By McKinley Malbrough III, J.D., MS-HRM
Published October 22, 2026. Last updated November 11, 2026.
Short answer
Expect about $6 to $22 per employee per month for payroll-led HR software plus a $49 to $180 monthly base fee, and $79 to $124 per employee for a PEO. At 25 employees that is roughly $200 to $730 a month before add-ons, per-run charges and contract minimums.
Payroll-led HR software for a small California employer usually costs a monthly base fee of about $49 to $180 plus about $6 to $22 per employee, and a PEO runs $79 to $124 per employee per month. The sticker price is rarely the bill. Add-on modules, per-run charges, per-state fees and annual terms decide what you pay. This page puts numbers on it. For which tools to consider in the first place, start with my guide to HR software for small business.
Most small business HR software charges a flat monthly base fee plus a per-employee fee, and the per-employee fee climbs with each plan tier. The table shows the entry points I could read on each vendor’s own pricing page. Each price carries the date I checked it.
| Vendor and plan | Base fee | Per employee, per month | Checked |
|---|---|---|---|
| Gusto Simple | $49 | $6 | Oct 22, 2026 |
| Gusto Plus | $80 | $12 | Oct 22, 2026 |
| Gusto Premium | $180 | $22 | Oct 22, 2026 |
| OnPay | $49 | $6 per worker | Oct 16, 2026 |
| Homebase payroll add-on | $49, plus $30 to $120 per location for a scheduling plan | $6 | Oct 22, 2026 |
| Justworks Payroll | $50 | $8 | Oct 22, 2026 |
| BambooHR Core, HRIS only | Flat $250 for 25 or fewer employees | $10.25 | Oct 22, 2026 |
| Justworks PEO Basic | None | $79 | Oct 22, 2026 |
| Justworks PEO Plus | None | $124 | Oct 22, 2026 |
| TriNet, ADP RUN, Insperity | Quote only. I do not estimate prices a vendor will not publish. | ||
Two notes on the table. BambooHR sells HR records, not payroll, so its price is not comparable to a payroll line. Its payroll add-on has no listed price. Rippling lists a starting price of $8 per employee per month, but its base fee is not published, so I left it out of the math below (checked October 16, 2026).
At 10 employees a payroll-led plan costs about $109 to $400 a month, at 25 it costs about $199 to $730, and at 50 it costs about $349 to $1,280, before any add-ons. The figures below are my arithmetic from the prices above: base fee plus the per-employee fee times headcount. They cover the base plan only.
| Plan, monthly | 10 employees | 25 employees | 50 employees |
|---|---|---|---|
| Gusto Simple | $109 | $199 | $349 |
| Gusto Plus | $200 | $380 | $680 |
| Gusto Premium | $400 | $730 | $1,280 |
| Justworks Payroll | $130 | $250 | $450 |
| Homebase Essentials plus payroll, one location | $139 | $229 | $379 |
| BambooHR Core, HRIS only | $250 | $250 | $513 |
| Justworks PEO Basic | $790 | $1,975 | $3,950 |
| Justworks PEO Plus | $1,240 | $3,100 | $6,200 |
The PEO rows look high next to payroll software because a PEO bundles more than software: benefits access, compliance support and HR help. Compare it with the cost of the people you would otherwise hire, not with a payroll subscription. My comparison of PEOs, fractional HR and a first HR hire works through that choice. Homebase also offers a free Basic scheduling plan for one location with up to 10 employees, and it advertises six free months of payroll as a limited-time offer. I priced payroll at the standard rate because promotions end. A startup on a seed budget should read my guide to startup HR by funding stage before buying a suite. A nonprofit should ask about discounts, since BambooHR lists a nonprofit discount (checked October 22, 2026), and read nonprofit HR compliance in California for the rules that do not change with the software.
The fees that move the bill are per-run charges, per-state compliance fees, per-submission checks, and add-on modules. Gusto publishes the clearest list, so I use it as the example. Every number below comes from Gusto’s pricing page, checked October 22, 2026.
Other vendors have their own lists. Justworks charges $8 per employee per month for time tracking and $30 per employee per month for dedicated HR consulting (checked October 22, 2026). Homebase lists background checks at $30 each and job post boosts from $50 a post (checked October 22, 2026). Checkr lists screening packages at $29.99, $59.99 and $94.99 (checked October 16, 2026). On setup fees, Justworks states there is no implementation fee and Gusto states free account setup. For any vendor that gives quotes only, get the implementation fee in writing before you compare.
For an hourly California team, buying payroll and time tracking from the same vendor is usually worth it, because hours flow straight into wages and break premiums without a second system to reconcile. For a salaried office team, a separate HR records tool can make sense once your files outgrow what payroll stores. The math is simple: at 25 employees, BambooHR Core at $250 plus Gusto Simple at $199 is $449 a month, and Gusto Plus alone is $380. The $69 monthly gap is $828 a year.
That gap buys you a richer records tool, not a free upgrade. Ask whether you will use it. BambooHR also lists a 15% discount when you combine its payroll and benefits administration add-ons with any plan for US employees, so the bundle price changes the comparison, but only if you buy both add-ons from it (checked October 22, 2026). My Part 1 guide to core HR and payroll software shows where each platform is strong on California break and sick leave documentation. Payroll is only as right as your exempt and non-exempt calls, so run my exempt versus non-exempt quick check before you load employees into any system.
A contract length or minimum changes the math whenever it locks in headcount or runs longer than the time you need to learn the product. Month-to-month plans let you leave. Annual and multi-year terms turn a low monthly price into a commitment you carry even if you shrink.
A seasonal business should treat headcount flexibility as a cost line. If you hire 20 people in November and 8 in February, an annual user count you cannot reduce costs you the difference.
Before signing, ask for the full price in writing at your headcount, with every add-on you expect to use, and ask what happens to the price when you add or remove people. A rep who cannot answer in writing is telling you something. These are the questions I use.
If the numbers still feel unclear, my guide to whether a small business needs HR helps you decide how much of this you should buy at all, and my comparison of small business HR services and HR outsourcing tips cover the people-side alternatives. For a second opinion on your quote, bring it to a free consultation and I will check it against California requirements and your headcount.
Prices come from each vendor’s public pricing page and are dated where they appear. Totals are my arithmetic. Vendors change pricing often, so confirm the number on the day you buy. I use no affiliate links.
For a related angle, see how to build an HR budget in seven line items and auditing your HR tech stack before you renew.
Implementation costs shrink when the data is clean, and seven data fields to clean before an HRIS rollout shows where to start.
McKinley holds a J.D. but is not a licensed attorney. Articles here are general information, not legal advice. For your specific situation, talk with an employment attorney.
Data current as of October 2026. Sources are linked where each figure appears.
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This article is general information, not legal advice. Laws change and every situation is different; for advice on yours, talk with an employment attorney.
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