Payroll pricing is built for teams. A base fee plus a per-person fee means the base fee dominates when you pay one person, so a single employee costs nearly as much to run as five. If you have just hired your first employee, or you pay yourself through your own company, the question is whether a service is worth around $500 to $1,100 a year, or whether you can do the work yourself.
What one employee costs with a payroll service
| Square Payroll | Wave Payroll | Gusto Simple | QuickBooks Workforce Payroll + Simple Start | |
|---|---|---|---|---|
| Base fee | $35 a month | $40 a month | $49 a month | $88 a month (50% off for 3 months) |
| Per employee | $6 a month | $6 a month per active employee | $6 a month | $7 a month |
| One employee, per month | $41 | $46 | $55 | $95 |
| One employee, per year at full price | $492 | $552 | $660 | $1,140 |
| Files and pays payroll taxes for you | Yes, federal and state | Yes, all 50 states | Yes | Yes |
| Also includes | Separate contractor-only plan at $6 per contractor | Contractors at $6 each paid | Unlimited payrolls; single-state on this plan | Basic accounting software |
Checked October 4, 2026. From each company's own pricing page or help center (sources below). Wave charges sales tax where required. Patriot Software's help center lists Full Service payroll at $37 a month plus $5 per worker paid, and OnPay's help center lists $49 a month plus $6 per person; they are not in the table. ADP prices by quote.
Watch the extras. Gusto's Simple plan covers one state; add a state and you move to its Plus plan at $80 a month plus $12 per person. Next-day or same-day pay, time tracking and state registration are usually add-ons. A provider's base fee is the floor, not the bill.
What a service does that you would otherwise do
The IRS lists four groups of duties for any employer: withhold federal income tax, withhold and pay Social Security and Medicare, pay federal unemployment tax, and file the returns. A full-service provider does all of them for you.
| Task | How often | With a service | Doing it yourself |
|---|---|---|---|
| Work out withholding from Form W-4 (IRS Publication 15-T) | Each payday | Automatic | By hand or with a calculator |
| Social Security (6.2%) and Medicare (1.45%), each side | Each payday | Automatic | By hand or with a calculator |
| Deposit federal taxes by electronic funds transfer | Monthly or semiweekly | Automatic | EFTPS, IRS Direct Pay or your business tax account (all free) |
| Form 941 (or Form 944 if the IRS approves it) | Quarterly (or yearly) | Filed for you | You file |
| Form 940 for FUTA: 6% on the first $7,000, with credit up to 5.4% | Yearly | Filed for you | You file |
| State withholding and unemployment returns | Usually quarterly | Filed for you | You file with each state agency |
| Form W-2 to the employee and Copy A to the SSA | By January 31 | Prepared and filed | You prepare and file |
| Pay stub | Each payday | Included | You make one |
Doing payroll for one employee yourself
With one salaried employee in one state, the do-it-yourself route is manageable. Each payday takes a few minutes once the numbers are set, because a fixed salary produces the same withholding every period. The real work is the calendar: deposits, quarterly returns and year-end forms.
- Get an EIN and register with your state for withholding (if it has an income tax) and unemployment insurance.
- Collect Form W-4 and Form I-9 from the employee.
- Work out each paycheck: gross pay, federal withholding, Social Security, Medicare, state tax and any deductions. Pay the net amount.
- Give a pay stub showing the period, every line and year-to-date totals. Many states require one.
- Deposit federal taxes on your schedule and file Form 941 each quarter, or Form 944 yearly if the IRS has told you to.
- File state returns, then Form 940, the W-2 and the W-3 after year end.
Doing it yourself suits a stable salary, one state and an owner who doesn't mind forms. It suits poorly if hours vary, the employee works in another state, or a missed deposit would be a real problem, because the IRS charges penalties for late deposits and late returns.
A middle route: an accountant for the returns
Some owners split the difference: an accountant files the quarterly and annual returns, and the owner runs each payday with a calculator and a pay stub tool. That costs the accountant's fee for a few returns a year rather than a monthly subscription, and the filings are checked by someone who does them for a living.
Where PayDocs fits
PayDocs covers the paperwork end of the do-it-yourself route. The free paycheck calculator estimates federal withholding, Social Security, Medicare and state income tax for the states it covers. The pay stub generator turns your figures into a pay stub with year-to-date totals, and the W-2 generator makes the employee copies at year end.
It does not deposit tax, file Form 941 or 940, register you with any agency or move money. Creating and previewing is free; a finished pay stub PDF is $4.99 once checkout opens, or less per document in packs of 4 or 12. A year of biweekly pay stubs is 26 documents: two 12-packs and two single stubs.
A PayDocs pay stub records wages you actually paid through your own payroll. It is not proof of income.
Questions
What is the cheapest payroll service for one employee?
On the providers' own pages on 4 October 2026, Square Payroll was $35 a month plus $6 per person ($41 a month for one employee), ahead of Wave at $40 plus $6 and Gusto Simple at $49 plus $6.
Can I do payroll for one employee myself?
Yes. You withhold and deposit federal taxes, file Form 941 (or 944) and Form 940, handle state returns, and give a W-2 by January 31. A calculator and a pay stub tool cover each payday.
Is payroll for one employee worth outsourcing?
It is if your time or the risk of a missed deposit is worth more than about $500 to $1,100 a year. With a stable salary in one state, many owners do it themselves.
Does PayDocs run payroll?
No. PayDocs makes pay stubs and W-2 employee copies and has a free paycheck calculator. It does not file returns, deposit taxes or pay employees.
Sources
- IRS, Publication 15 (2026), Employer's Tax Guide
- IRS, Understanding employment taxes
- Square Payroll, pricing (checked 4 October 2026)
- Wave, full-access payroll subscription pricing (checked 4 October 2026)
- Gusto, pricing (checked 4 October 2026)
- QuickBooks, payroll pricing (checked 4 October 2026)
- Patriot Software help center: monthly cost of payroll services (checked 4 October 2026)
- OnPay help center: OnPay pricing (checked 4 October 2026)
Sources checked October 4, 2026. This article explains how pay documents work; it is not tax or legal advice.
