Voucher / 12-month total

Payroll service annual cost in 2026

Monthly fees hide the real total. Once you fold in W-2 processing and common add-ons, the cheapest annual provider is often not the cheapest monthly provider.

Quick Answer
At 10 employees, the lowest published true annual cost is Square Payroll and Homebase at roughly $1,140 to $1,190, both with W-2s included. Paychex's published rate computes a touch lower, but Paychex rarely holds its sticker once add-ons and year-end fees are quoted, so treat it as a floor. Patriot Full Service lands near $1,294 once W-2 fees are added. OnPay and Gusto Simple sit around $1,308 after raising prices to $49 + $6 in 2026. ADP usually quotes $1,500 or more for the same headcount.
Schedule A

True annual cost at 5 employees

ProviderMonthly12-mo subtotalW-2 feesTrue annual
Square Payroll$65$780$0$780
SurePayroll$64$768$25$793
Paychex Flex Essentials$64$768$35$803
Homebase Payroll$69$828$0$828
Patriot Full Service$62$744$125$869
Wave Payroll$70$840$30$870
Patriot Basic$67$804$125$929
OnPay$79$948$0$948
Gusto Simple$79$948$0$948
QuickBooks Payroll Core$83$990$0$990
ADP Run Essential$99$1188$30$1218
Schedule B

True annual cost at 10 employees

ProviderMonthly12-mo subtotalW-2 feesTrue annual
Paychex Flex Essentials$89$1068$70$1138
Square Payroll$95$1140$0$1140
Homebase Payroll$99$1188$0$1188
SurePayroll$99$1188$50$1238
Wave Payroll$100$1200$60$1260
Patriot Basic$87$1044$250$1294
Patriot Full Service$87$1044$250$1294
OnPay$109$1308$0$1308
Gusto Simple$109$1308$0$1308
QuickBooks Payroll Core$115$1380$0$1380
ADP Run Essential$119$1428$60$1488
Schedule C

True annual cost at 25 employees

ProviderMonthly12-mo subtotalW-2 feesTrue annual
Paychex Flex Essentials$164$1968$175$2143
Square Payroll$185$2220$0$2220
Homebase Payroll$189$2268$0$2268
ADP Run Essential$179$2148$150$2298
OnPay$199$2388$0$2388
Gusto Simple$199$2388$0$2388
Patriot Basic$147$1764$625$2389
Wave Payroll$190$2280$150$2430
QuickBooks Payroll Core$213$2550$0$2550
Patriot Full Service$162$1944$625$2569
SurePayroll$204$2448$125$2573
Year-end

What hits your bill in January

Year-end is the budget surprise nobody prepares for. Three categories typically land in January:

  • W-2$5 to $25 per W-2 at Patriot, Paychex, and ADP. Not charged at OnPay, Gusto, Square, Homebase, QuickBooks.
  • 1099$0 to $15 per 1099-NEC. QuickBooks charges $15.99 per e-file. Most others include or charge under $5.
  • FUTAAnnual 940 reconciliation. Included in tax filing service. DIY users file a paper or e-file 940 by January 31.
Three years out

Multi-year cost projection at 10 employees

Most payroll SaaS raises prices 5 to 10 percent per year. This table assumes 7 percent annual escalation, which matches typical Gusto and OnPay rate-card history.

ProviderYear 1Year 2Year 33-yr total
Patriot Full Service$1294$1385$1482$4160
QuickBooks Payroll Core$1380$1477$1580$4437
OnPay$1308$1400$1498$4205
Gusto Simple$1308$1400$1498$4205
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