Payroll Software Pricing Breakdown
Understanding the real cost of payroll software means looking beyond the advertised base fee. This guide covers base fees, per-employee costs, how pricing scales with headcount, and the hidden charges most providers do not advertise prominently.
How Payroll Pricing Scales by Headcount
Monthly cost at different employee counts. Use the cost calculator for your exact number.
| Provider | 1 emp | 5 emp | 10 emp | 20 emp | 50 emp | Pricing Model |
|---|---|---|---|---|---|---|
| Cloud Payroll ProTop Pick | $46/mo | $70/mo | $100/mo | $160/mo | $340/mo | $40 + $6/emp |
| Simple Payroll | $40/mo | $60/mo | $85/mo | $135/mo | $285/mo | $35 + $5/emp |
| Full Service HR+PayrollTop Pick | $97/mo | $145/mo | $205/mo | $325/mo | $685/mo | $85 + $12/emp |
| Budget Payroll | $24/mo | $40/mo | $60/mo | $100/mo | $220/mo | $20 + $4/emp |
| Enterprise Payroll | $160/mo | $200/mo | $250/mo | $350/mo | $650/mo | $150 + $10/emp |
| Startup Payroll | Free | $50/mo | $75/mo | $125/mo | $275/mo | Free (1-2 emp) then $25 + $5/emp |
| All-in-One HR | $73/mo | $105/mo | $145/mo | $225/mo | $465/mo | $65 + $8/emp |
| Contractor Payroll | $35/mo | $55/mo | $80/mo | $130/mo | $280/mo | $30 + $5/emp |
All prices shown are monthly. Annual pricing discounts of 10 to 20 percent are offered by most providers if you pay upfront for 12 months. Updated 26 March 2026.
Base monthly fee range
You pay this regardless of how many employees you have. Budget Payroll is cheapest at $20/month. Enterprise Payroll is most expensive at $150/month. Always divide the base fee by your headcount to understand the true per-employee cost.
Per-employee monthly fee
Budget Payroll charges the least at $4/employee. Full Service HR+Payroll charges the most at $12/employee. The per-employee fee compounds quickly: at 20 employees, an $8 difference in per-employee pricing equals $160/month or $1,920/year.
Typical annual discount
Most providers offer a 10 to 20 percent discount if you pay annually instead of monthly. On a $100/month plan, that is up to $240 in savings per year. Worth taking once you are confident in your provider choice.
Hidden Fees to Watch For
These charges often do not appear in the advertised pricing but can add significantly to your annual bill.
Year-end W-2 or 1099 filing fee
Some lower-cost providers include tax filing in the monthly subscription but charge a separate fee of $25 to $150 to actually file W-2s and 1099s at year-end. Ask specifically whether year-end filing is included.
Off-cycle payroll run fee
Running payroll outside your regular schedule (for a bonus, commission payment, or final paycheck) can trigger a per-run fee of $10 to $25. High-frequency bonus environments add up fast.
State tax registration setup fee
If you are registering to pay taxes in a new state because you hired a remote worker there, some providers charge $75 to $300 to set up the new state tax account on your behalf.
Paper check fee
Direct deposit is standard, but if an employee does not have a bank account, you may need to print and mail a paper check. Fees range from $1.50 to $5 per check plus postage.
Benefits administration add-on
Some providers show benefits admin as a feature in their plan comparison but charge an additional $5 to $10 per employee per month to actually activate it. Read the plan details carefully.
QuickBooks or accounting integration fee
A handful of providers charge $5 to $25 per month to enable their accounting software sync integration, even on higher-tier plans.
Contractor payment fee
Even when a provider supports 1099 contractors, some charge a separate fee of $5 to $15 per contractor payment rather than including contractors in the per-employee pricing.
Questions to ask before signing up
- ?Is year-end W-2 and 1099 filing included in my plan price?
- ?Are off-cycle payroll runs unlimited or is there a per-run fee?
- ?What is the fee for paper checks if an employee does not have direct deposit?
- ?Is benefits administration included or is it a paid add-on?
- ?Is QuickBooks / Xero sync included or is there a monthly integration fee?
- ?What happens to my pricing if I add employees mid-month?
- ?Is there a setup fee or implementation charge?
- ?What is the cancellation policy and is data exportable if I leave?