This is for founders deciding how to pay the first people on the books: often themselves, then one or two hires, sometimes in different states. It compares the providers startups most often shortlist using only what each one publishes, and it sets out the point at which payroll becomes a legal job rather than a nice-to-have.
We haven't run payroll on these products. Everything here comes from each company's own public pages, read on 8 October 2026, and prices change: check the live page before you sign up.
Do you need payroll software yet?
You need payroll as soon as someone is on the books as an employee, and in a corporation that usually includes the founders. IRS Publication 15 (2026) says corporate officers who work in the business are employees of the corporation, so their salary goes through payroll with withholding, Social Security and Medicare.
- No payroll yet: founders of a partnership or multi-member LLC taxed as one. The IRS says partners are not employees and should not get a Form W-2; they take distributions and guaranteed payments reported on Schedule K-1.
- No payroll yet: a company that pays only independent contractors. You report what you pay them on Form 1099-NEC, but there are no withholding deposits or Form 941s.
- Payroll from the first paycheck: a C corporation or S corporation paying a founder a salary, or any business with a W-2 hire. You need an EIN, and Publication 15 sets out the deposits, quarterly Form 941 and year-end W-2s.
A software plan is one way to meet those duties. Doing it yourself is another, and with one founder on a fixed salary the work is small: the same paycheck each period, a deposit on schedule, a return each quarter.
Employer payroll tax calculator: what a hire costs on top of wages
Startup payroll providers by published price
| Square Payroll | Gusto Simple | QuickBooks Workforce Payroll | Justworks Payroll | Rippling | ADP RUN | |
|---|---|---|---|---|---|---|
| Base fee a month | $35 | $49 | $50 | $50 | Quote only | Quote only |
| Per person a month | $6 per person paid | $6 | $7 per employee | $8 per employee | Quote only | Quote only |
| Monthly cost, 2 people | $47 | $61 | $64 | $66 | Not published | Not published |
| States | Multistate payroll included | One state (Plus for more) | Federal and state filings | Not stated in text | Not published | Says it covers all 50 states |
| Offer on 8 October 2026 | None shown | None shown | 50% off the base fee for 3 months | None shown | None shown | 3 months free (months 4 to 6) |
Checked October 8, 2026. List prices before add-ons and taxes. QuickBooks' discount applies to the base price only, not per-employee or state filing fees. ADP's offer is for new clients with 1 to 49 employees who start payroll by 22 October 2026.
The monthly totals are arithmetic on the list prices: base fee plus the per-person fee times two. For a founder paying only themselves, subtract one per-person fee from each.
What each one is built for
- Square Payroll: the lowest published entry price here, with multistate payroll, next-day direct deposit and auto payroll on the full-service plan. Paper W-2 and 1099 copies cost $3 per mailed form a year if you opt in. A contractor-only plan is $6 per person paid.
- Gusto: Simple runs basic payroll in one state; Plus ($80 plus $12 per person) adds multi-state payroll and next-day pay; Premium is $180 plus $22. Gusto Solo is $49 plus $6 per person for a solo owner, aimed at S corp founders paying themselves. Gusto says there are no contracts and account setup is free.
- QuickBooks Workforce Payroll: full-service payroll with next-day direct deposit and 1099 e-filing, sold alone or bundled with QuickBooks Online. Premium ($88 plus $13) adds time tracking and same-day deposit.
- Justworks: a payroll plan at $50 a month plus $8 per employee, or PEO plans at $79 (Basic) and $124 (Plus) per employee a month with no base fee. PEO Plus adds medical, dental and vision administration.
- Rippling: no prices on the page; you fill in a form and get a custom quote.
- ADP RUN: four packages from Essential Payroll to HR Pro, no published prices, and a separate page for payroll with one employee aimed at S corps and solo businesses.
What a startup pays beyond the subscription
The plan price is the smaller part of the bill. The employer taxes are the same with every provider, and several providers list fees outside the headline price.
| Cost | Where it shows up |
|---|---|
| Employer Social Security and Medicare | 6.2% and 1.45% of each employee's wages in 2026, with every provider or none |
| Federal unemployment tax (FUTA) | Form 940 each year, with every provider or none |
| State tax filing fees | Named in QuickBooks' offer terms as outside its discount |
| Year-end forms | ADP's grid marks W-2 and 1099 forms as an additional fee; Square charges $3 per paper form mailed, if you opt in |
| Contractors | Square's contractor-only plan is $6 per person paid; Justworks lists US contractors at $8 per paid contractor a month |
| Workers' compensation | Justworks lists access to workers' comp as required for its PEO plans |
Before you compare plans, put the employer taxes for your first hire into a calculator. If the taxes are several times the subscription, a few dollars between providers matters less than getting the filings right.
How to choose at seed stage
Pick on three facts you already know: how many people you pay, in how many states, and whether you need benefits administration now. Ratings and award badges on vendor pages don't answer any of those.
- One founder on salary, one state: the cheapest full-service plan, or doing it yourself if someone already files your returns.
- Two to five people across states: compare Square and Gusto Plus; Gusto Simple stops at one state.
- You want health insurance and HR in one bill: price a PEO plan such as Justworks Basic or Plus against a payroll plan plus a separate broker.
- You expect to grow past 20 people quickly: get the Rippling and ADP quotes in writing, including year-end form fees, before committing.
Whatever you choose, the tax itself doesn't change. For 2026, Social Security is 6.2% each for employer and employee on wages up to $184,500 and Medicare is 1.45% each with no limit (Publication 15). A provider only changes who does the work.
Where PayDocs fits
PayDocs isn't payroll software and doesn't file or deposit anything. If you run your first payroll yourself, it makes the pay stub for each period and W-2 copies at year end from your own figures. PayDocs works out federal income tax, Social Security, Medicare and supported state taxes for 2026 pay dates (see what we calculate). Previewing is free; a PDF is $4.99 per pay stub once checkout opens, less in packs of 4 or 12, with no monthly fee.
This is general information about US federal rules for employers as of 8 October 2026, not tax or legal advice. State and local rules can add to it.
Questions
Do you need payroll software yet?
You need payroll once anyone is an employee, and in a corporation that usually includes working founders. Partners in a partnership aren't employees, and a company that only pays contractors files 1099-NEC forms instead.
What is the cheapest payroll for a startup?
Of the published prices on 8 October 2026, Square Payroll was lowest at $35 a month plus $6 per person paid, then Gusto Simple at $49 plus $6 and QuickBooks Workforce Payroll at $50 plus $7.
Does Gusto Simple cover employees in more than one state?
No. Gusto describes Simple as basic payroll in one state. Multi-state payroll comes with Plus, listed at $80 a month plus $12 per person on 8 October 2026.
Do Rippling and ADP publish their prices?
No. Rippling's pricing page is a quote request form, and ADP's RUN packages each show a Get pricing button instead of a figure. Ask both for the full yearly cost, including year-end forms.
Is a founder an employee for payroll?
In a corporation, generally yes: IRS Publication 15 says corporate officers who work in the business are employees. Partners in a partnership are not employees and are paid through distributions and guaranteed payments.
Sources
- Square: Payroll pricing (checked 8 October 2026)
- Gusto: Pricing, plans and fees (checked 8 October 2026)
- QuickBooks: Payroll-only plans and offer terms (checked 8 October 2026)
- Justworks: Pricing (checked 8 October 2026)
- Rippling: Pricing, custom quote (checked 8 October 2026)
- ADP: RUN payroll packages for 1-49 employees (checked 8 October 2026)
- ADP: Payroll for one employee (checked 8 October 2026)
- ADP: 3 months free offer terms (checked 8 October 2026)
- IRS: Publication 15 (2026), Employer's Tax Guide
- IRS: Paying yourself
Sources checked October 8, 2026. This article explains how pay documents work; it is not tax or legal advice.
