In May 2026, Intuit ended payroll support for QuickBooks Desktop 2021, 2022, and 2023 — leaving millions of small businesses searching for a replacement. Whether you're migrating off QuickBooks or starting fresh, finding genuinely cheap payroll software that still handles taxes correctly is harder than it looks. This guide cuts through the noise: we compare the best affordable payroll tools for 2026, explain the critical difference between self-service and full-service plans, and reveal a desktop option that lets you skip monthly fees entirely.
Before You Compare: Self-Service vs. Full-Service Payroll
This is the most important thing to understand before comparing prices. Many "cheap" payroll plans look affordable at first glance — then leave you manually filing your own taxes.
- ✕ You calculate and pay wages
- ✕ YOU file Form 941 each quarter
- ✕ YOU deposit FICA taxes on time
- ✕ YOU submit year-end W-2s and 1099s
- ✓ Lowest monthly price
- ✓ Good for CPAs/bookkeepers handling taxes
- ✓ Software calculates and pays wages
- ✓ Software files Form 941 for you
- ✓ Software deposits FICA taxes automatically
- ✓ Software sends W-2s and 1099s to employees + IRS
- ✕ Higher monthly cost
- ✕ Less control over filing timing
Quick Comparison: Best Cheap Payroll Software (2026)
| Software | Starting Price | Tax Filing Included? | Best For | Annual Cost (5 Employees) |
|---|---|---|---|---|
| Patriot Payroll | $17/mo self-service $37/mo full-service |
✓ On full-service plan ✕ Not on $17 plan |
Tightest budgets | ~$684/yr (full-service) |
| Gusto | $40/mo + $6/user | ✓ All plans | Growing SMBs | ~$840/yr base + per-employee |
| Square Payroll | $35/mo + $6/user | ✓ All plans | Retail & hourly staff | ~$780/yr base + per-employee |
| OnPay | $49/mo + $6/user | ✓ All plans | Simple, all-in-one payroll | ~$984/yr base + per-employee |
| SurePayroll | ~$29/mo + $5/user | ✓ All plans | Very small teams (1–10 staff) | ~$648/yr base + per-employee |
| Wave Payroll | $40/month (tax-service states) $20/month (self-service states) |
✓ In 14 states only | Wave accounting users | ~$480–$960/yr depending on state |
| Zoho Payroll | $39/month | ✓ All plans | Zoho ecosystem users | ~$468/yr base |
| Homebase | $39/mo (payroll add-on) | ✓ Full-service | Hourly workers / time tracking | ~$468/yr |
| Payroll4Free | $0 (up to 25 employees) | ✕ You file manually | Solo operators / very small teams | $0 |
| QuickBooks Enterprise (Desktop — One-Time Purchase) |
See CDRB Price ↗ | Tax tables require annual subscription | Businesses avoiding monthly SaaS | No base monthly fee |
Prices verified October 2026. Annual costs shown for base fee only; per-employee charges increase total. Always confirm current pricing on the vendor's website before purchasing.
Comparison of cheap payroll software plans, employee caps, and tax automation features — 2026 edition.
10 Best Cheap Payroll Software for Small Businesses (2026)
1. Patriot Payroll
Best Budget Pick — Lowest Full-Service PricePatriot Payroll is consistently rated the most affordable full-service payroll tool in the US market. At $37/month plus $4 per employee, a business with 5 employees pays approximately $684/year — that's the lowest cost for automated tax filing we found among major providers.
The $17/month plan is available but requires you to manually file your own quarterly Form 941s and year-end W-2s with the IRS. For most non-accountant business owners, this carries significant penalty risk — the IRS charges up to 15% of unpaid payroll taxes for late deposits.
✓ Pros & Features
- ✓ Lowest-cost full-service payroll in the market
- ✓ Handles federal + state tax filings automatically
- ✓ Free direct deposit with 2-day lead time
- ✓ US-based customer support (phone + email)
- ✓ Handles W-2 employees and 1099 contractors
- ✓ 30-day free trial, no credit card required
✕ Cons
- ✕ $17 plan does NOT file taxes — easily misunderstood
- ✕ Limited HR and benefits tools
- ✕ Interface is functional but not modern
- ✕ No dedicated mobile app
2. Gusto
Best All-in-One for Growing TeamsGusto is the industry-standard payroll platform for US small businesses. It's not the cheapest option, but it combines payroll, HR, and benefits administration in a way no barebones tool can match. For a 5-employee business, the base plan costs approximately $840/year — before per-employee charges.
The Simple plan at $40/month includes automated federal + state tax filings, direct deposit (4-day), W-2s and 1099s, and an employee self-service portal. Upgrading to Plus ($80/month) adds next-day direct deposit, time tracking, and team management.
✓ Pros & Features
- ✓ Automated federal + state + local tax filings
- ✓ Integrated HR, benefits, and PTO management
- ✓ Employee self-service portal and onboarding
- ✓ 50-state compliance coverage
- ✓ Contractor-only plan: free for 1099 management
✕ Cons
- ✕ More expensive than Patriot or SurePayroll
- ✕ 4-day direct deposit on cheapest plan
- ✕ Price increases significantly with headcount
3. SurePayroll
Best for Very Small Teams (1–10 Employees)SurePayroll (a Paychex company) is one of the most overlooked budget options — despite being consistently recommended by Forbes Advisor and PCMag as a top affordable pick. It sits between Patriot and Gusto on both price and features, making it ideal for businesses with 1–10 employees that want full-service payroll without the complexity of larger platforms.
✓ Pros & Features
- ✓ Full-service automated tax filing from day 1
- ✓ Competitive per-employee pricing ($5 vs $6 elsewhere)
- ✓ 2-month free trial (one of the longest available)
- ✓ Mobile app for on-the-go payroll processing
- ✓ Good for household employers (nannies, caretakers)
✕ Cons
- ✕ Limited HR features compared to Gusto
- ✕ Reporting customization is basic
- ✕ Pricing not publicly listed (must get a quote)
Modern payroll software dashboards automatically track employee records, payslip history, and tax filing status in one place.
4. OnPay
Best Flat-Rate, No-Surprises PricingOnPay's biggest selling point is radical pricing transparency: one plan, all features, no upsells. Unlike Gusto or Patriot — which gate certain features behind higher tiers — OnPay gives every customer access to multi-state payroll, HR tools, and benefits management from day one. For businesses that hate surprises on their invoice, this is extremely appealing.
✓ Pros & Features
- ✓ Unlimited payroll runs per month
- ✓ All features included — no plan tiers
- ✓ 50-state payroll tax filing
- ✓ Handles W-2s, 1099s, multi-state employees
- ✓ Benefits and HR tools included in base price
✕ Cons
- ✕ $49 base is higher than Patriot or SurePayroll
- ✕ Less cost-effective for solo operators
- ✕ UI is functional but lacks Gusto's polish
5. Square Payroll
Best for Retail, Restaurants & Hourly StaffSquare Payroll is the clear winner for businesses already using Square POS. Timesheets from Square Team sync directly into payroll, eliminating manual data entry for hourly employees. The contractors-only plan at $6/person with no monthly base fee is one of the best deals in the market for businesses that exclusively pay 1099 contractors.
✓ Pros & Features
- ✓ Direct POS + time tracking sync (zero data entry)
- ✓ $0 base fee for 1099-only businesses
- ✓ Handles W-2 and 1099 workers on same account
- ✓ Automated federal and state tax filings
✕ Cons
- ✕ Best features only work within Square ecosystem
- ✕ Limited HR and benefits management
- ✕ Not ideal if you don't use Square POS
6. Wave Payroll
Best for Wave Accounting UsersWave Payroll integrates seamlessly with Wave's free accounting software, making it a logical choice for businesses already in the Wave ecosystem. However, Wave only offers full-service automated tax filing in 14 US states. In all other states, it's self-service — you file your own taxes. Check your state before signing up.
✓ Pros & Features
- ✓ Integrates with Wave's free accounting software
- ✓ Lower $20/month price in self-service states
- ✓ Simple interface for small teams
✕ Cons
- ✕ Full tax filing only in 14 states
- ✕ Not a standalone payroll solution
- ✕ Limited HR features
7. Zoho Payroll
Best for Zoho Ecosystem UsersZoho Payroll provides automated salary calculations, full tax compliance, and employee self-service portals that link directly with Zoho Books (accounting) and Zoho People (HR). If you're already paying for the Zoho suite, this is the most integrated and cost-efficient payroll addition available.
✓ Pros & Features
- ✓ Deep integration with Zoho Books and Zoho People
- ✓ Automated tax filings included
- ✓ Employee self-service portal
- ✓ Good value if already using Zoho suite
✕ Cons
- ✕ Less value if not using other Zoho products
- ✕ US availability is more limited than Gusto/Patriot
- ✕ Support quality varies by region
8. Homebase
Best for Hourly Workers & Free Time TrackingHomebase is best known as a free scheduling and time-tracking platform for small businesses in retail, food service, and hospitality. Its payroll add-on at $39/month flat (no per-employee charge) is genuinely unique — making it one of the most cost-effective options for businesses with 10+ hourly employees, where per-employee pricing becomes expensive.
✓ Pros & Features
- ✓ Free scheduling + time tracking for all team sizes
- ✓ Flat $39/month payroll — no per-employee charge
- ✓ Timesheets sync directly to payroll
- ✓ Automated tax filings included
✕ Cons
- ✕ Primarily designed for hourly/shift-based staff
- ✕ Less suitable for salaried professional teams
- ✕ Limited accounting integrations
9. Payroll4Free
Best Zero-Cost Option (With Important Caveats)Payroll4Free is genuinely free for businesses with up to 25 employees — covering wage calculations, pay stub generation, and basic reporting. However, it does not file payroll taxes for you. You must manually calculate and submit Form 941, state tax deposits, and year-end W-2s yourself.
✓ Pros & Features
- ✓ 100% free for up to 25 employees
- ✓ Calculates federal and state tax liabilities
- ✓ Pay stubs, vacation tracking, direct deposit
✕ Cons
- ✕ Does NOT file taxes — you do it yourself
- ✕ Penalty risk for manual filing errors
- ✕ Outdated interface
- ✕ Limited support
10. QuickBooks Online Payroll
Best for Existing QuickBooks Online UsersQuickBooks Online Payroll syncs automatically with QuickBooks Online bookkeeping — making reconciliation nearly instant for existing QBO users. Same-day direct deposit (on the Core plan with early enrollment) and automatic W-2/1099 filing round out the feature set. However, at $45/month base it is not the cheapest option if you're not already paying for QuickBooks Online.
Important: This is QuickBooks Online Payroll — the cloud subscription product. If you were using QuickBooks Desktop Payroll and are looking for a replacement, see the Desktop Alternatives section below.
✓ Pros & Features
- ✓ Seamless sync with QuickBooks Online books
- ✓ Same-day or next-day direct deposit available
- ✓ Automated W-2s, 1099s, and all tax filings
✕ Cons
- ✕ Higher monthly cost than Patriot or SurePayroll
- ✕ Only cost-effective if already using QuickBooks Online
- ✕ Intuit frequently raises prices
Desktop & Offline Alternatives: Payroll Without Monthly Fees
Every tool above is a cloud subscription — you pay monthly, forever. For business owners who prefer to own their software outright, work offline, or avoid rising SaaS costs, there is an alternative path worth understanding.
QuickBooks Enterprise 2024
Best Desktop Accounting + Payroll OptionQuickBooks Enterprise 2024 is the most feature-complete desktop accounting and payroll solution available in 2026. Unlike QuickBooks Online, it runs locally on your PC — giving you full data ownership, offline capability, and no mandatory monthly base fee.
Important caveat on payroll: QuickBooks Enterprise's payroll tax tables require an annual Payroll Enhanced subscription to stay current with IRS and state rate changes. However, this annual cost is still typically lower than running a separate cloud payroll subscription alongside your desktop accounting setup.
✓ Advantages
- ✓ Runs locally — no internet required for core functions
- ✓ One-time purchase — no mandatory monthly base fee
- ✓ Full data ownership and control
- ✓ Powerful accounting + payroll in one platform
- ✓ Supports up to 30+ simultaneous users
- ✓ Advanced inventory and job costing features
✕ Considerations
- ✕ Payroll tax tables need annual update subscription
- ✕ Steeper learning curve than cloud tools
- ✕ Higher upfront cost vs. cloud monthly pricing
What Happens If You Get Payroll Taxes Wrong?
⚠️ IRS Payroll Penalty Risk — Read Before Choosing Self-Service
The IRS charges the following penalties for payroll tax errors:
- Late tax deposit (1–5 days late): 2% of the deposit amount
- Late tax deposit (6–15 days late): 5% of the deposit amount
- Late tax deposit (16+ days late): 10% of the deposit amount
- Trust Fund Recovery Penalty (TFRP): If the IRS determines you willfully failed to collect or pay employee withholding taxes, they can hold you personally liable for the full unpaid amount — even if your business is an LLC or corporation.
A full-service payroll tool that deposits taxes automatically eliminates this risk. The monthly cost of full-service payroll is almost always less than a single IRS penalty notice. For most small businesses, choosing self-service payroll to save $20/month is a false economy.
How to Choose the Right Cheap Payroll Software
The right tool depends on your business type, team size, and how much payroll complexity you want to manage yourself. Use these questions to narrow your options:
Hidden Costs to Watch For
Always calculate the true monthly cost by including per-employee fees. A tool listed at "$35/month" for a 10-employee business actually costs $35 + ($6 × 10) = $95/month. Check whether these are included or extra:
- Direct deposit setup and transaction fees
- Year-end W-2 and 1099 filing fees (some providers charge $5–$15 per form)
- Multi-state payroll surcharges
- Benefits or HR module add-on costs
- State-specific compliance fees
The Real Cost of Cheap Payroll Software — 3-Year Comparison
Monthly prices look small. Annual totals are where you feel the impact. The table below shows the realistic total cost for a business with 5 employees over 3 years, based on full-service plans (automated tax filing included).
| Software | Monthly (5 employees) | Year 1 | Year 2 | 3-Year Total |
|---|---|---|---|---|
| Patriot Full-Service | $37 + $20 = $57 | $684 | $684 | ~$2,052 ✓ Lowest |
| SurePayroll | ~$29 + $25 = ~$54 | ~$648 | ~$648 | ~$1,944 |
| Homebase (10+ employees) | $39 flat = $39 | $468 | $468 | ~$1,404 (10+ staff) |
| Square Payroll | $35 + $30 = $65 | $780 | $780 | ~$2,340 |
| Zoho Payroll | $39 + $30 = $69 | $828 | $828 | ~$2,484 |
| Gusto Simple | $40 + $30 = $70 | $840 | $840 | ~$2,520 |
| OnPay | $49 + $30 = $79 | $948 | $948 | ~$2,844 |
| QuickBooks Online Payroll | $45 + $25 = $70 | $840 | $840+ | ~$2,520+ (with price increases) |
Based on base fee + ($5–$6 × 5 employees). Actual costs vary. All prices approximate — verify on vendor websites. Does not include optional add-on features.
Free vs. Cheap Payroll Software: When Free Is Enough
Free payroll software (like Payroll4Free or Gusto's contractor-only plan) can be appropriate in specific situations. Here's how to decide:
For most businesses with even one W-2 employee, the cost of a missed tax deposit (2–10% penalty + potential TFRP personal liability) far exceeds the cost of a $37/month full-service plan. The math almost always favors paying for automation.
Frequently Asked Questions
What is the cheapest payroll software that includes automatic tax filing?
Patriot Payroll's Full-Service plan at $37/month + $4/employee is the lowest-cost option that includes automated federal and state tax filing. For a 5-employee business, this totals approximately $57/month or $684/year. Note: Patriot's $17/month plan is self-service only — it does not file taxes for you.
What is the difference between self-service and full-service payroll?
Self-service payroll calculates your employees' wages and taxes but leaves you responsible for manually depositing tax payments and filing forms with the IRS and state agencies. Full-service payroll handles all of that automatically — including Form 941, FUTA deposits, state filings, and year-end W-2s. For most small business owners without accounting backgrounds, full-service is the safer choice.
Is there payroll software with no monthly fee?
Payroll4Free is completely free for businesses with up to 25 employees, but it does not file taxes automatically. Gusto offers a free contractor-only plan for businesses that pay exclusively 1099 contractors. For W-2 employees requiring full tax compliance, there is currently no fully automated US payroll solution with zero monthly cost — the cheapest full-service option is Patriot at $37/month.
How much does payroll software cost for 5 employees?
For a 5-employee business using full-service payroll, expect to pay between $57/month (Patriot) and $79/month (OnPay), including per-employee fees. Annually, this ranges from approximately $684 to $948/year. Over 3 years, Patriot Full-Service costs roughly $2,052 compared to $2,844 for OnPay — a difference of nearly $800.
What payroll software works in all 50 US states?
Gusto, Patriot Payroll, OnPay, SurePayroll, and QuickBooks Online Payroll all support full-service tax filing in all 50 US states. Wave Payroll only provides automated tax filing in 14 states — users in other states must file manually. Always confirm your specific state's coverage with the provider before subscribing.
How do I do payroll for 1099 contractors vs. W-2 employees?
W-2 employees require you to withhold income tax, Social Security, and Medicare (FICA) from their paychecks, make employer FICA contributions, and file Form 941 quarterly. 1099 contractors are paid their full agreed amount with no withholding — the contractor handles their own taxes. You must issue 1099-NEC forms to any contractor paid $600 or more in a calendar year. Most payroll tools handle both types, but verify contractor support before signing up.
What happens if I file payroll taxes late?
The IRS charges failure-to-deposit penalties ranging from 2% (1–5 days late) to 10% (16+ days late) of the unpaid deposit amount. In serious cases, the Trust Fund Recovery Penalty (TFRP) can hold individual owners personally liable for unpaid employee withholding taxes — even in LLCs and corporations. Using a full-service payroll provider that automatically deposits taxes on schedule eliminates this risk.
Can I switch payroll providers mid-year?
Yes, you can switch payroll providers at any time during the year. However, mid-year switches require careful data transfer — your new provider needs year-to-date payroll totals for all employees to accurately prepare W-2s at year-end. Most providers (Gusto, OnPay, Patriot) have dedicated migration support teams to help with this transition. Many businesses switch at the start of Q1 to simplify the process.
What is the cheapest way to run payroll for one employee?
For a single W-2 employee, Patriot's Full-Service plan costs $37 + $4 = $41/month — the lowest full-service cost available. SurePayroll is competitive at approximately $34/month for one employee. If you're paying a 1099 contractor only, Gusto's free contractor plan or Square Payroll's $6/contractor-per-month plan are the cheapest options with no monthly base fee.
Is cheap payroll software reliable and secure?
Yes — established providers like Patriot, SurePayroll, OnPay, and Gusto are all SOC 2 compliant, meaning they meet rigorous security standards for handling sensitive financial and employee data. The critical reliability factor is not the price but whether the provider guarantees tax accuracy. Most full-service providers include a tax accuracy guarantee — meaning they cover any IRS penalties caused by their calculation errors.
What happened to QuickBooks Desktop Payroll in 2026?
Intuit ended payroll service support for QuickBooks Desktop Pro Plus, Premier Plus, and Mac Plus 2021, 2022, and 2023 on May 31, 2026. This means those versions can no longer receive updated payroll tax tables, process direct deposits, or e-file tax forms. Businesses still on these versions must either migrate to QuickBooks Enterprise 2024 (which continues to receive updates) or switch to a cloud payroll provider. QuickBooks Desktop 2024 received a commitment of continued support with no announced end date as of October 2026.
Is there desktop payroll software that doesn't require a monthly subscription?
QuickBooks Enterprise 2024 is the closest available option for businesses wanting desktop-based payroll without a mandatory monthly base fee. It runs locally on your PC and does not require an internet connection for core accounting functions. However, the payroll tax table updates (required to stay IRS-compliant) are delivered through an annual Payroll Enhanced subscription. CDRB offers QuickBooks Enterprise 2024 as a one-time purchase license.
Conclusion: Which Cheap Payroll Software Should You Choose?
Choosing payroll software isn't just about finding the lowest monthly price — it's about finding the lowest cost that still keeps your business IRS-compliant and your employees paid accurately and on time.
Here's the shortest possible guide to the right pick:
- Tightest budget + automated taxes: Patriot Full-Service at $37/month
- Very small teams or getting started: SurePayroll (2-month free trial, ~$29 base)
- Best all-in-one (payroll + HR + benefits): Gusto Simple
- Retail/hourly workers on Square POS: Square Payroll
- 10+ hourly employees: Homebase ($39 flat, no per-employee charge)
- 1099 contractors only, no base fee: Gusto Contractor Plan (free)
- Avoiding monthly subscriptions entirely: QuickBooks Enterprise 2024 (one-time license at CDRB)
- Already using Wave or Zoho: Wave Payroll (14 states) or Zoho Payroll
Whatever you choose, prioritize a plan that files taxes for you. The $20–$30/month difference between self-service and full-service payroll is almost never worth the IRS penalty risk.