Best Payroll Software for 1 Employee (2026): Cheapest Full-Service Options
We compare Patriot, Square Payroll, Gusto and OnPay for a business with one employee, including S corp owners paying themselves: real monthly cost and tax filing.
Payroll for one employee is mostly a fixed cost. Most providers charge a monthly base fee plus a small fee per person, so with a single employee the base fee is almost the whole bill, and it can range from about $17 to $49. That one employee might be your first hire, or it might be you: an S corporation owner has to pay themselves a reasonable salary through payroll, with withholding, deposits, quarterly filings and a W-2.
We compared four providers that publish their prices, on what matters with one person on payroll: total monthly cost, and whether the provider files the taxes for you.
Our picks at a glance
4 tools compared- ★ Cheapest overall
Patriot Payroll
Lowest base fee, with a cheaper self-service plan if you file taxes yourself.
From $17/mo + $4/workerVisit - Cheapest with a Square POS
Square Payroll
Full-service payroll for about $41 a month with one person.
$35/mo + $6/personVisit - Best for growing past one
Gusto
Easiest setup and room to add benefits and more hires.
$49/mo + $6/personVisit - Best support
OnPay
Phone, chat and email support, and multi-state payroll included.
$49/mo + $6/workerVisit
Quick comparison
| Software | Price | Cost with 1 employee | Tax filing | Multi-state | Link |
|---|---|---|---|---|---|
| Patriot Payroll | Basic $17 + $4/worker; Full Service $37 + $5/worker | $21 (Basic), $42 (Full Service) | You file (Basic); Patriot files (Full Service) | $12/mo per extra state | Visit ↗ |
| Square Payroll | $35/mo + $6/person paid | $41 | Square files federal and state | Included | Visit ↗ |
| Gusto | $49/mo + $6/person (Simple) | $55 | Gusto files | Plus plan ($80 + $12/person) | Visit ↗ |
| OnPay | $49/mo + $6/worker | $55 | OnPay files | Included | Visit ↗ |
How we chose
Payroll for a single employee needs to:
- Cost as little as possible, since the base fee dominates the bill.
- File and deposit payroll taxes, or make it very clear when you have to.
- Produce year-end W-2s and quarterly Form 941s.
- Handle an owner-employee, such as an S corporation owner paying a salary.
- Grow with you if a second hire comes along.
We read each provider’s pricing page. Prices are US list prices before promotions. Read more about how we review.
The best payroll software for one employee
Patriot Payroll
Best for owners who want the lowest payroll bill, with or without tax filing
What we like
- Lowest base fee in this guide, on both plans
- Full Service files and deposits federal, state and local taxes
- Per-worker fee charged once a month, however many payrolls you run
- Free USA-based support by phone, email and chat
Watch out for
- Basic Payroll leaves tax deposits and filings to you
- Each additional state costs $12 a month on Full Service
- Time tracking and HR are paid add-ons
- Basic Payroll
- $17/mo + $4/worker
- Full Service Payroll
- $37/mo + $5/worker
- One employee
- $21 or $42/mo
- Support hours
- 9am to 7pm ET, weekdays
Patriot is the cheapest way to pay one person. Full Service Payroll at $37 a month plus $5 per worker, about $42 with one employee, files and deposits federal, state and local payroll taxes, handles year-end filings at no extra fee, and guarantees its tax filings. You pay the per-worker fee once a month no matter how many payrolls you run, and in months with no payroll you pay only the base fee.
Basic Payroll at $17 plus $4 per worker is cheaper still, about $21 a month, but it only calculates payroll. You make the tax deposits and file the forms yourself.
Which plan to pick: Full Service for most owners. The extra $21 a month hands tax deposits and filings to Patriot, so you are not the one tracking deposit deadlines and Form 941 due dates.
Watch out for: multiple states. If your one employee lives in a different state from your business, the extra state fee adds $12 a month on Full Service.
Square Payroll
Best for small shops and service businesses already using Square
What we like
- Full-service payroll with federal and state tax filings
- Pay only for people you pay each month
- Imports timecards from Square POS or the Square Team App
- Employees can be paid by check, direct deposit or Cash App
Watch out for
- Support on weekdays only, 6am to 6pm Pacific
- Paper W-2 and 1099 mailing costs $3 per form
- Most useful if you already use Square
- Full-service
- $35/mo + $6/person paid
- One employee
- $41/mo
- Contractor-only
- $6/person paid
- Support
- Weekdays, 6am to 6pm PT
Square Payroll is full-service payroll at close to Patriot’s price: $35 a month plus $6 per person paid, or about $41 with one employee. Square calculates, withholds and files federal and state payroll taxes, including state unemployment, and supports multiple tax jurisdictions.
It is a natural fit if you already take payments with Square, since hours come in from Square POS or the Square Team App.
Which plan to pick: full-service payroll. The contractor-only plan at $6 per person is only for businesses that pay 1099 contractors and no employees.
Watch out for: support hours if you run payroll outside weekday business hours.
Gusto
Best for owners who expect to hire again or offer benefits
What we like
- Guided setup and unlimited payroll runs
- Files federal, state and local taxes, including W-2s, 941s and 940s
- Integrates with QuickBooks, Xero and FreshBooks
- Month-to-month, cancel anytime
Watch out for
- Higher base fee than Patriot or Square for one person
- Simple plan covers one state only
- Priority support is a paid add-on on Simple and Plus
- Simple
- $49/mo + $6/person
- One employee
- $55/mo
- Plus
- $80/mo + $12/person
- Contract
- Month-to-month
Gusto costs more for a single employee, about $55 a month on Simple, but it is the easiest to set up and the easiest to grow with. Payroll runs are unlimited, Gusto files federal, state and local tax forms, and it syncs with QuickBooks, Xero and FreshBooks, the accounting tools freelancers use most, which we compare in our freelancer accounting guide.
If you plan to hire again or offer benefits such as health insurance, Gusto handles those in the same account.
Which plan to pick: Simple. Move to Plus only if your employee works in another state or you need Gusto’s time tracking.
Watch out for: paying about $13 to $14 a month more than Patriot or Square for features you may not use yet.
OnPay
Best for owners who want to reach a person easily, or have an employee in another state
What we like
- Phone, email and live chat support for every client
- Multi-state payroll included at no extra cost
- Free account setup and migration of prior payroll data
- First month free
Watch out for
- Same price as Gusto Simple, higher than Patriot and Square
- Time tracking and HR tools are paid add-ons
- Live HR support costs $65 a month extra
- Payroll Essentials
- $49/mo + $6/worker
- One employee
- $55/mo
- Multi-state
- Included
- Free trial
- First month free
OnPay’s single plan includes unlimited pay runs, federal, state and local tax filings, year-end forms and payroll in all 50 states at no extra cost. With one employee it costs about $55 a month, the same as Gusto Simple.
It stands out in two situations: when your one employee lives in a different state, where Patriot charges an extra-state fee and Gusto needs the Plus plan, and when you want to reach support by phone, email or chat. Setup and migration from a previous provider are free.
Which plan to pick: the base plan. Skip the add-ons until you need them.
Watch out for: paying more than you need to. If your employee is in your own state and you do not need much support, Patriot Full Service costs about $13 less a month.
Which one should you choose?
- You want the lowest cost and have your taxes filed for you: Patriot Full Service.
- You already use Square: Square Payroll.
- You expect to hire again or add benefits: Gusto.
- Your employee is in another state, or you want easy phone support: OnPay.
If you are an S corporation owner paying yourself, set a reasonable salary with your accountant before your first payroll, and let the payroll provider handle the deposits and quarterly filings from then on.
More for freelancers: accounting software for freelancers.
Frequently asked questions
What is the cheapest payroll for one employee?
At list prices, Patriot Basic Payroll at $17 a month plus $4 per worker, about $21 a month for one employee, but you file and deposit payroll taxes yourself. The cheapest full-service option, where the provider files and pays taxes for you, is Patriot Full Service at about $42 a month, followed by Square Payroll at about $41 a month if you pay one person ($35 plus $6).
Do I need payroll software if I am the only employee?
If you run an S corporation or a C corporation and pay yourself a salary, yes, in practice. You must withhold income tax, Social Security and Medicare, make tax deposits, file quarterly Form 941 and issue a W-2. A sole proprietor or single-member LLC taxed as a sole proprietorship does not run payroll for themselves; they pay self-employment tax instead.
What is the difference between basic and full-service payroll?
Basic or self-service payroll calculates paychecks and withholding, but you deposit the taxes and file the forms yourself. Full-service payroll does the deposits and filings for you, including year-end W-2s. For one employee, full service costs about $20 more a month and removes most of the risk of late-filing penalties.
How much does payroll cost for one employee?
About $21 to $55 a month at list prices: Patriot Basic about $21, Square Payroll about $41, Patriot Full Service about $42, and Gusto Simple or OnPay about $55.