Payroll · 1-5 employees
Best Payroll for 1-5 employees Trades Shops (2026)
For the smallest trades shops, payroll software cost discipline + clean tax-filing automation matter more than feature breadth. The recommended picks at this size are price-conscious modern SaaS (Patriot for lowest cost, Gusto for best ecosystem) plus Hourly.io for shops where integrated workers comp + payroll makes sense.
Recommended
4Gusto
The modern SMB payroll favorite — best affiliate economics in the entire WrenchStack universe ($300-$1,000+ per signup via PartnerStack)
$40/mo base + $6/employee on Simple
Best for: Modern SMB trades shops with 2-25 W-2 employees + optional 1099 subcontractors who want self-service payroll, automatic tax filing, and integrated employee benefits without the complexity of ADP-tier enterprise systems
OnPay
Lean SMB payroll with flat pricing — favorite of small trades shops who don't need Gusto's bolt-ons
$40/mo base + $6/employee
Best for: Price-conscious SMB trades shops (1-15 employees) who want clean modern payroll without upsell tiers, and don't need extensive FSM-integration depth or premium benefits tooling
Patriot Payroll
Ultra-affordable payroll for 1-3 employee shops — cheapest tax-filing payroll in the market
$17/mo Basic Payroll (no tax filing) + $4/employee, or $37/mo Full Service with tax filing + $4/employee
Best for: Very-small trades shops (1-5 employees) who want tax-filing payroll automation at the lowest possible price and don't need extensive FSM integration or benefits administration
Hourly.io
Payroll + pay-as-you-go workers comp combined — the only payroll service with WC built in, structurally relevant for trades
$40/mo base + $6/employee + WC premium calculated per actual payroll (vs estimated upfront)
Best for: Trades contractors (HVAC, plumbing, electrical, roofing, landscaping) in Hourly's geographic footprint who want to eliminate WC audit-shock dynamics or who are migrating away from problematic WC carriers (Pie Insurance pattern)
Context-specific fit
1Square Payroll
Payroll embedded in Square ecosystem — convenient for Square-POS users, narrow fit outside that context
$35/mo base + $6/employee for W-2 only
Best for: Contractors already on Square POS or running primarily 1099 subcontractors who want the cheapest contractor-only payroll in the market
Frequently asked
What's the best payroll for a 1-5 employees trades shop?
Based on price + product fit, Gusto is the top recommendation for 1-5 employees trades. Modern SMB trades shops with 2-25 W-2 employees + optional 1099 subcontractors who want self-service payroll, automatic tax filing, and integrated employee benefits without the complexity of ADP-tier enterprise systems. OnPay is a strong alternative.
What does payroll typically cost for 1-5 employees?
For 1-5 employee shops, modern payroll runs $45-$80/month total (base + per-employee). Patriot is cheapest at $37-$57/mo; Gusto Simple and OnPay land at $46-$70/mo. ADP/Paychex are quote-only but typically come in higher.
Do I really need payroll software at this size?
Yes — once you have any W-2 employees, the tax-filing complexity (quarterly 941, year-end W-2 issuance, multi-state withholdings) creates risk + time cost that almost always exceeds the $40-$70/mo payroll software cost. Hand-filing or check-writing for employees is a false economy.
What about my 1099 subcontractors?
Most modern payroll (Gusto, OnPay, Patriot) handle 1099 contractors cleanly alongside W-2 employees in the same workflow. Year-end 1099-NEC issuance is automatic. For 1099-only shops (no W-2 employees), Square Payroll has the cheapest contractor-only tier ($6/contractor, no base fee).