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Best Payroll Software for One Employee in the United States (2026)

Payroll for one employee is a monthly base fee plus one per-employee fee, so the base fee weighs far more than for a larger team. Gusto lists $49 a month plus $6 per employee, Patriot Software $37 plus $5, and OnPay $49 plus $6. All three file federal and state payroll taxes; the table below is costed for one person.

Independent guide by SMBCompare. How we compare

Our top picks for one employee

1Best all-round for a first employee
Gusto logo

Gusto

4.6Capterra$6/emp/mo

Gusto files federal, state and local payroll taxes on every tier and files W-2s and 1099s in the same system, so a first employee and a contractor can sit side by side. It lists $49 a month plus $6 per employee on its entry plan, billed monthly with no annual contract.

  • Full-service federal, state and local filing on every tier
  • W-2 and 1099 year-end forms included
  • Benefits and pay-as-you-go workers comp available through its broker service

Watch out: Multi-state payroll and time tracking sit on a higher tier than the entry plan the table costs, so a first hire who works in another state moves you up a tier.

2Best for pay runs and filings, nothing more
Patriot Software logo

Patriot Software

4.8Capterra$5/emp/mo

Patriot Software's full-service tier files federal, state and local payroll taxes and handles W-2 and 1099 forms, for $37 a month plus $5 per employee. Its support is listed as free US phone, chat and email, which matters when you are running payroll for the first time.

  • Full-service federal, state and local tax filing
  • Free US phone, chat and email support
  • Monthly billing with no annual contract

Watch out: Benefits administration is limited to an HR add-on, and time tracking is a separate add-on too.

3Best single plan with benefits included
OnPay logo

OnPay

4.8Capterra$6/emp/mo

OnPay sells one plan at $49 a month plus $6 per employee, with full-service filing, W-2 and 1099 forms, multi-state payroll and health and 401(k) administration included rather than spread across tiers. If you expect to offer your first employee benefits, there is no upgrade to plan for.

  • One plan, no tier ladder to climb
  • Health and 401(k) administration included
  • US phone, chat and email support

Watch out: Time tracking runs through integrations rather than natively, so an hourly first hire needs a separate time clock.

4Best for an hourly first hire at one location
Homebase logo

Homebase

4.6GetApp$6/emp/mo

Homebase is scheduling and a time clock first, with payroll as an add-on at $39 a month plus $6 per employee paid. Its time clock is on every plan, so the hours an hourly first hire clocks flow into the pay run, and payroll tax filings and W-2 and 1099 forms are included.

  • Time clock and scheduling feed the pay run
  • Payroll tax filings and amendments included
  • No contract and no cancellation fees

Watch out: It does not administer health or 401(k) benefits, and its entry payroll plan is sized for a single location.

Compare the picks at your numbers

Enter your business details to see what each option would cost you. Prices are live from our database and shown in US dollars.

Ratings
4.6Capterra (4,000+)4.8Capterra (3,500+)4.8Capterra (440+)4.6GetApp (1,150)
Costs & Pricing
$6/emp/moBest$5/emp/mo$6/emp/mo$6/emp/mo
$49/moBest$37/mo$49/mo$39/mo
NoNoNoNo
Contractors onlyNoNoNo
YesYesYesYes
NoNoNoNo
Tax & Compliance
YesYes (Full Service)YesYes
YesYesYesYes
YesYesYesYes
YesYesYesNot stated
Yes (Plus)YesYesNot stated
YesYesYesNot stated
YesYesYesYes
NoNoNoNot stated
NoNoNoNo
LimitedNoNoNot stated
AI
Native (Gus AI assistant, basic)NoLimited (rules-based automation)Native (scheduling)
Via 3rd-party (Zapier)NoNoAPI only
Features & Integrations
YesYesYesYes
YesLimitedYesNo
Yes (Plus)Yes (add-on)LimitedYes
QuickBooks, XeroQuickBooks, PatriotQuickBooks, XeroQuickBooks
Phone + chatUS supportUS phoneChat, phone
Estimates based on 1 employee. Rates can change without notice, confirm current pricing with the provider before signing on.
How we calculate this
  • Estimated cost: each provider’s published prices and rates applied to the inputs you set above (such as volume, team size, or invoices), plus any fixed monthly fees.
  • Providers with an incomplete cost and quote-only providers are never ranked as the cheapest while a complete-cost option exists. A figure marked “from” is the vendor’s starting price, so it keeps its place in price order but is never badged as the cheapest.
  • These are estimates. Published rates can change and your final pricing depends on your business, so confirm current pricing with the provider before switching.

Payroll for one employee is a different buying decision from payroll for twenty. With a single person on the books, the per-employee fee is charged once, so the fixed monthly base fee matters far more than it does for a bigger team. The compliance work, on the other hand, is the same size as for a larger business: withholding, deposits, quarterly returns and a W-2 at year end. Whether that one person is a first hire or you, paying yourself a wage, the job is to get full-service filing at a base fee that makes sense for a payroll of one. Below are our picks, then a comparison table and calculator already set to one employee.

How we chose

We picked for a business with a single person on payroll. That means full-service federal and state filing first, because a late deposit is penalized whatever your headcount; then the base fee, because at a headcount of one it carries most of the bill; then W-2 and 1099 handling in one system, support you can reach, and whether the plan the table costs already includes what a first employee needs or pushes you up a tier. Plans and pricing checked September 2026, and every price on this page is read live from our database. The table shows each pick's estimated monthly cost at one employee.

What payroll for one employee should cover

Start with full-service filing, and check it is on the plan you are actually buying. Gusto's filing row reads Yes, OnPay's Yes, Patriot Software's Yes (Full Service) and Homebase's Yes. Then look at what your first employee will need in the first year. If they work hourly, time tracking matters: Homebase's time clock row reads Yes, OnPay's Limited. If they will be offered health cover or a 401(k), benefits administration matters: OnPay's row reads Yes, Patriot Software's Limited and Homebase's No. And if they live in a different state from your business, check multi-state support on the plan you are pricing: Gusto's reads Yes (Plus).

The base fee and the per-employee fee at a headcount of one

Almost every US payroll product charges a base fee each month plus a fee for each person paid. The more people you pay, the more the per-person fee counts; with one, the base fee counts for more. Here is what each pick lists:

  • Gusto: $49/mo plus $6/emp/mo
  • Patriot Software: $37/mo plus $5/emp/mo
  • OnPay: $49/mo plus $6/emp/mo
  • Homebase payroll add-on: $39/mo plus $6/emp/mo

Rather than adding those up in your head, use the table: it is already costed for one employee, and if you are about to hire a second person, change the Employees field and every estimate updates. Two things the headline figures do not show. First, some providers keep features a first employee may need on a higher tier than the one priced here, so read the capability rows as well as the price. Second, Gusto's cost is shown as a starting price, because the plan the table uses is its entry tier.

Paying yourself or paying your first hire

"One employee" covers two quite different businesses. The first is a business hiring its first member of staff: you need to register as an employer with your state, collect a Form W-4 and Form I-9, report the new hire, arrange workers compensation, and start withholding from the first pay run. The second is an owner who is the only person on payroll, which is typical of an S corporation, where an owner who works in the business is paid a salary through payroll rather than only taking draws. The software does the same work in both cases, but if the one person on payroll is you, remember that you are a person paid, so the per-employee fee applies to you too. Our guide to the best payroll software for S corps covers that case in detail, including why the salary level is a question for your accountant rather than your payroll provider.

Year-end forms are the other thing a one-person payroll still has to get right. Every pick here files W-2s and 1099s: Gusto's row reads Yes, OnPay's Yes, Patriot Software's Yes and Homebase's Yes. That matters if your first worker is a contractor rather than an employee, or if you add one later.

The verdict

Gusto ($49/mo plus $6/emp/mo) is the all-round choice if you want full-service filing on every tier and room to add benefits later. Patriot Software ($37/mo plus $5/emp/mo) suits a business that needs pay runs and tax filing and nothing else. OnPay ($49/mo plus $6/emp/mo) suits a first hire you plan to offer benefits to, on one plan with no tiers. Homebase ($39/mo plus $6/emp/mo) suits an hourly first hire at a single location. The table above shows what each costs at one employee today.

If you already have a small team, see our guide to the best payroll software for small business. If the one person on payroll is you, as an S corporation owner, see the best payroll software for S corps.

Frequently asked questions

How much does payroll cost for one employee?

US payroll software is usually priced as a monthly base fee plus a fee for each person paid, so for one employee you pay the base fee plus one per-person fee. Gusto lists $49 a month plus $6 per employee, Patriot Software $37 plus $5, OnPay $49 plus $6, and Homebase's payroll add-on $39 plus $6. The comparison table on this page is set to one employee and adds the two parts together for you.

Do I need payroll software if I am the only employee?

It depends on how your business is set up. A sole proprietor, or a single-member LLC taxed as one, generally pays themselves through owner's draws rather than wages, so there is no payroll to run. If your business is an S corporation or a C corporation and you work in it, you are generally paid wages as an employee, with tax withheld and payroll returns filed, and payroll software is the simplest way to do that. Confirm your own position with your accountant.

Can I run payroll for one employee myself?

You can. Running it yourself means calculating withholding, depositing federal and state payroll taxes on the schedule the IRS and your state assign you, filing Form 941 every quarter and Form 940 each year, filing state returns, and issuing a W-2 at year end. Full-service payroll software does each of those for you and tracks the deadlines, which is most of what you are paying for when you have a single employee.

Does the per-employee fee apply to me as the owner?

If you pay yourself a wage through payroll, you are one of the people being paid, so expect the per-employee fee to apply to you as well as to any employee you hire. If you only take owner's draws, you are not on payroll at all. Providers count people slightly differently, so confirm how each one bills before you sign up.

What does full-service payroll include?

Full-service payroll means the provider calculates and withholds payroll taxes, deposits them with the IRS and your state, files the quarterly and annual federal and state returns, and issues W-2s and 1099s at year end. Some providers include it on every plan and others keep it to a particular tier, so check the filing rows in the comparison table for each provider before you choose.

What do I need to set up before paying my first employee?

Before the first pay run you generally need a federal Employer Identification Number, a state withholding account and a state unemployment insurance account, a completed Form W-4 and Form I-9 from the employee, and a new-hire report to your state. Most states also require workers compensation cover once you have an employee. Payroll software handles the withholding and filing from then on, but the registrations themselves are yours to obtain.

How does SMBCompare choose the best payroll software for one employee?

We are independent and not owned by any provider. Our picks weigh price, features and US fit for one employee, using live pricing from our database, last checked September 4, 2026. The comparison table lets you estimate each option at your own numbers. See How we compare for our full method.

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