Payroll Service Cost by Company Size 2026: From Solo to 100+ Employees

What you should pay, which providers fit, and which features matter at every stage of growth.

Quick Reference

SizeMonthly CostRecommended TierBest Providers
1 - 5 employees$55 - $95/moBasic or EssentialRippling, Gusto, OnPay
5 - 25 employees$80 - $250/moEssential or Full-ServiceGusto, Paychex, QuickBooks
25 - 100 employees$200 - $800/moFull-Service or PremiumPaychex, ADP, QuickBooks Premium
100+ employees$600 - $2,000+/moPremium or Enterprise / PEOADP, Paychex, PEO providers

1 - 5 employees

$55 - $95/mo

Real cost scenario: A 3-person consulting firm using Gusto Simple pays $49 + $18 = $67/month ($804/year).

Features Worth Paying For

  • Payroll calculation and direct deposit
  • Federal and state tax filing
  • W-2 and 1099 preparation
  • Employee self-service portal

Features to Skip

  • Benefits administration (too few employees for group plans)
  • Advanced HR tools (handle HR manually at this size)
  • Time and attendance tracking (use a free tool instead)

Monthly Cost by Provider

EmpGustoQBPaychexOnPayRipplingADP
1$55$51$44$55$43$86
3$67$63$54$67$59$100
5$79$75$64$79$75$114

5 - 25 employees

$80 - $250/mo

Real cost scenario: A 15-employee retail shop using Gusto Essential pays $49 + $90 = $139/month ($1,668/year).

Features Worth Paying For

  • Everything in basic tier
  • Automatic tax filing and deposits
  • PTO management and tracking
  • New hire onboarding workflows
  • Multi-state payroll support

Features to Skip

  • Dedicated payroll specialist (cost-effective above 25 employees)
  • API access (unless you have custom integrations)
  • Advanced compliance tools (unless in a regulated industry)

Monthly Cost by Provider

EmpGustoQBPaychexOnPayRipplingADP
10$109$105$89$109$115$149
15$139$135$114$139$155$184
20$169$165$139$169$195$219
25$199$195$164$199$235$254

25 - 100 employees

$200 - $800/mo

Real cost scenario: A 50-employee manufacturing company using Paychex Flex pays $39 + $250 = $289/month ($3,468/year).

Features Worth Paying For

  • Everything in essential tier
  • Benefits administration and enrollment
  • Time and attendance integration
  • Dedicated payroll specialist
  • Workers' compensation management
  • Custom reporting and analytics

Features to Skip

  • Enterprise-level features like global payroll
  • Advanced HR information system (unless replacing a separate HR platform)

Monthly Cost by Provider

EmpGustoQBPaychexOnPayRipplingADP
25$199$195$164$199$235$254
50$349$345$289$349$435$429
75$499$495$414$499$635$604
100$649$645$539$649$835$779

100+ employees

$600 - $2,000+/mo

Real cost scenario: A 150-employee logistics company using ADP Run Complete pays roughly $79 + $1,050 = $1,129/month ($13,548/year).

Features Worth Paying For

  • Everything in full-service tier
  • Advanced compliance and audit support
  • Multi-entity and multi-state management
  • Custom API integrations
  • Dedicated account team
  • Strategic HR consulting

Features to Skip

  • Nothing at this size - you need the full feature set
  • Consider PEO if benefits cost reduction is a priority

Monthly Cost by Provider

EmpGustoQBPaychexOnPayRipplingADP
100$649$645$539$649$835$779
150$949$945$789$949$1235$1129
200$1249$1245$1039$1249$1635$1479

When to Upgrade Your Payroll Tier

You hire employee #6

Move from Basic to Essential. Tax filing automation alone saves 2+ hours per payroll cycle and eliminates deposit timing risk.

You add employees in a second state

Multi-state payroll adds compliance complexity. An Essential or Full-Service tier handles state registration, SUTA calculations, and state-specific tax rules automatically.

You start offering health benefits

Benefits administration features (enrollment, deductions, COBRA) are typically a Full-Service tier feature. Without it, you manage deductions manually every pay period.

You reach 25 employees

Consider Paychex or ADP with a dedicated payroll specialist. At this scale, a named contact who knows your setup saves significant time versus chat-based support.

You reach 50+ employees

Evaluate PEO options. Group benefits rates through a PEO can save $200 to $500 per employee per year on health insurance, potentially offsetting the higher PEO fee.

Calculate Your Exact Cost

Enter your employee count, industry, and features to see provider-by-provider pricing.

Updated 2026-04-27