What Claude (Anthropic) with web search answered for payroll software (freelancers) on 2026-10-03

Claude (Anthropic) with web search claude-opus-5 asked 2026-10-03

Coverage: Claude (Anthropic) with web search. Other engines not included.

The question asked, verbatim: best payroll software for freelancers

Brands named, in the order the engine gave

1. Gusto mentioned
   Gusto - the default pick
2. Patriot mentioned
   Patriot Software - cheapest real W-2 payroll
3. Wave mentioned
   Wave Payroll - only for the accounting bundle
4. Check mentioned
   $40/mo + $6 per employee or contractor paid, with tax filing now available in all 50 states via their Check partnership.
5. Collective mentioned
   Collective or Lettuce - if you want it done for you
6. Lettuce mentioned
   Collective or Lettuce - if you want it done for you
7. Deel mentioned
   Deel - only for cross-border
8. Gusto Solo mentioned
   If you're an S-corp: Gusto Solo, mainly for the salary calculator.

Sources the engine cited

The answer, as recorded

## First, the thing that decides the answer "Payroll for freelancers" is usually one of three different problems, and the right pick differs: - **You're a sole prop / single-member LLC paying yourself** → you don't need payroll at all. You take owner's draws and pay quarterly estimated taxes. Putting yourself on payroll here is just paying a monthly fee for nothing. - **You've elected S-corp status** → you're legally required to run a W-2 salary for yourself, so you do need real payroll. - **You subcontract work out to other freelancers** → you need contractor payments + 1099-NECs, which is much cheaper than full payroll. Here's who I'd actually name, in order. ## 1. Gusto - the default pick The one I'd recommend to most freelancers because it covers both of the cases that matter. Their **Solo** plan ($49/mo + $6 per recipient) is built for one-person businesses and S-corps, and includes a reasonable-salary calculator and guided S-corp election - that calculator is the genuinely valuable part, since setting your salary too low is the #1 way S-corp owners get into trouble with the IRS. If you only pay subcontractors, their **contractor-only** plan is $35/mo + $6 per contractor, currently promoted at $0 base for the first 6 months, and U.S. contractors are only billed in months they're actually paid. ## 2. Square Payroll - cheapest if you just pay subcontractors **$6 per person paid per month, no base fee at all**, and you're only charged in months you actually pay someone. For a freelancer who subs out a few projects a year and just needs clean 1099s, nothing beats this on price. Unlimited pay runs per month, digital W-2/1099 delivery included ($3/form if you want them mailed). Weaker than Gusto if you later need S-corp features. ## 3. Patriot Software - cheapest real W-2 payroll Full Service is **$37/mo + $5 per worker**, which undercuts Gusto's Solo plan meaningfully, and includes federal, state, and local filings. Basic is $17/mo + $4 if you're willing to file taxes yourself - I wouldn't, for the sake of $20/month. Pick Patriot over Gusto if you're an S-corp, already know your salary number, and just want the cheapest compliant filing engine. It's a plainer product with less hand-holding. ## 4. Wave Payroll - only for the accounting bundle $40/mo + $6 per employee or contractor paid, with tax filing now available in all 50 states via their Check partnership. On payroll alone it's not the best value. The reason to pick it is that Wave's invoicing and accounting are free and sit in the same place, which matters if you're currently juggling three tools. ## 5. Collective or Lettuce - if you want it done for you These aren't payroll software; they're S-corp back offices that bundle entity setup, payroll, bookkeeping, and tax filing. **Lettuce** starts around $99/mo and auto-splits incoming payments into salary/tax/profit buckets. **Collective** is roughly $349/mo for a much more human, white-glove service. Worth it if your S-corp savings exceed the fee and you'd otherwise not do the bookkeeping at all - not worth it just to run one payroll a month. ## 6. Deel - only for cross-border Around $49 per contractor per month for contractor management. Name it only if you're paying subcontractors in other countries. Worth knowing: if *you're* the freelancer being paid through Deel, your client normally bears that cost, so it's not a tool you'd go buy. ## What I'd actually do If you're a solo freelancer not taxed as an S-corp: skip all of this, and spend the money on bookkeeping and estimated-tax tracking instead. If you're an S-corp: **Gusto Solo**, mainly for the salary calculator. If you just pay subcontractors: **Square Payroll** at $6/head. One caveat on the numbers: all the base prices above are from the vendors' own pricing pages, but promotional discounts (Gusto's $0 contractor base, Patriot's 50% off for three months) rotate frequently - check the live page before you commit. **Sources:** - [Gusto Solo plan](https://gusto.com/product/solutions/size/solo) - [Gusto freelancer solutions](https://gusto.com/product/solutions/size/freelancer) - [Square Payroll pricing](https://squareup.com/us/en/payroll/pricing) - [Square Payroll for contractors](https://squareup.com/us/en/payroll/contractors) - [Patriot Software pricing](https://www.patriotsoftware.com/pricing/) - [Wave payroll subscription pricing](https://support.waveapps.com/hc/en-us/articles/36228345826068-Wave-s-full-access-payroll-subscription-pricing) - [Collective plans and pricing](https://www.collective.com/plans-and-pricing) - [Lettuce - payroll for solopreneurs](https://lettuce.co/resources/best-payroll-software-for-solopreneurs-more-take-home-pay) - [Deel pricing](https://www.deel.com/pricing/) - [Self-employed payroll explainer (Patriot)](https://www.patriotsoftware.com/blog/payroll/self-employed-payroll/)

Near this answer

The same question, recorded on other dates: 2026-10-01, 2026-09-26, 2026-09-24, 2026-09-22, 2026-09-20, 2026-09-16, 2026-09-14, 2026-09-12, 2026-09-10, 2026-09-07.

payroll software, asked for other audiences: small businesses (asked 2026-10-03), nonprofits (asked 2026-10-03).

Other categories with a recorded answer: accounting software, accounts payable automation, audit management software, bookkeeping services.

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