When it comes to the best cheap payroll services for small businesses, it’s not only about the price tag but also about the services and features available at that price. We reviewed some of the top cheapest payroll providers for small businesses and broke them down by what they offered for the money.
- Gusto: Best overall for small businesses needing cheap payroll and rich HR features
- Square Payroll: Best for restaurants and retailers that need payroll and POS services
- Paychex: Best for businesses needing a broad array of HR and management services
- OnPay: Best for businesses that need payroll, HR, and benefits at one low price
- Rippling: Best for small businesses planning to expand internationally
- SurePayroll (by Paychex): Best for paying nannies and household employees
Cheap Payroll Services Compared
Starting Price | Key Features | ||
|---|---|---|---|
 | 25% discount for 3 months on Plus plan (limited time) | $40/month + $6 per employee monthly |
|
 | N/A | $35/month + $6 per employee monthly |
|
 | 3 months free payroll processing (limited time) | $39/month + $5 per employee monthly |
|
 | 1 month free | $40/month + $6 per employee monthly |
|
 | N/A | $8 per employee monthly |
|
 | 6 months free | $39/month + $7 per employee monthly |
|
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At Fit Small Business we employ only subject matter experts to deliver the best answer to your small business questions. Our experts do deep dives into software and provide you with educated details on why one provider may be better suited than another.
Gusto: Best Overall Cheap Payroll Service
Pros
- Unlimited pay runs
- Contractor-only plan (no base fee for the first six months)
- Tax filing and payment services included in all plans
Cons
- Only basic payroll and HR tools available with the Simple plan
- Dedicated support only available in higher tiers
More than just payroll software, Gusto helps you hire, pay, and manage your employees all in one place. Because of its rich HR features and its affordable price tag, Gusto is our top pick for cheap payroll services.
Gusto is a full-service payroll software that provides unlimited pay runs, handles all tax filings, and offers automated payroll, helping your small business save time. In addition, you can seamlessly onboard your employees and track their time and attendance. Gusto can even help you find the right health insurance benefits for your team at an affordable rate.
Gusto Overview
Pricing
Gusto offers three plans for small businesses that range from simple to comprehensive to scalable payroll and HR features. Plus, it has a contractor-only plan for only $35 per month and $6 per contractor (and the base price is discounted to $0 for the first six months). Click the tabs below to learn more about each plan.
Key Features
Time & Attendance
With Gusto’s time and attendance feature, employees can record their hours directly in the software or through the Gusto Wallet app by clocking in and out or by manually entering a full set of hours. Then managers can approve the time and sync it directly to payroll for accurate processing.
Additionally, employees can track their time on specific projects. This allows you to track projects against your goals so you can easily spot where workloads need to be adjusted. From there you can evaluate your payroll costs by project.
A workforce costing report will allow you to see a summary of payroll costs by project. (Source: Gusto)
Hiring & Onboarding
As part of Gusto’s HR services, you can recruit, hire, and onboard your new employees. Gusto offers the following features:
- Job posting
- Personalized offer letters
- Custom onboarding checklists
- Software setup
- Applicant tracking software integration
Talent Management
For small businesses that are ready to grow, Gusto offers talent management tools—performance evaluations and career development—to help you motivate and nurture your growing talent.
Gusto’s automated workflow helps with self-evaluations, management reviews, and career development resources, giving you a clear picture of where your employees are in their career life cycle.
Square Payroll: Best for Restaurants & Retail That Need to Merge Payroll With POS
Pros
- Unlimited pay runs
- Syncs with Square’s POS system
- Instant deposit through Cash App
Cons
- Healthcare and 401(k) are add-ons
- No free trial or promotion
- Live support limited to Mon–Fri only
Square is known for its point-of-sale (POS) capabilities. For small companies, like those in the restaurant or retail industry, adding payroll to their current Square products helps keep all payments and sales in one location. Like most of the providers on this list, you have access to unlimited pay runs per month with Square Payroll. Plus, you can offer benefits, like healthcare and 401(k), to your employees.
However, Square Payroll does not have the HR features, like onboarding and time tracking, that other providers like Gusto, Paychex, and Rippling offer. For this reason, Square Payroll is a cheap payroll software that is best for businesses that need payroll processing only.
Square Payroll Overview
Pricing
Square Payroll offers plans for paying both employees and contractors. Click on the tabs below to learn more about each plan.
Key Features
Team Management
As part of Square’s basic employee management solutions, you can import employee time cards to accurately track employee hours and paid time off. The system also allows you to calculate tips directly and import them into your payroll run.
Get a clear picture of time entered, tips earned, and total labor costs. (Source: Square Payroll)
Square Payroll also offers basic scheduling tools, allowing you to create, manage, and publish schedules for your entire staff. This is a valuable tool for small businesses, like restaurants, that have varying schedules for their employees.
If you need to know more about how to schedule employees, check out our guide.
Benefits
As an add-on feature, you can offer healthcare options and 401(k) plans to your employees. Square partners with SimplyInsured to provide medical, dental, and vision plans. Plus, contributions and deductions sync automatically with Square Payroll. 401(k) plans are provided by Guideline and also automatically sync with payroll.
Paychex: Best for a Broad Array of HR & Payroll Solutions
Pros
- Automated payroll
- Live support available 24/7
- Workforce management solutions
Cons
- Pricing is not fully transparent
- Add-ons can be costly for small businesses
- No free trial or new user promotion
Paychex is an all-inclusive payroll and HR software provider specifically designed for small to midsize companies. If basic payroll is all you need, then it is an affordable option. However, with each add-on, such as healthcare options and general ledger services, it can get pricey. A provider like Rippling might be better if you need those services.
Where Paychex excels is in its ability to run automated payroll in as few as two clicks, allowing you to focus on your core business needs. Plus, with 24/7 live support via phone or chat, you know your payroll will be right the first time.
Paychex Overview
Pricing
While Paychex’s plans start at a reasonable cost, their pricing is not fully transparent and could therefore lead to added costs for companies that need additional services. Click through the tabs below for plan details.
Key Features
Employee Benefits
Paychex, like Gusto, offers options for healthcare benefits and retirement services. However, Paychex doesn’t outsource its benefits administration but rather seeks and delivers quality plans at affordable rates. You can also offer retirement plans, flexible spending accounts, and ancillary benefits to your employees through Paychex.
HR Services
For an added fee, you can enlist HR specialists from Paychex to assess your HR needs, customize an action plan, and help integrate new solutions. These services include:
- Attracting and retaining top talent
- Screening and employee onboarding services
- HR compliance services
- Employee benefits
- Risk management
- Third-party integrations
- Option to switch to a professional employer organization (PEO)
Time & Attendance
With Paychex Flex Time, a time and attendance solution, you can fully integrate your employee hours into your payroll. The system allows for multiple time collection methods—kiosk, web punch, facial recognition, biometrics, and more. It also allows you to set overtime rules so that you remain compliant in all states.
Manage your employee time directly in your Paychex Flex dashboard and integrate it into payroll. (Source: Paychex)
Paychex’s time and attendance solution is an add-on to your regular payroll plan, but it does come with scheduling capabilities and reporting, tracking, and management of all employee time.
OnPay: Best for Payroll, HR & Benefits at One Low Price
Pros
- One price includes all features
- Unlimited payroll runs
- Free account migration services
Cons
- Lacks time-tracking solutions
- Live support is limited to weekdays only
- Services are on a basic level
While OnPay is one of the cheapest providers on this list, it didn’t rank at the top because it doesn’t have experts on staff to advise on compliance issues, its HR offerings are very basic, and setup is a bit slower than with other providers. It does, however, offer the entirety of its services at one low price, which helps keep costs down for small businesses.
OnPay’s services include unlimited pay runs, tax filings, setup and data migration, software integrations, and a basic set of HR tools. While their pricing is similar to Gusto and Paychex’s lowest tiers, OnPay doesn’t charge extra for additional features—they are all included.
OnPay Overview
Pricing
OnPay offers one payment option that includes payroll, HR, and benefits solutions. It costs just $40 per month (base fee) plus $6 per employee monthly with no hidden fees or add-ons. The price you pay includes:
- Full-service payroll
- Unlimited monthly pay runs
- All tax filings and payments
- W2 and 1099 workers
- Unemployment insurance withholding
- Multistate payroll
- Automated onboarding
- State new hire reporting
- PTO management
- Health and dental benefits in all 50 states
- Integrated workers’ comp administration
Key Features
Team Management
OnPay offers document services where you can customize templates, send them for e-signatures, and instantly add them to your employee records. In addition, you can stay organized with in-app messaging between team members and use org charts to automatically create employee rosters. Plus, with an employee self-service portal, your team can access documents and pay stubs, update personal information, and request time off.
Integrated Benefits
Easily enroll employees into your benefits programs and sync with payroll for payment processing and deductions. OnPay partners with top healthcare providers (e.g., Humana, BlueCross BlueShield, Cigna, Aetna, and more) using a team of licensed brokers. Plus, you can get workers’ compensation protection with pay-as-you-go plans. OnPay is also integrated with the best 401(k) plan providers to add low-fee services to your employees.
All payroll deductions for benefits are handled easily and with compliance through OnPay. (Source: OnPay)
Rippling: Best for Small Businesses Planning to Expand Internationally
Pros
- Offers IT services to manage employee technology assets virtually
- Affordable for basic payroll needs
- Global pay options for employees and contractors
Cons
- Pricing is not fully transparent; can get pricey with add-ons
- Live customer support costs extra
- Not suitable for very small companies with a limited budget
Rippling has modular HR, payroll, and IT processes that integrate with one another for a seamless employee management experience. As your company expands to reach a global workforce, you’ll need the solutions Rippling offers to manage that team.
Unlike OnPay or Square Payroll, Rippling allows you to purchase, set up, integrate, and manage company devices across your entire company through their IT Cloud. It also offers global payroll options and a network of brokered benefits, such as healthcare options, 401(k), and flexible spending account (FSA) or health savings account (HSA) options.
Rippling Overview
Pricing
Rippling starts at $8 per employee monthly (plus a monthly $35 base fee). However, all pricing is customized to your small business’ specific needs. Therefore, to get true pricing, you must contact Rippling for a quote.
Key Features
HR Cloud
Rippling’s HR Cloud lets you run your entire workforce in one location—from global payroll processing to benefits to recruiting to performance management. Plus, you can track your employees’ hours with its time and attendance feature.
Rippling’s HR Cloud also allows you to hire, pay, and manage employees and contractors globally. This keeps all processes in one place; no more going back and forth between payroll software, HR software, spreadsheets, and third-party brokers.
Plus, if you want better health insurance and dedicated HR support that can handle onboarding, payroll, workers’ compensation, employer’s liability, and more, Rippling offers professional employer organization (PEO) services.
If you need more information about the best PEO companies, check out our guide—Rippling is featured in it.
IT Cloud
Rippling’s IT Cloud is like no other. It allows you to purchase, secure, manage, and control all employee technology devices in one dashboard. You can easily see which computers need updating and quickly perform security measures, plus order and set up computers. Rippling will even ship the computers to your employees so you don’t have to.
Additionally, you can set up and manage the apps installed on your employees’ computers through the cloud. This feature is especially effective for a global remote company as the updates are automatic—reducing the need to have the computer physically in your office for management.
Quickly select and set up apps from anywhere with Rippling’s IT Cloud. (Source: Rippling)
Finance Cloud
Rippling’s Finance Cloud lets you manage your spending—corporate credit cards, expenses, bills, and payroll—all in one place.
- Expense management: Review, approve, and reimburse employee expenses
- Corporate cards: Purchase, set up, and distribute company cards to employees
- Bill pay: Pay vendors instantly with electronic payment, check, or wire transfer
- Payroll: Pay all US employees, international team members, and contractors in one place
SurePayroll (by Paychex): Best for Simple Payroll & Tax Filing for Household Employees
Pros
- Simple payroll and tax filing options at an affordable price
- Offers accountant and reseller options for managing client payroll
- Has extended weekday and weekend support hours
Cons
- Costs extra for multistate payroll tax filing
- Very limited HR benefits offered
- Limited integration with third-party apps
SurePayroll is now a product of Paychex. What differentiates the company from Paychex and others is its focus on very small companies, such as mom-and-pop stores or nanny payroll. Because of this, it only offers basic payroll features, but at an affordable cost. SurePayroll brings all the knowledge and expertise of Paychex to its payroll solutions without the added cost of human resources options.
SurePayroll is also an excellent option for accountants or resellers who market their payroll-only services to clients. It offers an easy-to-manage dashboard that puts all your clients’ payroll needs in one place.
SurePayroll Overview
Pricing
SurePayroll offers two basic payroll plans: full service and no tax filing. Which plan you choose will depend on whether or not you need tax services. Click through the tabs below to see what each plan offers.
Key Features
Accountants & Resellers
SurePayroll is perfect for accountants who need to run payroll for their clients. It offers its payroll services in one dashboard where accountants can easily see every client. Accountants can also provide their clients with a branded, fully automated payroll system with no upfront costs.
See all your clients in one place with SurePayroll’s accountant dashboard. (Source: SurePayroll)
For resellers, the same is true—all client payroll lives in one place. Plus, with flexible billing options you can design the pricing and experience that best suits your customers.
Nanny & Household
SurePayroll offers nanny and household employee payroll services. You can pay your household employees, file taxes, and even offer benefits like workers’ compensation and 401(k). SurePayroll also offers a full guide to paying nanny taxes to help you stay compliant and calculate the correct taxes for payroll.
How We Evaluated the Best Cheap Payroll Services
In our evaluation of the best cheap payroll services, we defined “affordable” as costing less than $50 per person monthly at the provider’s lowest plan level. Additionally, we evaluated each company’s HR features, popularity, reporting capabilities, payroll features, our expert review, and ease of use. While we evaluated many providers, only six made the list as a provider of low-cost payroll services.
To see our full evaluation criteria, click through the tabs in the box below.
20% of Overall Score
Price was our main evaluation for all providers. We evaluated their ability to provide quality payroll services at an affordable price to small businesses. This means each company on our list had a plan costing under $50 per employee per month. While SurePayroll came in at the lowest price available, other providers, like Gusto and Paychex, offer more services, giving small businesses a bigger bang for their buck.
15% of Overall Score
Although our main determination was centered on payroll services, we also evaluated each provider on the HR features they offer. Gusto proved to be the leader in affordability and range of HR features. We also looked into onboarding options and benefits administration as well as available experts to handle compliance issues.
5% of Overall Score
Our popularity score was based on how users evaluated the software. We looked at two third-party review sites—Capterra and G2—to decide if users found the software easy to use or if they encountered a slew of problems.
5% of Overall Score
Our reporting score evaluated whether each software had basic payroll reporting functions. Those who offered customized reports scored additional points.
20% of Overall Score
The payroll features category determined if the software offered fast direct deposit and multiple pay options. Additionally, we determined which providers handled calculating and filing taxes on behalf of the business—the majority handling all tax filings in their basic plans. Only SurePayroll offers two different plans, one with taxes included and one without.
15% of Overall Score
Our expert review is our personal evaluation of the software and how well it handles payroll for small businesses at an affordable price. Based on this evaluation, we found Gusto to be the best overall as it handles not only payroll and taxes but also many HR functions that small businesses need.
20% of Overall Score
Ease of Use evaluates how easy the software is to set up and use and whether the interface is customizable. It also determines if the software offers live support and online problem resolution.
How to Choose the Best Cheap Payroll Service
When looking for the best cheap payroll service, it’s important to assess your business needs. This goes beyond just price. Consider factors like the size of your company, the complexity of your payroll processes, and any HR needs you may have. Look for a service that offers the features you need at a price that fits your budget. Also, consider the following:
- Security: Ensure the service follows strict data protection protocols to keep your sensitive employee information safe.
- Automated tasks: A service that can automate tasks like tax calculations and direct deposits will save time and reduce errors in your payroll processes.
- Benefits: Consider if you need HR benefits as well as payroll. This may cost you extra but can give you a complete package of benefits.
- Scalability: If your business plans to scale and grow, you may need a service that can grow with you. That may not be the cheapest option on the list, but may still be within your budget.
- Compliance: Look for a service that provides both payroll and compliance needs.
- Reviews: Before relying on price alone, check the rating and what users say about the payroll service.
If you need more information on how to choose a payroll service for your business visit our guide.
Bottom Line
The best cheap payroll services focus not only on price but on what they deliver. Choose one that has the benefits you need, like tax filing, global payroll, and healthcare options, while staying within your budget.
