How Much Does Payroll Cost for a Small Business in 2026?
Small-business payroll services cost between $40 and $180 per month in base fees plus $5 to $22 per employee per month, as of November 2026. A 10-employee business typically pays $109 to $350 per month depending on provider, pay frequency and add-ons. Gusto, OnPay and QuickBooks publish their prices; ADP, Paychex and Rippling quote.
Verified November 2026
The two numbers that matter
Every payroll provider prices the same way: a base fee you pay regardless of headcount, plus a per-employee fee for each person paid. Below about nine employees the base fee dominates your bill; above that, the per-employee rate is what matters. When you compare quotes, compare both numbers at your actual headcount, not the advertised starting price.
Published prices as of November 2026
| Provider (entry plan) | Base / mo | Per employee | 1 emp. | 5 emp. | 10 emp. | 25 emp. | 50 emp. |
|---|---|---|---|---|---|---|---|
| ADP — Essential (quote; est.) | $79 | $5 | $84* | $104* | $129* | $204* | $329* |
| Paychex — Flex Essentials (higher tiers quoted) | $39 | $5 | $44 | $64 | $89 | $164 | $289 |
| Gusto — Simple | $49 | $6 | $55 | $79 | $109 | $199 | $349 |
| OnPay — Payroll Essentials | $49 | $6 | $55 | $79 | $109 | $199 | $349 |
| QuickBooks Payroll — Workforce Payroll (Core) | $50 | $7 | $57 | $85 | $120 | $225 | $400 |
| Rippling — Platform (required) (higher tiers quoted) | $40 | $8 | $48 | $80 | $120 | $240 | $440 |
* Estimate for quote-only providers based on publicly reported quotes; ADP bills per pay run so a weekly payroll costs more. Prices are list prices before promotions.
What makes the price go up
- Pay frequency. ADP bills per pay run, so weekly payroll costs about twice biweekly. Gusto, OnPay and QuickBooks include unlimited runs.
- Multi-state employees. Gusto requires its Plus plan ($80 + $12). OnPay includes multi-state. ADP and Paychex quote it.
- Time tracking. Included in Gusto Plus, QuickBooks Premium and Rippling; a $15 + $4/worker add-on at OnPay; quoted at ADP and Paychex.
- Year-end forms. OnPay and Gusto include W-2s and 1099s. ADP and Paychex often charge per form unless negotiated.
- Setup fees. Paychex commonly charges around $200; OnPay and Gusto charge nothing and migrate your data free.
- HR and benefits. Premium tiers add $50 to $130 to the base fee. A PEO (ADP TotalSource, Paychex PEO, Rippling PEO) is a different product priced at $40 to $125 per employee per month.
How to get the lowest price
- Get written 12-month quotes from at least two quote-based providers (ADP, Paychex) at the same headcount and pay frequency.
- Ask explicitly for year-two pricing, year-end form fees, and the cost to add a state.
- Tell each provider you are comparing. Both ADP and Paychex negotiate against competitors.
- Compare the quotes against the published prices from Gusto and OnPay. If a quote is not within 20% of those, keep negotiating or switch.
- Take the promotion (3 months free is common) but model the full-price year.
Or let us do it: request quotes and we send your headcount to the providers that fit, so they compete for you.
Get quotes from the providers that fit your business
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- Prices verified November 2026
Frequently asked questions
What is the cheapest payroll service for a small business?
At list price, OnPay and Gusto Simple tie at $49 per month plus $6 per person. OnPay includes multi-state payroll in that price, so it is the cheapest option for businesses with employees in more than one state. Quote-based providers like Paychex sometimes beat these prices for the first year through promotions.
How much does payroll cost for 1 employee?
For a single employee, published prices are $55 per month at OnPay or Gusto, $57 at QuickBooks Payroll, and $44 at Paychex Flex Essentials. Many solo owners use a contractor-only plan ($35 + $6 at Gusto) if they pay themselves as a contractor through an S-corp accountant instead.
Is it cheaper to do payroll yourself?
Doing payroll manually is free in software costs but takes 3 to 5 hours per month and exposes you to IRS penalties for late or incorrect deposits, which average over $800 per incident according to IRS data. Most owners find a $55 to $110 per month service pays for itself.
More guides
- How to Switch Payroll Providers Without Missing a Paycheck
- ADP Payroll Pricing Explained (and How to Get a Lower Quote)
- Paychex Pricing Explained: Flex Essentials, Select, Pro and Enterprise
- PEO vs. Payroll Service: Which Does Your Business Need?
Sources
- ADP pricing page, read November 2026
- Paychex pricing page, read November 2026
- Gusto pricing page, read November 2026
- OnPay pricing page, read November 2026
- QuickBooks Payroll pricing page, read November 2026
- Rippling pricing page, read November 2026