Best Cheap Payroll Services of December 2024
Updated October 28, 2024 at 4:07 am
The best payroll services for small businesses take stress off your plate while injecting valuable time back into your day. They ensure your employees are paid correctly and on time, while also keeping an eye on tax law and compliance. The problem? Not all of these services are so affordable.
If you are on a budget, it can be challenging trying to find a payroll service that has all of the features you need but does not cost a fortune. Instead, try one of these expert-vetted best cheap payroll services for your business.
Our Methodology Our research is designed to provide you with a comprehensive understanding of small business services and products that best suit your needs. To help you in the decision-making process, our expert contributors compare common preferences and potential pain points, such as affordability, accessibility and credibility.
Our Picks - Best Cheap Payroll Service Overall: Intuit QuickBooks
- Best Cheap Payroll Service With Automation: Gusto
- Best Cheap Payroll Service With Free Plan: Payroll4Free.com
- Best Cheap Payroll Service For Small Business: OnPay
- Best Cheap Payroll Service For Beginners: Patriot
Payroll Service Options
5 Cheapest Payroll Services of 2024
Best Cheap Payroll Service Overall
Intuit QuickBooks
Why We Chose It
QuickBooks offers multi-faceted software that merges accounting and HR features with payroll tools, making it the best cheap payroll service for businesses on a budget overall. Automate your payroll to save yourself time with unlimited payroll runs, unlimited 1099 E-files and available time tracking. Enjoy both next-day and same-day direct deposits to get your team paid as quickly as possible.
Key Features*
*Discounted pricing may be available for enterprise clients
- Automatic payroll tax service built in
- $25,000 tax penalty protection included
- Mineral human resources (HR) support available if needed
- 401(k) and workers’ comp support
- Inexpensive compared to other comprehensive competitors
Pros
- 30-day free trial
- Unlimited payroll runs
- Multiple sales channel connections
Cons
- Limited users allowed per plan
- Must upgrade for time-tracking support
- Price jump after first three months
Best Cheap Payroll Service With Automation
Gusto
Why We Chose It
Gusto’s the best automated cheap payroll service, saving businesses about five hours per week per site claims. With Gusto, you can take a hands-off approach—enjoying unlimited payroll runs and processing for all of your I-9, W-2 and 1099 forms. Automatic payroll tax filings follow, helping to ensure company compliance.
Key Features
- Worker’s comp, paid time off (PTO) and geolocation time tracking support
- Multi-state payroll options
- Nationwide state tax registration
- International staff support
- HR support for national and international team members
Pros
- Unlimited payroll runs
- Extensive integration library
- Excellent price transparency
Cons
- No free trial
- Single user allocated per plan
- No mobile app
Best Cheap Payroll Service With Free Plan
Payroll4Free.com
Why We Chose It
Payroll4Free has been offering free payroll services since 2012. It pays your employees and contractors and handles your taxes, and ensures things like vacation, sick time and PTO time are accurately calculated for each person’s wages. Once payroll has been prepared, you have a choice between direct deposits or paper checks for both your employees and contractors. It’s simple (and effective!)
Key Features
- Employee portal
- 1099 form support
- Federal, state and local tax calculation tools
- Longevity in the industry makes it a trusted free resource
- Comprehensive employee time tracking
Pros
- Very user-friendly
- Professional support available
- Extensive integration library
Cons
- Ads are present throughout user experience
- 10-user maximum per account
- No compatibility for Mac
Best Cheap Payroll Service For Small Business
OnPay
Why We Chose It
OnPay combines payroll and HR tools to create the best cheap payroll service for small businesses. You get unlimited monthly payroll runs with automatic tax filings, pay rate and schedule support, and a native time-tracking feature with exclusive accounting tools. OnPay will also help with your W-2s and 1099s to ensure continued compliance.
Key Features
- Multi-state payroll support
- Direct deposit or check disbursement choices
- Workers’ comp and benefit support
- Native accounting and HR tools
- Extensive integration library
Pros
- Accuracy guarantee
- Unlimited payroll runs
- White glove data migration available
Cons
- Single user per plan
- Some users report difficulty navigating the tool
- Not suitable for enterprise clients
Best Cheap Payroll Service For Beginners
Patriot
Why We Chose It
Patriot is one of the best cheap payroll services for small businesses who are new to payroll. Its user-friendly interface and straightforward pricing make it easy for beginners to follow—and you won’t have to compromise on your features. Enjoy unlimited payroll with multiple pay rates and support for 1099 contractors and employees, as well as a robust suite of HR integrations.
Key Features
- Comprehensive visibility via seamless user interface
- 1099 and tax filing support
- Accounting integration options
- Employee portal for self-serve reference
- 2-day direct deposit for qualified customers
Pros
- Free set-up
- Multiple pay rates available
- Basic payroll training module via Not to Gross Payroll summary
Cons
- Slower payment processing times
- No mobile app
- Lacks international payroll
Vault’s Viewpoint: Compare the Best Cheap Payroll Services of 2024
| Starting Price | Free Trial | Users | Integrations | Full-Service Option | |
| Intuit QuickBooks | $75-$170 per month plus $6-$8 per employee fee per month* | ✔ | 1-5 | ✔ | Assisted bookkeeping $50 per month |
| Gusto | $40 per month plus $6 per user | Free demo | 1 | ✔ | |
| Payroll4Free.com | $0 | None | 10 | ✔ | $40 per month |
| OnPay | $40 per month, plus $6 per user | None | 1 | ✔ | |
| Patriot | $17 per month plus $4 per user | Free demo | 1 | ✔ | $37 per month plus $4 per user |
Learn More About Cheap Payroll Services
Before you can choose the best payroll service, you first need to know what to look for. This is what you need to know about payroll services and how they work.
What Are the Best Cheap Payroll Services?
When searching for the best cheap payroll service, it all depends on what you need for your business. For example, if you do not have a lot of time and prefer efficiency, Gusto is the best cheap payroll service for automation. If you are on a budget, Payroll4Free.com has an excellent free plan that is great for light payroll.
Some businesses may want more than just payroll as well, instead opting for a comprehensive tool suite that can meet all of their payroll and employee needs. Defining the scope of these needs is the best way to identify the best cheap payroll services for small businesses.
How Do Payroll Services Work?
A payroll service is a company or independent firm that either helps with or assumes full responsibility for payroll operations, managing employee payments and maintaining compliance for your business. This is often done via payroll software, like QuickBooks or Gusto, which can be accessed by the business and its employees.
Who Are Cheap Payroll Services Best For?
The best cheap payroll services are ideal for businesses on a budget, who may not have a lot to spend and who are satisfied with the limited features these plans offer. A cheap payroll plan can also be a great way to test-drive a service before committing to a pricier plan.
The best cheap payroll services aren’t for everyone, however. Larger businesses and enterprise clients may find cheap payroll services lacking in their services and functionality, instead choosing a full-faceted plan that will likely come at a higher price.
Types of Best Payroll Services
There are a few different types of payroll services that you can use.
- In-House Payroll: Some businesses may choose to perform their payroll themselves. This saves them the cost of payroll services, but it leaves them responsible should there be any issues with regulatory compliance.
- Bookkeepers and Certified Public Accountants (CPAs): These firms take the work out of payroll by assuming all responsibility for you. You pay them a monthly fee, and they handle your payroll and accounting.
- DIY Software Services: Do-it-yourself (DIY) payroll software arms you with the tools you need to perform payroll and will even give you compliance reminders, but you may need to execute payroll yourself unless there are automation features.
- Full-Service Payroll: Some companies—like QuickBooks and ADP—offer professional payroll services. You can use the software to review and edit as necessary, but payroll and compliance are handled by a professional with your payroll service.
How To Choose a Cheap Payroll Service
Our experts are here to help you find the best cheap payroll service for your business. Here are some of the factors we considered in our search.
Features
Functionality is critical when dealing with employee pay and tax law, so we look for comprehensive features that help improve the payroll process. This can include everything from payment options and workers’ comp, to tax filings and payroll reporting.
Compliance
The best cheap payroll services will help you remain in compliance with tax law and other regulations. It can make automatic payments and file important documents on your behalf, all while keeping you updated on the latest legislation changes.
Integrations
Payroll software is not likely to be the only software you use for financial management, which is why integrations are so important. Whether you are syncing the best accounting software or the best project management software, it is critical to check whether your software syncs with your payroll service so you can maximize functionality and efficiency.
Support
When you move forward with a payroll service (such as any of the best cheap payroll services on this list), you may have a question during set-up or need help with a particular form. Be sure that the cheap payroll service you choose has the type of service you prefer, whether it is chat, phone or email. You also want to be sure that it is available during the hours you work, as not all payroll services offer 24/7 customer support.
Cost
The cost of the best cheap payroll services can range from nothing at all to $75 a month, depending on the plan and provider you choose. As seen here, plans can vary considerably in what they offer, whether it is the tools, access or support available. When comparing pricing, be sure to compare features as well, so you know exactly what you are getting for your investment.
Other Cheap Payroll Services Alternatives
RUN by ADP
RUN by ADP is the best cheap payroll service for HR tools. It offers a user-friendly dashboard that puts you in complete control of your payroll, as well as its RUN & DONE feature to set up recurring payroll.
Employers can choose to disburse via direct deposit, check or a debit card for payment. The best part? When tax season rolls around, RUN will automatically calculate and file your payroll taxes for you, using AI-powered error detection to ensure accuracy.
TimeTrex
TimeTrex is the best cheap payroll service for time tracking and compliance support. Scheduling and attendance features enable you to manage the entire staffing process from start to finish. TimeTrex also has a signature Precision Payroll Tax Calculator for ease of reference during tax season or year-round, handling all the standard and custom deduction management. The tool also handles tax filings on a rolling basis to ensure government compliance.
Square Payroll
If you work with a lot of hourly employees, Square Payroll is the best cheap payroll service to manage them. (It’s especially convenient if you happen to already have a Square POS in your business). Square offers full-service payroll with unlimited monthly runs and faster direct deposits. It can handle multiple pay rates and leaves room to calculate commissions, bonuses and tips on top of regular pay. In addition to W-2 and 1099 forms, it can handle your state and federal tax filings so you remain compliant.
Frequently Asked Questions
Is the Best Payroll Service Free?
Some free subscriptions do exist, such as Payroll4Free.com, but features are limited—such as the number of payroll runs per month or the employees who can access the software.
The best payroll services may require a cheap subscription, but they’ll offer a healthy amount of features designed to grow and protect your business in return.
What Is the Cheapest Payroll Service?
Among the best cheap payroll services, the cheapest payroll service is Payroll4Free.com. It offers a free plan with both direct deposit and paper checks, plus access for up to ten employees.
Is QuickBooks Payroll Free?
No, QuickBooks Payroll is not free. It requires a base QuickBooks Online membership with a Payroll Core or Payroll Premium add-on. Plans start at $37.50 per month for your first three months with pricing increasing to $75 per month thereafter. Each employee costs $6 per month.
Editorial Disclosure: We may receive a commission from affiliate partner links included on our site. However, this does not impact our staffs’ opinions or assessments.
