By headcount / cheapest hris for small business
HRIS cost for under 50 employees
For under-50 employee deployments in 2026, the cheapest fully-featured HRIS is Zoho People Essential HR at $1.50/user/mo, followed by Deel HR free (up to 200) and Remote HR free. For US-payroll-heavy buyers, Gusto Simple at $49 + $6 PEPM is the published winner. A 25-person startup should budget $4,000-$15,000 for year-1 HRIS spend.
Year-1 cost at 25 employees, Core + Payroll module
| Vendor | Eff. PEPM | Annual subscription | Year-1 total | 3-year TCO |
|---|---|---|---|---|
| BambooHR | $16.00 | $4,800 | $7,050 | $18,447 |
| Gusto | $18.00 | $5,988 | $5,988 | $19,986 |
| Deel | $10.00 | $3,000 | $4,250 | $11,373 |
| Justworks | $90.00 | $27,000 | $27,000 | $91,109 |
| Remote.com | $10.00 | $3,000 | $4,000 | $11,123 |
| Zoho People | $11.00 | $3,300 | $4,050 | $11,886 |
Math: each vendor's mid-PEPM + payroll module $6 x 25 employees x 12 months + monthly base x 12 + implementation midpoint.
Is the free tier of Deel or Remote really enough?
Yes for HR core (directory, time-off, document storage, org chart). Both add paid lines for EOR, contractor management, and global payroll. If you need US payroll and you are not running a global contractor team, Deel and Remote free tiers will leave you needing Gusto or Rippling for payroll anyway.
Year-1 budget for a 25-person startup
Realistic budget for a US-only 25-person startup on Gusto Plus + benefits: $5,000-$8,000 year-1 software, $0-$1,500 implementation, $0 broker fee (Gusto-bundled benefits). Total: $5,000-$10,000. For a globally-distributed startup, swap Gusto for Deel (free HR + per-contractor fees) and budget $3,000-$6,000 in contractor fees instead.
When do you outgrow each option?
- Zoho People: outgrown at 100 employees when ecosystem-fit pressure forces an upgrade to BambooHR or Rippling.
- Gusto Simple: outgrown at 30 employees when Performance and advanced PTO matter.
- Deel HR free: outgrown at 200 employees (free tier cap) or earlier if HRIS depth becomes the binding constraint.
- Remote HR free: no cap on the free tier, but HRIS depth becomes the binding constraint at 100+ employees.