The Cheapest Way to Run Compliant Payroll (2026)

Patriot Software's Basic Payroll has the lowest published payroll price among the providers covered here, at $17 a month plus $4 per worker as of October 6, 2026, but on that plan the business files and deposits its own payroll taxes. For a tiny business that wants the provider to handle tax filings, the lowest published full-service prices are Patriot's Full Service at $37 plus $5 per worker and SurePayroll from $29 plus $7 per worker. If the business is not formed yet or has no EIN, that step comes before any payroll software, because payroll cannot run without an EIN. ZenBusiness handles formation and the EIN together, with the EIN included in its $199 Pro plan, for owners who want one company to do the setup.

What does payroll cost a tiny business each month?

Most small-business payroll software charges a flat monthly base plus a fee for each person paid. With one to five people, the base fee matters more than the per-person fee, so the cheapest option at that size can differ from the cheapest option for a larger company.

The table below applies each provider's published prices, as of October 6, 2026, to one, three and five workers in a single state, before add-ons. Providers are listed alphabetically, not ranked.

The table hides two details. Patriot's Basic Payroll is a software-only plan, and Patriot's pricing page lists federal, state and local tax filings and deposits only under Full Service. SurePayroll bills year-end forms separately once a year, so add that charge before comparing annual totals with Patriot Full Service, which includes year-end filings at no extra fee.

On monthly fees alone, SurePayroll is cheaper than Patriot Full Service up to three workers. The two match at four workers, at $57 a month each, and Patriot is cheaper from five workers up.

What has to be in place before the first paycheck?

Payroll software needs an employer to run payroll for. The IRS says to form a corporation or LLC through the state before applying for an EIN, because applying first can delay the number. The IRS issues EINs directly through its online application at no charge, and it lists hiring employees among the main reasons a business needs one.

Next comes a separate bank account. In Publication 583, the IRS names opening a business checking account as one of the first things to do when starting a business, and says to keep it separate from personal checking. Payroll is funded from that account, so this step comes before choosing any software.

Then comes the paperwork for each hire. The IRS says all U.S. employers must complete Form I-9 for every person they hire, and that new employees should give a signed Form W-4 when they start, effective with the first wage payment. A W-4 stays in effect until the employee submits a new one, and the employer needs each employee's name and Social Security number to enter on Form W-2.

Where ZenBusiness fits in that sequence

No payroll tool covers these setup steps, and the EIN is the hard dependency: payroll cannot run without one. ZenBusiness handles formation, a registered agent and the EIN in one place, with the EIN included from its Pro plan up. Through ZenBusiness, a customer can also request a connection to RUN Powered by ADP, which is built for businesses with 1 to 49 employees.

An ADP representative then asks about employee count and pay schedule, ADP quotes a price, and a ZenBusiness customer may be eligible for promotional pricing. ADP is a separate service with its own platform, billing and support. The ZenBusiness dashboard is where the connection is requested, but payroll runs in ADP's system.

For a first-time owner, the value is having formation, compliance, the EIN and a route into payroll handled by one company rather than pieced together from separate services.

Is paying everyone as a contractor a cheaper way around payroll?

It can look cheaper, but if the classification is wrong it becomes the most expensive mistake on this page. The IRS decides worker status by control, not by a job title or a contract. It weighs behavioral control, financial control and the type of relationship, and says there is no "magic" or set number of factors that settles the question.

Getting it wrong has a concrete cost. An employer that treats an employee as an independent contractor without a reasonable basis may be held liable for employment taxes for that worker. Form SS-8 asks the IRS to rule on a worker's status, but the IRS warns a determination may take at least six months, too slow to settle the question before the next pay date.

Contractors are not free inside payroll software either. Gusto bills U.S. contractors at its per-person rate in the months they are paid, and Patriot charges its per-worker fee for contractors as well as employees.

Do S corporation owners need payroll with no employees?

Yes, if they work in the business. The IRS says an S corporation must pay reasonable compensation to a shareholder-employee for services before non-wage distributions may be made, and that it can reclassify distributions as wages. For a one-owner S corporation, the cheapest compliant setup is a low-cost payroll plan for one person, not skipping payroll. Using the prices above, one worker costs $21 a month on Patriot Basic, $42 on Patriot Full Service and $36 on SurePayroll.

Does pay frequency change the price?

State law sets how often employees must be paid, and the rules vary widely. According to the U.S. Department of Labor, California requires wages at least twice per calendar month on days designated in advance, and Colorado requires monthly pay. Connecticut requires weekly pay unless the labor commissioner approves a longer interval. The DOL advises checking with the relevant state labor office for official information.

Frequency has little effect on the subscription price for most of these providers. Gusto, Patriot and SurePayroll each include unlimited payroll runs, so paying weekly to meet a state rule does not raise their monthly fee.

The payroll options, in alphabetical order

The entries below are listed alphabetically, not ranked. Our editorial judgment is in each "best for" line.

ADP

ADP does not publish payroll pricing and quotes each business individually, so there is no list price to compare. Its small-business product is RUN Powered by ADP, aimed at businesses with 1 to 49 employees. ZenBusiness customers can request a connection through ZenBusiness, but ADP remains a separate service with its own platform, billing and support, and ADP sets the price. Best for: a business that wants a quoted package and is prepared to compare that quote against the published prices above.

Gusto

Gusto Simple costs $49 a month plus $6 per person as of October 6, 2026. Plus costs $80 plus $12 per person, and Premium costs $180 plus $22. Simple includes tax filings and payments and unlimited payrolls but covers payroll in one state only, and multi-state payroll requires Plus. Best for: a single-state team that wants full-service filing and expects to add benefits or HR tools later.

OnPay

OnPay costs $49 a month plus $6 per worker as of October 6, 2026, and its public page quotes a starting price of $55 a month, which is the base plus one worker. At those rates it costs the same as Gusto Simple at every team size in the table above. Confirm on OnPay's own pricing page which tax filings and how many states the plan covers before choosing. Best for: a business weighing it against Gusto Simple, where plan features rather than price will decide between them.

Patriot Software

Patriot Software Basic Payroll costs $17 a month plus $4 per worker, and Full Service costs $37 plus $5, as of October 6, 2026. Basic covers running payroll, direct deposit and reports, while Full Service adds federal, state and local tax filings and deposits, plus year-end filings at no extra fee. Full Service charges extra for each additional state. Best for: the lowest cost at the bottom end, with Basic suiting owners comfortable handling their own deposits and filings and Full Service for those who are not.

QuickBooks Payroll

QuickBooks Payroll is sold bundled with QuickBooks Online accounting. As of October 6, 2026, Workforce Payroll with Simple Start costs $88 a month plus $6.50 per employee, and with Essentials it costs $125 plus $6.50. Workforce Premium with Plus costs $203 plus $10.

Intuit also advertises 50% off the base for three months, but that is a promotional rate and not the ongoing price. Best for: a business that already keeps its books in QuickBooks, where the bundle replaces a separate accounting bill.

SurePayroll

SurePayroll starts at $29 a month plus $7 per worker as of October 6, 2026. Its pricing page includes federal and state payroll tax filing and deposits and unlimited payroll runs. Multi-state payroll is a $9.99 monthly add-on, and household payroll starts at $39 a month.

Year-end forms are billed separately once a year, and areas with local taxes carry a separate fee. Best for: one to three workers in one state, where its monthly fee is the lowest full-service figure in the table.

ZenBusiness

ZenBusiness does not run payroll. It handles the business setup around payroll and routes payroll to ADP, a separate service with its own platform, billing and support that quotes each business directly. As of October 6, 2026, formation costs $0 plus state fees on Starter, $199 on Pro and $299 on Premium, and Pro and Premium renew at those annual prices. State fees are set by each state, vary, and are not part of ZenBusiness's price.

The EIN and operating agreement are included from Pro up and cost $99 each on Starter. A registered agent is $199 a year, Money Pro bookkeeping is $30 a month, and a website is $129 a year. None of these prices includes payroll, which is quoted by ADP and not part of any ZenBusiness plan. Best for: an owner who has not formed the business yet and wants formation, the EIN, compliance and bookkeeping from one company, with payroll through a partner.

What other costs sit outside the subscription?

Workers' compensation is governed by state law, and requirements differ sharply from state to state, so check the rules in the relevant state directly. State unemployment tax is also set at the state level and is not covered here. Neither cost appears in any subscription price above.

Recordkeeping is the other ongoing obligation. Under the Fair Labor Standards Act, the DOL requires payroll records to be kept for three years. The records used to compute wages, such as time cards and wage rate tables, must be kept for two years.

Most payroll software stores these records, but the obligation to keep them stays with the employer. That matters when switching or canceling a provider.

So which is cheapest for a tiny business?

For the lowest possible bill, choose Patriot Basic at $21 a month for one worker, as long as the owner is ready to file and deposit taxes on schedule. For the lowest bill with filing handled, choose Patriot Full Service from five workers and SurePayroll up to three, after adding SurePayroll's year-end form fee. A business that is not yet formed needs the state filing and an EIN before its first payroll. ZenBusiness handles both, plus an introduction to ADP, which runs payroll as a separate service with its own platform, billing and support.

This article is general information, not legal, tax or accounting advice, and payroll requirements vary by state and change over time.