Payroll Cost Per Employee: 2026 Price Data
type
Post
status
Published
date
Jun 2, 2026
slug
payroll-cost-per-employee-2026
summary
We ran the list prices of five payroll providers across team sizes — and found the cheapest pick flips at a specific employee count most owners miss.
tags
payroll
small business
payroll software
pricing
gusto
adp
quickbooks
category
Pay Stubs & Payroll (US Small Business)
icon
password
Small-business payroll software costs between $21 and $83 a month for one employee and $57 to $119 a month for ten, depending on the provider — and the cheapest option changes as your team grows. We compared the published list prices of five popular providers using our Payroll Cost Calculator so you can see exactly where each one wins.
Quick Answer
Payroll cost per employee is set by two numbers: a flat monthly base fee plus a per-employee fee. For a 10-person team, total monthly cost ranges from about $57 (Patriot Payroll) to $119 (ADP RUN). The per-employee fee — not the headline base price — is what decides the cost as you add people.
Key Takeaways
- Patriot Payroll has the lowest list price at every team size we tested, from $21/mo for one employee to $117/mo for 25.
- The per-employee fee, not the base price, controls cost as you grow.
- For a 10-person team, annual cost ranges from $684 to $1,428 — a $744 gap for the same core job.
- The "cheapest" provider flips at about 15 employees: low-base providers win below that, low-per-employee providers win above it.
What We'll Cover
Recommended: compare Gusto →
- How payroll pricing actually works
- Monthly cost by team size
- Annual cost for a 10-person team
- The 15-employee crossover most owners miss
- How we calculated this
- Best next resource
- FAQ
How Payroll Pricing Actually Works
Almost every full-service payroll provider charges the same two-part price: a flat base fee per month plus a per-employee fee per month. A provider with a low base but a high per-employee fee looks cheap for a solo owner and gets expensive for a 20-person team. That single fact explains why there is no universal "cheapest payroll software."
Here are the 2026 published list prices we used:
Provider | Base/mo | Per employee/mo |
Patriot Payroll | $17 | $4 |
OnPay | $40 | $6 |
Gusto | $49 | $6 |
QuickBooks Payroll | $50 | $6 |
ADP RUN | $79 | $4 (estimate) |
What Payroll Costs Per Month by Team Size
Total monthly cost = base + (per-employee × number of employees).
Provider | 1 emp | 5 emp | 10 emp | 25 emp |
Patriot Payroll | $21 | $37 | $57 | $117 |
OnPay | $46 | $70 | $100 | $190 |
Gusto | $55 | $79 | $109 | $199 |
QuickBooks Payroll | $56 | $80 | $110 | $200 |
ADP RUN | $83 | $99 | $119 | $179 |
Notice ADP: it is the most expensive option for a small team but lands below Gusto and QuickBooks at 25 employees, because its per-employee fee is lower.
Annual Cost for a 10-Person Team
Multiply the monthly cost by 12 and the spread becomes real money:
Provider | Annual cost (10 employees) |
Patriot Payroll | $684 |
OnPay | $1,200 |
Gusto | $1,308 |
QuickBooks Payroll | $1,320 |
ADP RUN | $1,428 |
That is a $744 per-year difference between the cheapest and most expensive option for what is, for most small businesses, the same core service: running payroll and filing payroll taxes.
The 15-Employee Crossover Most Owners Miss
Because ADP pairs a high base ($79) with a low per-employee fee ($4), and Gusto and QuickBooks pair a lower base (~$49–$50) with a higher per-employee fee ($6), the lines cross.
- Below ~15 employees: the lower-base providers (Patriot, Gusto, QuickBooks) are cheaper.
- At about 15 employees: ADP draws even with Gusto (both land near $139/mo).
- Above ~15 employees: ADP's lower per-employee fee makes it the cheaper of the three.
Patriot stays cheapest across the whole range because it has both the lowest base and a low per-employee fee. The takeaway: pick on the per-employee fee if you plan to grow, and on the base fee if you will stay small.
What to Do First
- Count the employees you will actually pay this year, not today's headcount.
- Multiply each provider's per-employee fee by that number and add the base.
- If you are under ~10 people, weigh Patriot or Gusto. Over ~15, re-check ADP.
- Run your own number in the Payroll Cost Calculator before you commit.
Common Mistakes
- Choosing on the advertised base price alone — the per-employee fee is what scales.
- Ignoring add-ons (some tax filing, time tracking, or benefits features cost extra).
- Assuming a quote-based provider like ADP is always the priciest — at scale it may not be.
Limits and Exceptions
These are published list-price estimates for full-service monthly plans in 2026. ADP RUN is quote-based, so its figure is an estimate. Real invoices vary with promotions, contractor-only plans, state tax-filing add-ons, and annual vs monthly billing. Always confirm a live quote before deciding.
Best Next Resource
If you are comparing the two most popular all-in-one options, Gusto and QuickBooks Payroll both include automated tax filing and unlimited pay runs — the difference usually comes down to whether you already use QuickBooks for accounting. Run your headcount through the Payroll Cost Calculator first so you compare your real monthly number, not the headline price.
Official Sources I Checked
FAQ
Q: What is the average cost of payroll software per employee?
Most full-service providers charge $4 to $6 per employee per month on top of a $17 to $79 base fee. For a 10-person team that works out to roughly $57 to $119 a month total.
Q: Which payroll software is cheapest for a small business?
By 2026 list price, Patriot Payroll is the cheapest at every team size we tested, from $21/mo for one employee to $117/mo for 25.
Q: Is ADP more expensive than Gusto?
For small teams, yes. But ADP's lower per-employee fee means it can become cheaper than Gusto above about 15 employees, even though its base fee is higher.
Q: Does payroll cost more as I add employees?
Yes. Every added employee adds the per-employee fee (typically $4 to $6/month), so the per-employee fee matters more than the base price once you have a team.
Q: Are these prices guaranteed?
No. These are published list-price estimates for 2026 full-service plans. ADP is quote-based, and real pricing varies with discounts, add-ons, and billing terms. Confirm a live quote before you commit.
Disclaimer: This article is for general information only and is not financial, tax, or legal advice. Pricing is estimated from published list prices and may change. Some links are affiliate links; we may earn a commission at no extra cost to you, and this never changes which option we say is cheapest.
You Might Also Like
Loading...
Editorial standard
Written and maintained by Alex Jordan
The Wallet Bible articles are edited for plain-English decisions, official-source checks, visible affiliate disclosure, and updates when search data shows a reader-intent gap.
- Review focus
- Rules, costs, tradeoffs, limits, and next steps
- Disclosure
- Affiliate links are labeled and do not replace the explanation
- Last updated
- Jun 2, 2026
Small Business Money Checklist
Get the small business money checklist
A plain-English checklist for payroll, bookkeeping, taxes, and software decisions before you pay for a tool.