Payroll Providers: What They Charge and What to Ask

Basics first

The rule that does not change

When you hand payroll to a provider, the IRS still holds you responsible. Its page on outsourcing says employers are ultimately responsible for the income tax withheld and the Social Security and Medicare taxes, and that if a provider defaults, the employer remains responsible for the deposit. So choose as if you will have to prove the deposits were made.

• Sign up for EFTPS and check that your provider deposits through it under your EIN. Your payment history shows whether deposits are being made.
• Keep your own address on file with the IRS, not the provider’s, so notices reach you.
• Read every quarterly reminder a reporting agent sends. The IRS says it should remind you in writing that you remain responsible.

Sources: IRS, Outsourcing payroll and third-party payers (reviewed Oct 10, 2026) and IRS release IR-2020-186.

The numbers

What each plan costs at your headcount

These are list prices for plans that include tax filing, one state, no add-ons, before any promotion, worked out from each provider’s published base fee and per-person fee. The lowest in each column is shaded. Calculated by Groundwork from the pages below.

Monthly cost = base fee + per-person fee × people. ADP and Paychex are left out because they publish no prices. Patriot’s Basic plan is left out because it does not file taxes.

The cheapest plan changes with headcount: Square Payroll’s lower base fee makes it cheapest at one person, the two tie at two people, and Patriot’s lower per-person fee is cheaper from three. That is why a quote that looks cheap for one worker can cost more once you hire.

Each provider

What they publish, and what the page does not say

What the price leaves out

Eight things to check before you sign

1. A plan can be cheap because it does not file your taxes. Patriot’s Basic plan and Square’s contractor-only plan do not. The same company’s full-service plan does, at a higher price.
2. Extra states cost extra. Patriot charges $12 a month for each additional state on Full Service. Gusto’s compliance add-on is $85 a month per state on an annual contract for its Simple and Plus plans.
3. Year-end forms can be extra. Square charges $3 for each mailed W-2 or 1099. ADP lists an additional fee for W-2 and 1099 forms.
4. Contractors may count as people. Gusto bills U.S. contractors at the plan’s per-person rate in months you pay them. OnPay and Patriot count them in the per-worker fee. Square has a $6-a-person contractor-only plan.
5. Promotions come with terms. Paychex’s 2026 offer needs a one-year agreement, and leaving early makes you liable for the value of the free months. ADP’s free months are subject to terms we did not review. Patriot and QuickBooks show promotional prices next to list prices.
6. Contract terms are often not on the pricing page. OnPay, Patriot, Square and QuickBooks do not state contract length or cancellation. Gusto says month-to-month. ADP says no long-term contract. Ask for it in writing.
7. Pages disagree with themselves. OnPay’s bundle “original” prices do not match in every place on its page. QuickBooks’ promotion has an asterisk with no footnote. Get the final number in writing.
8. Two providers publish no price at all. ADP and Paychex give a quote by phone or form. Compare quotes in the calculator below, not from memory.

Ask every provider

Ten questions, in this order

1. Which plan files my federal, state and local payroll taxes, and which states does that cover?
2. What is every fee: base, per person, extra states, year-end forms, setup, and anything that is charged once a year?
3. Do contractors count as people in the per-person fee?
4. What is the contract length, and what does it cost me to leave? Is there any promotion I would have to repay?
5. Do you deposit through EFTPS under my EIN, and can I see the deposits myself?
6. Is there a written accuracy or filing guarantee, and what exactly does it cover? (OnPay’s and Patriot’s pages mention one. Read the terms for what it pays.)
7. If I get an IRS or state notice, who do I call and how fast do you answer?
8. Will you give me the quote in writing, with the plan name?
9. If I add a second state or my first contractor, what changes in the price?
10. How do I export my payroll records if I leave?

Compare your own quotes

Put the quotes on one footing

Enter two or three quotes, including from ADP or Paychex once they send theirs. You get the real monthly, first-year and three-year cost, and the headcount where the cheaper quote changes. Nothing you type leaves your device.

Payroll Provider Cost Comparison: Compare Two or Three Quotes
https://groundworkbusinessadvisory.com/calculators/payroll-quotes/ ·

People you will pay

Employees, plus contractors if the provider charges for them.

Quote A

Base fee each month

$

The flat monthly fee, before any per-person charge.

Fee per person paid, each month

$

Count every person you pay, including contractors if they are charged.

Other monthly fees you must pay (optional)

$

Extra states, required add-ons, time tracking you need.

Fees charged once a year (optional)

$

Year-end form fees, an annual compliance charge.

One-time setup fee (optional)

$

Free months at the start (optional)

months

Only if the quote promises them in writing.

Quote B

Base fee each month

$

Fee per person paid, each month

$

Other monthly fees you must pay (optional)

$

Fees charged once a year (optional)

$

One-time setup fee (optional)

$

Free months at the start (optional)

months

Quote C (optional)

Base fee each month (optional)

$

Fee per person paid, each month (optional)

$

Other monthly fees you must pay (optional)

$

Fees charged once a year (optional)

$

One-time setup fee (optional)

$

Free months at the start (optional)

months

Your result

Copy link to these numbers Save as PDF

Estimates from the numbers you enter. Calculated on your device; nothing you type is sent to us.

Open the full calculator page · Step-by-step guide to do it by hand or in a spreadsheet

Arkansas

Before your first payroll

1. Get your federal basics. You need an EIN and a Form W-4 from each employee. The withholding and deposit rules are in IRS Publication 15, and our Payroll Withholding calculator shows one paycheck.
2. Register for Arkansas withholding tax through the Arkansas Taxpayer Access Point (ATAP), run by the Department of Finance and Administration. State copies of W-2s go in by January 31 with Form ARW-3, and the annual reconciliation (AR3MAR) is due February 28. Source: DFA Withholding Tax Branch page, last modified September 17, 2025.
3. Register for unemployment insurance tax with the Division of Workforce Services through its Tax21 employer portal. For 2026 the page lists a $7,000 taxable wage base, a 2.0% rate for a new employer and a range of 0.200% to 5.100% for experienced employers. Source: Arkansas Division of Workforce Services employer UI page.
4. Report each new hire within 20 days of the hire date to the Arkansas New Hire Reporting Center at the Division of Workforce Services. Source: A Guide for Arkansas Employers, Office of Child Support Enforcement.

Ask your provider which of these it does for you and which stay with you. A provider may handle the filings, but the registrations and the accounts are in your name.

How this page is made

Where the facts come from

Every provider fact on this page was read from that provider’s own pricing page on October 24, 2026. Tax rules come from the IRS and Arkansas state pages linked above. Prices and promotions change, so the date is on every entry, and we recheck each quarter. We take no payment from any provider on this page, and we do not rank them.

We chose providers that run payroll for small employers and that you can reach online. Missing one you use, or see a number that is out of date? Email info@groundworkbusinessadvisory.com and we will check it against the provider’s page.