Payroll management is a pain in the neck. There are so many things to consider, most of which might result in serious problems for your business. We know about the constant worry at the back of your mind, stressing about how to handle all your payroll management responsibilities properly.
That’s why, trust us when we say, “we got you.” We put together this guide to help you learn about all the ways you can handle payroll management and decide which one is the most cost/effective for your business.
Keep calm and read on, so you can finally put an end to all your worries about payroll, and skip to the good parts of owning your own business!
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Payroll Services Pricing & Types
There are four payroll management methods you can use to pay your employees and maintain legal compliance without losing your mind:
| Method | Cost | How it works | Best for |
| In-house payroll | High | A dedicated team does everything manually. | Large businesses (100+ employees) with internal finance teams |
| Outsourced payroll | High | You hand off payroll tasks to a third-party accountant or bookkeeper. | Small teams (max 25 employees) willing to pay extra for zero admin responsibility |
| Payroll software | Average | Someone does payroll using software to automate stuff and they hold responsibility. | Small to medium businesses (up to 100 employees) with someone comfortable with admin tasks. |
| Online payroll services | Low to Average | A full-service platform handles payroll, tax filings, compliance, etc. You set it up once, they run it. | Small to medium businesses (up to 100 employees), growing across states or remote teams. |
The best payroll management method depends on your business’ size, budget, and needs.
However, we should let you know that most new-generation companies choose online payroll services as opposed to the other traditional methods. Their reasoning is that online payroll services hit the sweet spot between cost and utility.
You can get whatever features you need (think: tax filing, time tracking, HR tools), and don’t pay for stuff you’ll never use. If you grow, it will scale with you with one click, but if something goes sideways, you will still have a human contact to solve the problem.
What Factors Impact Online Payroll Services Pricing?
Before we move on to the best online payroll services, let us educate you on how their pricing works, so you have a better idea of how flexible online payroll services’ pricing are.
- Base fee: Most services start with a monthly flat fee. This covers access to the core platform: basic payroll runs, tax calculations, direct deposit, and maybe a few reports.
- Per-employee fees: On top of the base fee, some online payroll services might charge you $4 – $15 per employee each month, although this might also depend on the price tier you choose.
- Payroll frequency: Most platforms don’t charge per run anymore, but some still do, or they’ll push you to higher-priced tiers if you run frequent payrolls.
- Compliance complexity: If your team is spread across multiple states (or even countries), expect to pay more. Each location comes with different tax rules and filing requirements, and staying compliant becomes equally complicated.
- Add-on services: This is where costs can quietly creep up. Some platforms unbundle these, others bake them into higher-tier plans. Common features include: Time trackers, instant (or on-demand) pay, HR services (employee handbooks, onboarding, etc.), 401(k) administration, and healthcare & benefits management.
How to Get the Best Pricing for Payroll Services?
When looking for a payroll service, don’t just go with the first shiny “free payroll service trial” you see. The goal here is to make sure you’re getting everything you need with the best price possible.
So, take a breath and consider these before buying:
- Know your headcount: Sounds obvious, but it matters more than you think. Consider how fast you’re likely to grow in the future. Those few-dollars-per-person fees add up very quickly.
- Know your must-haves: Make a list of what you definitely need, without getting distracted by flashy features. Most platforms offer tiered pricing, so knowing what to look for will help save your sanity.
- Check the fine print, always: Read the pricing page carefully. Look for any sneaky setup fees, end-of-year processing, or support upgrades.
- Use trials and discounts: Even if you are sure you want to buy which payroll service, check if there is a free trial or intro deal before buying. It never hurts to save a few bucks.
- Ask about scalability: Will you have to start everything over and find a new payroll management software if you hire 10 people next month? Make sure the payroll service can grow with you across headcount, locations, and features.
Payroll Services Pricing Models Comparison
There’s no shortage of payroll services out there, but let’s not waste your time with a list of 20 names. We picked three of the most popular payroll service platforms right now:
1- Gusto: For all small to medium size businesses
2- Deel: For companies hiring globally without legal entities
3- Lano: For multi-national companies in need of consolidation
1. Gusto Payroll
Gusto is easily one of the most popular payroll services for small to medium businesses, with the best pricing. It’s got a clean dashboard, strong automation, and enough built-in HR tools (not all are hidden costs) to keep things from getting messy.
Run Payroll Easily with Gusto Today
Gusto Payroll Services Pricing
| Plan | Base Price/Month | Per Person/Month | What It Includes |
| Simple | $40 | $6 | Includes basic payroll, tax filing, and employee self-service. |
| Plus | $80 | $12 | Teams with multi-state payroll or who want time tracking and better HR tools. |
| Premium | $180 | $22 | Growing teams needing advanced HR, compliance, and support. |
| Contractor Only | $35 | $6 | Businesses that only pay 1099 contractors and no full-time employees needed. |
All plans include unlimited payroll runs, tax filings, direct deposit, and the Gusto Wallet app.
Gusto Payroll Hidden Fees
Gusto keeps most of the important pricing visible, but here are a few things that’ll sneak up on your invoice if you’re not paying attention:
- Next-day direct deposit: Transfers payment the next business day, and included in the Premium plan for free.
- Time tracking add-on:Allows you to track hours, PTO, and clock-ins inside the Gusto App. Included in Plus and Premium tiers.
- State registration support: This feature will register your business with individual tax authorities in different states. Not included in any tiers. It will cost around $200 per state (one-time setup).
2. Deel Payroll
Deel is here to save you if your businesses aim to hire and manage employees at a global scale without the hassle of establishing local entities. It also offers a wide range of services tailored to different hiring needs, from contractors to full-time employees.
Manage a Global Payroll at Ease with Deel
Deel Payroll Services Pricing
| Tier | Price Per Employee/Month |
What It Includes |
| Deel EOR (Employer of Record) | $599 | Hire full-time employees globally without setting up local entities. (Includes local tax, payroll, compliance, benefits administration, onboarding, automated contracts, and HR/legal support in 150+ countries.) |
| Deel Contractor Management | $49 | Handles the entire contractor lifecycle. (Includes localized contract generation, multi-currency payments, tax document management, onboarding, compliance checks, invoice approvals, and expense tracking.) |
| Deel Contractor of Record | From $325 | Provides compliant classification and tax/labor law adherence for contractors.
(Includes automated payments/invoicing, contract management, misclassification protection, and transitions to full-time employment.) |
| Deel PEO | $95 | Shared HR, payroll, and benefits service model.
(Includes benefits administration, tax/social security compliance, multi-currency payroll, and ongoing HR support while you manage employees day-to-day.) |
| Deel US Payroll | Custom | U.S. in-country payroll solution.
(Includes entity registration in all 50 states, full tax filings (W-2, 1099, etc.), new hire reporting, compliance support, HR/accounting integrations, and employee self-service portals.) |
| Deel Global Payroll | $29 | Automates payroll in countries where you already have entities.
(Offers local tax compliance, multi-currency payments, exchange rate handling, reporting/analytics, and employee portals.) |
Deel Payroll Hidden Fees
All payroll management software have surprise costs. Here’s Deel’s hidden fees:
- Currency conversion: Payments made in different currencies may incur conversion fees, depending on the payment method and currency involved.
- Add-on services: Features like visa support, equipment provisioning, or specialized benefits packages might come with extra charges.
- Custom integrations: Integrating Deel with specific HR or accounting systems could involve additional setup fees.
3. Lano Payroll
Lano is proof that most companies are switching to online payroll services. It is built for companies that already operate across multiple countries, who would have their in-house payroll teams established already, and Lano is answering their calls.
If you are one such company, Lano can do wonders consolidating your multi-national payroll workflows. It can manage multiple legal entities, and their tax compliances, juggle multiple currencies, and coordinate with local teams.
Lano Payroll Services Pricing
| Tier | Price Per Employee/Month |
What It Includes |
| Payroll Consolidation | From €3 | Centralizes and automates global payroll across all your entities.
(Includes payment integrations, volume discounts, multi-entity analytics, AI audit tools, and HRIS/finance sync.) |
| Multi-Country Payroll | From €19 | End-to-end payroll via local partners in 170+ countries.
(Includes entity setup, accounting, legal compliance, automated workflows, multi-entity reporting, and localized payments.) |
| Employer of Record (EOR) | From €499 | Lets you hire full-time employees in countries where you don’t have an entity.
(Covers contracts, payroll, local taxes, benefits, HR/legal support, onboarding, and even visa/immigration services.) |
| Contractor Management | From €19 | Automates contractor onboarding and payments globally. (Includes compliant contracts, invoice tracking, local-currency payouts, volume discounts, and HRIS integrations.) |
Lano Payroll Hidden Fees
Here’s where the hidden fees might be hiding in Lano:
- Exchange rates and FX handling: Lano handles payments in multiple currencies, but real-time exchange rate markups or transfers might cost extra.
- Custom compliance needs: Some markets or industries require more hands-on legal or tax guidance, which might be priced separately.
- Advanced integrations: While Lano supports lots of platforms, some deeper HR/finance integrations and automation tools may come with additional
Time to Stop Worrying About Payroll
Here’s the deal: If you’re doing everything manually, stop. It’s 2025. If your accountant is charging you more than your rent, reconsider. If you’ve outgrown spreadsheets, it’s time for a change. There are better ways to handle payroll.
We’re not saying payroll will ever be fun. We’re not delusional. We are saying it can be easy and predictable. Online payroll services are where most modern businesses land in 2025. Whatever stage you’re in, there is an online payroll service for you. By now, you know which one it is, and what it’ll cost.
All that’s left to do is to pick a tool. Set it up. And get back to running your business!
FAQs
What are payroll taxes? How much are payroll taxes?
Payroll taxes are the mandatory taxes employers withhold from employees’ wages and pay on their behalf. Rates change, but employers typically pay around 7.65% on top of what’s already kept from employees.
How does Gusto's pricing compare to other payroll services?
Gusto is one of the most affordable full-service platforms for small to mid-sized teams. Its pricing is simpler and more transparent than most traditional providers.
What is ADP payroll?
ADP is a legacy payroll and HR platform used by businesses of all sizes. It’s powerful but known for complex pricing, long-term contracts, and a more traditional interface.
What is certified payroll?
Certified payroll is a special report required for government-funded projects. It shows that workers were paid fair wages under local labor laws.