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 cheapest annual cost is OnPay or Gusto Simple at roughly $1,200/year. Patriot Full Service comes in at $924 per year on the base bill, but $250 in W-2 fees pushes it to roughly $1,174, which is the actual cheapest at this size. ADP and Paychex usually quote $1,500 to $2,500 per year for the same headcount once year-end fees and any add-ons are included.
Schedule A

True annual cost at 5 employees

ProviderMonthly12-mo subtotalW-2 feesTrue annual
SurePayroll$50$600$25$625
Wave Payroll$50$600$30$630
Square Payroll$65$780$0$780
Paychex Flex Essentials$64$768$35$803
Patriot Full Service$57$684$125$809
OnPay$70$840$0$840
Gusto Simple$70$840$0$840
Homebase Payroll$70$840$0$840
QuickBooks Payroll Core$75$900$0$900
Patriot Basic$67$804$125$929
ADP Run Essential$99$1188$30$1218
Schedule B

True annual cost at 10 employees

ProviderMonthly12-mo subtotalW-2 feesTrue annual
SurePayroll$70$840$50$890
Wave Payroll$80$960$60$1020
Paychex Flex Essentials$89$1068$70$1138
Square Payroll$95$1140$0$1140
Patriot Full Service$77$924$250$1174
OnPay$100$1200$0$1200
Gusto Simple$100$1200$0$1200
Homebase Payroll$100$1200$0$1200
QuickBooks Payroll Core$105$1260$0$1260
Patriot Basic$87$1044$250$1294
ADP Run Essential$119$1428$60$1488
Schedule C

True annual cost at 25 employees

ProviderMonthly12-mo subtotalW-2 feesTrue annual
SurePayroll$130$1560$125$1685
Paychex Flex Essentials$164$1968$175$2143
Wave Payroll$170$2040$150$2190
Square Payroll$185$2220$0$2220
Patriot Full Service$137$1644$625$2269
OnPay$190$2280$0$2280
Gusto Simple$190$2280$0$2280
Homebase Payroll$190$2280$0$2280
ADP Run Essential$179$2148$150$2298
QuickBooks Payroll Core$195$2340$0$2340
Patriot Basic$147$1764$625$2389
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$1174$1256$1344$3774
OnPay$1200$1284$1374$3858
Gusto Simple$1200$1284$1374$3858
QuickBooks Payroll Core$1260$1348$1443$4051
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Updated 2026-04-28