Payroll software for a small business costs about $17 to $49 per month as a base fee, plus $4 to $6 per employee per month, on published 2026 plans. A 15-person business pays roughly $77 to $139 a month with Patriot, Wave or Gusto. Free downloadable payroll software drops that to $0 by trading away automated tax filing.
Vendor prices checked on the vendors' own pricing pages on 20 October 2026 (patriotsoftware.com, waveapps.com, gusto.com). Regular prices, not promotions. Prices change, so confirm before you buy.
So what does payroll actually cost once the marketing prices are unpacked? The bill has three parts: a base subscription, a per-employee fee that grows with every hire, and add-ons such as timekeeping or same-day pay. This guide puts real 2026 numbers on each part, shows the math for a typical small team, and explains when the $0 route is the smarter answer.
How much does payroll software cost per month?
Add the base fee to the per-employee charge and the published small business payroll plans land here for a 15-person team in 2026:
| Payroll option | Pricing math (15 employees) | Monthly total | Yearly total |
|---|
| Timeline Payroll (free download) | $0, no per-employee fee | $0 | $0 |
| Patriot (Basic, you file taxes) | $17 + 15 × $4 | $77/mo | $924/yr |
| Patriot (Full Service) | $37 + 15 × $5 | $112/mo | $1,344/yr |
| Wave Payroll (US) | $40 + 15 × $6 | $130/mo | $1,560/yr |
| Gusto (Simple) | $49 + 15 × $6 | $139/mo | $1,668/yr |
QuickBooks Payroll is now sold in bundles with QuickBooks Online, and its per-employee price was not consistent across our checks, so it is left out rather than guessed. ADP RUN and Paychex Flex quote on request.
Two things stand out. First, the per-employee fee is the real driver: every new hire raises the bill, so a growing team pays more every quarter without changing plans. Second, the gap between the cheapest paid plan and the most popular ones is small compared with the gap between any paid plan and a genuinely free tool.
What is the difference between payroll software and a payroll service?
Payroll software calculates pay, overtime, deductions and payslips, and you stay in control of payments and filings. A payroll service (also called full-service payroll) goes further: it files payroll taxes with the government and moves money into employee bank accounts for you. That extra automation is what the higher subscriptions pay for. On the published plans above, full-service payroll for a small business starts at about $37 to $49 a month plus $5 to $6 per employee before add-ons.
For many businesses under 20 employees, the practical middle path is payroll software plus the accountant you already have: the software does the math and the paperwork, the accountant files, and you skip the service-level subscription entirely.
What add-ons raise the price?
The advertised plan is rarely the final bill. The common extras in 2026:
- Timekeeping and attendance: often a per-employee add-on or a higher tier on cloud payroll platforms, even though hours are the input payroll depends on.
- Multi-state or multi-entity filing: often a higher tier or a per-state charge.
- Year-end forms: some providers charge per form at tax time.
- HR features: onboarding documents, benefits administration and policy libraries usually sit in a pricier tier.
When you compare payroll system prices for a small business, price the add-ons you will actually use, not the base plan alone.
Is there genuinely free payroll software?
Yes, with an honest trade-off. Timeline Payroll is a free downloadable Windows payroll application with no subscription, no trial limit and no per-employee fee. It handles employee records, attendance and timekeeping, overtime, tax calculation, payslips and reports on a Windows 10 or 11 computer you already own, and your payroll data stays on your own machine. The installer is not code-signed, so Windows SmartScreen may ask once before it runs.
The trade-off: a free desktop tool does not file taxes with the government or push salaries into bank accounts automatically. You, or your accountant, still submit the filings. For a small team paying that trade-off is often exactly right: the software does hours of calculation work for $0, and the accountant you already pay handles the filing. Larger teams that want hands-off tax filing are the ones who get real value from a $112 to $139-a-month full-service plan.
How do I choose between free and paid payroll?
Start from headcount and filing needs rather than features lists:
- Under 20 employees, accountant already in place: a free download plus your accountant is usually the cheapest reliable setup, saving about $920 to $1,670 a year against the plans above.
- Growing team, no accountant, US federal and state filings: a full-service plan such as Gusto, Wave or Patriot Full Service earns its fee by filing for you.
- Hourly staff across shifts or sites: make sure timekeeping is included in the price you compare, because it is the most common hidden add-on. Our guide to the best payroll services for small business compares nine options on exactly this all-in basis.
- Unusual pay rules (piece rates, multi-company, job costing): packaged tools fight you; a custom payroll build sized to your rules can cost less over three years than the subscriptions it replaces.
The honest bottom line
Budget about $77 to $139 a month for a 15-person team on the published payroll plans in 2026, more once timekeeping and filing add-ons are counted, or $0 with a free downloadable tool plus the accountant you already have. Price your real headcount, count the add-ons, and only pay for automation you will actually use. For a ranked comparison of the software itself, see our best payroll software for small business guide. If you want the $0 route, download Timeline Payroll free and run your first payroll today; if your rules do not fit any package, message Timeline Digital on WhatsApp about a payroll system built around how you actually pay people.
