Cheapest payroll for 2 to 3 employees in 2026
At 2 to 3 employees, the cheapest payroll plans cluster between $25 and $67 per month. The winner depends on whether you want done-for-you tax filing, whether you need multi-state, and whether you already use Wave Accounting. This page works the math on every viable cheap path.
Every cheap option at 2 and 3 employees, ranked
| Provider | 2 EE / mo | 3 EE / mo | Notes |
|---|---|---|---|
| Patriot Basic (self-tax) | $25 | $29 | You file federal and state taxes yourself |
| Roll by ADP | $39 | $44 | SMS-driven. Tax filing included. Multi-state included |
| SurePayroll | $43 | $50 | $29 + $7. Tax filing included. Single-state by default |
| Patriot Full Service | $47 | $52 | $37 + $5. Tax filing included |
| Square Payroll | $47 | $53 | $35 + $6. Time tracking included free |
| Paychex Flex Essentials | $49 | $54 | $39 + $5 (typical quote). Year-end W-2 extra |
| Homebase Payroll | $51 | $57 | $39 + $6. Free time tracking and scheduling |
| Wave Payroll | $52 | $58 | $40 + $6/EE. Tax filing all 50 states. Free Wave Accounting |
| Patriot Basic + Tax | $55 | $59 | $17 + $4/EE + $30 tax add-on. Worse than Full Service |
| OnPay | $61 | $67 | $49 + $6. Multi-state included |
| Gusto Simple | $61 | $67 | $49 + $6. Single-state only |
| QuickBooks Payroll Core | $63 | $69.5 | $50 + $6.50/EE. Same-day deposit included |
| ADP Run Essential | $87 | $91 | Typical quote. Cheaper alternatives exist |
Why this is the headcount where cheap providers differentiate sharpest
At one employee, every provider sits in the $25 to $55 range and the differences are small. At 2 to 3 employees, the per-employee fees compound enough that the choice of provider starts to matter, and the differences between Patriot's $5 per employee and SurePayroll's $7 per employee and Gusto's $6 per employee become visible on the bill.
At 2 employees, SurePayroll at $43 is the cheapest done-for-you-tax plan, $4 a month below Patriot Full Service at $47 and $18 below Gusto Simple at $61. At 3 employees, SurePayroll's $7 per-employee fee narrows its lead: it is $50 against Patriot Full Service at $52, a $2 gap, while both stay well under Gusto and OnPay at $67.
The interesting comparison at this headcount is the done-for-you-tax cluster against Roll by ADP. Roll at 3 employees is $44 versus SurePayroll at $50 and Patriot Full Service at $52. Roll is the cheapest tax-filed option overall and includes the ADP tax-penalty guarantee. The trade-off is the SMS-first interface, which fits some workflows and not others.
Wave Payroll at 2 to 3 employees with free Wave Accounting
Wave Payroll is now a single plan at $40 + $6 per employee with automatic tax filing and payment in all 50 states (unified pricing since 2 April 2025). Two employees is $52. Three employees is $58. The old $20 self-service tier and the 14-state tax-service map no longer exist, so there is no "file it yourself" discount to chase.
At $52 to $58 Wave is not the cheapest done-for-you-tax option (SurePayroll at $43 to $50 and Patriot Full Service at $47 to $52 both undercut it), but it is competitive with Gusto and OnPay at $61 to $67 while including tax filing everywhere.
The Wave advantage that justifies the price is Wave Accounting, which is genuinely free. If you bundle Wave Payroll + Wave Accounting, you get an integrated payroll + bookkeeping stack for $52 to $58 per month. The closest equivalent stack from any other provider is Patriot Full Service + Wave Accounting at $47 to $52, or Gusto + Wave at $61 to $67.
The one limitation: Wave does not support employees working across multiple states at once, even though it files taxes in any single state. If you have a genuinely multi-state workforce, OnPay or Patriot is the safer pick.
See the Wave Payroll cheapest-tier page for the full single-plan math.
Six questions to decide which cheap payroll is right for your 2-3 person business
- Are all employees in one state? If no, skip Gusto Simple (single-state only). OnPay, Patriot, and Wave handle multi-state.
- Do you want the cheapest done-for-you-tax plan? SurePayroll at $43 to $50 is the cheapest single-state option, with Patriot Full Service at $47 to $52 next. Wave at $52 to $58 adds free Wave Accounting and files in all 50 states.
- Do you have an hourly workforce? If yes, Square Payroll at $47 to $53 includes time tracking; otherwise time-tracking add-ons close the gap to $50+ on every provider.
- Do you need multi-state payroll? If yes, skip SurePayroll's single-state default and Gusto Simple, and use OnPay at $61 to $67 or Patriot Full Service at $47 to $52, which both include multi-state.
- Do you run business from a phone? If yes, Roll by ADP at $39 to $44 fits the workflow and includes the ADP tax-penalty guarantee.
- Do you want polished employee onboarding? If yes, Gusto Simple at $61 to $67 is the gold standard. The $17-to-$18-per-month premium over SurePayroll is the price of UX.
Why Patriot Basic + the $30 tax add-on is always wrong at this headcount
Patriot Basic at $17 + $4 per employee plus the $30 Tax Filing Service add-on is $55 to $59 per month at 2 to 3 employees. Patriot Full Service at $37 + $5 per employee is $47 to $52. Same payroll software, same tax filing, $7 to $8 a month difference, and Full Service is the cheaper option.
The reason Patriot Basic + Tax exists in the catalogue at all is that some customers buy Basic without realising they need the tax add-on, and then add it. Patriot does not push them to switch plans. The right move if you are in that position is to call Patriot and ask them to convert your subscription to Full Service, which saves $7 to $8 a month for free.
The cheap path is Patriot Basic alone (no tax add-on, you handle taxes) or Patriot Full Service. Never both.
Other headcount-specific pages
Cheapest payroll for 1 employee
Solo owner, S-corp owner specifics
Cheapest payroll for 4-5 employees
Sweet spot, OnPay-Patriot crossover
Cheapest payroll for 6-10 employees
Sub-$100/mo path
Cheapest payroll for S-corp owner
Reasonable comp, $20-$40 path
By team size
Crossover headcount full ranking
Hidden fees
What is buried in the fine print
Common questions
What is the cheapest payroll service for 2 employees?
Patriot Basic at $17 + $4 per employee = $25 per month for 2 employees without tax filing. Adding the $30 tax-filing add-on takes it to $55. The cheapest done-for-you-tax option is SurePayroll at $29 + $7 per employee = $43, with Patriot Full Service next at $47. Wave Payroll is $52 with tax filing in all 50 states.
What is the cheapest payroll service for 3 employees?
Patriot Basic at $29 per month is the absolute cheapest if you handle your own taxes. SurePayroll at $50 is the cheapest done-for-you-tax option, with Patriot Full Service next at $52. Wave Payroll is $58. Gusto Simple and OnPay both sit at $67, and QuickBooks Payroll Core is $69.50.
How much does Gusto cost for 3 employees?
Gusto Simple at 3 employees is $49 + (3 x $6) = $67 per month. OnPay is the same. QuickBooks Payroll Core is $69.50, slightly more than both. Gusto is no longer cheapest at this headcount. SurePayroll at $50 saves $17 a month versus Gusto, which compounds to $204 a year.
Is it worth paying for tax filing at 2 to 3 employees?
Almost always yes. At 2 to 3 employees, federal 941 quarterly filing, federal 940 annual filing, state unemployment, and state withholding still mean about 10 to 15 filings per year. Mistakes trigger IRS penalties starting at 2 percent and climbing to 15 percent. Paying $43 to $52 per month for a done-for-you-tax plan is cheaper insurance than one missed deadline.
When does Patriot Basic without tax filing make sense?
Only when you have a confident finance owner, a single state, and you intend to do payroll for a long time so the savings compound. For most 2 to 3 employee businesses, SurePayroll or Patriot Full Service is the rational choice over Basic + the $30 add-on.
What about Wave Payroll at this headcount?
Wave is now a single plan at $40 + $6 per employee with automatic tax filing in all 50 states, so 3 employees is $58. There is no longer a separate self-service tier or a 14-state map. W-2 generation is billed at $6 per form at year-end. The trade-off is that Wave does not support employees working across multiple states at once.