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
| Provider | Monthly | 12-mo subtotal | W-2 fees | True 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
| Provider | Monthly | 12-mo subtotal | W-2 fees | True 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
| Provider | Monthly | 12-mo subtotal | W-2 fees | True 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.
| Provider | Year 1 | Year 2 | Year 3 | 3-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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