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This page is for small business owners looking for the most cost-effective payroll option for their team size and payroll complexity. Cheapest is not always best, but for businesses with simple payroll needs, there is no reason to overpay.
All evaluations are based on publicly available information. We do not perform hands-on product testing.
What drives payroll software cost
- Base fee — most tools charge a flat monthly fee regardless of team size
- Per-employee or per-contractor fee — added on top of the base fee for each person you pay
- Tier — higher tiers with more features cost significantly more at the base level
- Add-ons — benefits administration, HR features, and integrations can add to the monthly total
Most cost-effective options for small teams
Paychex Flex Essentials has the lowest published base fee at around $39/month plus $5 per employee. For a team of 5 employees that is approximately $64/month — the lowest entry point among full-service providers covered here.
Gusto Simple starts around $49/month plus $6 per employee. For a team of 5 that is $79/month. Slightly higher than Paychex but with a more modern interface and more transparent self-service pricing.
QuickBooks Payroll Core starts around $50/month plus $6.50 per employee. Comparable to Gusto in cost but only worth it if you already use QuickBooks Online.
The cheapest option is not always the right option
A lower base fee can become a higher total cost if the plan tier does not cover your actual needs. Multi-state payroll, same-day direct deposit, and HR features all push costs up. Calculate the total monthly cost at your actual team size and required features before deciding on price alone.
See our full payroll software comparison for a complete breakdown by scenario and feature.
Last reviewed: May 2026. Pricing subject to change. Verify directly with each provider before purchasing.
Last reviewed: May 2026. Pricing and features subject to change. Verify details with each provider before purchasing.