Introduction
Payroll is one of the largest recurring expenses for small businesses that have employees. Knowing how much payroll software actually costs — beyond just base subscription prices — can help you make smarter decisions without surprise fees.
In this guide, we’ll break down payroll software pricing in 2026, compare total cost structures, and help you pick the best option for your budget and business size.
Quick Pricing Snapshot for Payroll Software (2026)
| Software | Base Fee | Per Employee | Key Extra Fees | Auto Tax Filing | Best For |
|---|---|---|---|---|---|
| Gusto | $40–$80/mo | $6–$12/employee/mo | Add-ons: 401(k), benefits | Included | All-around SMB |
| OnPay | $40/mo | $6/employee/mo | Add-ons: HR tools | Included | Affordable full service |
| QuickBooks Payroll | $45–$125/mo | $4–$8/employee/mo | Next-day deposit add-on | Included | QuickBooks users |
| ADP RUN | $$ | $$ | Custom pricing | Included | Larger SMBs |
| Patriot Payroll | $10–$30/mo | $4–$6/employee/mo | Tax filing add-on | Optional | Budget payroll |
Notes:
- Pricing varies by region and features; always check the latest plans
- “Base fee” is the starting subscription rate
- “Per employee” is the recurring per-employee cost
Understanding Payroll Pricing Models
Most payroll solutions charge using a hybrid pricing model:
a) Base Subscription
A fixed monthly cost to access the system.
- Covers payroll processing tools
- Usually tiered by feature level
b) Per Employee / Per Contractor Fee
A recurring fee for each person you pay.
- Makes small teams more affordable
- Larger teams cost more cumulatively
c) Add-Ons & Extras
Some features may cost extra, like:
- Automated tax filing add-ons
- Benefits administration
- 401(k) management
- HR support tools
- Next-day pay
Payroll Software Pricing in Detail (2026)
1) Gusto — Medium Base, Full Service Included
Pricing Structure
- Starter: $40/mo + $6/employee
- Core: $80/mo + $10/employee
- Complete/Concierge: Higher tiers with additional HR tools
What You Get
✔ Automated federal & state tax filing
✔ Employee self-service portal
✔ Benefits & 401(k integration
✔ Time tracking add-ons available
Extra Costs to Consider
- Benefits administration
- 401(k and health benefits
- Advanced HR tools in higher tiers
Why It’s Worth It
Gusto includes tax filing in all tiers, which is rare at this price level. It’s extremely easy to use and designed for small businesses that want a true full-service payroll.
2) OnPay — Strong Value with Simple Pricing
Pricing Structure
- OnPay: $40 base + $6/employee each month
What You Get
✔ Full tax filing in price
✔ Multi-state payroll
✔ Contractor payments
✔ Basic HR tools
Extras
- Additional HR features (payroll compliance)
- Optional benefits tools
Why It’s Worth It
OnPay’s flat pricing is one of the most predictable around — no feature tiers to think about. That simplicity is perfect for small teams.
3) QuickBooks Payroll — Best for QuickBooks Integration
Pricing Structure
- Core: $45 base + $4/employee
- Premium: ~$75 base + $8/employee
- Elite: ~$125 base + $10/employee
What You Get
✔ Automated tax filing
✔ Direct deposit
✔ Same-day pay (elite tier)
✔ Native QuickBooks Online integration
Extra Costs
- Same-day ACH/next-day direct deposit fees
- Additional users if beyond thresholds
Why It’s Worth It
If you already use QuickBooks for accounting, the integrated payroll experience saves time and syncs transactions automatically.
4) ADP RUN — Enterprise-Level Payroll
Pricing Structure
- Custom pricing (often $200–$300+ base for entry)
- Per-employee pricing varies
- Contract negotiation often required
What You Get
✔ Full tax filing
✔ Deep compliance tools
✔ HR support
✔ Time & attendance add-ons
Extra Costs
- HR help desks
- Benefits administration
- Time clocks and integrations
Why It’s Worth It
ADP is powerful but premium. It’s often overkill for very small businesses, but great for companies planning rapid growth or requiring strong compliance automation.
5) Patriot Payroll — Budget Payroll (Simplest)
Pricing Structure
- Basic: $10 base + $4/employee
- Full Service (add tax filing): $30 base + $6/employee
What You Get
✔ Basic payroll processing
✔ Direct deposit
✔ Tax filing (in higher tier)
Extra Costs
- Tax add-on if needed
- Next-day direct deposit
Why It’s Worth It
Patriot is one of the most effective low-cost payroll options for startups and micro teams that want affordability over depth.
Hidden Costs Many Businesses Miss
When evaluating payroll pricing, watch out for:
Multi-State Fees
If your staff is in multiple states, software may add extra charges for tax filings.
Add-On Modules
Taxes, HR, benefits, compliance assistance — all can come with extra fees.
User Fees
Some platforms charge extra for more than a certain number of users.
Next-Day Pay / ACH
Faster payment speeds often cost extra.
Always check the full pricing breakdown, not just the base rates.
Cost Comparison by Business Size (2026)
| Type of Business | Best Payroll Choice | Why |
|---|---|---|
| Solo / Micro (1–5 people) | Patriot Payroll | Cheapest core payroll |
| Small Team (5–15) | OnPay or Gusto | Best value + tax filing |
| Already Using QuickBooks | QuickBooks Payroll | Seamless integration |
| Growing SMB (15–50+) | ADP RUN | Compliance + scaling features |
This helps you choose based on current team size — not just general recommendations.
How to Save on Payroll Software
1. Pay Annually
Many providers offer discounts for annual billing.
2. Choose Only What You Need
Don’t pay for advanced HR tools if you don’t use them yet.
3. Bundle With Accounting Tools
Choosing accounting + payroll integrated tools can reduce manual entry and time cost.
4. Avoid Unused Add-Ons
Turn off features you don’t use — they often incur recurring charges.
Should You DIY Payroll or Use Software?
DIY payroll (manual spreadsheets) might save subscription costs upfront, but it costs in:
- Time
- Errors
- Tax penalties
- Reconciliation headaches
For most small businesses, payroll software pays for itself in time saved and compliance risk avoided.