Cheapest Payroll Service: 5 Options for Small Businesses

This guide compares four affordable US payroll providers — Patriot Payroll, Square Payroll, SurePayroll, and OnPay — and one separate option for international contractor payments, Solowise. The US payroll comparison focuses on pricing, tax filing, and additional fees, while the international payments section covers a different business need.

What Is the Cheapest Payroll Service in 2026?

For basic US employee payroll, Patriot Payroll offers one of the lowest starting prices among the providers reviewed. Its Basic Payroll plan starts at $17 per month plus $4 per worker, with a temporary introductory discount reducing the price to $8.50 plus $2 per worker.

For full-service US payroll with automatic tax filing, the cheapest option depends on team size. Patriot Full Service, at $37 per month plus $5 per worker, costs the least for teams of five or more: $62 for five employees and $87 for ten. Square Payroll starts at $35 per month plus $6 per person paid.

For businesses working with contractors internationally, Solowise provides a different solution. Rather than managing traditional US employee payroll, it helps businesses organize international contractor payments, agreements, and invoices.

Our Top 4 Picks

• Patriot Payroll: Low-cost basic US payroll.
• Square Payroll: Full-service payroll for hourly teams and US contractor payments.
• SurePayroll: Affordable payroll with optional automatic tax filing.
• OnPay: Payroll for growing and multi-state businesses.

The right service depends on where your workers are located, whether they're employees or independent contractors, and which payroll tasks you want to automate.

Cheapest Payroll Services Compared

Monthly cost = base fee + (paid employees × per-worker rate). Standard monthly prices below exclude annual fees and other extras.

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What the comparison includes and excludes

Patriot Basic includes unlimited payroll runs, direct deposit, employee access, and payroll calculations, but excludes automatic tax filings and optional HR/time tracking. Patriot Full Service includes everything in Basic, plus federal, state, and local payroll tax filings and deposits and year-end W-2/1099 filing at no extra fee. It excludes additional state filings ($12/month per extra state) and optional HR and time-tracking tools. Square Full-Service includes supported automatic payroll tax filing, unlimited runs, and Square integrations, but excludes separately purchased benefits and advanced Square services. SurePayroll includes supported federal/state tax filing, direct deposit, and unlimited payroll runs, but excludes multi-state charges, local tax fees, paid integrations, and annual W-2/1099-NEC form charges. OnPay Essentials includes supported federal/state/local tax filings, multi-state payroll, year-end forms, and accounting integrations, but excludes optional HR, time tracking, compliance services, and benefits premiums. Employee wages and employer taxes are not part of any of these subscription estimates.

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1. Patriot Payroll — Cheapest Basic US Payroll Service

Promotional price: $8.50/month + $2 per worker paid

Standard price: $17/month + $4 per worker paid

Patriot Payroll is among the most affordable traditional payroll software options for small US businesses.

Its Basic Payroll plan includes core payroll tools such as wage calculations, direct deposit, employee access, and unlimited payroll runs.

Patriot currently advertises a discounted introductory rate of $8.50 per month plus $2 per worker paid, following a 30-day free period. The discount applies for three months before standard pricing resumes.

However, Basic Payroll does not automatically file and deposit payroll taxes for you.

Key Features

• Unlimited payroll runs
• Direct deposit
• Employee self-service portal
• Automatic payroll calculations
• Contractor payments through payroll
• Payroll reports
• Optional HR and time-tracking software

Patriot Payroll Add-On Costs

Patriot offers optional tools that can be added to the payroll subscription.

For example, a business with five employees using the promotional Basic Payroll price would pay $18.50 monthly before add-ons. With ten employees, the promotional total would be $28.50 per month: $8.50 + (10 × $2). Once the three-month discount ends, the same team pays $57 per month at the standard rate.

For five employees, adding both Time & Attendance and HR Software at the introductory add-on rates ($3/month + $1 per employee for each product) would increase the promotional total to $34.50: 18.50+2×(3 + 5 × $1) = $34.50/month.

Time & Attendance and HR Software each cost $6/month + $2/employee at standard rates. With both add-ons at standard rates, five employees cost $69/month: $37 + 2 × ($6 + 5 × $2). Patriot Full Service costs $37/month + $5/worker, plus $12/month per additional tax-filing state.

Pros

• Low introductory and standard pricing
• Unlimited payroll runs
• Direct deposit included
• Optional HR and time-tracking tools
• Suitable for very small businesses

Cons

• Basic Payroll does not handle payroll tax filing and deposits
• Introductory pricing is temporary
• Additional features increase the total subscription cost
• Businesses seeking full-service payroll must choose a different plan

Best for: Small businesses with one to five employees, especially those already working with an accountant.

Choose Patriot if minimizing payroll software costs matters most and you're comfortable managing payroll tax filings separately.

2. Square Payroll — Best for Hourly Teams and US Contractors

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Full-service payroll: $35/month + $6 per person paid

Contractor-only payroll: $6 per person paid per month

Square Payroll is an affordable option for small businesses that employ hourly workers or pay US-based contractors.

Its full-service payroll product handles payroll calculations, employee payments, and supported federal and state payroll tax filings.

Square also connects with its wider business management ecosystem, making it particularly useful for restaurants, retail stores, and service-based businesses.

Key Features

• Unlimited payroll runs
• Automatic federal and state payroll tax payments and filings on the full-service plan
• Direct deposit and other supported payment methods
• Employee onboarding
• Timecard imports
• Tip and overtime tracking
• Multi-state payroll support
• Integration with Square business tools

Digital W-2s and 1099s are included. If you opt in to mailed paper copies, Square charges $3 per employee or contractor per year. Benefits such as health insurance and workers' compensation are priced separately.

Square Payroll vs. Square Plus

Square Payroll and Square Plus are different products.

Square Plus, advertised at $49 per month per location, is part of Square's point-of-sale offering. It includes advanced POS and business management features.

It should not be confused with Square Payroll's $35 monthly base price plus $6 per person paid.

Businesses using Square's POS products can evaluate payroll separately and choose the combination that fits their operations.

Pros

• Affordable full-service payroll
• Contractor-only option without a monthly base fee
• Useful features for hourly workers
• Integrates with Square's broader business tools
• Supports payroll tax filing

Cons

• Some benefits and advanced features cost extra
• The full-service plan includes a monthly base fee
• Businesses outside the Square ecosystem may not benefit as much from its integrations

Best for: Restaurants, retailers, salons, small service businesses, and companies paying US contractors.

Choose Square if you manage hourly employees, tips, or shifts and want payroll connected to your existing business tools.

3. SurePayroll — Best Budget-Friendly Full-Service Payroll

Full Service: $29/month + $7 per employee. Promotion: new customers get every other month free during their first year, subject to offer terms.

SurePayroll, a Paychex company, focuses on simplifying payroll for very small businesses and employers who want to spend less time on payroll administration.

SurePayroll Full Service costs $29 per month plus $7 per employee, giving it the lowest base monthly subscription cost among the full-service plans reviewed for one to three employees, excluding annual fees and other add-ons. This does not establish the lowest annual cost.

Its Full Service plan includes automatic payroll tax calculations, filings, and deposits.

SurePayroll can be a cost-effective option for small teams seeking automated taxes, but compare subscription charges, annual form fees, and required add-ons before choosing.

SurePayroll also offers a No Tax Filing plan for employers who handle payroll taxes themselves. It costs $20 per month plus $4 per employee and includes payroll tax calculations, direct deposit, and unlimited payroll runs. The employer remains responsible for filing and depositing payroll taxes.

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Key Features

• Automatic payroll tax calculation and filing
• Direct deposit
• Unlimited payroll runs
• Online pay stubs
• Payroll reporting
• Employee payroll records
• Mobile payroll access
• Customer support

SurePayroll Pricing and Additional Fees

Five employees cost $29 + (5 × $7) = $64/month; ten cost $29 + (10 × $7) = $99/month. These subscription estimates include supported federal/state filings, direct deposit, and unlimited runs, but exclude the following charges:

• Multi-state payroll: $9.99/month; local taxes: additional fee where applicable.
• Accounting integration: $4.99/month; timeclock integration: from $5/month + $3/employee.
• Annual W-2/1099-NEC forms: $50 base + $5 per form.

For five employees, multi-state payroll and accounting integration bring the monthly total to $78.98 ($64 + $9.99 + $4.99), before local tax and annual form fees. For three employees over 12 paid months, with one W-2 each and no promotions or optional add-ons, SurePayroll costs $665/year: 12 × ($29 + 3 × $7) + $50 + 3 × $5. Patriot Full Service costs $624/year: 12 × ($37 + 3 × $5), with year-end payroll tax filings included.

Pros

• Competitive full-service pricing
• Automated payroll tax filing
• Unlimited payroll runs
• Suitable for very small employers
• Straightforward core payroll functionality

Cons

• Per-employee charges increase as the team grows
• Advanced HR functionality may be limited or require additional services
• Businesses with specialized payroll needs should verify support before subscribing

Best for: Small businesses that want affordable automated payroll taxes and relatively simple payroll administration.

Choose SurePayroll if you want full-service US payroll at a reasonable starting price without paying for extensive HR features.

4. OnPay — Best for Growing and Multi-State Businesses

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Payroll Essentials: $49/month + $6 per worker

OnPay currently offers new customers their first month free. After that, standard pricing applies.

OnPay combines full-service payroll with employee management features and multi-state support.

While it costs more than the cheapest basic payroll providers, its pricing includes features that may otherwise require paid add-ons.

OnPay supports W-2 employees and 1099 contractors, unlimited payroll runs, automated tax filings, and payroll processing across all 50 US states.

Key Features

• Automatic federal, state, and local payroll tax filing
• Unlimited payroll runs
• Multi-state payroll
• W-2 and 1099 support
• Direct deposit and other payment methods
• Employee onboarding
• Payroll reporting
• Accounting integrations

How Much Does OnPay Cost?

For a business with five workers:

$49 base fee + (5 × $6) = $79 per month.

For ten workers:

$49 + (10 × $6) = $109 per month.

The subscription includes multi-state payroll and supported year-end tax filings. Time Tracking costs an extra $15/month + $4 per employee; HR costs $15/month + $2 per employee. These, compliance add-ons, and benefits premiums are excluded above.

Pros

• Full-service payroll taxes included
• Multi-state payroll without additional state subscription fees
• Unlimited payroll runs
• W-2 and 1099 support
• Suitable for growing companies
• Accounting integrations

Cons

• Higher base fee than some competitors
• Advanced HR and time-tracking features may cost extra
• Can be more expensive than necessary for a one-person business

Best for: Growing businesses, companies employing people across several US states, and teams wanting payroll with basic HR capabilities.

Choose OnPay if you're scaling your workforce and want predictable payroll pricing with automated taxes.

A Separate Option for International Contractor Payments

Solowise

Businesses paying independent contractors abroad need to compare country coverage, currencies, payment fees, and documentation rather than US employee payroll features.

Solowise helps businesses manage international contractor payments, agreements, invoices, and payment records. It serves a different purpose from the US payroll providers above and does not replace payroll software for W-2 employees or automatic US employer payroll tax filing.

Under the flat-fee model described in this article, one monthly USD payout to each of five contractors would cost $225 in service fees; ten payouts would cost $450. Confirm the applicable pricing arrangement before calculating costs.

Solowise may be relevant to businesses working with international freelancers. Companies employing US staff should first choose a payroll provider that supports their employee payroll and tax obligations. If your team includes both US employees and international workers, you may need a broader solution. Our Gusto vs. Deel comparison explores how the two platforms differ in domestic payroll, global hiring, and contractor management.

Cheap Full-Service Payroll vs. Basic Payroll

One of the most important decisions when choosing payroll software is whether you need automatic tax filing.

Basic Payroll Software

Basic payroll plans usually provide wage calculations, pay records, and direct deposit.

The employer remains responsible for depositing and filing payroll taxes.

This arrangement may be appropriate for businesses already working with an accountant.

Full-Service Payroll

Full-service payroll typically includes calculation, filing, and depositing of supported payroll taxes.

It may also handle year-end forms such as W-2s.

For a business owner with limited payroll experience, full-service payroll can reduce manual administrative work.

Which Is More Affordable?

Basic software usually costs less in subscription fees.

However, the total cost depends on the time and resources required to manage payroll taxes, filings, and deadlines.

If you're unfamiliar with payroll tax obligations, the added cost of full-service payroll may be worthwhile.

Hidden Payroll Fees to Watch For

An inexpensive monthly subscription can become more expensive once additional features and services are included.

1. Introductory Discounts

Patriot advertises a 50% introductory discount for three months after a free trial. SurePayroll offers new customers free months: every other month is free during the first year. Always calculate long-term costs using the rate you'll pay when promotional offers end.

2. Payroll Tax Filing

Basic payroll plans may calculate payroll taxes without actually filing and depositing them. Check whether federal, state, and local tax services are included.

3. Multi-State Payroll

Some providers charge extra for additional states. Patriot Full Service, for example, lists an additional monthly charge for each extra state filing. OnPay advertises multi-state payroll within its core Essentials plan.

4. HR and Time-Tracking Add-Ons

Employee scheduling, attendance, HR documents, and advanced onboarding may cost extra. Patriot's optional HR and Time & Attendance tools are examples of separately priced features.

5. Year-End Forms

Confirm whether W-2 and 1099 preparation, filing, and delivery are included. Some services charge additional fees for certain forms or delivery methods.

6. Contractor Payment Fees

US contractor payroll and international contractor payments can use very different pricing arrangements. Compare charges per contractor, per month, and per payout carefully.

7. Payment Speed and Support

Faster payment options, setup support, and advanced assistance may depend on eligibility or selected services. Always review the provider's terms before subscribing.

How We Compared These Payroll Services

We compared four US payroll providers and one international contractor payment platform using publicly available information from their official websites.

Our evaluation focused on:

• Cost: standard pricing for five and ten employees, promotions, and extra fees.
• Useful features: tax filings, direct deposit, unlimited runs, year-end forms, and multi-state coverage.
• Integrations: accounting, time tracking, and business tools, including Square's ecosystem and OnPay's included integrations.
• Automation: payroll calculations, scheduled runs, and automatic tax payments and filings.
• Support: published channels and onboarding assistance, without independent response-time testing.

These criteria informed the selections: Patriot for low-cost basic payroll and competitive full-service pricing, Square for hourly teams, SurePayroll for low base monthly subscription costs for very small teams, and OnPay for multi-state teams. Monthly subscription comparisons exclude annual fees and other add-ons and do not establish the lowest total annual cost.

SurePayroll and Patriot pricing was reviewed on November 6, 2026; other pricing information was reviewed in October 2026. The comparison uses SurePayroll Full Service at $29/month plus $7 per employee and No Tax Filing at $20/month plus $4 per employee. Actual rates may vary by offer, contract, location, or additional features.

These categories reflect different business needs, not a universal ranking of interchangeable products. International contractor payments and domestic employee payroll have different functions and compliance requirements.

The comparison is based on published product information rather than hands-on testing of every service.

How to Choose the Cheapest Payroll Service for Your Business

Choosing an affordable payroll provider starts with understanding how your business pays people.

Step 1: Identify Your Workforce

Do you pay W-2 employees, US-based independent contractors, or freelancers abroad? This determines which types of payroll or payment products are relevant.

Step 2: Decide Who Handles Payroll Taxes

If you employ workers, determine whether you can manage payroll tax filings internally. If not, prioritize full-service payroll.

Step 3: Estimate Annual Costs

Calculate subscription and worker fees over 12 months. Account for promotional discounts ending and any planned hiring. For international contractors, calculate payment costs based on expected payout frequency.

Step 4: Compare Essential Features

Look for the functions your business actually needs, including:

• Direct deposit or international transfers
• Payroll tax filing
• Time tracking
• Employee or contractor onboarding
• Invoice and contract management
• Accounting integrations
• Customer support

Step 5: Consider Future Growth

A provider that's inexpensive for one employee may not remain the best value at 20 employees. Similarly, a contractor payment platform may be more relevant as your international freelance network grows. Choose a service that supports your expected business needs, not just today's lowest price.

Final Verdict: Which Cheap Payroll Service Should You Choose?

For businesses seeking low-cost US payroll, Patriot Basic offers the lowest starting price among the plans reviewed if you handle payroll tax filing separately. For full-service payroll, SurePayroll has the lowest base monthly subscription cost for one to three employees at $29 per month plus $7 per employee, excluding annual fees and other add-ons. That does not guarantee the lowest annual cost: for three employees, 12 paid months, and one W-2 each, SurePayroll totals $665, versus $624 for Patriot Full Service, without promotions or optional add-ons. Patriot Full Service has the lowest base monthly cost among the reviewed full-service plans for five or more employees. Square is a strong fit for hourly teams using Square tools, and OnPay includes multi-state payroll and year-end filings. Compare annual costs and required coverage before choosing. Businesses paying international contractors can evaluate Solowise separately.

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