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Payroll software for a first W-2 hire: published prices and setup notes
Hiring a first employee usually means getting a federal EIN, opening state payroll-tax accounts, and running withholdings on a schedule. This page lists official monthly prices for one person paid and what vendors publish about tax filing and setup. It is not legal or tax advice.
Source status labels: Official vendor page, Official government page, Quote-only / unpublished. A cell marked TBD was not found on an official page on the check date. Dates use the America/Los Angeles calendar (Pacific Time). Last checked 10 November 2026.
Vendor names in this article link to official pages for verification. Affiliate tracking links are placeholders only. See the disclosure.
Agencies to confirm first
Software does not replace registration. Steps vary by state. Common starting points, which you should confirm with the agency:
- A federal Employer Identification Number from the IRS, if you do not already have one.
- State withholding and unemployment accounts. In California, the Employment Development Department says you must register as an employer within 15 days if you hire employees and pay more than $100 in wages in a calendar quarter. Source: EDD, Step 1: Register as an Employer.
- Workers' compensation and other insurance rules in your state, which are outside most of the price tables below.
If the hire is in California, also read the California guide. If the person works in a different state from the business, read the multi-state guide.
Published list prices for one person paid
| Vendor and plan | Monthly list price for 1 person paid | Tax filing on that plan, as published | Contract, as published |
|---|---|---|---|
| Gusto Simple | $55 ($49 + $6) | Pricing and plan help: tax filings and payments, unlimited payrolls. Simple is one-state payroll. Federal, state, and local forms are described as included on Gusto plans. | Month-to-month. Pricing FAQ: no long-term contract, cancel anytime. |
| Gusto Solo (owner payroll, not a hired employee) | $55 as described for most owners ($49 + $6 per payroll recipient) | Solo page lists S-corp payroll with automated withholdings, quarterly 941 filings, and W-2 plus 1099 generation. | TBD on the Solo page beyond the shared Gusto month-to-month language on the main pricing FAQ. |
| OnPay Payroll Essentials | $55 ($49 + $6) | Federal, state, and local tax filings and payments, W-2s and 1099s included. Multi-state included on this plan. | TBD (term length not stated on the costs page). Help center describes monthly billing. |
| Patriot Basic Payroll | $21 ($17 + $4), matching Patriot's example table | Patriot calculates taxes. You file and deposit them yourself. | TBD on a formal contract term. Pricing FAQ: billed monthly in arrears, unlimited payrolls. |
| Patriot Full Service Payroll, one state | $42 ($37 + $5), matching Patriot's example table | Federal, state, and local tax filings and deposits, plus year-end filings at no additional fee, as published. | Same billing notes as Basic. Additional states are $12/month each on Full Service. |
| Square full-service payroll | $41 ($35 + $6) | Automated federal and state tax payments and filings listed as included. Paper W-2/1099 mail is $3 per form per year. | "No commitment, no long-term contracts required" on the pricing table. |
| Homebase Payroll, team of 5 or fewer | $35 ($29 + $6) | Payroll page: automated tax calculation, filing, and payment; W-2s and 1099s included. | Payroll page: cancel anytime. Setup is described as free. |
| QuickBooks Workforce Payroll | $57 ($50 + $7) | Full-service tax calculation, filing, and payment, as published. Footnotes mention state tax filing fees; amounts are TBD. | Free 30-day trial on the monthly base price for eligible new monthly subscriptions. The trial does not apply to per-employee, per-contractor, or state tax filing fees. A 50 percent off base-price intro for three months was also shown; that discount applies to the base only. |
| QuickBooks Contractor Payments (contractors only, not a hired W-2 employee) | $25 list, plus $2 per additional contractor | Page describes paying contractors and e-filing 1099s. Products-page footnotes for automated 1099 e-file say state filing is not included in that service. | Whether the 30-day Workforce trial terms also apply to Contractor Payments: TBD. |
| Rippling, starting figures | Starting $40 base + $8 per user, per the small-business page. Exact total is a custom quote, so a worked one-person total is not listed as a complete price. | Small-business page: files W-2s and 1099s; print-and-mail available for a small fee (amount TBD). Payroll in all 50 states. | No general public free trial stated. A startup program offers six months free for eligible US VC-backed startups, subject to funding status and stage. |
| ADP RUN Essential Payroll | TBD (Get Pricing only) | Tax filing included, as published. W-2 and 1099 forms are created and delivered for an additional fee (amount TBD). | No long-term contract; cancel at any time, as published. A self-led demo is offered. A paid-product free trial is not stated. |
| Paychex Flex Basic | TBD (contact for pricing) | The compare page describes Taxpay automatic tax administration. Plan-by-plan inclusion is TBD. | Free trial: TBD. |
Sources, checked 10 November 2026: Gusto pricing; Gusto Solo; Gusto plan help; OnPay costs and pricing; OnPay billing FAQ; Patriot pricing; Patriot help on price; Square Payroll pricing; Homebase payroll; Homebase pricing; QuickBooks products; Rippling pricing; Rippling small business; ADP RUN packages; Paychex compare payroll solutions.
Setup and migration notes that vendors publish
- Gusto: The pricing FAQ says Gusto can help transfer existing payroll data. Middesk one-time state tax registration, when used, is $199 per state tax agency, usually $199-$398, billed after completion. See the multi-state guide.
- OnPay: Costs page lists free account setup, historical data migration, and no implementation or integration fees.
- Patriot: Help article: no setup fees. Direct deposit and the employee portal are free. New accounts: 30 days free plus 50 percent off for three months, as published on 10 November 2026. After that, regular list prices apply.
- Square: Pricing table lists simple onboarding and live support for account setup as included. A separate setup fee is not listed on that table.
- Homebase: Payroll page: no implementation fees, free data transfer, "get up and running within a week."
If you are only paying yourself as an S-corp owner, Gusto Solo is a different product path than "first hired employee." Reasonable salary and S-corp elections are tax questions. Use an accountant. Gusto's Solo page includes a disclaimer that its content is not tax or legal advice.
Questions
Is Gusto Solo the same as Gusto Simple for a first employee?
No. Gusto's Solo page describes a plan for solopreneurs paying themselves, priced at $49/mo plus $6/mo per payroll recipient, which the page says most owners pay as $55/month. Gusto's main pricing page lists Simple, Plus, and Premium for paying a team. Solo's FAQ says you can add people later and move into a Simple or Plus plan. Confirm the current plan map on Gusto's site when you hire.
Do I need a federal EIN before using these tools?
Gusto's state tax registration help says you must have a FEIN in Gusto to use Middesk registration. Other vendors may have the same requirement. This is not legal advice. See the IRS EIN page for how to apply.
What if I only pay contractors, not W-2 employees?
Several vendors publish contractor or mixed-workforce options. Square lists contractor-only payroll at $6 per person paid per month, without full-service employee features such as multistate payroll. Gusto's help center says the contractor-only plan closed on 1 October 2026 for new signups, and that you can pay contractors on current Gusto plans. OnPay and Patriot list W-2 and 1099 pay on their standard payroll plans. Confirm current plan rules on each official page.