"Best" depends on what you want handled. A full-service provider runs the whole job: it calculates pay, moves the money, deposits payroll taxes and files the quarterly and year-end returns. A pay stub tool does one piece: the document each employee gets on payday. This post compares what the main small-business providers publish on their own sites, then sets out what's left for you if you go the do-it-yourself route. We haven't run payroll on any of these services, so there are no ratings here, only facts you can check.
Published prices, side by side
| Square Payroll | Gusto Simple | QuickBooks Workforce Payroll | RUN Powered by ADP | PayDocs | |
|---|---|---|---|---|---|
| Monthly base price | $35 | $49 | $50 ($25 for the first 3 months) | Not published; quote on request | None |
| Per person each month | $6 per person paid | $6 per person | $7 per employee | Not published | None |
| Pays employees (direct deposit) | Yes | Yes | Yes | Yes | No |
| Files and pays payroll taxes | Yes | Yes | Yes | Yes | No |
| W-2s at year end | Yes, delivered online | Yes | Yes | Yes | Employee copies made from your figures |
| Contractor payments | Yes; contractor-only plan $6 per person paid | Yes, domestic | Yes, with 1099 e-file | Not stated on the packages page | 1099-NEC/MISC recipient copies only |
| Pay stubs | Yes | Yes | Yes | Yes | Yes: free preview; $4.99 per PDF once checkout opens |
Checked October 4, 2026. Read from squareup.com/us/en/payroll/pricing, gusto.com/product/pricing, quickbooks.intuit.com/payroll/pricing/bundle and adp.com's small business payroll packages page. QuickBooks' first-three-months price is a promotion; ADP's page advertised 3 months free with a sign-up deadline. Add-ons and state fees are extra on several plans.
On those list prices, one employee costs about $41 a month on Square Payroll, $55 on Gusto Simple and $57 on QuickBooks Workforce Payroll after its promotion ends. With three employees it's $53, $67 and $71. The base fee is most of the bill for a very small team, which is why the per-person price matters less than it looks.
What each plan adds or leaves out
- Square Payroll: one full-service plan with unlimited pay runs and no long-term contract, plus a contractor-only plan at $6 a month per person paid. Mailing paper W-2s or 1099s is an extra $3 per form a year. It works with Square's own team tools.
- Gusto: Simple ($49 + $6) covers unlimited payrolls, tax filings and payments in one state. Plus ($80 + $12) adds multi-state payroll, time tracking and next-day pay; Premium ($180 + $22) adds a named advisor and HR tools. State tax registration is an add-on priced by state. Gusto also lists a Solo plan for owners paying only themselves through an S corporation, at $49 plus $6.
- QuickBooks: Workforce Payroll is the payroll-only plan on the page for adding payroll; the main pricing page bundles payroll with QuickBooks accounting from $88 plus $7 per employee before promotions. Worth it if you already keep your books in QuickBooks.
- ADP: four RUN packages (Essential Payroll, Enhanced Payroll, Complete Payroll & HR Plus, HR Pro). The packages page shows no prices; you request a quote.
What full-service payroll does that you'd otherwise do
The monthly fee buys the jobs the IRS gives every employer. Publication 15 lists them: withhold federal income tax, Social Security and Medicare from each paycheck; deposit those amounts plus the employer's share on a monthly or semiweekly schedule, electronically; file Form 941 every quarter and Form 940 for federal unemployment tax every year; and give each employee a Form W-2 after the year ends. States add their own withholding and unemployment returns.
| Task | Full-service provider | Doing it yourself |
|---|---|---|
| Work out gross pay and deductions | Provider | You, or a calculator |
| Pay the employee | Provider (direct deposit) | You (bank transfer or check) |
| Pay stub on payday | Provider | You, or a pay stub tool |
| Deposit federal payroll taxes | Provider | You, electronically |
| Form 941 (quarterly) and Form 940 (annual) | Provider | You or your accountant |
| State withholding and unemployment returns | Provider (registration may cost extra) | You or your accountant |
| Form W-2 to employees and the Social Security Administration | Provider | You: employee copies, then file Copy A with the SSA |
When a pay stub tool is enough
Doing payroll yourself makes sense when the deposits and returns are already handled: you have an accountant or bookkeeper who files them, you're comfortable filing yourself, or your payroll is so small and regular that the filings take an hour a quarter. In that case the thing you're missing on payday is a clear record for the employee, with gross pay, each deduction, net pay and year-to-date totals. Many states require one.
- Good fit: one to a few employees, one state, the same pay each period, and someone already filing Forms 941 and 940.
- Good fit: household employers (a nanny, carer or cleaner) who report employment taxes on Schedule H with their own Form 1040.
- Poor fit: staff in several states, frequent new hires, tips and overtime that change every week, or nobody who wants to own the filing calendar. Full-service payroll earns its fee there.
Cost over a year makes the trade-off concrete. One biweekly employee is 26 pay stubs a year. On Square Payroll's list price that is $492 a year ($41 × 12); with a pay stub tool such as PayDocs it is 26 stubs at $4.99 each once checkout opens, or less with packs. The difference pays for the filing work only if your time or your accountant's is cheaper than that.
Where PayDocs fits, honestly
PayDocs is a document tool, not payroll software. It makes US pay stubs, employee copies of Form W-2 and recipient copies of Forms 1099-NEC and 1099-MISC from your figures. PayDocs works out federal income tax, Social Security, Medicare and supported state taxes for 2026 pay dates (see what we calculate). Every line stays editable.
It doesn't pay employees, deposit taxes, file Forms 941 or 940, file W-2s with the Social Security Administration or register you with a state. Previewing is free. The PDF price is $4.99 per pay stub once checkout opens, less per stub in packs of 4 or 12, and pack credits never expire.
Questions
What is the cheapest full-service payroll for one employee?
Of the published prices we checked on 4 October 2026, Square Payroll was lowest: $35 a month plus $6 per person paid, about $41 a month for one employee. Gusto Simple was $55 and QuickBooks Workforce Payroll $57 after its promotion. ADP quotes individually.
Do I need payroll software for one employee?
No law requires software. You do need to withhold and deposit federal taxes, file Form 941 quarterly and Form 940 yearly, and give a W-2. Software or a provider automates that; you can also do it yourself and use a pay stub tool for the payday record.
Does PayDocs file payroll taxes?
No. PayDocs makes pay stubs, W-2 employee copies and 1099 recipient copies from your figures. It doesn't pay employees, deposit taxes or file any return.
Why doesn't this list include star ratings?
We haven't run payroll on these services, so a score would be made up. The table shows published prices and features from each provider's own page, with the date we read them.
Sources
- IRS: Publication 15 (2026), Employer's Tax Guide
- Gusto: Pricing, plans and fees
- Square: Payroll pricing
- QuickBooks: Add payroll, pricing
- ADP: RUN Powered by ADP payroll packages
Sources checked October 4, 2026. This article explains how pay documents work; it is not tax or legal advice.
