The best cheap payroll providers offer all the tools you need to run payroll for employees and contractors, plus complementary features like time tracking.
The best cheap payroll providers combine a great price point with essential features to remain compliant with state and federal laws while paying employees accurately and on time. Most also include complementary tools, such as time tracking, a human resources information system (HRIS), and benefits administration tools alongside an intuitive user interface and automation tools to save your company time and money.
After evaluating and testing dozens of payroll software, I narrowed down my list of the cheapest payroll service providers to the top seven. To do so, I scored each on value for the money, features, ease of use, customer support, and user reviews. Here are my top picks.
| Providers | ||
|---|---|---|
| Gusto | ||
| Justworks | ||
| Homebase Payroll | ||
| Patriot Payroll | ||
| OnPay | ||
| QuickBooks Workforce (formerly QuickBooks Payroll) | ||
| Square Payroll |
| Our rating (out of 5) | Starting monthly price | Separate contractor only payroll ($/month)* | Automated pay runs | HR tools | |
|---|---|---|---|---|---|
| Gusto | 4.6 | $49 base fee plus $6 per employee | $35 base fee plus $6 per worker | Yes | Yes |
| Justworks | 4.5 | $79 per employee | No | Yes | Yes |
| Homebase Payroll | 4.2 | $39 base fee plus $6 per employee** | No | Yes | Yes |
| Patriot Payroll | 4.1 | $17 base fee plus $4 per employee | No | No | Yes |
| OnPay | 4.1 | $49 base fee plus $6 per employee | No | No | Yes |
| QuickBooks Workforce | 3.9 | $50 base fee plus $6.50 per employee | $25 for up to 20 workers plus $2 per additional worker | Yes | Yes |
| Square Payroll | 3.7 | $35 base fee plus $6 per employee | $6 per worker | Yes | Yes, but mostly via add-on plans |
Our rating: 4.6 out of 5
Gusto doesn’t just offer payroll tools but benefits and HR tools as well—all in one platform. Its plans start at a reasonable rate and include full-service payroll with tax filing services, basic hiring and onboarding, access to employee benefits, and employee self-service tools.
It’s a strong option for small businesses looking for an all-in-one platform to manage payroll and core HR tasks. It may not be the absolute cheapest payroll service provider on my list, but it offers the best value for money given the ease of use, automation, and HR functionalities offered.
Gusto offers four plans. Here’s a brief overview of each:
| Pros | Cons |
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Gusto is a one-stop shop for everything you need to run payroll. I chose it as the best overall cheap payroll service because it gives small businesses room to grow without switching systems after the first few hires. It includes the payroll basics most employers need, such as tax filing, direct deposit, employee self-service, and payroll reports. It also offers HR, benefits, time tracking, and contractor payment tools, which makes it more complete than many lower-cost payroll-only platforms.
Our rating: 4.5 out of 5
In addition to offering payroll tools, Justworks offers HR software and access to employee benefits. It stands out by providing robust human support for small businesses, even those looking to expand with a global workforce. Its Professional Employer Organization (PEO) and Employer of Record (EOR) services give businesses access to certified professionals and even whole teams for outsourced hiring and payroll.
Justworks offers three paid plans, including its Payroll, PEO Basic, and PEO Plus plans. Here is a brief overview of each:
| Pros | Cons |
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I chose Justworks because it offers small businesses ample support for scaling their operations and promoting growth. Its PEO plans offer 24/7 customer support via Slack, email, phone, and chat. In these plans, you can access certified HR consultants, harassment prevention and inclusion training, an HR resource center, compliance support, and benefits administration support. And, if you plan to hire abroad, you can even hire Justworks to handle all hiring and payroll processing for you via its EOR services. This is especially helpful if you’re handling a startup and need more hand-holding with your first payroll or if your payroll is too complex that you need professionals to advise on best practices.
Our rating: 4.2 out of 5
Homebase is primarily a workforce management tool. It allows you to onboard employees, schedule shifts, manage labor costs and tasks, communicate with their team, and track employee attendance. In addition to these HR tools, it comes with payroll software that can be added onto its workforce management plans.
Homebase Payroll is most affordable for very small teams that qualify for its free Basic plan. That plan is designed for one-location businesses with up to 10 employees. If your business fits that profile, adding payroll can create an affordable scheduling, time tracking, and payroll workflow in one system.
Homebase offers four plans ranging from free to $80 per month, plus some add-on plans. Here is an overview of each:
| Pros | Cons |
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I chose Homebase because it solves a payroll problem that many very small businesses actually have: getting accurate hours into payroll without extra spreadsheets. For those with hourly teams, payroll accuracy often depends on clean scheduling, time clock, break, and overtime data.
Homebase is cheapest when you use its free Basic plan and add payroll. That makes it a strong fit for businesses with one location and up to 10 workers. If you have more than 10 employees or multiple locations, Homebase can still be useful, but the total price will rise once you combine a paid workforce management plan with the payroll add-on.
Our rating: 4.1 out of 5
Patriot offers a straightforward payroll processing software that starts at a very affordable $17 per month, plus $4 per user per month. This comes with core payroll tools to process employees and contractor payments, calculate federal and state taxes, and generate year-end payroll tax filings. Plus, you can add on Patriot’s time and attendance and HR software tools to enhance the platform’s features.
While its basic plan can keep costs low, you have to handle payroll tax filings yourself. This makes it ideal for cost-conscious small business owners who prefer this setup and only have a small team. However, a Full Service plan is also available that includes payroll tax filing services.
Patriot Payroll offers two plans:
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I chose Patriot Payroll because it gives small businesses control over how much payroll support they want to pay for. If you are comfortable filing payroll taxes yourself, the Basic Payroll plan keeps costs low while still giving you tools to calculate payroll, pay workers, generate reports, and manage employee access. That said, DIY payroll tax filing is not for every business. If you operate in multiple states, have complicated pay rules, or do not want to track payroll tax deadlines yourself, the Full Service Payroll plan is the safer option.
Our rating: 4.1 out of 5
In addition to payroll software, OnPay offers HR and benefits administration tools. It stands out by providing robust payroll features for U.S.-based businesses, even offering unlimited pay runs in all 50 U.S. states in every plan.
OnPay offers its base Payroll Essentials plan for $49 per month, plus $6 per employee per month. The plan includes:
It also has an HR add-on priced at $15 per month, plus $2 per employee per month. This includes PTO management, onboarding workflows, org charts, document management, equipment and software provisioning, and HR insight tools to OnPay’s base platform.
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I chose OnPay because it offers affordable and transparent payroll for businesses with workers in more than one state. While some providers request additional fees or require you to upgrade to a higher tier for multi-state payroll, OnPay’s single plan is all-inclusive at just $49 per month, plus $6 per employee per month. Plus, its base plan includes most features that other cheap payroll service providers either don’t have or charge extra for, such as free data migration support, compliance audit tools, and guidance from licensed experts.
Our rating: 3.9 out of 5
Historically, QuickBooks was primarily an accounting and bookkeeping tool. However, it has added bundled payroll plans that include its more traditional bookkeeping features in addition to health benefits, and some accounting features. Overall, best for those that already use QuickBooks Online or want payroll data to flow directly into their accounting system. It is not the lowest-cost payroll option, but it can make sense for small businesses that want payroll, bookkeeping, taxes, and labor costs connected in one familiar platform.
QuickBooks Workforce offers three payroll and HR plans. Here is an overview of each:
| Pros | Cons |
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I chose QuickBooks Workforce because it works best when payroll and accounting need to stay tightly connected. For very small businesses, payroll is not just an HR task. It affects cash flow, job costing, tax planning, and bookkeeping accuracy.
If you already use the QuickBooks accounting software, QuickBooks Workforce can reduce duplicate data entry and give you a clearer view of labor costs. That is especially useful for businesses that track billable hours, project costs, payroll taxes, and employee payments inside the same financial system.
Our rating: 3.7 out of 5
Square Payroll allows you to automate payroll for both employees and contractors. Because it also lets you connect your in-store point-of-sale (POS) system and sync your employee timecard data, it is a great option for restaurants or retail stores.
Square Payroll starts at $35 per month, plus $6 per employee or contractor. Seasonal companies that aren’t paying employees regularly also don’t have to pay the monthly price. Its payroll plan offers all key features, including:
If you only pay contractors, Square Payroll has a contractor-only payroll plan that costs $6 per worker, per month. It also includes unlimited pay runs, automated salary and tax calculations, simple onboarding tools, and multiple payment options.
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I chose Square Payroll because it uniquely offers tools to help small brick-and-mortar businesses, like restaurants and retail businesses, manage their payroll. For example, it helps you manage tips and employee time cards as it automatically syncs to payroll for accuracy and compliance. It also allows you to connect your Square Payroll software to your Square POS products to manage payroll from your POS dashboard easily.
Of the reputable payroll software on the market, Patriot Payroll is one of the cheapest. With plans starting at $17 per month, plus $4 per person per month, it offers all the tools you need to manage payroll for a single-state business, including unlimited payroll runs per month, the ability to pay employees and contractors, payroll reporting, and direct deposit. However, for a tool that also manages your payroll taxes, you’d have to upgrade to its more expensive plan.
The average cost of payroll software starts with a base price of between $35 and $45 per month, plus a per-person rate of $4 to $9 per employee or contractor paid per month. However, prices can range dramatically depending on the company and features offered. For example, a software that also manages your payroll tax filings can be double the price of one that does not. And, some companies offer plans with a no-frill feature set for as low as $17 per month.
Payroll software gives you tools to calculate pay, run payroll, manage employee records, and generate reports. Payroll services usually include more hands-on support, such as payroll tax filing, tax deposits, year-end forms, compliance assistance, or outsourced HR help.
For example, Patriot’s Basic Payroll plan is closer to DIY payroll software because you handle tax filing yourself. Justworks’ PEO plans are closer to outsourced payroll and HR support because they can help with payroll, compliance, HR administration, and benefits.
I reviewed and tested dozens of payroll software to land on the top seven for this list. To do so, I evaluated each on pricing, features, customer support, user reviews, and ease of use. I also tested each provider to ensure a positive user experience. From there, I compiled a rubric score based on dozens of factors. I then ranked them according to where they landed on the list based on my evaluation process.
Robie Ann Ferrer is an HR expert writer, focusing on HR and payroll software content. She has over eight years of content writing experience, handling different topics. Robie also worked as an HR specialist for 10 years where she managed various facets of HR—from payroll and benefits to employee services and HR systems.
