Cheapest Payroll Software for Small Business
Quick Answer
The cheapest payroll software is not always the plan with the lowest sticker price. For a very small business, a low base fee may win. As your team grows, per-worker charges and tax-filing costs can change the winner quickly. Compare the total monthly cost for your headcount, not just the advertised starting price.
A useful benchmark is Patriot Basic, currently priced at $17 per month plus $4 per worker paid. It keeps the software bill low, but you handle your own payroll tax filings. Patriot Full Service costs $37 per month plus $5 per worker paid and adds federal, state, and local payroll tax filing.
The question to ask is simple: do you want the lowest software bill, or the lowest-cost option that also handles the payroll work you do not want to do yourself?
If paying nothing for the software is the priority, see our best free payroll software for small business comparison. This page focuses on finding the lowest usable total cost after important fees and responsibilities are considered.
Cheapest Payroll Software Compared
For a useful comparison, ignore short-term promotional discounts and look at the regular base fee, worker charge, tax-filing level, and important extras.
| Payroll option | Regular starting price | Tax filing | Best fit | Main catch |
|---|---|---|---|---|
| Payroll4Free | $0 software access for up to 10 unique payees | Paid add-on | Tiny businesses willing to do more themselves | Direct deposit and tax services cost extra |
| Patriot Basic | $17/mo + $4 per worker paid | You file | Low-cost DIY payroll | Tax deposits and filings remain your responsibility |
| SurePayroll No Tax Filing | $20/mo + $4 per employee | You file | Small teams wanting inexpensive payroll software | You handle payroll tax filing |
| SurePayroll Full Service | $29/mo + $7 per employee | Included | Small teams wanting tax filing handled | Check separate year-end charges |
| Patriot Full Service | $37/mo + $5 per worker paid | Included | Low-cost full-service payroll | Additional-state costs may apply |
| Square Payroll | $35/mo + $6 per person paid | Included | Businesses already using Square | Less compelling outside the Square ecosystem |
| Homebase Payroll | $39/mo + $6 per active employee | Included | Hourly teams using scheduling and timesheets | Much of the value comes from the wider platform |
| OnPay | $49/mo + $6 per worker | Included | Businesses wanting full-service payroll and multi-state support | Higher starting bill |
| Gusto Simple | $49/mo + $6 per person | Included | Businesses wanting payroll plus broader HR tools | Not the lowest-cost choice |
Patriot Basic and SurePayroll’s no-tax-filing plan stand out when the goal is minimizing the paid software bill. Once tax filing is included, the comparison changes because base fees and per-worker charges scale differently.
For a broader explanation of those charges, see our payroll software pricing for small business guide.
Best Cheap Payroll Software by Business Type
Cheapest for Basic Payroll: Patriot Basic
Patriot Basic is a strong starting point if keeping the monthly bill low matters most and you are comfortable handling payroll tax deposits and filings yourself. It makes the most sense for small teams that do not need a large HR platform bundled with payroll.
Cheapest Free Option: Payroll4Free
Payroll4Free is the obvious place to look when the software budget is $0. Its free access is designed for businesses paying up to 10 unique employees, contractors, or other payees, but services such as direct deposit and payroll tax handling can add costs.
Use it when payroll is simple and you are comfortable trading convenience for a smaller bill. If free software is your main goal, compare the limitations on our free payroll software page.
Best Low-Cost Full-Service Payroll
Patriot Full Service and SurePayroll Full Service sit toward the lower-cost end of this comparison when you want payroll tax filing included. Do not pick between them using the base fee alone. Compare the total at your employee count and check state filing, year-end forms, direct deposit, and any extra service charges.
Best for One Employee or Owner Payroll
For one employee, the fixed monthly fee has an outsized effect on cost. Patriot Basic works out to $21 per month for one worker at current regular pricing, but tax filing remains your responsibility. If you want those filings handled, paying more for a full-service plan may be better value.
Cheap Payroll Software Price Examples
| Plan | 1 worker | 2 workers | 5 workers | 10 workers |
|---|---|---|---|---|
| Patriot Basic | $21/mo | $25/mo | $37/mo | $57/mo |
| SurePayroll No Tax Filing | $24/mo | $28/mo | $40/mo | $60/mo |
| SurePayroll Full Service | $36/mo | $43/mo | $64/mo | $99/mo |
| Patriot Full Service | $42/mo | $47/mo | $62/mo | $87/mo |
| Square Payroll | $41/mo | $47/mo | $65/mo | $95/mo |
The useful lesson is that the cheapest plan can change as headcount grows. A small base fee matters most for tiny teams, while per-worker charges become increasingly important as you hire.
Use this formula: monthly base fee + worker charges + required extras = your real payroll software cost.
For more detail, see how much payroll software costs and our payroll software cost per employee breakdown.
What Makes Payroll Software Cheap?
A cheap payroll plan usually lowers the bill in one of two ways: it charges a smaller base fee, or it leaves more work for you to handle yourself.
- Base fee: especially important when you have only one or two employees.
- Per-worker fee: increasingly important as your team grows.
- Payroll tax filing: cheaper DIY plans may calculate taxes while leaving deposits and filings to you.
- Year-end forms: check whether W-2 and 1099 preparation and filing are included or charged separately.
- Multiple states: additional state filings can change the total price.
- Add-ons: time tracking, scheduling, HR features, benefits, and integrations can turn a cheap plan into an expensive one.
- Promotions: compare the normal recurring price, not just an introductory discount.
Do not pay for features you will never use, but do not choose a bare-bones plan only to rebuild essential functions through several paid add-ons.
Free vs Cheap Payroll Software
Free payroll software can work well when your payroll is simple, your team is tiny, and you are comfortable doing more of the administration yourself. Low-cost paid software becomes more attractive when you want tax filing, direct deposit, multiple-state support, or stronger integrations.
| Free payroll software | Cheap paid payroll software |
|---|---|
| $0 or very low software cost | Predictable monthly subscription |
| Often best for very small teams | Usually easier to grow with |
| More manual work may be required | More automation may be included |
| Tax filing may remain DIY or cost extra | Full-service plans may include filing |
The useful question is not “Can I run payroll for free?” It is “How much time and responsibility am I taking on to keep it free?”
Self-Service vs Full-Service Payroll
The biggest pricing decision is often whether you want to file payroll taxes yourself.
Self-service payroll usually costs less because you remain responsible for more of the tax process. It can make sense if you understand payroll tax requirements, have an accountant handling filings, or have a simple one-state payroll.
Full-service payroll generally costs more because the provider handles more recurring tax administration. It can be worthwhile if you do not want to manage deposits and filings, employ people in multiple states, or value automation more than the lowest possible subscription price.
A $25 DIY plan is cheaper on paper than a $45 full-service plan. But if the extra $20 removes work you would otherwise spend time or outside accounting fees on, the higher-priced plan may deliver the lower practical cost.
How to Choose the Cheapest Payroll Software Without Regretting It
- Calculate the real monthly cost. Add the base fee, worker charges, and required extras.
- Check who files payroll taxes. Do not assume a low-priced plan includes filing.
- Confirm year-end forms. Look for separate W-2 or 1099 charges.
- Check state coverage. Multi-state payroll can affect pricing.
- Confirm direct deposit. Some free or low-cost products treat it as an extra service.
- Check payroll-run limits. Make sure the plan matches how often you pay people.
- Price the plan at your future headcount. The cheapest provider for two employees may not remain cheapest at 10.
- Compare regular pricing. Do not let a short-term promotion decide a long-term purchase.
For a broader buying process, see how to choose payroll software. You can also use our payroll software features checklist to make sure a low-cost plan is not missing something essential.
When a Cheap Payroll Service Is Better Than Payroll Software
Cheap payroll software is a good fit when you want control and are comfortable doing some of the work yourself. A more managed payroll service can be better value when you want someone else to handle more of the process.
Consider a payroll service when you do not want to manage payroll taxes, have employees in several states, regularly need help resolving payroll issues, or simply value your time more than the monthly savings from a DIY plan.
The cheapest option is the one that keeps your total cost of payroll administration low, not just the subscription price. If you want more hands-on help, compare our best online payroll services for small business.
FAQ
What is the cheapest payroll software for small businesses?
For businesses comfortable filing their own payroll taxes, Patriot Basic is one of the lowest-cost paid options in this comparison at $17 per month plus $4 per worker paid. Businesses wanting payroll tax filing included should compare full-service plans instead of choosing only by the smallest base fee.
Is there free payroll software for small business?
Yes. Payroll4Free offers free software access for businesses paying up to 10 unique employees, contractors, or other payees. Services such as direct deposit and payroll tax handling can cost extra, so confirm the total cost for the features you need.
What is the cheapest payroll service for one employee?
Low-base-fee plans tend to have an advantage for one employee. At the pricing checked for this comparison, Patriot Basic costs $21 per month for one worker, but you remain responsible for payroll tax filing. Full-service options cost more but handle additional payroll administration.
Is Patriot cheaper than Gusto?
At their entry-level prices compared here, yes. Patriot Basic starts at $17 per month plus $4 per worker paid, while Gusto Simple starts at $49 per month plus $6 per person. They are not equivalent plans, however, because Patriot Basic leaves payroll tax filing to the business while Gusto Simple includes tax filings and payments.
Is it cheaper to do payroll yourself?
It can be. Self-service payroll software usually costs less because you take on more administrative work. The savings make the most sense when you already understand payroll filing requirements or have an accountant handling those tasks.
How much should a small business pay for payroll software?
There is no single right amount because cost depends on employee count, tax-filing needs, states of operation, and required features. Compare the monthly base fee, per-worker charges, and required add-ons rather than relying on an average price.