5 Best Cheap Payroll Services for Small Businesses in 2026
A cheap payroll service is only a good deal if it reduces the work and risk that make payroll expensive in the first place. A low monthly fee can lose its shine fast if you have to pay extra for time tracking, multi-state pay runs, HR support, tax help, or basic workforce management tools.
To find the best cheap payroll service for small businesses, I looked beyond pricing and compared seven popular options based on total value, including what you get in the starter plan, which features cost extra, and where each platform can save employers and HR teams the most time.
Below are my top five picks:
Honorable Mention: SurePayroll (by Paychex)
SurePayroll didn’t make my list because of its limited HR tools and integration options. You also have to pay extra for multi-state payroll. However, it’s a good option if you only need simple pay runs. For a monthly fee of $29 plus $7 per employee, it processes payroll automatically and handles federal and state tax filings. It also offers a low-cost, no-tax filing option, but you will need to remit taxes and forward the tax forms to government agencies yourself.
To learn more about its features, visit SurePayroll.
Since our last update: This guide has been refreshed with updated provider pricing and product details. A new section on common cheap payroll cost traps has also been added to help you spot add-on fees, plan limitations, and hidden costs that can affect the total value of a payroll service.
I have over eight years of experience reviewing, testing, and writing about HR and payroll software. I’ve evaluated dozens of systems designed to handle simple to complex HR processes for small to midsize businesses (SMBs) in different industries.
I also have 10 years of expertise handling various facets of human resources, including managing HRIS, time tracking, and pay processing software. These allowed me to provide insights to help business owners determine which HR platform best fits their needs.
To evaluate the best cheap payroll software for small business owners, I compared seven solutions across 42 data points, prioritizing functionality, ease of use, and value for money. I also adhered to the Fit Small Business editorial policy. See my full methodology below.
Payroll & HR Software Expert at Fit Small Business
Cheap payroll software compared
Gusto: Best overall cheap payroll service
Pros
- Full-service payroll with tax remittance and filing services
- Basic hiring and onboarding tools included in the starter plan
- Gusto-brokered health insurance with access to financial management tools (via the free Gusto Wallet app)
- Wide range of HR features, such as talent acquisition and performance review tools
Cons
- Starter plan only comes with one state pay processing
- Time tracking, scheduling, advanced hiring, expense reimbursements, and next-day direct deposits included in higher tiers
- Priority support and HR advisory services only available in the Premium plan
Overview
Who should use it:
Gusto is great for those who want to hire, pay, and manage employees in one platform. It’s my top pick for cheap payroll software because of its rich HR features and reasonable price tag.
Why I like it:
Gusto is a full-service payroll software that provides unlimited pay runs, handles all tax filings, and offers automated pay runs, helping you save time. It lets you onboard new hires, offer different types of benefits, and track employee hours, making actual attendance data retrieval for pay processing easy. Gusto can even help you hire and pay international workers with its employer of record (EOR) service, Gusto Global. And if you need to process global contractor payments, Gusto can handle payouts in over 120 countries.
These features contributed to its overall score of 4.32 out of 5. Its starter tier has all the essential tools for managing simple pay runs. However, Gusto’s contractor-only payroll plan isn’t as affordable as Square Payroll and QuickBooks Payroll’s. Also, you must upgrade to at least its Plus plan or pay extra to access time-tracking functionalities. This is unlike Homebase and Square Payroll, which offer basic time tracking in their starter tiers.
Gusto plans
- Simple: $49 per month + $6 per person per month
- Plus: $80 base fee + $14 per employee monthly
- Premium: $180 base fee + $22 per employee monthly
- Contractor-only payroll plan: $35 base fee + $6 per contractor monthly (for businesses that only pay contract workers)
Add-ons
- State payroll tax registration: Pricing varies per state
- R&D tax credits: 15% of identified tax credits
- Health insurance and other benefits: Pricing varies by benefit
- Health insurance broker integration: $6 per eligible employee
- Workers’ compensation: Starts at $14 per month
- International contractor payments: Custom-priced
- Gusto Global: $699 per employee monthly
- Instant pay: $100 per payroll; lets you pay your team in minutes
- Same-day pay: $90 per payroll; lets you pay employees within hours
- Gusto Money Plus: $19 per month; includes tools to help you manage and organize business funds
Add-ons for the Simple plan only
- Time & Attendance Plus: $6 per employee monthly
- Next-day direct deposits: $15 base fee + $3 per employee monthly
- Performance reviews: $3 per employee monthly
Add-ons for the Simple and Plus plans
- Priority support: $30 base fee + $3 per employee monthly
- HR resources: $50 base fee + $5 per employee monthly
- includes access to HR documents, federal and state compliance alerts, and HR advisory services
- Tax services: Gusto handles quarterly and year-end tax filings for you. It can even help register your business in all the states where your company operates, although this service costs extra.
- Gusto Wallet: This app lets your employees split their paychecks into separate accounts, set budgets, and track debit card transactions so they can see how they spend their money versus their planned budgets.
- Time and project tracking: Employees can clock in/out directly in the software or through the Gusto Wallet app. It also lets them track actual work hours spent on specific projects. This allows you to monitor projects against your goals, spot where workloads must be adjusted, and evaluate your payroll and workforce costs by project.
A workforce costing report will allow you to see a summary of payroll costs by project. (Source: Gusto)
Interested to see how Gusto compares with some of the payroll software in this guide and other competitors? Check out these articles:
OnPay: Best for payroll & HR tools
Pros
- Simple pricing structure with transparent fees
- HR features include new hire reporting, onboarding, time off management, an online org chart, a centralized staff database, and access to benefits plans
- Free account migration services
Cons
- Lacks time-tracking solutions
- Live support is only available on weekdays
- Limited third-party software integrations
Overview
Who should use it:
OnPay is ideal for small businesses that want one predictable monthly payroll price and don’t need native time tracking or a large marketplace of third-party integrations. It onboards new employees, processes payments, and provides access to health plans from major insurers—all for a monthly fee of $49 plus $6 per employee.
Why I like it:
It may cost the same as Gusto’s starter plan, but you save more with OnPay. With its flat pricing, you don’t need to upgrade to higher tiers to unlock other payroll features. It even includes custom onboarding checklists, automated benefits plan administration, a report designer, and dedicated onboarding support for new clients.
In my evaluation, OnPay earned an overall score of 4.09 out of 5 because its efficient payroll tools can handle payments for many types of businesses, including farms and non-profit organizations. I gave it top marks for its new client services, which include free account migration and support for setting up integrations. However, unlike Gusto, it only offers benefits via partner brokers. It also connects with only a handful of third-party software and lacks time tracking and performance review tools.
OnPay plan
- Payroll Essentials: $49 base fee + $6 per employee monthly
- Includes full-service payroll with tax filings, basic hiring and onboarding, document storage, benefits administration, reporting tools, integration options, permission levels, and expert support
Add-on
- HR: $15 base fee + $2 per employee monthly
- Includes onboarding workflows, employee directory and org charts, PTO management, equipment and software provisioning, and HR insights
- Niche payroll: OnPay can process pay runs for employees and contractors in various industries. Further, it’s the only provider on my list that processes payments and tax filings for agricultural workers. It can even handle payouts for workers with H-2A visas.
- Team management tools: OnPay offers document services where you can customize templates, send them for e-signatures, and instantly add them to your employee records. You can stay organized with in-app messaging between team members and use org charts to create employee rosters automatically.
- Integrated benefits: OnPay partners with top healthcare and retirement plan providers, such as Humana, BlueCross BlueShield, Aetna, Vestwell, and Guideline. If you’re unsure which plan to get, OnPay’s in-house team of licensed experts can help you select the right one. The benefits programs you choose also sync with payroll for payment processing and deductions.
All payroll deductions for benefits are handled easily and with compliance through OnPay. (Source: OnPay)
Homebase: Best for paying hourly employees
Pros
- Core Homebase time tracking and scheduling platform has a free plan for one-location companies with up to 10 employees
- Reasonably-priced Homebase Payroll add-on
- Offers a Cash Out pay-on-demand option
Cons
- Adding payroll can get pricey if you upgrade to the core Homebase platform’s paid plans
- Lacks access to employee benefits plans
- Starter core Homebase plan only includes email support; live phone and chat assistance available in higher tiers
Overview
Who should use it:
If you mostly hire hourly employees, Homebase’s core platform primarily has time tracking and scheduling features to help you manage staff attendance. With its Homebase Payroll add-on, you can easily use the core platform’s time data to pay employees compliantly.
Why I like it:
Homebase Payroll may be a paid add-on, but it can be an inexpensive payroll service if partnered with the core platform’s free plan for one-location businesses with up to 20 workers. It’s even slightly cheaper than Gusto because you get time tracking, a feature that’s included in Gusto’s higher tiers or costs extra with the starter plan.
In my evaluation, Homebase earned a 3.93 out of 5 score. I gave it top marks in pay processing because of its automatic pay runs, next-day payroll, and tax filing services. Unlike Gusto, OnPay, and QuickBooks Payroll, you complete payroll with just a few taps via Homebase’s mobile apps for iOS and Android devices. However, it doesn’t provide access to benefits plans and performance reviews. It can also become a pricey option if you get the payroll add-on and upgrade to the core platform’s paid plans to access other features, such as labor cost management, hiring, and more advanced reporting tools.
Core Homebase time tracking and scheduling plans:
- Basic: Free for one location and up to 10 employees
- Essentials: $30 per location monthly; includes unlimited employees
- Plus: $70 per location monthly; includes unlimited employees
- All-in-One: $120 per location monthly; includes unlimited employees
Add-ons
- Homebase Payroll: $39 base fee + $6 per employee monthly
- Background checks: $30 each
- Job post boosts: Starts at $79 per job post
- Hiring assistant: Starts at $30 per job post
- Tip manager: $25 per location monthly; includes tip pool calculations and automatic tip data imports from your point-of-sale (POS) software into Homebase
- Task manager: $13 per location monthly; this lets you build and assign task lists in Homebase
- Pay on demand: Homebase may not provide access to benefits plans, but offers a pay-on-demand feature, Cash Out. Your employees must meet Homebase’s eligibility requirements to enjoy pay advances. However, instant payouts cost extra.
- Payroll notes: You can add special messages to specific employees without needing to exit the payroll process. Homebase’s pay grid has a Notes column where you click the “+ Add” button, input, and save your pay message. The saved notes will automatically appear on the employee’s pay slip.
- Child-support garnishments and payments: Homebase can handle child-support wage garnishments and remit the payments to applicable government agencies in all US states. While Gusto offers the same feature, its service doesn’t cover South Carolina.
Homebase allows you to add short pay-related notes to specific employees while running payroll. (Source: Homebase)
Quickbooks Payroll: Best for contractor payments
Pros
- Easily integrates with Intuit products, such as QuickBooks Accounting
- Offers a separate low-cost contractor payment package
- Next-day direct deposits available in all plans
Cons
- Basic HR features
- Automated local tax filings available only in its higher tiers
- Access to HR advisory services reserved for Payroll Elite plan holders
Overview
Who should use it:
QuickBooks Payroll can handle contractor and employee payroll, but if you only pay contract workers, its contractor payments package is the cheapest payroll service on my list.
Why I like it:
The easy integration between Intuit products and QuickBooks’ fast payment options is just some of the things I like about this software. You get next-day direct deposits even with its starter tier—a feature Gusto offers in its higher plans. And you can easily import pay-related data into your general ledger for easy bookkeeping if you use both its accounting and payroll modules.
It also offers full-service payroll with tax filing assistance, employee benefits plans, and time tracking tools—functionalities that contributed to QuickBooks Payroll’s overall score of 3.82 out of 5. While its contractor payments package is more affordable than Square Payroll, it has limited HR features. Unlike Gusto and Homebase, you can’t use its platform to hire employees or post jobs. It also doesn’t offer online org charts or an employee directory that you can search through.
QuickBooks Payroll plans
- Payroll Core: $50 per month + $6.50 per employee monthly
- Payroll Premium: $88 per month + $10 per employee monthly
- Payroll Elite: $134 per month + $12 per employee monthly
- Contractor payments package: $25 monthly for 20 workers + $2 for each additional contractor
- Affordable contractor-only payment plan: For $25 monthly, you can process payments for up to 20 workers. This is significantly lower than Square Payroll’s contractor-only payroll option. For 20 workers, Square will charge you $120 monthly (computed as $6 per worker × 20 contractors).
- Extensive tax accuracy and tax guarantee program: QuickBooks is the only software provider on my list that offers two tax penalty programs. Its tax accuracy program, available in all plans, covers mistakes that its representatives make. However, its tax guarantee program, limited to its Elite plan, covers all tax filing errors, regardless of who made the mistake, but only up to $25,000.
QuickBooks Payroll offers tax accuracy and tax penalty protection programs to its clients. (Source: QuickBooks)
Square Payroll: Best for small restaurants & retail shops
Pros
- Easily syncs with Square’s POS system
- Instant and next-day payment options through its Cash App
- Affordable contractor-only payroll plan
Cons
- Has simple onboarding tools
- Workers’ comp, health insurance, and retirement benefits are paid add-ons
- Limited integration options
Overview
Who should use it:
If your restaurant or retail shop uses Square POS, getting Square Payroll to process employee payments is better than using third-party payroll software. You can track tips or commissions via Square POS and then automatically transfer the data into Square Payroll for payment processing.
Why I like it:
I appreciate the easy data imports between Square products. It helps save time and minimize errors from manual data entries. Square Payroll also has a mobile app that supports pay runs, which is great if you’re always on the go and need to submit payroll.
It earned an overall score of 3.71 out of 5 because of its efficient payroll features, but lost several points because of its limited HR features and integration options. Its contractor plan isn’t as affordable as QuickBooks Payroll’s, and it also lacks the local state tax payment and filing assistance that most of the providers on my list offer.
Square Payroll plans
- Full-service payroll: $35 base fee + $6 per employee monthly
- Contractor-only payroll: $6 per person monthly
Add-ons
- Health, retirement, and workers’ comp plans: Custom-priced
- Mail paper copies of W2s/1099s: $3 per mailed form annually (digital delivery of Form W2s and 1099s is free)
- Federal and state compliance alerts: Custom-priced; this is included free in the Full-service payroll plan
- Paid amendment services: Custom-priced
- Cash App: You can deposit salary payments into the accounts of employees who sign up for the Cash App. They can get their money via the ATM or transfer it to another account.
- Instant or next-day payouts: You can pull money from your Square balance to pay workers via direct deposit the next business day or instantly through the Cash App.
- Tips, commissions, and attendance data uploads: With the Square POS, you can capture tips and commission payments. You can even use it to capture employee clock-ins/outs. With the seamless integration between Square products, transferring the information you need to process employee payments is very easy.
You can import timecards and tip information from Square or manually input the data during pay runs. (Source: Square Payroll)
How to choose the best cheap payroll software
When looking for the best cheap payroll service, don’t focus only on the price. Check which essential features are included in the starter plan and which ones require an upgrade or add-on. Extra fees for time tracking, multi-state pay runs, priority support, HR advisory services, and faster direct deposits can all change the real monthly cost.
I recommend looking at the full payroll setup your business needs, not just comparing the lowest advertised plan. For most small businesses, that means asking: Can this provider run payroll accurately, handle tax filings, support the way I pay workers, and reduce the number of separate tools I need?
Also, consider the following:
- Security: Ensure the service follows strict data protection protocols to keep your sensitive employee information safe.
- Automated tasks: A service that can automate tasks like tax calculations and direct deposits will save time and reduce errors in your payroll processes.
- Benefits: Consider if you need HR benefits as well as payroll. This may cost you extra, but it can give you a complete package of benefits.
- Scalability: If your business plans to scale and grow, you may need a service that can grow with you. That may not be the cheapest option on the list, but it may still be within your budget.
- Compliance: Look for a service that provides both payroll and compliance needs.
- Reviews: Before relying on price alone, check the rating and what users say about the payroll service.
Check out our article on how to choose a payroll service to learn more. For software options, read our buyer’s guides on the best payroll services and top payroll software for small businesses.
Common cheap payroll cost traps
The lowest monthly fee does not always tell the full story. Before choosing a provider, check for these common cost traps:
- Time tracking add-ons: If you pay hourly workers, make sure time tracking is included or affordable. Otherwise, you may need a separate tool.
- Multi-state payroll costs: Some providers charge extra for additional state tax support or limit multi-state processing to higher plans.
- Integration costs: Check whether the payroll service connects with your accounting, time tracking, POS, benefits, or HR software. If it does not offer native integrations, you may need a paid connector, a manual workaround, or a separate platform to keep payroll data moving accurately.
- Support limitations: Some low-cost plans only include weekday support hours or assistance via email and a chatbot. That may be fine most weeks, but it can be stressful if payroll is due and you need quick help fixing a tax, direct deposit, or employee pay issue.
- Contractor-to-employee growth: Contractor-only payroll plans can be inexpensive, but costs may change significantly once you start hiring employees.
- DIY tax filing: No-tax filing plans can save money upfront, but they shift compliance work back to your team.
Methodology: How I evaluated the top cheap payroll services
To evaluate the best cheap payroll software for small businesses, I collaborated with Irene Casucian, one of our expert research analysts. We used a rubric with 42 data points to compare these payroll software:
- Gusto
- QuickBooks Payroll
- OnPay
- Rippling
- Square Payroll
- SurePayroll
- Homebase
We prioritized pricing and gave the most points to software that costs up to $300 monthly to pay 50 employees. We checked if the software has free trial offers, unlimited pay runs, and zero long-term contract requirements. In addition to customer support options, we looked for payroll tax payment and filing assistance, contractor payroll tools, third-party software integrations, reporting functions, and basic HR information (HRIS) features for easy employee onboarding and offboarding.
I also added my expert rating to each criterion, where I looked at the general effectiveness of that feature. While I couldn’t test all of the software on my list, I looked for key payroll features, watched video tutorials if available, and checked user reviews for feedback about the system’s overall ease of use.
Below is my full evaluation criteria:
- Pricing (30%): We looked for transparent pricing, free trial and discount offers, unlimited pay runs, and each platform’s “value for money,” which determines whether the number of features in the basic plan is competitive with other vendors in the space. We also gave points to software that only costs up to $300 monthly for businesses with 50 employees.
- Payroll features (20%): We gave priority to those that offer multiple pay schedules, tax payment and filing services, year-end tax reporting (W-2s and 1099s), and two-day direct deposits. We also checked if it supports contractor payroll and pay processing in all US states.
- HRIS & reporting (15%): We looked for HRIS features to help with onboarding and offboarding, new hire reporting, employee data storage, and recordkeeping. We also gave points to those that offer employee self-service portals, payroll report templates, benefits plans available in all US states, and org charts or a company directory that employees can access online.
- Platform & interface (15%): Here, we considered the platform’s mobile app functionalities, data security controls, and integration options.
- Customer support (15%): We looked at the support options available, such as the support hours and whether customer representatives can be reached via phone, chat, or email. We also checked for user help resources, such as a knowledge base or an online community forum.
- User reviews (5%): We considered user reviews from third-party review sites like Capterra, G2, and TrustRadius. We also checked the ratings and number of reviews, wherein those with 500 or more reviews received higher points.
Frequently asked questions (FAQs) about cheap payroll services
The best payroll software for small companies should have a user-friendly interface and offer full-service payroll with tax filing assistance. It should also have the features that most small businesses need, such as direct deposit payments, time tracking tools, and basic HRIS functions to securely store essential employee information.
You can use an Excel spreadsheet or free payroll systems, such as Payroll4Free, if you want to do payroll yourself at zero cost. However, I only recommend these tools if you only pay up to five employees. And since an Excel program and most free payroll tools don’t have automatic tax reporting features, you have to file tax forms yourself.
Several providers offer cheap payroll software, such as the ones on my list. However, don’t just focus on the cost. While affordability is important, consider the features you get for the price. You might be paying a low fee, but if the software requires a lot of manual data inputs and processes, it can lead to payroll errors and potential tax penalties—which can cost you more in the long run.
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