A small business owner running payroll by hand may spend almost nothing beyond time and patience. Another owner with the same number of employees may pay hundreds of dollars every month for software, tax filings, and support. Both approaches can look sensible on paper.
For most small companies in the United States, payroll services cost about $40 to more than $200 per month for the basic subscription, plus roughly $5 to $15 per employee. The final bill depends less on the word “payroll” and more on what the service actually handles for you.
The basic pricing model
Most payroll companies use a two-part structure. You pay a fixed monthly fee for the account, then an additional charge for each employee or worker paid through the system.
That means a company with three employees may not pay much less than a company with ten. The base fee remains the same, while the per-person charge grows with the team. This is why payroll software can feel expensive for a very small business, even when the employee fee looks modest.
A service priced at $50 per month plus $6 per employee would cost $68 for three people and $110 for ten. That difference is easy to miss if you look only at the advertised monthly subscription.
Some providers charge by employee paid during a pay period rather than by every person listed in the account. That distinction matters if you have seasonal workers, contractors, or employees who are paid irregularly. Read the pricing language carefully before assuming the lowest advertised figure is your real monthly cost.
What common plans cost
Gusto’s Simple plan costs $49 per month plus $6 per person. Its Plus plan costs $80 per month plus $12 per person, while Premium costs $180 per month plus $22 per person.
For a company with ten employees, those plans work out to $109, $200, and $400 per month respectively. The jump between plans is substantial, so a growing business should examine the added features rather than choosing a higher tier simply because it sounds more complete.
OnPay uses a similar entry-level structure: $49 per month plus $6 per person. The plan includes unlimited payroll runs, which can be useful for businesses that pay workers more frequently or need to make occasional corrections without worrying about an extra processing charge.
Patriot offers a lower-cost alternative. Its Basic Payroll plan costs $17 per month plus $4 per paid worker. Full Service Payroll costs $37 per month plus $5 per paid worker and includes federal, state, and local tax filings.
For ten employees, the monthly figures are about $57 for Patriot Basic and $87 for Patriot Full Service. Gusto Simple and OnPay both come to about $109 for the same team.
Those examples show why comparing only the monthly base fee can lead you astray. A $17 starting price sounds dramatically cheaper than $49, but the real question is whether the cheaper plan covers the work you need done.
What you are actually paying for
Payroll software does more than calculate wages. Depending on the plan, it may handle direct deposits, pay stubs, payroll tax calculations, new-hire reporting, employee self-service, year-end forms, and tax filings.
The difference between calculating taxes and filing them is especially important. A system may tell you how much tax is due while leaving you responsible for sending forms and payments to the appropriate authorities. Another plan may submit those filings for you.
That extra responsibility has a real cost, even if it does not appear as a line item on your invoice. Missed deadlines, incorrect forms, and last-minute corrections can consume hours that a small business owner would rather spend serving customers. Payroll mistakes have a talent for showing up at the worst possible time, usually when you are already juggling six other problems.
Support can affect the price, too. Some plans provide basic assistance, while higher tiers may offer more hands-on help or additional tools for human resources and compliance. The exact boundaries vary by provider, so check what support means before treating it as a meaningful benefit.
A closer look at a ten-person company
Imagine a business with ten employees and a regular monthly payroll schedule. With Gusto Simple, the calculation is $49 plus $60 for ten people, producing a monthly cost of $109.
OnPay produces the same monthly total: $49 plus $60. Its unlimited payroll runs may make that price more attractive if the company needs flexibility during the month.
Patriot Basic comes to $57: a $17 base fee and $40 for ten paid workers. Patriot Full Service reaches $87, using a $37 base fee and $50 for the employees, with federal, state, and local tax filings included.
The gap between $57 and $109 is $52 every month, or $624 across a year before any additional charges. That is enough to matter to a small company, but it should be weighed against the time involved in managing tax filings and payroll administration yourself.
A company with only one or two employees may see a different pattern. The base subscription dominates the bill, so switching providers may save less than expected. At that size, ease of use and reliable support can matter more than a few dollars in per-person charges.
Extra costs to check before signing up
The advertised subscription is not always the entire payroll budget. Ask whether the plan includes tax filings, year-end forms, direct deposit, employee onboarding, and support for multiple states if your team works across state lines.
Also check how the provider defines an employee. Some services may charge for each worker paid, while others may use the number of employees in the account. Contractors can have separate pricing, and special payroll runs may or may not be included.
Look for fees tied to setup, additional tax jurisdictions, expedited payments, or optional human-resources features. These charges are not necessarily a problem. They become a problem when they appear after you have already built your budget around the headline price.
Pay attention to the billing cycle as well. A monthly fee can be simple to understand, but some businesses prefer annual billing or may encounter minimum charges. The contract should make clear what happens when employees are added, removed, or temporarily inactive.
Payroll software versus doing it yourself
Handling payroll internally can appear free. You may already have a spreadsheet, a bank account, and enough confidence to run the numbers. But internal payroll still requires time, careful recordkeeping, tax knowledge, and a reliable process for deadlines.
That does not mean every small business needs a full-service payroll provider. A sole owner with one employee may reasonably choose a basic plan and handle some administrative tasks independently. A company with employees in several states, frequent pay runs, or little tolerance for paperwork may get more value from a service that takes on the filing work.
The right comparison is not “software fee versus zero.” It is the software fee versus the hours, responsibility, and risk involved in managing payroll without it. Put a dollar value on your own time, even if you are the owner and do not write yourself an hourly paycheck.
How to compare plans without getting lost
Start with the number of people you expect to pay over the next year, not just the number on staff today. Then calculate the base fee plus the per-person charge for a typical month.
Next, separate must-have features from pleasant extras. Tax filing, direct deposit, employee access to pay information, and dependable calculations may belong in the first group. A polished HR dashboard may not.
Run the numbers for your busiest month, too. A plan that looks affordable with five employees may feel different with fifteen. If your workforce changes often, find out whether temporary or inactive workers still affect the bill.
Finally, ask who is responsible when something goes wrong. If the provider files taxes, understand what that service covers and what information you must supply. If you choose a basic plan, make sure you are comfortable with the tasks that remain on your desk.
For many small companies, the sensible starting point is a basic plan with transparent employee pricing. Pay more when the additional service removes a specific burden, not merely because the premium tier has a longer feature list. A payroll bill should buy back your time, not just decorate another dashboard.