CostPrism
Business Updated June 2026

Payroll Cost Calculator

Calculate 2026 payroll service costs by number of employees and service tier. Compare Gusto, ADP, Paychex, and QuickBooks pricing.

National avg: $180/mo
Range: $40 – $500/month
Used by 28,940 people

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What Affects the Cost?

1. Pricing Structure

Payroll services use a base fee plus per-employee fee model. Gusto: $40/mo base + $6/employee. QuickBooks Payroll: $45/mo + $5/employee. ADP Run: $79/mo + $4/employee. Paychex Flex: $60/mo + $4/employee. For 5 employees: Gusto = $70/mo; ADP = $99/mo.

2. What's Included

Basic tier: direct deposit, payroll tax filing, W-2s/1099s. Full-service tier adds: HR support, PTO tracking, benefits administration, onboarding tools, time tracking. Premium adds: dedicated HR advisor, compliance audits, workers comp administration.

3. Employer Payroll Tax Cost

Beyond the service fee, employers pay payroll taxes: Federal Unemployment (FUTA): 0.6–6% on first $7,000/employee/year. Social Security: 6.2% of wages. Medicare: 1.45% of wages. State unemployment (SUTA): varies 0.1–6% by state and claims history.

2026 Cost Reference Table

Type / Option Typical Cost Range
Gusto Simple (1–5 employees) $46 – $70/month
Gusto Plus (HR + time tracking) $80 – $200/month
QuickBooks Payroll Core $50 – $100/month
ADP Run (Essentials) $83 – $150/month
Paychex Flex (Essentials) $64 – $150/month
Gusto (25 employees, full-service) $200 – $350/month

Frequently Asked Questions

Small business payroll services cost $40–$200/month for 1–10 employees. Gusto is the most popular for small businesses at $40 base + $6/employee/month ($70/month for 5 employees). ADP and Paychex offer more HR features but at higher prices.

Gusto is better for most businesses under 25 employees — simpler interface, lower cost, and includes health benefit administration. ADP and Paychex are better for 50+ employees who need advanced HR, compliance support, and 401k administration.

Compare Payroll Services

Gusto pays a $200 referral bonus per employee. Best value for small businesses under 25 employees.

Try Gusto — $40/mo base, $6/employee QuickBooks Payroll from $45/mo

Tips Before You Start

  • ✓ Gusto ($40 base + $6/employee) is best for businesses under 25 employees
  • ✓ ADP and Paychex are better for 50+ employees needing HR and compliance support
  • ✓ Full-service payroll handles tax filing — avoid DIY payroll tax mistakes (IRS penalties are steep)
  • ✓ Gusto includes health benefits administration — valuable if you offer employee benefits
  • ✓ Annual contract discounts (10–15% off) available from most providers

Cost by State — 2026

Based on national average pricing adjusted for local labor and material costs.