Cost by Size / 5 Employees

Payroll cost for 5 employees: the cheapest-provider tipping point

5 employees is the size where the providers' per-employee fees start mattering and where the base fee is no longer the only thing that decides cost. Patriot Software wins on raw price at $57 monthly. Gusto Simple and OnPay tie at $79. ADP Run is the most expensive at roughly $104. This page works through the full seven-provider comparison, the crossover points where the rankings shift, and the operational considerations beyond raw price at this size.

Seven providers compared at 5 employees

Monthly total cost for full-service payroll covering 5 W-2 employees. Pricing as of 16 May 2026 from each vendor's published page where available, or estimated from G2 and TrustRadius aggregated data for quote-only providers.

Provider	Base	Per emp	Total at 5	Notes
Patriot Software Full Service	$37	$4	$57	Stripped-down full-service product, cheapest legitimate option.
Gusto Simple	$49	$6	$79	Published pricing, month-to-month, modern interface.
OnPay	$49	$6	$79	Same price as Gusto Simple, includes multi-state and HR at base.
QuickBooks Payroll Core	$45	$6	$75	Wins if you already use QuickBooks Online for accounting.
Rippling (payroll only)	$35	$8	$75	Cheapest base, highest per-employee, narrowly wins at exactly 5.
Paychex Flex Essentials (est.)	$39	$5	$64	Quote-based, requires 12-month contract, dedicated specialist.
ADP Run Essential (est.)	$79	$5	$104	Highest base of the major branded providers at this size.

The honest framework for picking at 5 employees

The price spread at 5 employees is real but not transformative. Patriot at $57 versus Gusto at $79 is $22 per month, or $264 per year. That is meaningful but not life-changing for a 5-person business. The decision usually comes down to three operational considerations beyond raw price.

First, accountant integration. If your CPA prefers Gusto reports because they integrate cleanly with the accountant's QuickBooks Online or Xero workflow, paying $22 per month extra to make the CPA's life easier is usually the right call. Saving the CPA 30 minutes per month at $200 per hour is worth $100 per month, well above the $22 premium.

Second, multi-state. If you have employees in 2 or more states, OnPay's included multi-state at $79 monthly beats Gusto Simple's $79 plus $12 per additional state. With 3 states, OnPay is $79 versus Gusto's $103. OnPay wins for any multi-state setup at this size.

Third, growth trajectory. If you expect to be at 15 employees within 12 months, the operational continuity of starting on the platform you will end up using matters. Switching payroll providers mid-year costs 8 to 20 hours of operational time plus a few minor data reconciliation issues. Starting on Gusto or OnPay if you plan to scale to 25 employees is usually better than starting on Patriot to save $264 in year one.

The 7-employee crossover that matters

The most interesting pricing dynamic at this size band is the Rippling versus Gusto crossover. Rippling payroll-only at $35 + $8 per employee beats Gusto Simple at $49 + $6 from 1 to 7 employees. From 8 employees onward, Gusto wins because Gusto's lower per-employee fee compounds faster than Rippling's lower base fee. At 7 employees, Rippling is $35 + $56 = $91, Gusto is $49 + $42 = $91, identical.

This matters because Rippling's pricing is often advertised as the cheapest base in the category, which is true but misleading. For any business expecting to grow above 7 employees within the contract term, Gusto's lower per-employee fee is the better economic choice. The case for Rippling at this size is the unified-platform value (HR, IT, identity) that compounds at larger scale, not the payroll price.

What you give up choosing the cheapest option

Patriot Software wins on raw price by $22 per month over Gusto Simple. The trade-offs are real and worth understanding before choosing. Patriot has a less-polished interface than Gusto, OnPay, or Rippling. The mobile app is functional but not as good. Customer service quality is competent but the customer base is smaller, so accountants and bookkeepers may be less familiar with Patriot's reports.

Integration ecosystem is meaningfully thinner: Patriot integrates with QuickBooks Online and a handful of others, where Gusto integrates with hundreds of tools natively. For a business using point tools (Stripe, Slack, project management), this integration depth is worth real money. None of these are dealbreakers for a 5-employee business focused on cost, but they are real considerations worth weighing against the $264 annual saving.

What changes at 10 employees

Moving from 5 to 10 employees doubles the per-employee fee component on every provider. Patriot Full Service goes from $57 to $77 monthly. Gusto Simple from $79 to $109. OnPay from $79 to $109. Rippling payroll-only from $75 to $115. ADP Run Essential from $104 to $129. The spread between cheapest and most expensive widens from $47 to $52 per month.

More importantly, the operational complexity increases. Multi-state becomes more common at 10 employees. The first benefits administration question (do we offer health insurance?) often comes up. PTO management starts mattering. The case for OnPay's included multi-state plus included HR plus included benefits administration grows. The case for stripped-down Patriot weakens because the additional features matter more. See payroll cost for 25 employees for the next major decision point.

Where to go next

1-employee S-corp payroll cost

Smaller still, where Patriot is the dominant choice.

Payroll cost for 25 employees

Where per-employee fee dominates and PEO becomes a real option.

OnPay cost

Where included multi-state plus HR starts being a real differentiator.

Gusto cost

The most common choice at this size for brand and accountant fit.

5-employee payroll cost FAQs

Who is genuinely the cheapest payroll provider for 5 employees?

Patriot Software Full Service at $57 per month. The next cheapest is Paychex Flex Essentials at an estimated $64. Then Rippling payroll-only at $75. Then QuickBooks Payroll Core at $75. Gusto Simple and OnPay tie at $79. ADP Run Essential is the most expensive at an estimated $104. The spread is roughly $47 per month between cheapest and most expensive.

Why is Rippling cheaper than Gusto at 5 employees but more expensive at 10?

Rippling's $35 base versus Gusto's $49 base gives Rippling a $14 head start, but Rippling's $8 per employee fee versus Gusto's $6 closes that gap by $2 per employee. At 5 employees, Rippling is $14 - $10 = $4 cheaper. At 10 employees, Rippling is $14 - $20 = $6 more expensive. The crossover is exactly 7 employees. After 7, Gusto Simple wins on price.

Should I pick Patriot at this size to save money?

If you are price-sensitive and willing to use a less-polished interface and accept less brand recognition, yes. Patriot Full Service handles full-service payroll competently. The trade-off is a smaller product with fewer integrations than Gusto or OnPay. For a 5-employee business focused on cost control, Patriot is a real option. For one focused on operational simplicity and a stronger ecosystem, the $22 per month premium to Gusto Simple is usually worth paying.

When does the per-employee fee start dominating the total?

At 5 employees, the per-employee fees ($4 to $8 per employee) represent 25 to 50 percent of the total bill. The base fee still dominates. By 25 employees, the per-employee fees represent 70 to 80 percent of the total bill, and the base fee becomes nearly irrelevant. The transition where you should optimise for per-employee fee over base fee happens around 10 to 15 employees, depending on which providers you are comparing.

What about ADP at 5 employees?

ADP Run Essential at an estimated $104 per month for 5 employees is the most expensive of the major branded providers at this size. The opening quote from ADP for a 5-employee business is rarely competitive against Gusto or Paychex. ADP's value proposition strengthens at larger sizes where the per-employee fees converge and ADP's compliance and reporting depth start mattering more. At 5 employees, ADP is rarely the right choice.

Do these prices include benefits or workers' comp?

No. The monthly totals above are payroll service fees only. Benefits administration (medical, dental, vision) and workers' compensation pass through as premiums to the carriers and integration partners. Gusto, OnPay, and QuickBooks include benefits brokerage at no platform fee, so the premium itself is the only cost. Patriot and Rippling have integration partners but slightly less seamless setup.

When should a 5-employee business consider a PEO?

Rarely. At 5 employees, the PEPM math of Justworks at $59 per employee per month ($295) is dramatically more expensive than Gusto Simple at $79, and most of the PEO value (HR consulting, benefits negotiation leverage, workers' comp consolidation) is underused at 5 employees. The PEO conversation becomes meaningful around 15 to 25 employees when the additional services start being worth the premium. See PEO vs payroll service.