17 Cheapest Payroll Services for Small Businesses

When running a small business, managing payroll efficiently is crucial to maintaining operations. However, finding the right payroll service that fits your budget can be challenging.

This article highlights the cheapest payroll services available online today. These payroll services offer various features tailored to meet the needs of small to medium-sized businesses, ensuring compliance and ease of use without breaking the bank.

What are payroll services?

Payroll services are administrative tasks related to managing employee compensation. These services typically include:

• Wage and Salary Calculation: Accurate calculation of employee earnings based on hourly rates, salaries, or commission structures.

• Tax Deductions: Withholding federal, state, and local income taxes, as well as other deductions like Social Security, Medicare, and employee contributions to retirement plans.

• Benefits Administration: Managing employee benefits such as health insurance, dental insurance, vision insurance, and retirement plans.

• Time and Attendance Tracking: Recording employee work hours to ensure accurate pay calculations.

• Direct Deposit: Electronic transfer of paychecks directly to employee bank accounts for faster and more convenient payment.

• Payroll Reporting: Generating various reports for compliance purposes, such as W-2 forms, 1099 forms, and payroll summaries.

• Compliance Management: Ensuring adherence to all applicable labor laws and regulations.

Payroll services can be handled internally by businesses or outsourced to payroll processing companies. These services can be complex and time-consuming, and errors can have significant financial and legal consequences.

Outsourcing payroll services to a specialized company can help businesses streamline their operations and reduce the risk of errors.

Cheapest Payroll Services for Small Businesses

Here is a list of some of the cheapest payroll services for small businesses:

1. OnPay

OnPay is an affordable payroll service that offers a comprehensive set of features. With a straightforward pricing structure, OnPay charges a flat monthly fee plus an additional per-employee fee, making it one of the cheapest payroll service options for small businesses.

Some of the features of OnPay are:

• Automated tax filing.

• Benefits management.

• Customizable employee onboarding.

• Integrations with accounting software like QuickBooks and Xero.

2. Gusto

Gusto is a popular choice among small businesses due to its user-friendly interface and robust features. While Gusto is not the cheapest payroll service on this list, it offers excellent value for money by combining payroll processing with HR tools.

Some of the features of Gusto are:

• Automated payroll and tax filing.

• Employee benefits administration.

• Time tracking and PTO management.

• HR resources and compliance support.

3. QuickBooks Online Plus & Payroll Core Bundle

QuickBooks, known for its accounting software, also offers a payroll service that integrates seamlessly with QuickBooks Online. This bundle is ideal for businesses already using QuickBooks for their accounting needs, as it streamlines financial management.

Some of the features of QuickBooks Online Plus & Payroll Core Bundle are:

• Automated payroll processing.

• Tax calculations and filings.

• Access to the HR support center.

• Integration with QuickBooks Online.

4. SurePayroll

SurePayroll is a budget-friendly payroll service designed specifically for small businesses and household employers. It offers a simple pricing structure and a range of features that cover all basic payroll needs.

Some of the features of SurePayroll are:

• Automated payroll and tax filing.

• Mobile payroll app.

• 401(k) and health insurance options.

• New-hire reporting.

5. Rippling

Rippling is a versatile platform that goes beyond payroll, offering IT, HR, and benefits management in one place. Although it might not be the cheapest payroll service, its all-in-one nature makes it cost-effective for businesses needing multiple services.

Some of the features of Rippling are:

• Automated payroll across multiple states.

• Benefits administration.

• Device management and app provisioning.

• Integration with over 500 apps.

6. ADP

ADP is a well-known name in the payroll industry, offering various packages suitable for businesses of all sizes. While ADP is not the cheapest payroll service on the market, it provides comprehensive payroll and HR services that justify its cost.

Some of the features of ADP are:

• Tax filing and compliance.

• Employee benefits management.

• Time and attendance tracking.

• Customizable reports and analytics.

• Custom pricing is based on the size and needs of the business.

7. Paychex

Paychex is a standout option for small to mid-sized businesses looking for a reliable and affordable payroll service. Known for its flexibility, Paychex allows businesses to choose the services they need, helping to keep costs down.

Some of the features of Paychex are:

• Payroll processing and tax filing.

• Employee benefits administration.

• Time and attendance solutions.

• HR services and compliance assistance.

• Custom pricing based on business needs.

8. Square Payroll

Square Payroll is an excellent option for businesses already using Square for point-of-sale (POS) transactions. It offers straightforward pricing with no hidden fees, making it one of the cheapest payroll service options for small businesses.

Some of the features of Square Payroll are:

• Full-service payroll with tax filings.

• Employee benefits management.

• Integration with Square POS.

• Contractor payments.

9. Patriot Software

Patriot Software offers one of the most affordable payroll services available, especially for businesses with a tight budget. With its easy-to-use platform, Patriot is ideal for small businesses needing a cost-effective payroll solution.

Some of the features of Patriot Software are:

• Automated payroll processing.

• Tax filing and payment.

• Employee portals.

• Integration with Patriot’s accounting software.

10. Justworks, Inc.

Justworks is a Professional Employer Organization (PEO) that offers payroll services along with HR support. While not the cheapest payroll service by itself, the value comes from the bundled HR services that provide comprehensive business support.

Some of the features of Justworks are:

• Payroll processing and tax filing.

• Benefits administration.

• Compliance support and reporting.

• HR tools and resources.

11. Payroll4Free

As the name suggests, Payroll4Free offers a free payroll service for businesses with fewer than 25 employees. This makes it one of the cheapest payroll service options, especially for startups and very small businesses.

Some of the features of Payroll4Free are:

• Free payroll processing.

• Tax calculations (paid add-on).

• Direct deposit (paid add-on).

• Employee portals.

12. Wave Payroll

Wave Payroll is an affordable payroll service that integrates seamlessly with Wave’s free accounting software. It’s a great option for small businesses already using Wave for their financial management needs.

Some of the features of Wave Payroll are:

• Full-service payroll (tax filings available in select states).

• Direct deposit.

• Employee self-service portal.

• Integration with Wave Accounting.

13. Gusto Payroll

Gusto Payroll is another tier of Gusto’s offerings, specifically designed for businesses that need a more robust set of features. It offers the same easy-to-use interface with additional tools for managing complex payroll needs.

Some of the features of Gusto Payroll are:

• Advanced payroll automation.

• Comprehensive HR tools.

• Employee benefits and compliance support.

• Custom reporting and analytics

14. Paycor

Paycor is a payroll service that caters to small to medium-sized businesses with a focus on scalability. While it may not be the cheapest payroll service on the list, it offers advanced features that make it worth considering for growing businesses.

Some of the features of Paycor are:

• Payroll processing and tax compliance.

• Employee scheduling and time tracking.

• Benefits administration.

• Customizable reporting.

• Custom pricing based on business size and needs.

15. Zenefits

Zenefits offers payroll as part of its broader HR platform, making it a good option for businesses looking for an integrated HR and payroll solution. Although it’s not the cheapest payroll service on its own, its bundled offerings provide excellent value.

Some of the features of Zenefits are:

• Automated payroll processing.

• Benefits administration.

• HR tools and compliance management.

• Time tracking and PTO management.

16. Deel

Deel is an international payroll service designed for businesses with a global workforce. While it’s not the cheapest payroll service for domestic-only businesses, it provides excellent value for companies that need to manage payroll across multiple countries.

Some of the features of Deel are:

• Global payroll processing.

• Contractor payments.

• Compliance support for international laws.

• Benefits management.

• Custom pricing is based on the number of employees and locations.

17. QuickBooks

QuickBooks also offers a standalone payroll service for businesses that prefer to use QuickBooks for payroll without bundling it with their accounting software. It provides the same level of integration and ease of use, making it a competitive option.

Some of the features of QuickBooks are:

• Payroll processing and tax filing.

• Employee benefits administration.

• Time tracking and scheduling.

• Integration with QuickBooks accounting.

Conclusion

Choosing the cheapest payroll service doesn’t mean compromising on quality. Each of the payroll services listed here offers a range of features that cater to different business needs, ensuring you can find a solution that fits your budget and operational requirements.

Whether you’re a small business owner looking for a basic payroll service or a growing company in need of more advanced HR tools, these options provide a reliable and affordable way to manage your payroll.