Cheapest payroll for one employee in 2026
Solo owners, first hires, and household employers each have a different cheapest answer. This page gives you the right one for your situation.
Pick the row that matches your situation
Solo S-corp owner paying yourself
A CPA running quarterly payroll often beats software at this scale.
Most CPAs charge $50 to $150 per quarter, which is $200 to $600 per year. Patriot Full Service is roughly $504 per year. If you do not need direct deposit and you only run 4 to 12 paychecks, a CPA is usually cheaper and gets your S-corp reasonable-comp documentation done in the same visit.
Owner plus your first W-2 employee
SurePayroll at $36/mo or Patriot Full Service at $42/mo.
Both file your federal and state taxes. SurePayroll wins on price in a single state; Patriot wins on multi-state coverage and a smoother employee portal. If you expect to hire across state lines, Patriot Full Service is the safer pick.
Paying one 1099 contractor
Square contractor-only at $6/contractor/mo with no base fee.
If you do not have W-2 employees, you do not need a full payroll plan. Square offers a contractor-only tier with zero base fee, so you only pay when you actually pay the contractor that month. Gusto also has a contractor-only plan, but it now costs $35 base plus $6 per contractor.
Household employer (nanny or housekeeper)
SurePayroll household plan at about $45/mo for one employee.
Household payroll has its own tax form (Schedule H) and its own quirks (no FUTA exemption thresholds in most states). SurePayroll runs a household-specific product at roughly $45/mo for a single household employee. HomePay is a premium alternative; check its current pricing before relying on it.
Every provider at 1 employee, ranked
| Provider | Monthly | Tax filing | W-2 | Verdict |
|---|---|---|---|---|
| Patriot Basic | $21 | Add $30/mo | $25/form | Cheapest sticker. Only worth it if you handle taxes yourself. |
| SurePayroll | $36 | Yes | $50 + $5/form | Cheapest done-for-you taxes in one state. Multi-state is a $9.99/mo add-on. |
| Square Payroll | $41 | Yes | Included | Strong if you already use Square POS. |
| Patriot Full Service | $42 | Yes | $25/form | Done-for-you taxes at a low mainstream price. |
| Wave Payroll | $46 | Yes | $6/form | Files taxes in all 50 states. Bundles with free Wave Accounting. |
| Gusto Simple | $55 | Yes | Included | Best onboarding experience for first-time payroll. |
| OnPay | $55 | Yes | Included | Includes multi-state if you ever expand. |
When payroll software is overkill
For an S-corp owner who pays themselves a fixed monthly salary in one state with no benefits, a CPA running quarterly payroll typically costs $50 to $150 per quarter. That is $200 to $600 per year, often less than the cheapest annual software bill. The CPA also documents reasonable comp for IRS purposes in the same visit.
Software wins the moment you add a second person, hire across state lines, want direct deposit (most CPAs do not offer it), or want an employee self-service portal. For one stable salary, ask a local CPA for a fixed-fee quarterly payroll quote first.