Quick answer: How much do payroll services cost for small businesses? Most charge $17 to $80 per month as a base fee, plus $4 to $12 per employee per month. A team of 5 usually pays about $40 to $110 per month, and a team of 10 about $60 to $150 per month. Some providers, including ADP and Paychex, quote prices individually, and many charge extra for contractor payments, year-end W-2 and 1099 filing, additional states, same-day direct deposit, and setup. Published starting prices include roughly $17 plus $4 per worker (Patriot) and $49 plus $6 per worker (Gusto and OnPay). Always compare the total monthly cost, not just the base fee.
Most providers use one of three pricing models.
1. Base Fee Plus Per-Employee Fee
A flat monthly charge covers the account, and a second charge applies to each employee or contractor you pay. This is the most common model, used by Gusto, OnPay, Patriot, and QuickBooks Payroll.
2. Per-Payroll-Run Pricing
You pay a fee each time you run payroll, plus a per-employee charge. Costs rise with weekly or off-cycle payroll. Some Paychex plans work this way.
3. Quote-Based Pricing
The provider builds a custom price from your headcount, states, and add-ons. ADP RUN and Paychex Flex typically use quotes, and some users report that prices can rise after an introductory period.
Provider
Starting Price (Approx.)
Pricing Style
Notes
Patriot Payroll
About $17/month + $4/worker
Published
Lowest-cost full-service option
Gusto
About $49/month + $6/employee (higher tiers around $80 and $180)
Published, tiered
HR and benefits on higher tiers
OnPay
About $49/month + $6/worker
Published, one plan
Most features included
QuickBooks Payroll
From about $50/month + per-employee fee
Published, tiered
Best for QuickBooks users
Paychex Flex
Quote-based
Quote
May charge per run on some plans
ADP RUN
Quote-based
Custom quote
Add-ons priced separately
Rippling
Quote-based
Custom quote
Payroll plus HR and IT
Prices change often and vary by plan, state, and promotion. Verify current rates on each provider’s website.
These estimates use published base and per-employee fees and exclude add-ons.
Team Size
Patriot (about $17 + $4)
Gusto Simple or OnPay (about $49 + $6)
1 employee
About $21
About $55
5 employees
About $37
About $79
10 employees
About $57
About $109
25 employees
About $117
About $199
50 employees
About $217
About $349
Annual Cost Examples (Base Fee Plus Per-Employee Fee Only)
Team Size
Patriot
Gusto Simple or OnPay
5 employees
About $444 per year
About $948 per year
10 employees
About $684 per year
About $1,308 per year
25 employees
About $1,404 per year
About $2,388 per year
Quote-based providers, higher tiers, and add-ons can make the real total higher.
Most full-service plans include:
Unlimited payroll runs (on many providers)
Direct deposit
Federal, state, and local payroll tax calculation, filing, and payment
Quarterly forms such as Form 941
Pay stubs and an employee portal
Basic reporting and accounting integrations
Higher tiers add:
Time tracking and scheduling
PTO management
Health insurance and benefits administration
Onboarding and HR tools
Performance and hiring features
Dedicated specialists
Extra Cost
What to Expect
Contractor payments
Often a per-contractor monthly fee, or included in some plans
Year-end W-2 and 1099 filing
Included on some plans, a per-form fee on others
Additional states
Some providers charge per extra state; others include multi-state
Same-day or next-day direct deposit
May require a higher tier or extra fee
Setup or implementation fees
More common with quote-based providers
Per-run fees
Charged by some providers; costly with weekly pay
Off-cycle or bonus runs
Included on some plans, billed on others
Time tracking add-on
Often a monthly fee plus per-user charges
Tax penalty protection
Included by some providers, extra on others
Cancellation or contract fees
Check terms, especially on quote-based plans
Always request a quote that lists every fee you’ll pay.
Option
Typical Cost
Pros
Cons
DIY payroll (spreadsheet or manual)
Low direct cost
Cheapest upfront
High risk of tax errors and penalties, time-consuming
Payroll software or service
About $20 to $200+ per month for small teams
Automated taxes and filings, fast
Fees scale with headcount
Accountant or bookkeeper
Often per-run or monthly fees, which can be higher
Personal advice, handles complex issues
Can cost more than software
PEO (professional employer organization)
Percentage of payroll or per-employee fee
Bundles payroll, HR, and benefits
Higher cost, less control
Penalties for late or incorrect payroll tax deposits can far exceed the cost of a service, which is why many small businesses pay for automation.
Number of employees and contractors
Pay frequency (weekly, biweekly, semimonthly, monthly)
Number of states you pay in
Plan tier and the HR or benefits features you choose
Service level, from self-serve to dedicated specialists
Add-ons such as time tracking and tax filing extras
Contract terms, discounts, and promotions
Integrations with accounting software
Choose the lowest tier that covers your needs.
Compare total cost, including contractors, W-2s, and extra states.
Check for unlimited payroll runs if you pay weekly.
Use a free trial or promotion, but check the price after it ends.
Pay annually if the provider offers a discount.
Bundle payroll with accounting only if it saves money overall.
Review your plan yearly and downgrade unused features.
Negotiate with quote-based providers, and ask for a price lock.
For most small businesses, yes. A payroll service can:
Save hours each pay period
Reduce tax errors and penalty risk
File and pay payroll taxes automatically
Keep records organized for audits
Provide employee self-service for pay stubs and tax forms
If you have only one or two employees and simple payroll, a low-cost plan may be enough. If you have complex needs, multiple states, or rapid growth, the extra cost of a fuller service often pays for itself.
Have these details ready:
Number of employees and contractors
States where you pay people
Pay frequency
Whether you need time tracking, benefits, or HR tools
Your accounting software
Whether you need help migrating from another provider
Your start date, ideally the beginning of a quarter
Then ask each provider:
What is the total monthly cost with my setup?
Are there setup, per-run, contractor, W-2, or state fees?
What happens to pricing after the promotion ends?
Is there a contract or cancellation fee?
What accuracy or penalty protection is included?
Comparing payroll pricing involves base fees, per-employee charges, add-ons, and contract terms, and the cheapest advertised plan isn’t always the cheapest in practice. For step-by-step guidance based on your business size and setup, call 1-866-513-4656.
How much do payroll services cost for small businesses?
Typically $17 to $80 per month as a base fee, plus $4 to $12 per employee per month. Quote-based providers may charge more depending on features and headcount.
What is the cheapest payroll service for a small business?
Patriot Payroll is often the lowest-priced full-service option, starting around $17 per month plus $4 per worker.
How much does payroll cost for 5 employees?
Roughly $37 to $110 per month on published plans, depending on the provider and tier.
How much does payroll cost for 10 employees?
Roughly $57 to $150 per month for most published-price providers, before add-ons.
Are there extra fees besides the monthly price?
Often yes. Common extras include contractor payments, W-2 and 1099 filing, extra states, same-day direct deposit, and setup fees.
Why do ADP and Paychex not publish prices?
They use quote-based pricing that depends on headcount, features, and location. Request a written quote and ask about post-promotion pricing.
Is it cheaper to do payroll myself?
Direct costs are lower, but errors, late deposits, and penalties can cost more than a service. Many small businesses choose automation for that reason.
Do payroll services include tax filing?
Full-service plans do. They calculate, file, and pay federal, state, and local payroll taxes. Always confirm what your plan includes.
How can I reduce payroll costs?
Choose the right tier, compare total costs, avoid unnecessary add-ons, and review your plan each year.
Typical small business payroll costs $17 to $80 per month plus $4 to $12 per employee.
A team of 5 pays about $40 to $110 per month, and a team of 10 about $60 to $150.
ADP and Paychex quote prices individually, so request a full written quote.
Watch for extra fees on contractors, W-2 filing, states, same-day deposit, and setup.
Compare total monthly cost, not just the base fee, and review your plan yearly.
Disclaimer: This article is for general informational purposes and is not tax or legal advice. Payroll pricing, features, and fees change often and vary by provider, plan, and location, so verify current details directly. All product names are trademarks of their respective owners.