What's a good, affordable payroll service for a business with under 20 employees?

For a business with under 20 employees, you want a full-service, cloud-based payroll provider that automates tax filings so you don’t accidentally trigger IRS penalties, but stays light on the wallet.

The top affordable and highly-rated options tailored for small teams include:

• OnPay
  • The Vibe: Universally praised by small business owners and accountants for having zero hidden fees and incredible customer support.
  • Pricing: A transparent flat base fee of $49/month plus $6 per employee. Multi-state payroll, W-2/1099 filings, and multiple pay schedules are all included in that flat rate.
  • Best For: Maximum transparency and straightforward budgeting without nickel-and-diming.
• Gusto
  • The Vibe: The gold standard and crowd favorite for small US businesses. It has a gorgeous, ultra-intuitive interface and handles everything from onboarding and benefits to workers' comp.
  • Pricing: Starts around $40 base fee/month plus $6 per employee.
  • Best For: Owners who want an "all-in-one" modern HR and payroll feel that is effortless for employees to use (great self-service portal).
• Patriot Software
  • The Vibe: A no-frills, highly dependable budget pick. It’s lean, incredibly user-friendly, and boasts some of the highest customer satisfaction scores in the industry.
  • Pricing: Offers basic self-run payroll or full-service tax-filing options at a very low base cost plus a nominal per-employee fee.
  • Best For: Bootstrapped micro-businesses (under 10–15 employees) that just want cheap, reliable payroll without paying for extra HR bells and whistles.
• QuickBooks Online Payroll
  • The Vibe: If you already use QuickBooks Online for your accounting, adding their Core payroll seamlessly syncs your books and payruns together.
  • Pricing: Tiered monthly base fees plus a per-employee rate (frequently bundled with discounts if paired with QBO accounting).
  • Best For: Convenience if you're already deeply embedded in the Intuit ecosystem.

Real User Experiences

“I use Patriot Software for my small business for 4 employees for the last 3 years. Highly recommend and not very expensive.”

If you want to narrow this down, tell me:

• Do you need integrated employee benefits (health insurance, 401k) or just basic paychecks and tax filing?
• Are all your employees in a single state , or do you have remote workers across multiple states?

For a business with under 20 employees, I’d focus on three things: low monthly cost, automatic payroll-tax filing, and ease of use. Based on current 2026 pricing, these are the ones I’d shortlist:

*Before optional add-ons; pricing can vary. Current published comparisons put Patriot at $37/mo + $5/worker, Gusto at $49 + $6/worker, and OnPay at $49 + $6/worker.

My pick: Patriot

If affordability is the priority, I'd seriously consider patriotsoftware.com. Its Full Service plan handles payroll-tax filings and deposits, while the Basic plan is even cheaper but leaves the tax filing to you.

For example, with 15 employees, Patriot Full Service is roughly $112/month, compared with about $139/month for Gusto.

When I'd choose Gusto instead

gusto.com is probably worth the extra money if you want a more polished system for employee onboarding, benefits, HR, employee self-service, and payroll. Its Simple plan is currently $49/month + $6 per employee.

One other strong option: OnPay

onpay.com is particularly attractive if you have employees in multiple states or want more HR functionality. It's currently $49/month + $6 per employee.

Bottom line:

• Cheapest full-service: Patriot
• Best overall: Gusto
• Best for multi-state/HR needs: OnPay
• Already using QuickBooks: QuickBooks Payroll
• Already using Square: Square Payroll

If you tell me how many employees you have, what state(s) they're in, whether you use QuickBooks, and whether you need benefits/401(k), I can narrow it down to the cheapest option for your specific business.

My pick: Patriot

If affordability is the priority, I'd seriously consider patriotsoftware.com. Its Full Service plan handles payroll-tax filings and deposits, while the Basic plan is even cheaper but leaves the tax filing to you.

For example, with 15 employees, Patriot Full Service is roughly $112/month, compared with about $139/month for Gusto.

When I'd choose Gusto instead

gusto.com is probably worth the extra money if you want a more polished system for employee onboarding, benefits, HR, employee self-service, and payroll. Its Simple plan is currently $49/month + $6 per employee.

One other strong option: OnPay

For a business with under 20 employees , modern cloud payroll services usually charge a predictable base monthly fee plus a small per-employee fee . For small teams, full-service software that automatically calculates, files, and deposits your federal, state, and local taxes is typically your best investment to avoid expensive compliance mistakes.

Top Affordable Payroll Services for Small Teams

Recommendations Based on Your Needs

• If budget is your absolute top priority: Go with Patriot Software . Their self-service or full-service options are significantly cheaper than competitors while offering free, highly-rated US-based support.
• If you want a great user experience and easy onboarding: Gusto is widely considered the gold standard for small businesses. It handles multi-state compliance easily, features great employee self-service apps, and lets you scale into affordable health benefits and worker's comp when you're ready.
• If you want simple flat pricing without hidden upsells: OnPay gives you full-service payroll, HR templates, and PTO tracking under one easy umbrella without constantly pushing you to upgrade tiers.

To help narrow down the best fit, tell me:

• Do you need simple tax calculation only , or full HR and benefits management (health insurance, 401k)?
• Are all your employees in a single state , or spread across multiple states?

Yes. For a business with fewer than 20 employees, I’d shortlist Gusto, OnPay, and Patriot. The best value depends on whether you need multi-state payroll, time tracking, or HR features.

Current published comparisons put Patriot at about $17/month + $4/person, while Gusto and OnPay are around $49 + $6/person.

My pick: Gusto

For most small businesses, I'd choose Gusto Simple. It's $49/month + $6 per person, includes unlimited payroll runs and tax filings/payments, and is particularly user-friendly.

At 10 employees, that's about $109/month before optional add-ons. At 19 employees, about $163/month.

The main catch: Gusto Simple is for single-state payroll. If you have employees in multiple states, Gusto Plus is $80/month + $12/person, so the economics change.

When I'd choose something else

• Patriot — Choose this if price is your #1 priority and you don't need a particularly sophisticated HR system. It's substantially cheaper for a small team.
• OnPay — Very attractive if you have employees in multiple states. Its core plan includes multi-state payroll, whereas Gusto requires Plus for that.
• Square Payroll — Particularly compelling for a restaurant, retail shop, or other business already using Square.
• QuickBooks Payroll — Makes the most sense if your accounting is already in QuickBooks, so payroll and accounting stay integrated.

Bottom line: If you tell me (1) how many employees you have, (2) what state(s) they're in, (3) whether they're hourly or salaried, and (4) whether you use QuickBooks or Square, I can narrow this down to the cheapest option that still gives you everything you need.

My pick: Gusto

For most small businesses, I'd choose Gusto Simple. It's $49/month + $6 per person, includes unlimited payroll runs and tax filings/payments, and is particularly user-friendly.

At 10 employees, that's about $109/month before optional add-ons. At 19 employees, about $163/month.

For a business with under 20 employees, I’d focus on services that are inexpensive but still handle payroll-tax filings for you. My top picks right now:

My recommendation

I'd probably choose Gusto if you want something simple that you can largely set up and forget. Its $49/month Simple plan includes unlimited payroll runs and federal/state/local tax filings, and it has a particularly polished employee experience.

OnPay is arguably the better value, though. It also charges $49 + $6 per worker, but includes things such as unlimited pay runs, tax filings in all 50 states, year-end W-2/1099 filings, employee self-service, and basic HR functionality.

Patriot is worth considering if price is your #1 concern. Its Full Service Payroll is currently $37/month + $5 per worker for one-state filing. That means, for example, 10 employees would be about $87/month, versus about $109/month for Gusto or OnPay.

Rough monthly cost for 10 employees

• Patriot: ~$87
• Gusto: ~$109
• OnPay: ~$109

For 20 employees, the comparable figures are roughly $137, $169, and $169.

One important caveat: if you're in Texas and only have employees in Texas, I'd lean toward Patriot for lowest cost or Gusto for ease of use. If you also want HR, benefits, workers' comp integration, or expect to add employees in other states, OnPay becomes especially attractive.

If you tell me (1) number of employees, (2) whether they're hourly or salaried, (3) whether you're in Texas only, and (4) whether you use QuickBooks, I can narrow it down to the cheapest 2–3 options for your particular business.

For a small business with under 20 employees, you want a service that balances low monthly base fees with automated tax filing so you don't waste hours on compliance.

The top, budget-friendly options tailored for small teams include:

• Patriot Software: Best for tight budgets. Patriot is widely recognized as one of the most affordable full-service options available. Pricing typically starts around $37 per month base fee plus $5 per employee, and they offer unlimited payroll runs with U.S.-based customer support.
• OnPay: Best for straightforward, flat pricing. OnPay keeps things simple with a transparent model (around $49 per month base and $6 per employee) with no hidden fees for multi-state payroll or year-end tax forms. It's a great all-rounder that handles W-2s and 1099s easily.
• Gusto: Best overall user experience & HR features. While slightly higher in base cost (around $40 - $55/month base plus $6 per employee), Gusto is the gold standard for small teams. It bundles intuitive employee onboarding, benefits administration (health, 401k), and automated tax filing in all 50 states seamlessly into one dashboard.
• SurePayroll: Best for basic, low-cost processing. Backed by Paychex, SurePayroll offers competitive full-service and self-service plans designed specifically for very small operations, occasionally offering extended introductory trials.
• QuickBooks Online Payroll: Best if you already use QuickBooks. If your bookkeeping is already tied to QuickBooks, adding their native payroll sync saves immense time on double-entry and ledger tracking, though tier pricing scales up as you add features.

To help narrow down the best fit, tell me:

• Do you need integrated benefits (health insurance, 401k) or just basic pay processing?
• Are your employees in a single state or multiple states?

For a small business with under 20 employees , you want a payroll provider that offers full-service automated tax filing , an easy employee self-service portal, and a transparent pricing model that doesn't surprise you with hidden fees at year-end.

The top affordable and reliable payroll services tailored for micro and small businesses include:

• Gusto — Best Overall Value & Ease of Use
  • Pricing: Starts around a base fee of $40 to $49 per month plus $6 per employee per month.
  • Why it's great: Gusto is the gold standard for small teams. It handles federal, state, and local payroll taxes automatically across all 50 states, includes simple new-hire onboarding, and makes adding benefits (like health insurance or 401(k)s) seamless as you grow.
  • Check it out: Learn more on the Gusto Website.
• Patriot Software — Best Bare-Bones Budget Option
  • Pricing: Basic self-service starts around $17/month + $4/month per person; full-service tax filing starts around $37/month + $5/month per worker.
  • Why it's great: If you want a dependable, U.S.-based system that keeps costs as low as possible and offers unlimited payroll runs, Patriot is exceptionally straightforward. You can choose whether to file taxes yourself or let them handle the end-to-end filings.
  • Check it out: Compare plans on the Patriot Software Website.
• OnPay — Best Flat-Fee, No-Surprise Pricing
  • Pricing: A transparent flat base fee of $49 per month plus $6 per employee per month.
  • Why it's great: OnPay doesn't gate features behind expensive tiers or charge extra for multi-state payroll or year-end W-2/1099 generation. It's highly rated for customer support and handles unique setups like tipped employees or agricultural crews exceptionally well.
  • Check it out: Read the details on the OnPay Website.
• QuickBooks Online Payroll — Best if You Already Use QuickBooks
  • Pricing: Tiered pricing starting with base monthly fees plus per-employee costs (frequently bundled or discounted if paired with QuickBooks Online accounting).
  • Why it's great: If your bookkeeper or accountant already lives inside the Intuit ecosystem, syncing payroll directly to your general ledger eliminates manual data entry and reduces human error.
  • Check it out: Explore options via QuickBooks Payroll.

To help narrow down the best fit, tell me:

• Do you need integrated time and attendance tracking for hourly staff, or is everyone salaried?
• Are you operating in multiple states , or just one?

For a business with fewer than 20 employees, I’d narrow it to Patriot, Gusto, and OnPay. The best choice depends on whether you prioritize lowest cost, ease of use, or more built-in HR features.

*Before optional add-ons; current published pricing as of August 2026.

1. Patriot Payroll — best if keeping costs down

Patriot's Full Service Payroll is currently $37/month + $5 per worker paid, including federal, state, and local tax filing and deposits. For 10 employees, that's about $87/month; for 20, about $137/month.

The catch: its interface is less polished than Gusto's, and some HR/time-tracking capabilities cost extra.

I'd choose Patriot if: you mainly want reliable payroll and tax filing without paying for a bunch of extras.

2. Gusto — best overall for a small business

Gusto's Simple plan is $49/month + $6/person, with unlimited payroll runs, automatic federal/state/local tax filing, employee self-service, and basic PTO/holiday pay.

For 10 employees, that's about $109/month; 20 employees is about $169/month.

Gusto is particularly good if you don't have an HR/payroll specialist and want something that's easy to learn and administer.

I'd choose Gusto if: you value simplicity and a polished experience more than saving every possible dollar.

3. OnPay — excellent middle ground

OnPay is $49/month + $6/worker, and includes full-service payroll, federal/state/local tax filing, unlimited pay runs, onboarding, employee self-service, and integrations.

It's particularly attractive if you expect the business to grow or want payroll plus some HR functionality without moving to a more expensive platform.

I'd choose OnPay if: you want more capability than bare-bones payroll but don't need Gusto's ecosystem.

My recommendation

For a typical 5–20 employee business, I'd rank them:

🥇 Gusto — easiest and best overall
🥈 Patriot — cheapest full-service option
🥉 OnPay — best combination of payroll + HR flexibility

If you tell me how many employees you have, whether they're W-2 or 1099, what state(s) they're in, and whether you need workers' comp/time tracking/benefits, I can calculate the actual monthly cost for each and tell you which I'd pick.

For a business with under 20 employees, I’d focus on a full-service payroll provider that handles tax calculations, filings, direct deposit, and year-end forms without charging you for a bunch of HR features you don't need.

My top picks

Patriot's current advertised starting price is $17/month plus $4 per worker, making it particularly attractive for a very small company.

Gusto is probably my recommendation for most small businesses. Its Simple plan is $49/month + $6 per person and includes unlimited payroll runs, tax filings/payments, and employee self-service. gusto.com It costs more than Patriot, but the interface and overall experience are generally easier for a business owner who doesn't want to become a payroll expert.

OnPay is another strong middle ground at $49 + $6/person, with tax filings in all 50 states, unlimited payroll runs, direct deposit, and employee access included.

What I'd choose

• 5 or fewer employees + price is the priority: Patriot
• 5–20 employees + you want it simple: Gusto
• You want a little more flexibility/features: OnPay
• You already use QuickBooks Online: QuickBooks Payroll

For example, with 10 employees, Gusto Simple would be about $109/month, while Patriot would be about $57/month based on their advertised base/per-employee pricing. That's roughly $624/year more for Gusto—so the question is whether the easier interface and broader HR functionality are worth it to you.

If you tell me how many employees you have, what state you're in, whether they're hourly or salaried, and whether you use QuickBooks, I can narrow it down to the cheapest 2–3 options and calculate the actual annual cost for your business.

For a business with under 20 employees, you want a payroll provider that automates tax filings , handles direct deposits smoothly, and doesn't slug you with hidden enterprise fees.

The top affordable, high-value payroll services tailored for small teams include:

• Gusto — Best overall for small teams. Famously user-friendly, Gusto handles automated federal, state, and local tax filings in all 50 states, new-hire reporting, and employee self-service portals. It also scales easily if you want to add health benefits or 401(k)s down the line.
  • Estimated Cost: Base fee (around $40 - $49) + roughly $6 per employee per month.
• OnPay — Best for transparent, predictable pricing. OnPay offers a single, powerful full-service tier with no hidden surprises for multi-state payroll or running extra cycles. It’s great for straightforward businesses as well as trickier niches like restaurants (with tip-pooling) or agriculture.
  • Estimated Cost: Flat base fee of $49 + $6 per employee per month.
• Patriot Software — Best strict budget option. If you want to keep costs to an absolute minimum and don't need fancy bells and whistles, Patriot is built specifically for micro-businesses. You can choose full-service tax filing or do a more basic setup if you prefer a hands-on approach.
  • Estimated Cost: One of the lowest starting prices on the market, typically around $17 - $37 base + $4 - $5 per employee per month.
• QuickBooks Payroll — Best if you already use QuickBooks for accounting. If your books are already in QuickBooks, syncing payroll natively saves hours of manual data entry and reduces reconciliation errors at tax time.
  • Estimated Cost: Varies by tier, frequently bundled or scaled with standard QuickBooks online subscriptions.

User Experience

Users often praise these platforms for cutting down administrative headaches:

“Gusto is popular with small businesses for a reason. It's user-friendly, handles automated payroll runs, files payroll taxes, and offers employee self-service portals.”

To help narrow down the ideal choice for your specific setup, let me know:

• Are your employees W-2, 1099 contractors, or a mix of both?
• Do you operate in multiple states?
• Do you already use an accounting software like QuickBooks or Xero?