Updated: September 30, 2026
How Much Does Payroll Software Cost in 2026?
Payroll software commonly uses a monthly base fee plus a per-employee or per-worker charge. The real monthly cost depends on employee count, tax filing services, states, time tracking, HR features, and other add-ons.
Base Fee + (Per-Employee Fee × Number of Employees) + Add-ons
Payroll Software Cost Calculator
This calculator estimates software subscription fees only. It does not calculate employee wages, employer payroll taxes, benefits, insurance, workers’ compensation, or other employment expenses.
How Payroll Software Pricing Usually Works
Many payroll providers use two primary pricing components:
- A fixed monthly platform or base fee
- A separate monthly fee for each employee, person, or worker paid
Other providers use custom quotes, especially when payroll is bundled with broader HR, benefits, compliance, or workforce-management services.
Current Payroll Software Pricing Examples
| Provider | Standard Entry Pricing | Model |
|---|---|---|
| Gusto Simple | $49/mo + $6/person | Base fee + per person |
| Patriot Basic Payroll | $17/mo + $4/worker paid | Base fee + worker paid |
| Patriot Full Service | $37/mo + $5/worker paid | Base fee + worker paid |
| QuickBooks Workforce Payroll | $50/mo + $7/employee | Base fee + per employee |
| ADP RUN | Quote required | Custom pricing |
These are standard published prices where available. Promotions, discounts, additional states, add-ons, and product changes can affect the actual amount paid.
Payroll Software Cost Example: 5 Employees
Suppose a provider charges:
- $50 monthly base fee
- $7 per employee
- 5 employees
Annual software cost:
$85 × 12 = $1,020/year
Payroll Software Cost Example: 20 Employees
Using the same subscription structure:
Annual software cost:
$190 × 12 = $2,280/year
This illustrates why per-employee pricing matters more as workforce size increases.
Real Provider Example: Gusto Simple
Gusto Simple currently uses a $49 monthly base fee plus $6 per person.
For 10 employees:
$109 × 12 = $1,308/year
Real Provider Example: Patriot Basic Payroll
Patriot Basic Payroll currently uses a $17 monthly base fee plus $4 for each worker paid during the month.
For 10 workers paid:
$57 × 12 = $684/year
This does not mean Patriot will necessarily be the lowest-cost solution for every business. Basic Payroll requires the employer to manage payroll tax filing and deposits.
Real Provider Example: QuickBooks Workforce Payroll
QuickBooks Workforce Payroll currently has a standard price of $50 per month plus $7 per employee.
For 10 employees:
$120 × 12 = $1,440/year
What Can Increase Payroll Software Cost?
1. Employee Count
When a provider charges per worker or employee, every additional active worker can increase the monthly software bill.
2. Full-Service Payroll Tax Filing
Lower-cost payroll plans may require the employer to file and deposit payroll taxes.
Full-service plans can cost more because the provider performs additional tax administration.
3. Multi-State Payroll
Businesses employing workers in multiple states should investigate additional filing fees and plan requirements.
For example, Patriot Full Service includes one state and currently charges an additional monthly fee for each additional state where it files.
4. Time and Attendance
Integrated employee time tracking may be included only in higher plans or sold as an add-on.
5. HR Software
Employee onboarding, HR documents, performance management, recruiting, HR experts, compliance tools, and similar functionality can increase the total subscription.
6. Benefits Administration
Health insurance, retirement, flexible spending accounts, and other benefit-related services may introduce additional subscription or participant fees.
7. Support Level
Some higher-tier plans add dedicated support, setup assistance, HR experts, or payroll specialists.
Software Cost vs Total Payroll Cost
Payroll software subscription fees are only one component of payroll-related business costs.
Total employment costs can include:
- Employee wages or salaries
- Employer payroll taxes
- Benefits
- Workers’ compensation
- Insurance
- Payroll software
- HR software
- Time-tracking software
- Accounting software
- Professional accounting or payroll support
How to Compare Payroll Software Pricing
Before comparing products, calculate each provider’s estimated cost using your actual number of employees.
Then check whether the quoted price includes:
- Payroll tax calculations
- Payroll tax filings and deposits
- Direct deposit
- Unlimited payroll runs
- Contractor payments
- W-2 and 1099 forms
- Multi-state payroll
- Time tracking
- Employee onboarding
- HR support
- Accounting integrations
- Benefits administration
A low advertised base fee can become much less attractive if essential functionality requires several paid add-ons.
Compare Payroll Platforms
Pricing is only one factor. See our broader Best Payroll Software for Small Businesses guide for a comparison of Gusto, Patriot, QuickBooks, ADP, and Rippling.
If your shortlist includes Gusto and QuickBooks specifically, read our Gusto vs QuickBooks Payroll comparison.
Related Payroll Resources
- How to Choose Payroll Software
- Best Payroll Software for Small Businesses
- Gusto vs QuickBooks Payroll
- Free Overtime Pay Calculator
Frequently Asked Questions
How much does payroll software cost each month?
There is no universal monthly price. Many small-business payroll products charge a fixed base subscription plus a fee for each employee or worker.
Is payroll software normally priced per employee?
Often. Gusto, Patriot, and QuickBooks all currently use a base subscription plus a workforce-related fee for their entry payroll products.
Is full-service payroll more expensive?
It often can be because the provider performs additional tax filing and administrative work.
For example, Patriot currently charges more for Full Service Payroll than Basic Payroll, but Full Service includes federal, state, local, and year-end tax filing services.
Should I compare monthly or annual cost?
Compare both. Monthly pricing makes products easier to compare, while annual cost shows the longer-term budget impact.
Do introductory discounts reduce the permanent price?
Usually not. Providers sometimes offer promotional discounts for the first few months. Long-term budgeting should use the normal ongoing subscription price unless the provider explicitly states otherwise.
Is the cheapest payroll software automatically the best choice?
No. The more useful comparison is the total cost of the features your business actually needs, including payroll tax filing, time tracking, states, HR functionality, integrations, and support.
Sources
Pricing was checked against official provider sources on September 30, 2026.