Payroll
How to choose a payroll service: tax filing, the per-employee fee and the fine print
Quick answer
Work out the monthly cost for your headcount (base fee plus the per-employee fee), then check whether the plan files federal, state and local payroll taxes and year-end W-2s for you. Some cheap plans leave filing to you. Also check extra-state and year-end form fees, whether the company pays penalties caused by its own errors, and the support you get. For five employees, entry plans run from $37 to $85 a month.
Payroll services all promise to pay your team on time. The differences are in who files the taxes, what each extra employee and state costs, and who pays if a filing goes wrong. We compare 7 services on their entry plan, using only what each company publishes on its own pages, read on Sep 27, 2026.
What we weigh, and why
Our methodology scores the entry plan (the cheapest plan that pays W-2 employees) on six things:
| Criterion | Weight | Why it matters |
|---|---|---|
| Cost for five employees | 35% | The base fee hides the per-employee fee |
| Tax filing | 20% | Federal, state and local filing is the job you're buying |
| Included on the entry plan | 20% | Unlimited runs, direct deposit, self-service, contractor 1099s, new-hire reporting |
| Tax accuracy guarantee | 10% | Who pays a penalty caused by the provider's error |
| Support | 10% | Phone and chat, or a help centre only |
| Free trial | 5% | Whether you can start without paying |
ADP RUN, Rippling and Paycor aren't ranked because they quote prices only on request.
Work out the cost for your headcount
Every service here charges a base fee plus a fee per employee, so the headline price is never the bill. For five employees on each entry plan:
- Patriot Payroll Basic: $17 + $4 each = $37 (you file taxes)
- SurePayroll No Tax Filing: $20 + $4 each = $40 (you file taxes)
- Paychex Flex Essentials: $39 + $5 each = $64, plus fees it doesn't publish
- Square Payroll: $35 + $6 each = $65
- OnPay: $49 + $6 each = $79
- Gusto Simple: $49 + $6 each = $79
- QuickBooks Payroll (Workforce Payroll): $50 + $7 each = $85
Check whether contractors count. OnPay, Gusto and Square charge the per-person fee for contractors in months you pay them, and Patriot charges it per worker paid.
Trap 1: plans where you file the taxes
The two cheapest entry plans don't file payroll taxes. Patriot says it "does not handle tax filing and deposits for Basic customers". SurePayroll's No Tax Filing plan leaves you "responsible for filing and depositing all payroll taxes". Their full-service plans cost $62 (Patriot) and $64 (SurePayroll) for five.
Trap 2: local taxes
If your city or county levies a payroll tax, check it by name:
- OnPay, Gusto and Paychex say they file local taxes (Paychex says "identified local").
- QuickBooks Workforce Payroll does not offer local tax payments and filings; certain local taxes need Premium or Elite.
- Square's pages don't clearly say it files local taxes, so we record federal and state only.
Trap 3: fees that aren't in the headline
- Unpublished fees. Paychex says tax administration "Additional fees may apply" and W-2s and 1099s are "Available at additional cost", without amounts.
- Year-end forms. SurePayroll charges $50 a year plus $5 per form.
- Extra states. Patriot Full Service and QuickBooks charge $12 a month per extra state; SurePayroll $9.99. Gusto Simple is single-state, so a second state means Plus. OnPay and Square include multistate payroll.
- Contractor deposits. QuickBooks charges $7 a month on Workforce Payroll "per contractor payment".
Trap 4: discounts and trials that still charge
QuickBooks' 50% discount for 3 months and its 30-day trial cover only the base fee; per-employee fees still apply. Patriot's 30 days free and 50% off for 3 months cover both fees. SurePayroll credited alternate months in the first year for clients enrolling by September 30, 2026; that offer has ended. OnPay's first month is free. Gusto and Paychex charge nothing until your first payroll, which isn't a trial.
Trap 5: guarantees and new-hire reporting
Only some services say they pay penalties caused by their own errors on the entry plan: OnPay (terms), Gusto (payroll terms) and Square. QuickBooks keeps penalty protection for Elite. Patriot's guarantee is on Full Service. Paychex and SurePayroll don't state one.
New-hire reporting is on most entry plans, but Patriot doesn't say it files new-hire reports on any plan, and QuickBooks' pages conflict (we read it as Premium and Elite only).
Support
All seven list phone or chat on the entry plan, but hours differ. Patriot lists 9 a.m. to 7 p.m. ET weekdays; Square Monday to Friday, 6 a.m. to 6 p.m. PT; Gusto business hours; Paychex "24/7 support options". QuickBooks has weekend phone and chat only on Premium and Elite.
Contractors and trades
Construction firms need more than the basics: certified payroll reports, pay-as-you-go workers' comp, labour cost by job and payroll in several states. Our list for construction and trades ranks the services that state at least two of these.
Checklist
- Price the base fee plus the per-employee fee for your headcount, contractors included.
- Confirm the plan files federal, state and, if you owe them, local taxes.
- Add year-end form, extra-state and add-on fees.
- Read what the guarantee covers and on which plan.
- Check support hours against your payroll schedule.
- Ask for any fee the page doesn't publish before you sign.
Compare all seven in our payroll services ranking.