Cheapest Wave Payroll plan in 2026
Wave Payroll is now a single plan at $40 base plus $6 per employee, with automatic federal and state tax filing included in all 50 states. The old two-tier model (a $20 self-service tier and a 14-state tax-service tier) was retired on 2 April 2025. The cheapest answer no longer depends on which state you are in; it depends on whether Wave's feature gaps, no built-in time tracking and no support for employees working across multiple states at once, matter to your business.
Wave Payroll true monthly cost
One plan, one price, automatic tax filing included in every state. Source: Wave Payroll pricing page as of June 2026.
| Employees | Wave / mo | Wave / yr |
|---|---|---|
| 1 | $46 | $552 |
| 3 | $58 | $696 |
| 5 | $70 | $840 |
| 10 | $100 | $1,200 |
| 15 | $130 | $1,560 |
Year-end W-2 forms are billed at $6 per form. Contractor payments are $6 per contractor per month on the same plan. Prices include automatic federal and state tax filing in all 50 states.
Wave now files taxes in all 50 states
Until April 2025 Wave Payroll ran a two-tier model: automatic tax filing in 14 states, and a cheaper self-service tier everywhere else where you filed your own federal and state returns. That split is gone. On 2 April 2025 Wave moved to a single plan that files federal 941, federal 940, state unemployment, and state income withholding automatically in all 50 states.
The practical effect is that the old "is my state on the list?" question no longer matters. Wherever your business is, you buy the same plan at $40 + $6 per employee and Wave handles the filing and the payments. The done-for-you-tax outcome that used to be limited to 14 states is now the default everywhere.
The trade is that the cheap $20 self-service entry point is gone. If you were relying on the self-service tier to get payroll for $26 a month at one employee, that price no longer exists. The floor for Wave is now $46 a month for a single employee, with tax filing baked in whether you wanted it or not.
The two real limits now that tax filing is universal
With tax filing handled in all 50 states, the case against Wave is no longer about filing. It is about two feature gaps that the single plan does not close, and both can quietly make a cheaper-looking Wave subscription the wrong choice.
First, Wave has no built-in time tracking. If your team is hourly, you either enter hours manually each pay run or pay for a separate time-tracking tool and reconcile it with Wave by hand. For restaurants, retail, and other shift-based teams, that gap matters more than the base price. Square Payroll at $35 + $6 includes time tracking, and Homebase at $39 + $6 bundles scheduling on top, so for hourly workforces those plans are often cheaper all-in than Wave plus a standalone time tracker.
Second, Wave does not support employees who work across multiple states at the same time. Wave files single-state taxes for each employee, so it suits a roster where each person works in one state. If you have a worker splitting time between two states, or a fully distributed team triggering tax nexus in several states for one person, Wave is not the tool. OnPay at $49 + $6 with true multi-state support is the safer path for that profile.
Wave is the right cheap answer for a solo owner or a small single-state team that wants tax filing handled and does not need time tracking. Outside that profile, the feature gaps, not the price, are what should decide it.
The cohort Wave is genuinely the cheapest answer for
Solo founder paying themselves a reasonable S-corp salary, already using Wave Accounting for bookkeeping. Total cost is $46 per month for Wave Payroll plus $0 for Wave Accounting, with tax filing included. The bundle is cheaper than any combination of Patriot Full Service plus a paid accounting tool, because the accounting side is genuinely free.
Two- or three-person single-state LLC with no time-tracking needs. Wave Payroll at $58 to $70 per month with Wave Accounting bundled in is a strong done-for-you-tax option that includes an accounting tool. Patriot Full Service is $52 to $62 for payroll alone at the same headcounts, and you still need to add accounting on top, which closes the gap or tips it to Wave.
Owner who wants tax filing handled and does not want to think about which state they are in. Because Wave now files in all 50 states on the one plan, there is no state-eligibility footnote to check. At $46 per month for one employee it is not the cheapest sticker, Patriot Basic is $21 and SurePayroll is $36, but it is the cheapest path that bundles free accounting with automatic filing everywhere.
When the price is not enough to make Wave the right choice
Multi-state employees. Wave files single-state taxes for each person, so it does not support a worker who is taxable in more than one state at once. The all-50-states filing means Wave can run payroll for a single-state employee anywhere, but it cannot handle one employee straddling two states. OnPay at $49 + $6 with true multi-state support is the safer path for that profile.
Hourly workforces. Wave does not include time tracking. For restaurants, retail, and other hourly teams, Square Payroll at $35 + $6 with Square Team time tracking included is cheaper than Wave plus a separate time tracker.
Growing teams. Wave's pricing is competitive up to about 10 employees. Beyond that, the $6 per employee per month adds up faster than Patriot Full Service at $5 per employee. At 25 employees, Wave is $190 a month against Patriot Full Service at $162, so Patriot is meaningfully cheaper for larger single-state rosters.
Other cheapest-vendor breakdowns
Cheapest Patriot plan
Basic at $17 + the $30 tax add math
Cheapest OnPay plan
Flat $49 + $6, multi-state included
Cheapest Gusto plan
Simple at $49 + $6, multi-state trap
Cheapest Square Payroll plan
$35 + $6, time tracking included
Cheapest payroll for S-corp owner
Solo owner reasonable comp path
Free payroll software honest review
Wave free, Payroll4Free, DIY, all stress-tested
Common questions
How much does Wave Payroll cost?
Wave Payroll is $40 per month base plus $6 per employee. There is one plan, and automatic federal and state tax filing is included in all 50 states. The old $20 self-service tier was retired on 2 April 2025.
Does Wave Payroll still have a $20 self-service tier?
No. Wave retired the two-tier model on 2 April 2025. There is no longer a $20 self-service tier and no 14-state tax-service map. Wave is a single $40 + $6 plan that files your federal and state payroll taxes automatically in every state. Verify on Wave's pricing page before relying on it.
How much does Wave Payroll cost for 5 employees?
Wave Payroll at 5 employees is $40 + (5 x $6) = $70 per month, anywhere in the US. That price includes automatic tax filing, direct deposit, and the Wave Accounting integration.
Does Wave Payroll file taxes in every state?
Yes. Since 2 April 2025 Wave files and pays federal and state payroll taxes automatically in all 50 states on the single $40 + $6 plan. The earlier limitation, where only 14 states got automatic filing, no longer applies.
Does Wave Payroll include year-end W-2 filing?
Wave includes W-2 distribution to employees and filing to the SSA in all 50 states on the single plan. There is a $6 per W-2 form charge at year-end. Year-end 1099-NEC filing for contractors follows the same approach, with contractors billed at $6 per person per month.
When is Wave Payroll the cheapest option?
Wave is a strong-value pick for solo owners or small teams who already use Wave Accounting (free) for bookkeeping, because the payroll and accounting bundle is hard to beat. On sticker price alone, Patriot Basic ($17), SurePayroll ($29), and Square ($35) all start lower, so Wave wins on the bundle rather than on the base fee.