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 $492 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
Patriot Full Service at $41/mo or Wave at $26/mo if your state is supported.
Both file your federal and state taxes. Wave wins on price; Patriot wins on coverage and a smoother employee portal. If your state is not on Wave's tax-service list, Patriot Full Service is the better pick.
Paying one 1099 contractor
Square or Gusto contractor-only at $6/contractor/mo. No base fee.
If you do not have W-2 employees, you do not need a full payroll plan. Both Square and Gusto offer a contractor-only tier with zero base fee. You only pay when you actually pay the contractor that month.
Household employer (nanny or housekeeper)
SurePayroll Nanny at roughly $50 to $60/mo.
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. HomePay is the premium option at roughly $75/mo.
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. |
| Wave Payroll (tax-service state) | $26 | Yes | $6/form | Cheapest with taxes if your state is supported. |
| SurePayroll | $24 | Add $10/mo | $5/form | Quietly competitive at the smallest size. |
| Patriot Full Service | $41 | Yes | $25/form | Done-for-you taxes at the lowest mainstream price. |
| Square Payroll | $41 | Yes | Included | Strong if you already use Square POS. |
| Gusto Simple | $46 | Yes | Included | Best onboarding experience for first-time payroll. |
| OnPay | $46 | 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.