Cheapest Payroll Software (2026): Ranked by Price, With Hidden Fees

The cheapest full-service payroll software starts around $17 to $40 per month plus a few dollars per employee, with Patriot, Wave, and Square Payroll consistently at the budget end. But the lowest sticker price isn’t always the lowest real cost: some “cheap” tools charge extra for tax filing, year-end forms, or off-cycle runs, while pricier-looking providers bundle everything. The honest answer to “what’s the cheapest payroll software” depends on whether you want self-service (you file the taxes) or full-service (the software files them).

I’ve priced these out for my own business and for clients. Here’s the ranked reality, including the fees that don’t show on the pricing page.

Cheapest payroll software, ranked by price

Prices are approximate and change; confirm current rates with each provider. The pattern: self-service tiers are cheapest on paper, full-service tiers cost a bit more but remove your filing risk.

Cheapest sticker price vs cheapest real cost

The lowest number on a pricing page can mislead. Patriot’s self-service plan is the cheapest base fee, but “self-service” means you deposit the taxes and file the 941s, 940, and W-2s. If you’d rather not, you need the full-service tier — a different price.

Wave Payroll is inexpensive, but full-service tax filing is only available in a limited set of states; elsewhere it’s self-service. Square Payroll is genuinely cheap and full-service, with the bonus that it’s free of monthly base fee on its contractor-only option.

So the real ranking depends on what you need:

• Absolute cheapest, you file taxes: Patriot self-service.
• Cheapest full-service: Patriot full-service, Square, or Wave (in supported states).
• Cheapest full-service that scales: OnPay or Gusto, where the per-employee fee stays low as you grow.

Hidden fees to watch

A low base fee can hide costs that surface on your invoice:

• Tax-filing add-ons — some budget tools charge extra to actually file and deposit your taxes.
• Year-end form fees — a per-W-2 or per-1099 charge in January.
• Off-cycle / extra run fees — bonus or correction runs that cost more than the regular cycle.
• Multi-state fees — a surcharge for filing in each additional state.
• Setup or onboarding fees — one-time charges to migrate your data.
• Integration fees — for accounting or time-tracking sync.

When comparing, total the annual cost for your real headcount and number of states, including year-end forms. The cheapest base fee often loses once you add these in. Providers with everything bundled — unlimited runs, all filings, year-end forms included — are frequently cheaper over a year despite a higher monthly number.

How each budget provider stacks up

A closer look at where each cheap option fits:

• Patriot — the price leader, built for very small businesses. The self-service plan is the cheapest base fee anywhere, and the full-service upgrade is still inexpensive. The trade-off is a more utilitarian interface and fewer benefits integrations. Great for a frugal owner who wants core payroll and nothing else.
• Wave Payroll — low cost and tied to Wave’s free accounting, so it appeals to solo operators already in that ecosystem. The catch is that automatic tax filing is full-service only in a subset of states; elsewhere you file yourself, which changes the value calculation.
• Square Payroll — genuinely cheap, full-service, and a natural fit if you already run a Square POS, since hours flow in automatically. Its contractor-only mode drops the monthly base entirely, making it one of the cheapest ways to pay 1099 workers.
• SurePayroll — a long-running provider with a self-employed-focused plan. Pricing varies by tier and add-ons, so read the quote carefully; tax-filing guarantees are a selling point.
• OnPay — flat, transparent full-service pricing that stays cheap as you add people because the per-employee fee is low and there’s one plan. Strong middle ground between budget and full-featured.

Match the tool to your situation rather than chasing the lowest base fee. A POS-integrated option like Square saves data entry; an accounting-integrated option like Wave saves reconciliation; a flat-rate option like OnPay or Patriot keeps costs predictable as you grow.

Cheapest isn’t the same as best value

For a single-owner business that’s comfortable with IRS deposit schedules, the cheapest self-service tier can be the right call. For almost everyone else, the value question beats the price question: what does it cost you if a tax deadline slips?

A full-service provider that bundles filing, year-end forms, and unlimited runs at a slightly higher monthly fee usually wins on total cost and peace of mind. I’d rather pay $49 and never think about a 941 than pay $17 and own the calendar. For a single employee, see payroll for one employee; for the full feature picture, see Gusto pricing.

Making payroll easier with Gusto

Gusto isn’t the cheapest sticker price on this list, but it’s the one I recommend most because its $49/month plus $6 per employee (Simple plan) includes everything: automatic federal, state, and local tax filing, unlimited payroll runs, year-end W-2s and 1099s, and no per-run or filing surcharges. The number on the pricing page is the number you pay. If you only pay contractors, the Contractor Only plan is $35/month — free for the first six months — plus $6 per contractor.

For budget-conscious owners, the math gets better at signup: new customers who use a referral link get a Visa gift card after their first paid payroll — $100 for fewer than 10 employees, $200 for 10 or more — plus three months free. Three months free on Simple is roughly $147 in base fees, which closes most of the gap with the cheaper tools while keeping full-service filing. No coupon to type; the offer applies through the referral link.

Frequently asked questions

What is the cheapest payroll software?

On base price, Patriot’s self-service plan (around $17/month plus a few dollars per employee) is typically the cheapest, but you file the taxes yourself. For cheap full-service payroll that files taxes for you, look at Patriot full-service, Square Payroll, and Wave (in supported states), generally $20 to $40 a month.

Is cheap payroll software safe to use?

Reputable budget providers like Patriot, Square, and OnPay use the same encryption and tax-compliance standards as pricier ones. The real risk with cheaper self-service tiers is that filing and depositing taxes falls to you, so a missed deadline becomes a penalty. Full-service tiers remove that risk.

Is free payroll software worth it?

Truly free payroll usually means calculation only — you still deposit taxes and file every return yourself, which is where penalties happen. For a single owner who knows the deposit rules it can work, but most businesses find a low-cost full-service plan cheaper than one late-filing penalty.

What hidden fees should I watch for in payroll software?

Watch for charges to actually file taxes, per-form year-end fees for W-2s and 1099s, off-cycle run fees, multi-state surcharges, and setup fees. Total the annual cost for your headcount and states. A bundled full-service plan with a higher monthly fee is often cheaper over a year.

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