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The cheapest payroll software is not the one with the lowest sticker price—it is the lowest-cost option that still files your taxes correctly. Full-service payroll for a single W-2 employee starts around $42/month with Patriot Full Service, not DIY-only plans that leave deposit and filing risk on you.
- Full-service floor ~$42/mo vs $55+ for Gusto and OnPay
- EA cost table at 1, 3, 5, and 10 employees
- Hidden fees that erase "cheap" headline pricing
Cheapest is not DIY-only
Budget buyers still need tax filing, direct deposit, W-2/1099 processing, and an accuracy guarantee. Patriot Full Service wins raw math for single-state shops; OnPay and Gusto justify their premium when multi-state payroll, HR onboarding, or benefits shopping matter.
What "cheap payroll" should still include
A payroll platform that saves $15/month but leaves you filing Form 941 deposits manually is not a bargain—it is a compliance time bomb.
For most small businesses, full-service payroll should include:
- Federal and state tax calculation, deposit, and filing (941, 940, withholding, SUTA where applicable)
- Direct deposit without per-check software fees
- W-2 and 1099-NEC generation and e-filing to agencies
- New-hire reporting to state agencies
- Tax accuracy or filing guarantee covering provider-side errors
What Basic / DIY plans omit
Patriot Basic ($17 + $4/worker) calculates taxes but you collect deposits and file returns. Year-end SSA e-file costs $50 extra; 1099 e-file starts at $20. IRS failure-to-deposit penalties can reach 15% of unpaid tax plus interest—often far more than the Full Service premium.
Cheapest payroll options ranked (EA table)
Monthly software totals below assume all workers are paid each month, single-state full-service where applicable, no promos, and no add-ons. Verify live pricing before you buy.
| Provider / plan | Formula | 1 worker | 3 workers | 5 workers | 10 workers |
|---|---|---|---|---|---|
| Patriot Full Service | $37 + $5/worker | $42 | $52 | $62 | $87 |
| Patriot Basic (DIY filing) | $17 + $4/worker | $21 | $29 | $37 | $57 |
| Wave Payroll (full-service) | $40 + $6/person | $46 | $58 | $70 | $100 |
| Gusto Simple | $49 + $6/person | $55 | $67 | $79 | $109 |
| OnPay | $49 + $6/person | $55 | $67 | $79 | $109 |
| QuickBooks (QBO Simple Start + Core) | $38 QBO + $50 + $6.50/W-2 | $94.50 | $107.50 | $120.50 | $153.00 |
Takeaway: Patriot Full Service is the lowest full-service floor at every headcount in this table for a single state. Gusto and OnPay tie at $55 for one employee—see our head-to-head Patriot vs OnPay comparison, our Patriot review, and our best payroll software guide for feature depth.
When cheap payroll is enough
Patriot Full Service is often sufficient when:
- All W-2 employees work in one state (or you accept Patriot's per-state surcharge)
- You pay a handful of 1099 contractors in the same account
- You do not need built-in HR onboarding, PTO workflows, or benefits shopping
- You are comfortable with standard 2–4 day direct deposit (not same-day)
- Headcount stays under ~10–15 with straightforward pay types
When to pay more
Step up to OnPay, Gusto Plus, or ADP RUN when:
- Multi-state remote teams — OnPay includes all states; Gusto Plus bundles multi-state + time tracking
- HR and onboarding — digital offer letters, org charts, compliance alerts (included on OnPay base)
- Benefits administration — health, 401(k), workers' comp through Gusto or ADP
- S-corp owner payroll — see our single-employee S-corp guide for reasonable-comp considerations
- 15+ employees, garnishments, or SUI claim volume — ADP Enhanced+ tooling justifies quote-based pricing
EA compliance note
From a compliance standpoint, the $15–$20/month gap between Patriot Basic and Full Service is usually money well spent. Full Service automates deposit timing, includes W-2/W-3 filing, and carries a tax filing reliability guarantee for Patriot-side errors.
Software does not replace employer responsibility for worker classification, state account registration, or local PFML obligations that may sit outside your payroll vendor's filing scope. If you choose Basic, pair it with a CPA or EA who reviews deposit schedules quarterly.
Final picks
Patriot Full Service
$37/mo + $5/worker · ~$42/mo for one W-2. Lowest compliant floor for single-state shops.
Try PatriotOnPay
$49/mo + $6/worker · all states and core HR included. Better value when you outgrow Patriot's add-ons.
Try OnPayQuickBooks Payroll Core
Native GL sync beats any third-party integration—if you already pay for QBO, the stack cost is easier to swallow.
View QuickBooksRelated: Gusto pricing (2026) · all payroll software guides · our broader payroll software roundup.
FAQ
Is free payroll software real?
Some vendors offer free trials or $0-base promos (Gusto Contractor Only, Patriot's trial). Ongoing compliant W-2 payroll with tax filing always carries a monthly fee. "Free" usually means free until first payroll run or a limited-time base discount—not zero cost forever.
What's the cheapest payroll with contractors?
For contractor-only shops, Gusto Contractor Only is $6/contractor with a limited-time $0 base for six months. Patriot and OnPay bill contractors at the same per-worker rate as W-2s but require a monthly base—see our 1099-only payroll guide.
What's the cheapest multi-state payroll?
OnPay ($49 + $6/worker) includes all 50 states with no per-state surcharge—often cheaper than Patriot once you have employees in three or more states. Gusto Simple adds ~$12/mo per extra state; Patriot adds $12/mo per state beyond the first on Full Service.
Should I choose Patriot Basic to save money?
Only if you or your accountant will handle all tax deposits and filings on schedule. Basic saves ~$21/month vs Full Service at one worker but shifts penalty exposure to you and adds year-end e-file fees.
Affiliate disclosure: Some links on this page are affiliate links; we may earn a commission at no extra cost to you. I only recommend tools I would use for my own clients.
Thomas Camp Jr., EA
Thomas is an Enrolled Agent and tax accountant with over 14 years of experience helping small businesses choose the right payroll, accounting, and operational tools. His recommendations come from hands-on implementation—not just feature lists. Verify EA credentials →
