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Payroll Software Review

Wave Payroll Review: Is It the Right Payroll Software for Your Business?

Wave Payroll makes the most sense for microbusinesses already using Wave for accounting and invoicing — an ecosystem pick, not a universal choice.

4.0 / 5
Reviewed by Logan Allec, CPALast updated August 2026
Wave ecosystemMicrobusiness-friendlyTax filing in all 50 states

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Quick verdict

The Wave Payroll quick read

Use Wave Payroll if
  • You already use Wave for accounting/invoicing
  • You have a tiny team and simple payroll
  • You're price-sensitive
Skip Wave Payroll if
  • You don't use Wave
  • You need multi-state or complex compliance
  • You need HR or benefits
Best fitWave accounting users
Weakest fitNon-Wave businesses
Starting priceWave Payroll (US): $40/mo + $6 per active employee/mo
Pricing transparencyStrong — published, plan-based pricing
Payroll tax supportGood — federal, state, and local filings included
Contractor supportGood — 1099 payments and year-end filings
W-2 supportFull-service, included in paid plans
Multi-state supportAvailable — handles employees across U.S. states
BenefitsBasic — health, 401(k), and workers' comp through partner integrations
HR toolsLight — onboarding, PTO, document storage, and basic templates
Accounting integrationsStrong — native ecosystem plus QuickBooks, Xero
Setup difficultyEasy
Support qualityGood — phone, chat, and email; priority on higher plans
Overall rating7.4 / 10
My take as a CPA

A CPA's take on Wave Payroll

As a CPA and business owner, I care less about whether payroll software has the longest feature list and more about whether it helps a business owner avoid expensive payroll mistakes. The right payroll provider should make tax payments, filings, employee onboarding, contractor payments, and year-end forms feel routine — because payroll is one area where small mistakes can create real compliance problems.

Wave Payroll stands out because

Ecosystem fit. If you're invoicing in Wave, payroll-in-Wave keeps everything in one place.

Where I'd be careful

Wave is a microbusiness tool. It files taxes in all 50 states now, but it won't carry you through multi-state growth, benefits, or HR.

Businesses I'd comfortably recommend Wave Payroll to

Wave-based microbusinesses with a handful of employees or contractors.

Businesses that should compare alternatives

If you're not on Wave, Gusto, OnPay, or Patriot are usually better picks.

Decision snapshot

A 30-second decision

Choose Wave Payroll if you want
  • You use Wave accounting
  • You're a microbusiness with simple payroll
  • You want automated tax filing at a low published price
Choose another provider if you need
  • You don't use Wave
  • You need multi-state or HR
  • You're growing
Compare against
GustoOnPayPatriot Payroll
Fit

Who Wave Payroll is best for

Wave Payroll is best for
  • Wave accounting users
  • Microbusinesses with simple payroll
  • Price-sensitive owners
Wave Payroll is not best for
  • Non-Wave businesses
  • Multi-state or complex employers
  • Companies needing HR / benefits / growth
Pricing

Wave Payroll pricing

Pricing verified
Verified August 2026
Pricing source: Wave Payroll pricing page

Payroll pricing changes frequently. Always confirm current pricing on the provider’s site before signing up.

Wave Payroll in the US is $40/month plus $6 per active employee and $6 per independent contractor paid. Wave enabled automated tax filing in all 50 US states, effective for customers who signed up after April 2, 2025 — the old split between "tax service" and "self-service" states no longer applies to new accounts. Pricing verified August 2026.

Wave Payroll (US)
$40/mo
$6 per active employee/mo
Best for: Wave-based microbusinesses that want payroll inside their accounting
  • Full-service payroll
  • Automated tax filing in all 50 states
  • Direct deposit
  • W-2 and 1099 filings

Automated tax filing applies in all 50 states for customers who signed up after April 2, 2025. Pricing verified August 2026.

What to watch for in Wave Payroll’s pricing
  • Tax-service support is limited to specific U.S. states — confirm yours before signing.
  • If your state isn't covered, you'll be filing taxes yourself.
Ready to compare pricing?

See current Wave Payroll plans and offers.

Visit Wave Payroll
Scorecard

Feature scorecard

Core payroll
Self-service or full-service depending on state; lightweight by design.
7/10
Tax & compliance
Files federal, state, and local payroll taxes.
8/10
Ease of use
Lives inside Wave's free accounting software — minimal context switch.
9/10
Contractor payments
Pays 1099 contractors and files year-end forms.
7/10
Multi-state
Tax-service states only — confirm your state is supported.
4/10
HR tools
Essentially no HR features.
3/10
Benefits
No integrated benefits.
2/10
Integrations
Connects with common accounting and time-tracking tools.
9/10
Support
Phone, chat, and email support during business hours.
7/10
Pricing transparency
Published $40/mo + $6 per active employee + $6 per contractor paid, with tax filing in all 50 states.
10/10
Scalability
Room to grow into larger employee counts and HR needs.
5/10
Features

Payroll features

Full-service payroll
  • Unlimited payroll runs
  • Direct deposit
  • Multiple pay schedules
  • Bonus, off-cycle, and reimbursement runs
  • Employee self-service portal
Payroll tax filing
  • Federal, state, and local payroll tax calculation
  • Automatic deposits and filings
  • Quarterly and annual filings
  • Tax-notice support
Contractor payments
  • 1099 contractor payments
  • Year-end 1099-NEC filings
Multi-state payroll
  • Multi-state payroll supported
  • Remote-employee tax setup
Year-end forms
  • W-2 generation and filing
  • 1099 generation and filing
  • Employee/contractor year-end form access
HR & benefits

HR, benefits, and compliance tools

HR tools
  • Employee onboarding
  • PTO tracking
  • Document storage
  • Basic HR templates
Benefits
  • Health, 401(k), and workers' comp through partner integrations (where available)
Compliance support
  • New-hire reporting
  • Federal, state, and local payroll tax filings
  • W-2 and 1099 year-end filings
  • Tax-notice support
Setup

Ease of use and setup

Setup difficulty
Easy
  • Modern web interface
  • Self-serve employee onboarding where available
  • Mobile experience for employees
Before you sign up, have this ready
  • EIN
  • State payroll tax account numbers
  • State unemployment account numbers
  • Employee information (I-9, W-4)
  • Contractor information (W-9)
  • Prior payroll history
  • Bank account for funding
  • Pay schedule
  • Benefits information (if any)
  • Workers' comp details (if any)
  • Accounting software login
  • PTO policy
  • Existing payroll provider info (if switching)
Integrations

Integrations

Accounting
  • QuickBooks Online
  • Xero
Time tracking
  • When I Work
  • Homebase
  • Deputy
Benefits & 401(k)
  • Available through provider or partner networks
Productivity
  • Common SSO and HRIS connectors where applicable

PayrollSignal take: Integrations matter because payroll is rarely isolated. If your payroll system doesn’t talk cleanly to your accounting software, time tracking, or benefits tools, you may end up spending more time fixing payroll than running it.

Support

Customer support

Support featureAvailableNotes
Phone supportYesStandard business hours
Chat supportYesIn-app chat
Email supportYesAvailable across plans
24/7 supportNoStandard business hours
Dedicated representativeDependsTypically higher-tier plans only
HR advisor accessAdd-onAvailable as add-on or higher tier
Tax-notice supportYesIncluded with full-service payroll
Setup supportYesSelf-serve with optional guided setup

Payroll support matters more than ordinary software support because payroll problems often have deadlines attached. A login issue is annoying. A missed payroll tax deadline can be expensive.

Pros & cons

Wave Payroll pros and cons

Pros
  • Tight Wave accounting integration
  • Published pricing
  • Microbusiness-friendly
Cons
  • Thin on HR and benefits
  • Not a growth platform
  • Fewer integrations than larger providers
  • Contractors are billed per person paid on top of the employee fee
Real-world fit

Which businesses should use Wave Payroll?

Wave accounting user
Very high fit

Wave Payroll's sweet spot.

Non-Wave business
Low fit

Use Gusto, OnPay, or Patriot.

Microbusiness with simple payroll
High fit

Works well for very simple needs.

Multi-state employer
Low fit

Use OnPay.

Growing team with benefits
Low fit

Use Gusto.

Fit meter

PayrollSignal Fit Meter

Wave accounting user
Very high fit
Non-Wave business
Low fit
Microbusiness with simple payroll
High fit
Multi-state employer
Low fit
Growing team with benefits
Low fit
Watch-outs

Watch-outs before you buy

  • Accounts opened before April 2, 2025 may still be on legacy self-service tax terms — confirm your own account's filing status.
  • Contractors cost $6 each per month paid on top of the $40 base and the $6 per employee.
  • If you'll grow past a few employees, plan to graduate to Gusto or OnPay.
  • If you're not on Wave, you're losing the main benefit.
Alternatives

Best alternatives to Wave Payroll

Wave Payroll vs Gusto
Use Gusto if

Published pricing, clean UX, and a low-cost contractor-only plan ($35/mo + $6 per contractor).

Use Wave Payroll if

Wave wins for Wave-accounting microbusinesses.

Best for: Modern small businesses that want transparent pricing and built-in benefits

Wave Payroll vs OnPay
Use OnPay if

Flat $49 base + $6/person includes multi-state by default.

Use Wave Payroll if

Wave wins for Wave-based microbusinesses.

Best for: Multi-state small businesses that want flat transparent pricing

Wave Payroll vs Patriot Payroll
Use Patriot Payroll if

Lowest published price.

Use Wave Payroll if

Wave wins when you live in Wave accounting.

Best for: Cheapest full-service payroll for simple cases

Not sure?

Not sure if Wave Payroll is right for you?

Payroll companies can look similar on the surface, but the best choice depends on your employees, contractors, states, benefits needs, HR support, accounting software, and growth plans. Take the free PayrollSignal quiz and get a recommendation built for your business.

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Methodology

How we reviewed this provider

We review payroll providers based on small business fit, not just feature count. A provider can have many features and still be the wrong choice for a very small business if it’s too expensive, too complex, or unclear about pricing.

CategoryWeight
Payroll functionality20%
Payroll tax & compliance support20%
Pricing & transparency15%
Ease of use15%
HR, onboarding & benefits10%
Integrations10%
Customer support5%
Scalability5%

Our ratings are intended to help small business owners choose payroll software based on fit. A lower-rated provider may still be the better choice for a specific business if its pricing, integrations, service model, or HR features better match that business’s needs.

Read our full research and scoring methodology

FAQs

Wave Payroll FAQs

Bottom line

The bottom line

Wave Payroll is a reasonable fit for small Wave users with simple payroll.

If you already know Wave Payroll fits your needs, you can check current pricing below. If you’re still comparing options, take the free PayrollSignal quiz first.