Payroll Software Cost Comparison 2026
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Payroll software pricing is one of the most opaque categories in B2B SaaS. Three of the four largest providers don’t publish complete pricing publicly, add-on fees turn $39/month plans into $89/month plans, and the “monthly base + per-employee” formula hides real differences in total cost. We’ve spent six weeks pricing every credible US payroll platform across four business sizes to give you actual answers.
This guide compares 12 payroll platforms across 1, 5, 25, and 50-employee scenarios. We’ve included only published or quoted pricing we received during the last 60 days. Where add-on fees are typical (time tracking, HR services, garnishments), we’ve called them out so you can see the real number — not just the headline.
How We Calculated
Every quote was collected by an Editorial team member buying as a fictional small business, not as a press contact. Where the published price required a quote, we used the average of three quotes obtained over a 30-day window. Annual costs assume month-to-month plans with no contract discounts. Setup fees are included where charged. We treated tax-filing as included if it shipped on the lowest paid tier.
| Platform | Base/Mo | Per Emp | 5 Emp/Yr | 25 Emp/Yr | 50 Emp/Yr |
|---|---|---|---|---|---|
| Patriot Software Basic | $17 | $4 | $444 | $1,404 | $2,604 |
| Patriot Software Full Service | $37 | $4 | $684 | $1,644 | $2,844 |
| Wave Payroll (full-service state) | $40 | $6 | $840 | $2,280 | $4,080 |
| Square Payroll | $35 | $6 | $780 | $2,220 | $4,020 |
| Roll by ADP | $29 (1 emp) | $5 | $588 | $1,548 | $3,288 |
| OnPay | $40 | $6 | $840 | $2,280 | $4,080 |
| Gusto Simple | $40 | $6 | $840 | $2,280 | $4,080 |
| QuickBooks Payroll Core | $50 | $6 | $960 | $2,400 | $4,200 |
| Paychex Flex Essentials | $39 | $5 | $768 | $1,968 | $3,468 |
| ADP RUN Essential | $59 | $4–10 | $1,008 | $2,508 | $4,308 |
| Gusto Plus | $80 | $12 | $1,680 | $4,560 | $8,160 |
| QuickBooks Payroll Elite | $130 | $11 | $2,220 | $4,860 | $8,160 |
Cost Drivers Most Buyers Underestimate
The headline price is rarely the real price. Across our 12-platform pricing exercise, four hidden costs surfaced repeatedly.
Add-on fees. ADP RUN Essential’s $59 base climbs by $19/month for time tracking, $9/month for general-ledger sync, and $25/month for benefits administration. The “true” Essential plan with normal small-business add-ons lands closer to $112/month base.
Setup fees. ADP and Paychex still charge setup fees ($100–$500) on some plans. Gusto, OnPay, QuickBooks Payroll, and Patriot Software charge $0 setup.
Year-end form fees. Some legacy providers charge per W-2 ($5–$10) and per 1099 ($3–$5) for year-end forms. Confirm “no extra fee for year-end” before signing.
Multi-state surcharges. A few providers charge $12–$25/month per additional state. Gusto, OnPay, and ADP RUN do not — multi-state is included.
Pricing by Business Size
1 Employee (Owner-Operator + First Hire)
| Platform | Annual Cost | Notes |
|---|---|---|
| Roll by ADP | $348 | Single-employee promo pricing |
| Patriot Basic | $252 | Self-file taxes |
| Patriot Full Service | $492 | Cheapest full-service |
| SurePayroll | $419.88 | Household-friendly |
| Gusto Simple | $552 | Most polished UX |
| OnPay | $552 | Best feature inclusion |
5 Employees (Typical Sole Proprietor + Small Team)
| Platform | Annual Cost | Notes |
|---|---|---|
| Patriot Full Service | $684 | Lowest full-service |
| Roll by ADP | $588 | Mobile-first |
| Square Payroll | $780 | Best for Square POS users |
| Gusto Simple | $840 | Best polish |
| OnPay | $840 | Matches Gusto, no upsells |
25 Employees (Established Small Business)
| Platform | Annual Cost | Notes |
|---|---|---|
| Patriot Full Service | $1,644 | Still the value pick |
| Paychex Flex Essentials | $1,968 | HR services included |
| Gusto Simple | $2,280 | Top of small-business sweet spot |
| OnPay | $2,280 | Same price, no upsells |
| QuickBooks Core | $2,400 | If books are in QB |
| ADP RUN Essential | ~$2,508 | Plus likely add-ons |
50 Employees (Mid-Market Threshold)
At 50 employees, you should be requesting custom quotes from ADP Workforce Now, Paycor, Paylocity, Rippling, and Paycom. Per-employee published pricing breaks down at this size, and negotiated rates 15%–35% below published can be expected.
| Platform | Annual Cost | Notes |
|---|---|---|
| Patriot Full Service | $2,844 | Surprisingly competitive |
| Paychex Flex | ~$3,468 | Often discounted at 50+ |
| Gusto Simple | $4,080 | Still cleanest UX |
| ADP RUN | ~$4,308 | Pushes you toward ADP Workforce Now |
| Rippling | ~$4,800 | Custom quote, modules add up |
Per-Employee Cost Curve
Note how dramatically per-employee economics change with business size:
| Business Size | Cheapest Per Employee/Mo | Most Expensive Per Employee/Mo |
|---|---|---|
| 1 employee | $21 (Roll by ADP) | $46 (Gusto Plus) |
| 5 employees | $11.40 (Patriot Full Service) | $28 (Gusto Plus) |
| 25 employees | $5.48 (Patriot Full Service) | $16.20 (QuickBooks Elite) |
| 50 employees | $4.74 (Patriot Full Service) | $13.60 (QuickBooks Elite / Gusto Plus) |
The per-employee cost flattens dramatically at 25+ employees. Below 5 employees, base fees dominate; above 25, the per-employee charge dominates. This is why platforms like Patriot ($4/employee) become more competitive as you grow.
What’s Worth Paying More For
Not every cost premium is wasted. Worth paying up for:
- Tax-penalty protection (QuickBooks Elite, +$80/month over Core). Up to $25,000 in penalty coverage; meaningful for first-time employers.
- Same-day direct deposit (Gusto Plus, +$40/month over Simple). Saves at least one off-cycle correction per year.
- Dedicated payroll specialist (ADP RUN Complete, Paychex Flex Pro). Worth the premium above 25 employees.
- AutoPilot scheduling (Gusto, included). Saves 5–10 hours/year in cycle prep.
- HR services bundle (Paychex Flex Pro). Replaces a $200/month standalone HR tool.
Not worth paying for unless you’re enterprise:
- Org chart features. Vanity feature unless you’re 50+ employees.
- Performance review modules. Better in dedicated tools.
- Compensation analytics. Mostly mid-market enterprise concern.
How to Negotiate Payroll Pricing
- Get three quotes; ADP and Paychex are negotiable, Gusto and OnPay are usually not.
- Push back on setup fees — most are waivable on 25+ employee accounts.
- Ask about annual prepayment discounts (5%–10% common at ADP and Paychex).
- Bundle benefits administration with payroll for better blended pricing.
- Time renewals against year-end — December and January negotiations carry more leverage.
Recommended Offers
💡 Editor’s pick: Patriot Software Full Service is the unbeatable value pick at every size — $37 + $4/employee, full 50-state filing, no upsells.
💡 Editor’s pick: Gusto Simple at $40 + $6/employee remains the small-business benchmark for UX, transparency, and feature inclusion.
💡 Editor’s pick: ADP RUN Complete justifies its premium when you cross 25 employees and need a dedicated specialist plus a clear path to ADP Workforce Now.
FAQ — Payroll Software Cost Comparison
Q: What’s the average cost of payroll software in 2026? A: For a 10-employee small business on a quality full-service plan, expect $1,000–$1,400/year. Add-ons typically push that to $1,400–$2,000.
Q: Are annual contracts cheaper than monthly? A: ADP and Paychex offer 5%–10% discounts for annual prepayment. Gusto, OnPay, and QuickBooks Payroll do not — month-to-month is the standard.
Q: Does payroll software cost more for hourly employees? A: Generally no. Per-employee pricing applies regardless of hourly vs salaried. Time-tracking add-ons can add $5–$10 per employee/month if needed.
Q: When does it make sense to switch to ADP Workforce Now or Paycor? A: Around 50 employees, custom-quote enterprise platforms typically beat per-employee pricing. The break-even varies by add-on mix and benefits complexity.
Q: How much does payroll cost a small business that does it manually? A: Industry estimates put manual payroll at 5–10 hours per cycle. At a $50/hour fully-loaded admin rate over 26 cycles, that’s $6,500–$13,000/year — well above any software cost.
Q: Are there any truly free payroll options? A: Payroll4Free covers up to 25 employees if you self-file taxes. Square Payroll Contractors-Only and Gusto Contractor-Only have $0 monthly base for 1099-only workflows.
Related Reading on Starbo Serve
- Best Payroll Software of 2026: Top 10 Compared
- Best Payroll Software for Small Business in 2026
- Gusto vs ADP vs Paychex: 2026 Complete Comparison
- Self-Service vs Full-Service Payroll: 2026 Comparison
- Best Free Payroll Software of 2026
Final Verdict
The cheapest payroll software at every size is Patriot Software Full Service, but the best value depends on what you’re actually buying. For most small businesses in 2026, Gusto Simple or OnPay at $40 + $6/employee delivers more usable software for the additional $300–$600/year. Above 25 employees, negotiate; above 50, switch to mid-market platforms with custom pricing. Below 5 employees, Patriot or Roll by ADP gives you 80% of the value at 50% of the cost.
This article is for informational purposes only. Software pricing, features, and tax rules are accurate as of publication and subject to change. Starbo Serve may receive compensation for some placements; rankings are independent.
By Starbo Serve Editorial · Updated May 9, 2026
- payroll
- payroll cost
- 2026
- small business