The cheapest payroll service is not always the best deal. For one employee, you want the lowest all-in cost that still handles the parts you are not comfortable doing yourself.
What to compare
| Cost | Ask this |
|---|---|
| Monthly base fee | Is the advertised price permanent or introductory? |
| Per-employee fee | Does the first employee cost extra? |
| Tax filing support | Are deposits and filings included? |
| Year-end forms | Are W-2s and 1099s included or extra? |
Good fit
Low-cost payroll software is usually best when pay is simple, the employee is in one state, and you do not need deep HR support.
Before choosing
Write down your pay frequency, state, employee type, benefits needs, and whether you want the provider to handle tax payments directly.
Mistakes to avoid
Do not save a few dollars by keeping tax deposits, filings, or year-end forms outside the system unless you are confident you can manage them accurately.