Payroll ยท 6-20 employees

Best Payroll for 6-20 employees Trades Shops (2026)

This is the SMB payroll sweet spot. Most trades shops in this range benefit from modern SMB payroll (Gusto Plus, OnPay) with full feature breadth โ€” tax filing, benefits administration, time tracking integration. Avoid legacy options (ADP, Paychex) at this size unless you have compliance complexity that specifically requires them.

Recommended

4

Gusto

The modern SMB payroll favorite โ€” 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 โ€” 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 โ€” 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 โ€” 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

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QuickBooks Payroll

Payroll embedded in QuickBooks Online โ€” convenient for QBO users, mediocre as standalone product

$50/mo Core + $6/employee

Best for: Trades contractors already running QuickBooks Online as their accounting platform who value single-vendor consolidation and seamless integration over standalone product polish

Frequently asked

What's the best payroll for a 6-20 employees trades shop?

Based on price + product fit, Gusto is the top recommendation for 6-20 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 6-20 employees?

For 6-20 employee shops, modern payroll runs $100-$300/month total. Gusto Plus at $80 + $12/employee scales to $164-$320/mo for 7-20 employees. OnPay at $40 + $6/employee runs $76-$160/mo. Legacy ADP/Paychex usually 30-50% more.

Do I really need payroll software at this size?

Yes โ€” 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).

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