Top 4 Cheapest Payroll Service for Your Business in 2025

Managing payroll is one of the most important tasks for any business, but it can also be complex and time-consuming. For small and medium-sized businesses, finding the cheapest payroll service that balances cost with efficiency is crucial. A cheap payroll service doesn’t mean sacrificing quality—it means streamlining payroll operations while staying within your budget.

This guide will walk you through how to choose the best payroll service, the key features to look for, and a comparison of some of the most affordable payroll providers in 2025. By the end, you’ll know how to find a payroll solution that meets your business needs without overspending.

What is Payroll?

Payroll is the process of compensating employees for their work. It involves calculating wages, withholding taxes, and deducting benefits like health insurance or retirement contributions. Beyond this, payroll includes ensuring compliance with tax laws, managing overtime, and distributing payments via direct deposit, checks, or other methods.

For small businesses, payroll is more than just paying employees. It requires accuracy and efficiency to maintain compliance and avoid errors that could lead to penalties. This is why many businesses turn to affordable payroll services that automate and simplify the process.

What is a Cheap Payroll Service?

A cheap payroll service offers cost-effective solutions for handling payroll tasks like tax filings, employee payments, and compliance management. These services are designed for businesses that need reliable features without the hefty price tag.

Key features of a cheap payroll service often include:

Automated Payroll Runs: Saves time and reduces human errors.
Tax Filing and Compliance: Ensures accuracy with state and federal taxes.
Flexible Payment Options: Includes direct deposit, checks, or even mobile payment options.
Employee Self-Service Portals: Allows employees to access pay stubs and tax forms online.

Why Small Businesses Need the Cheapest Payroll Service

For small businesses, managing payroll in-house can be overwhelming. Tracking hours, filing taxes, and ensuring compliance can take valuable time away from growing your business. Affordable payroll services simplify this process by automating key tasks, reducing errors, and keeping costs low.

By outsourcing payroll, businesses can:

Save time by automating calculations and filings.
Avoid penalties for tax errors or missed deadlines.
Improve employee satisfaction with reliable and timely payments.

Key Features to Look for in the Cheapest Payroll Services

When searching for an affordable payroll service, it’s important to evaluate the features that matter most to your business. Here are some essential features to consider:

Cost Transparency: Avoid providers with hidden fees or complicated pricing structures. Choose a service with clear, straightforward pricing. For example, Superworks offers a no-hidden-fees model, where you only pay for what you use.
Automated Payroll and Tax Filing: Automation ensures payroll is processed on time, and taxes are filed accurately. Many providers, such as Gusto and Square Payroll, handle state and federal tax filings automatically, reducing hassle.
Flexible Payment Options: Ensure the service supports multiple payment methods like direct deposits, checks, or even mobile payments. Employees appreciate having choices.
Employee Self-Service Portals: These portals save HR time by allowing employees to access their pay stubs, tax forms, and personal information online.
Scalability: As your business grows, your payroll needs may change. Look for services that allow you to add features or scale as your team expands.

4 Cheapest Payroll Services for Small Businesses

Here are some of the best payroll providers that combine affordability with reliable features:

Superworks

Superworks is one of the most affordable payroll solutions, offering essential features at a budget-friendly price.

Features:

Automated payroll and tax filings.
Flexible payment options, including direct deposit and mobile payments.
Employee self-service portals.
No hidden fees, with transparent pricing for small businesses.

Best For: Small businesses looking for an easy, no-frills payroll solution.

Square Payroll

Square Payroll is perfect for businesses already using Square’s point-of-sale system.

Features:

Affordable pricing, starting at $6 per contractor per month.
Unlimited payroll runs with no extra fees.
Automated tax filings and compliance.
Seamless integration with Square’s ecosystem.

Best For: Businesses with contractors or those using Square for payments.

Gusto

Gusto is a comprehensive payroll and HR platform at an affordable price.

Features:

Full-service payroll with automated tax filings.
Integration with QuickBooks and other accounting tools.
Additional HR tools like onboarding checklists and performance tracking.

Best For: Businesses seeking payroll plus HR features.

OnPay

OnPay has simple pricing with robust features for payroll and HR.

Features:

$40/month base fee, plus $6 per employee.
Automated payroll runs and multi-state tax filings.
Integration with accounting tools like Xero.

Best For: Small businesses needing a mix of payroll and HR tools.

How to Choose the Right Payroll Service for Your Business

Selecting the best payroll service depends on your specific needs and budget. Here are some key considerations:

What’s Your Budget? Compare pricing models and ensure there are no hidden fees. For budget-conscious businesses, Superworks offers excellent value with transparent pricing.
Do You Need Additional HR Features? If your business needs tools for onboarding, employee performance tracking, or benefits management, a platform like Gusto may be worth the extra cost.
How Many Employees Do You Have? The cost of payroll services often scales with the number of employees. Choose a service that remains affordable as your team grows.
Is Scalability Important? If you’re planning to expand, opt for a provider like Superworks that allows you to add features as your needs evolve.

Conclusion

Managing payroll doesn’t have to be expensive or stressful. By choosing the cheapest payroll service that offers the right features for your business, you can save time, reduce errors, and stay compliant with tax laws.

Superworks stands out as an excellent option for small businesses, thanks to its competitive pricing, automation, and user-friendly interface. Whether you’re a startup or an established business, finding the right payroll service ensures smoother operations and happier employees.