, a year means your first 12 months: any promotion months at the promotion price, then the regular price, plus a published setup fee. Our pick is the lowest cost option that has every must-have; within 10% of it, no contract, faster payouts and longer support hours win. Payment from a provider never changes it. How we pick

First-year totals count these offers, from each service's own terms: QuickBooks Payroll (QuickBooks Workforce), the monthly base price at 50% off for the first 3 months, per-person fees not discounted; Roll by ADP, 3 months free; SurePayroll (by Paychex), payroll fees free in months 1, 3, 5, 7, 9 and 11, year-end fees still charged (sign up by Oct 31, 2026); Patriot Payroll, a 30-day free trial, then 50% off for 3 months; and Homebase Payroll, 6 months free, then $29 a month + $6 per employee paid while you pay 5 or fewer people (sign up by Dec 15, 2026). Not counted: OnPay (one month free: offer terms not on its pricing page); RUN Powered by ADP (applies to a quoted price ADP does not publish); Paychex Flex (needs a one-year agreement; price not published); Rippling (VC-backed startups only; price not published); Paycor (two offers shown; the terms behind the asterisk are not on the page); and Toast Payroll (new-restaurant price with no stated number of months).

Setting up payroll for your first employee

Before the first paycheck there are 6 steps, from the IRS and the Small Business Administration. A payroll service can take some of them off your hands; the rest are yours whichever you pick.

1. 1

   Get an Employer Identification Number (EIN)

   "Use this tool to get an EIN directly from the IRS in minutes for free. ... You never have to pay a fee for an EIN." IRS

2. 2

   Register for your state's payroll tax accounts

   "Find out whether you need state or local tax IDs ... If your business has employees, you’ll be responsible for paying state employment taxes. These vary by state, but often include workers’ compensation insurance, unemployment insurance taxes, and temporary disability insurance." SBA

3. 3

   Complete Form I-9 with each new hire

   "All U.S. employers must properly complete Form I-9 for every individual they hire for employment in the United States." IRS

4. 4

   Get the employee's Social Security number

   "You are required to get each employee's name and Social Security number (SSN) and to enter them on Form W-2 ... Do not accept an ITIN in place of an SSN for employee identification or for work." IRS

5. 5

   Get a signed Form W-4

   "Ask all new employees to give you a signed Form W-4 when they start work. Make the form effective with the first wage payment." IRS

6. 6

   Report the new hire to your state

   "They also report their new employees to their state directory within 20 days of the employee hire date, as required by their state." SBA (From the SBA's worked example; the deadline is set by each state.)

For one employee in one state, the cheapest service that files your taxes, registers your state accounts at a price it publishes, and has no setup fee or contract is OnPay: $660 for the first year. The others either don't publish one of those, or cost more.

Can I hire someone with an ITIN?

Not with an ITIN alone. The IRS says: "Do not accept an ITIN in place of an SSN for employee identification or for work." (IRS)

Paying yourself

How you pay yourself depends on how your business is set up for taxes, not on the payroll service. Here is what the IRS says for each type of business, in its own words, and which payroll services say they handle owner pay.

• Gusto says: "Need to pay yourself compliantly as an S corp? Pay yourself and contractors, and get tax-saving solutions." source
• Wave Payroll says: "Pay yourself, employees, or contractors, hassle-free" source
• SurePayroll says: "One employee Pay yourself with simple payroll" source (A menu link on its pricing page.)
• Months you skip paying yourself: Square Payroll publishes that a month with no payroll costs nothing ("Free seasonal inactivity"). 11 others charge a monthly base fee and publish no pause.
• Paying only contractors: Square Payroll's contractor-only plan costs no base fee + $6 per contractor. Gusto says: "U.S. contractors are billed at the per-person cost for any plan you select. We know you might not pay your contractors on a regular schedule, so we only bill you for contractors in months when you've paid them." source

When to pay more

The cheapest service is not always the right one. Pay more when:

• You have staff in more than one state. Gusto Simple won’t cover it; OnPay, Roll by ADP and Square Payroll include more states at no extra cost.
• You already use QuickBooks. QuickBooks Payroll costs more than the cheapest options, but it lives inside your books. See QuickBooks Payroll pricing for what it costs without the accounting bundle.
• You run a restaurant. Tips and many part-time staff change the math. See restaurant payroll.
• You want HR help too. Gusto Premium, Justworks and Paycor’s higher plans add HR tools and advisors. Our table prices payroll only.

Services that won’t show a price

RUN Powered by ADP, Paychex Flex and Rippling price by quote. Rippling publishes a starting price of $8 per employee “with a monthly base fee” it does not publish, so no total can be worked out. See what Rippling publishes and what to ask for in a quote. ADP is the most searched of the three: what ADP payroll costs explains what drives its quote and what its one public price is.

Before you take a quote, price two or three published options for the same team. A quote that beats them is worth taking; one that doesn’t is easier to turn down.

Gusto, QuickBooks and ADP up close

• Gusto pricing: when the one-state limit pushes you onto the pricier plan, and the per-payroll fees for faster deposits.
• QuickBooks Payroll pricing: the regular price after the introductory discount, and the state filing fee Intuit does not publish.
• ADP payroll pricing: why RUN is quote-only and how its free months work.