Cheapest Payroll Service: 5 Options for Small Businesses

Running payroll shouldn't take up more of your business budget than necessary. Whether you're hiring your first employee, managing an hourly team, or paying freelancers overseas, finding the cheapest payroll service can help you reduce administrative costs.

But the lowest advertised price doesn't always mean the best deal.

Some providers offer inexpensive basic payroll software but leave tax filing to the employer. Others charge more while including payroll tax deposits, year-end forms, and employee management tools. International contractor payment services use a different pricing model altogether.

To help you make the right choice, we've compared five affordable payroll and contractor payment services in 2026: Solowise, Patriot Payroll, Square Payroll, SurePayroll, and OnPay.

Below, you'll find current advertised prices, important features, hidden costs, and practical recommendations for different types of small businesses.

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, Square Payroll starts at $35 per month plus $6 per person paid. SurePayroll also offers an affordable option, with a $29 base price under a limited-time offer plus $7 per employee.

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 5 Picks

• Solowise: Best for international contractor payments
• Patriot Payroll: Cheapest basic US payroll software
• Square Payroll: Best for hourly teams and US contractors
• SurePayroll: Best affordable full-service payroll for small teams
• OnPay: Best 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

1. Solowise — Best for International Contractor Payments

Pricing: $45 per contractor payout in USD, or €45 per payout in EUR

Solowise is designed for businesses that hire and pay independent contractors internationally.

Unlike conventional payroll providers, which focus primarily on calculating employee wages and handling domestic payroll taxes, Solowise helps companies coordinate payments, contracts, and invoices for freelancers and remote contractors.

Businesses can use the platform to send payments to contractors in more than 100 countries, manage agreements, and maintain payment records in one place.

Key Features

Solowise provides tools for managing international contractor relationships, including:

• Payments to contractors across 100+ countries
• Contractor agreements and online contract workflows
• Invoices and payment records
• Payment tracking and transaction history
• Support for payments in USD and EUR
• Contractor access to supported withdrawal methods
• Customer support

The platform's international focus makes it relevant to startups, digital agencies, and businesses working with distributed freelance teams.

Pros

• Designed for international contractor payments
• Supports contractors in more than 100 countries
• Centralizes contracts, invoices, and payment history
• Suitable for geographically distributed teams
• Avoids the need to use traditional employee payroll software solely for contractor payouts

Cons

• Not a replacement for US W-2 employee payroll
• Does not provide the same automatic employer payroll tax filing functions as full-service US payroll providers
• Costs increase with the number of payouts
• International payments may involve additional considerations depending on the destination and payment method

Best for: Small businesses, startups, agencies, and remote-first companies hiring international freelancers.

Choose Solowise if your priority is organizing and paying international contractors rather than processing domestic employee wages.

2. 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.

Adding both Time & Attendance and HR Software at the listed rates would increase the total to $34.50.

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.

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

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

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.

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

Full Service: $29/month + $7 per employee

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

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

At $29 per month plus $7 per employee, SurePayroll can be a cost-effective choice for small teams that want automated taxes without investing in a larger HR platform.

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

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.

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

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

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 20 workers:

$49 + (20 × $6) = $169 per month.

The subscription includes multi-state payroll and supported year-end tax filings.

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.

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How to Pay International Contractors Affordably

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Businesses working with freelancers in different countries need to evaluate more than subscription prices.

Unlike domestic employee payroll, cross-border contractor payments involve country coverage, currencies, payment frequency, documentation, and potentially different regulatory requirements.

Domestic Payroll vs. International Contractor Payments

A traditional payroll provider may be appropriate when a business employs W-2 workers in the United States.

An international contractor payment platform can be more relevant when a company works with independent professionals abroad and needs tools for payments, contracts, and invoices.

For example, a US-based marketing agency might hire freelance designers in Poland, developers in Argentina, and copywriters in other countries.

If those professionals are genuinely independent contractors rather than employees under applicable laws, the agency may benefit from a platform designed around international contractor workflows.

How Payout Frequency Affects Costs

Per-payout fees should be evaluated using the actual number of transfers.

For example, using Solowise's advertised flat fee of $45 per USD payout:

Businesses paying contractors every week may have different payment costs than businesses making one consolidated payment per contractor each month.

Confirm which fee structure applies before choosing a payout schedule.

What to Check Before Paying Contractors Abroad

Before selecting an international contractor payment service, consider:

• Country coverage: Can the provider send money to every relevant contractor location?
• Currencies: Which payment and withdrawal currencies are supported?
• Total fees: Are there flat fees, percentage charges, or additional payment-method costs?
• Documentation: Can you manage invoices and signed agreements?
• Worker classification: Is each worker correctly treated as an independent contractor under applicable laws?
• Payment records: Can your finance team access transaction histories for accounting and audits?
• Support: Is help available when an international payment is delayed?

When Solowise May Be a Better Fit Than US Payroll Software

Solowise may be more suitable when a company works primarily with international freelancers and needs to manage their payments and documents.

For example, a remote-first creative agency paying contractors in several countries may value centralized invoices, agreements, and payout records more than W-2 payroll processing.

However, a US business employing domestic staff will generally still need payroll software capable of managing employee wages and employer tax obligations.

The two categories can be complementary rather than competing solutions.

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 also displays limited-time and higher base prices. 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.

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How We Compared These Payroll Services

We compared five services using publicly available information from their official websites.

Our evaluation focused on:

Pricing: Monthly base fees, per-worker charges, payout fees, standard rates, and introductory discounts.

Tax filing: Whether the provider handles payroll tax calculation, deposits, and filing.

Worker coverage: Support for US employees, domestic contractors, or international independent contractors.

Features: Direct deposit, contractor payments, payroll reports, invoices, agreements, employee self-service, and management tools.

Additional costs: Potential fees for HR software, time tracking, multi-state payroll, and other services.

Business fit: Which types of small businesses are most likely to benefit from each platform.

Pricing information was reviewed in October 2026. 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?

The cheapest payroll service depends on your workforce and what you need the provider to handle.

Solowise is a strong option to consider for international contractor payments, especially when you want contracts, invoices, and transaction records in one place. Patriot Payroll offers a low-cost starting point for traditional US payroll, particularly if you're comfortable handling payroll tax filing separately. Square Payroll is well suited to hourly teams, retailers, restaurants, and businesses paying US contractors. SurePayroll offers affordable automated payroll tax filing for small employers, while OnPay provides multi-state payroll capabilities for growing businesses. Before choosing, compare the full cost of your required features rather than relying only on the advertised monthly fee.

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