Best Payroll Services for One Employee & S Corps (2026)
What payroll costs when you pay one person, whether that is your first employee or yourself as an S corp owner, and when you need payroll at all.
Updated October 26, 2026
15 min read
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Payroll for one person is mostly a fixed cost. Every service charges a monthly base fee, so with one employee you pay $36 to $57 a month for full-service payroll, almost the same as a five-person team. The right choice depends on whether you are paying an employee or yourself, and how much of the tax work you want to hand off.
The short answer
Best for one-person S corps:Gusto Solo, about $55 a month, with a salary calculator and S corp election help.
Best if you pay yourself quarterly:OnPay, which charges its $6 per-person fee only in months you run payroll.
Cheapest first year with taxes filed:Roll by ADP, $396 with three free months.
Cheapest if you file taxes yourself:Patriot Basic, $21 a month.
Sole proprietor paying only yourself? You do not need payroll. See who does.
Do You Need Payroll for One Person?
It depends on how your business is set up. Many owners pay for payroll they do not need, and others skip payroll they are required to run.
Your situation
Do you need payroll?
What the IRS says
Sole proprietor, or single-member LLC taxed as one, paying only yourself
No
You are not an employee of your business. You take money out as withdrawals and pay self-employment tax on your profit (Publication 334, single-member LLCs).
S corporation owner who works in the business
Yes
Corporate officers are generally employees. You must pay yourself reasonable compensation as wages before taking distributions (IRS guidance).
Any business with one W-2 employee
Yes
You must withhold income tax and the employee's share of Social Security and Medicare, pay the employer share, and file employment tax returns (Publication 15).
Prices from each provider's pricing page, October 26, 2026, paying one person monthly. First-year cost includes current offers: Roll 3 free months, OnPay first month free, QuickBooks 50% off the base fee for 3 months, and SurePayroll's year-end fee ($50 + $5 per form).
Gusto built its Solo plan for owners who are the only person on payroll, especially one-person S corporations. It costs $49 a month plus $6 per person paid, and Gusto says most owners pay $55 a month. Solo is the only plan we found with S corp tools built in: a reasonable-salary calculator, an AI S corp advisor, and guided Form 2553 filing to elect S corp status, with Gusto covering the postage. It files your federal, state and local payroll taxes, including quarterly Form 941s and year-end W-2s, and when you hire your first employee you move up to a regular Gusto plan with your history carried over.
Starting Price
$49/mo + $6/person
Best For
Solo S Corps
Contract
Month to month
Key Features
Reasonable-salary calculator
Guided Form 2553 (S corp election) filing
AI S corp advisor
Federal, state and local tax filing
Quarterly 941s, W-2s and 1099s
Access to a Solo 401(k)
Unlimited payroll runs and 2-day direct deposit
Upgrade path when you hire
Pros
Only plan with built-in S corp setup and salary tools
No extra charge for tax forms
Works in all 50 states
Easy move to full payroll when you grow
Cons
Costs more than bare-bones plans
No free trial
Next-day pay is extra on lower plans
Why We Picked It
If you are setting up or running a one-person S corp, the hard parts are picking a defensible salary and getting the election and filings right. Gusto Solo is the only service we compared that helps with both, for about $55 a month.
OnPay costs $49 a month plus $6 per worker, but its S corp page states that the $6 is charged only in months that person is actually paid. You can run owner payroll monthly, quarterly or once a year, and OnPay files the zero returns for quarters with no payroll. Paying yourself quarterly works out to $612 a year. For single-member companies that pay the owner only a couple of times a year, OnPay says it offers special pricing on request.
Starting Price
$49/mo + $6/ee
First Month
Free
Setup Fees
None
Key Features
Per-worker fee only in months you run payroll
Monthly, quarterly or annual owner payroll
Zero filings for quarters without payroll
Federal, state and local tax filing
W-2s, 1099s and year-end filings included
Free setup and data migration
New-hire reporting
Pros
Flexible pay schedule for S corp owners
No year-end or form fees
First month free
Grows into full payroll and benefits
Cons
Base fee applies every month
HR tools cost extra ($15 + $2 per worker)
Special solo pricing is not published
Why We Picked It
Many one-person S corps do not need a monthly payroll. OnPay is the only provider we found that publishes per-person billing tied to the months you pay, plus zero filings for the quarters in between.
Roll by ADP is $39 a month plus $5 per person paid, so $44 for one employee, and new customers get the first three months free. That puts its first-year cost at $396, the lowest of any plan that files your taxes. Roll handles federal, state and local payroll taxes and files W-2s and 1099-NECs. It runs through a chat-style mobile app, and new clients get a free 30-minute tax consultation with 1-800Accountant.
Starting Price
$39/mo + $5/ee
Free Months
3 (new clients)
Contract
None
Key Features
Federal, state and local tax filing
W-2 and 1099-NEC filing
Unlimited payroll runs
Next-day direct deposit
Chat-based mobile app
Free 30-minute tax consultation
Pros
Lowest first-year cost with tax filing
ADP runs the tax side
Fee only for people paid that month
Fast deposits included
Cons
No S corp salary tools
Free months are a limited-time offer
Paid by direct debit only
30 days' notice to cancel
Why We Picked It
If you want the lowest bill in year one with taxes handled, Roll wins at $396. Owners who want help setting their S corp salary should still look at Gusto Solo.
SurePayroll, owned by Paychex, markets directly to one-person S corps. Full Service is $29 a month plus $7 per employee, $36 for one person, and it pays and files your federal and state payroll taxes. Year-end W-2 processing is billed separately at $50 plus $5 per form, about $55 a year for one employee. If you would rather file taxes yourself, the No Tax Filing plan is $20 a month plus $4.
Full Service
$29/mo + $7/ee
No Tax Filing
$20/mo + $4/ee
Year-End Forms
$50 + $5/form
Key Features
Federal and state tax filing on Full Service
Unlimited payroll runs, no off-cycle charge
Free 2-day direct deposit
Plans pitched at one-person S corps
Free onboarding
Extra states $9.99/mo
Pros
Lowest ongoing monthly price with tax filing
Fast free direct deposit
Paychex backing
Cheap no-filing plan available
Cons
Year-end fee adds about $55 a year
Local tax areas cost extra
Prices may differ by visitor
Why We Picked It
After the first year, SurePayroll is the cheapest service we found that still files your taxes: about $487 a year for one employee including the year-end fee.
Patriot Software Basic Payroll is $17 a month plus $4 per worker, $21 for one person and $252 a year. It calculates every paycheck and the federal, state and local taxes, then you make the deposits and file the returns yourself. With one employee that is manageable: new employers deposit monthly, and a quarter with less than $2,500 of tax can be paid with the quarterly return. If you want Patriot to file for you, Full Service is $37 plus $5, or $42 a month for one person.
Basic (DIY)
$17/mo + $4/ee
Full Service
$37/mo + $5/ee
Free Trial
30 days
Key Features
Unlimited payroll runs
Free direct deposit
Tax calculations for federal, state and local
Full Service files federal, state and most local taxes
W-2 and 1099 filing on Full Service
Free setup help
Pros
Cheapest dependable payroll we found
Easy upgrade from Basic to Full Service
No per-run fees
USA-based support
Cons
On Basic, deposits and filings are on you
No S corp salary tools
Fewer HR features than Gusto or OnPay
Why We Picked It
For an owner comfortable with a few IRS deadlines a year, Patriot Basic cuts payroll to $252 a year. Full Service at $42 a month is a fair price if you would rather hand it off.
QuickBooks Payroll is now called QuickBooks Workforce. The Workforce Payroll plan is $50 a month plus $7 per employee, $57 for one person, and new customers can take 50% off the base fee for three months or a 30-day free trial. You do not need QuickBooks Online to use it, but it fits best if your books are already there. It files federal and state payroll taxes. The top Elite plan, $134 plus $17, adds tax penalty protection that reimburses penalties and interest up to $25,000 a year.
Starting Price
$50/mo + $7/ee
Intro Offer
50% off base, 3 mo
Penalty Cover
Elite plan
Key Features
Federal and state tax filing
Next-day direct deposit
Syncs with QuickBooks accounting
Same-day deposit on Premium and Elite
Tax penalty protection up to $25,000 on Elite
1099 e-filing
Pros
Payroll and books in one place
Penalty protection available
No QuickBooks Online subscription required
Many accountants already work in QuickBooks
Cons
Highest one-person price in our table
Local tax filing limited, and not on the base plan
Each extra state is $12/mo
Why We Picked It
If your accountant already works in QuickBooks, keeping payroll there saves reconciliation time, which can be worth more than the few dollars a month you would save elsewhere.
ADP RUN sells "RUN for one" for S corp owners and single-employee businesses. ADP files your payroll taxes, deals with IRS notices and manages state unemployment insurance claims, and it creates, delivers and files W-2s. Pricing is by quote with no fixed fees or contract. New clients who sign and start processing by November 26, 2026 can get up to six free months, applied to months 4 to 6 and 13 to 15.
Starting Price
Custom quote
Best For
Hands-off S Corps
Contract
None
Key Features
Payroll tax filing and deposits
Handles IRS and state tax notices
State unemployment claims management
W-2 creation and filing
Mobile app
Room to add HR and benefits later
Pros
One of the biggest names in US payroll
Help with tax notices
Free-months offer for new clients
Scales to full HR
Cons
No published price
Year-end forms and extra runs can cost extra on standard plans
More than most one-person companies need
Why We Picked It
For owners who want a name they trust to handle notices and state unemployment for them, ADP's S corp offering is the most hands-off choice. Get a written quote and compare it with the published prices above.
How S Corp Owner Payroll Works
If your company is taxed as an S corporation and you work in it, the IRS treats you as an employee. You must pay yourself reasonable compensation as wages through payroll before you take distributions (IRS: S corporation compensation).
The salary carries Social Security and Medicare tax: 7.65% withheld from you and 7.65% paid by the company. Distributions are not wages, which is why the IRS insists the salary be reasonable first. If it is not, the IRS can reclassify distributions as wages, and courts have backed it in cases such as Watson and Glass Blocks Unlimited (IRS: S corporation employees).
What counts as reasonable compensation
The IRS publishes no dollar figure or percentage. It looks at what you do for the company and where its income comes from, including:
Your training, experience, duties and time spent in the business
What comparable businesses pay for similar services
What the company pays non-owner employees
Dividend history and the timing of bonuses
Any compensation agreement or formula
Gusto Solo includes a salary calculator. Whichever service you use, agree the number with your accountant and keep notes on how you set it.
Health insurance for S corp owners
If the company pays health insurance premiums for a shareholder who owns more than 2%, the premiums are reported as wages in Box 1 of your W-2 but not in the Social Security and Medicare boxes (3 and 5). Your payroll service should handle this. Ask before you sign up.
What Payroll Involves With One Employee
A payroll service does most of this for you. If you run payroll yourself, this is the list.
Get an EIN. It is free from the IRS and you can apply online (IRS).
Collect Form W-4 and Form I-9 from the employee when they start (USCIS: Form I-9).
Register with your state for withholding and unemployment insurance. Thresholds vary: California, for example, requires registration within 15 days of paying more than $100 in wages in a quarter. Find your state agency in the Department of Labor directory.
Withhold and deposit taxes. Withhold federal income tax, Social Security and Medicare, add the employer share, and deposit electronically. New employers deposit monthly, by the 15th of the following month (Publication 15).
File Form 941 every quarter, by April 30, July 31, October 31 and January 31, or Form 944 once a year if the IRS tells you to (IRS due dates).
File Form 940 for federal unemployment tax each year, due January 31.
Give the employee a W-2 and file W-2 and W-3 with the Social Security Administration by January 31 (IRS).
Late deposits cost 2% to 15% of the tax due, depending on how late (IRS failure-to-deposit penalty). For a one-person payroll, that risk is the main reason to pay $36 to $55 a month for a service.
2026 Payroll Tax Numbers
2026 payroll tax figure
Amount
Social Security tax
6.2% from the employee + 6.2% from the employer
Medicare tax
1.45% from the employee + 1.45% from the employer
Social Security wage base
$184,500 (rises to $192,300 in 2027)
Additional Medicare tax
0.9% withheld on wages over $200,000 (no employer match)
Federal unemployment (FUTA)
6.0% on the first $7,000 of wages, usually 0.6% after state credit (up to $42 a year per employee)
Form 944 eligibility
Annual Social Security, Medicare and income tax withholding of $1,000 or less, by IRS notice
What is the best payroll service for one employee?
For a one-person S corp, Gusto Solo is the best overall because it includes a reasonable-salary calculator and S corp election help for about $55 a month. For a business with one regular employee, SurePayroll ($36 a month) and Roll by ADP ($44 a month, first three months free) are the cheapest services that file your taxes.
How much does payroll cost for one employee?
Published full-service prices for one person run from $36 a month (SurePayroll) to $57 a month (QuickBooks Workforce Payroll). If you file taxes yourself, Patriot Basic costs $21 a month. ADP and Paychex quote prices individually.
Do I need payroll if I am the only employee?
Only if your business is an S corporation or a C corporation that pays you a salary. Sole proprietors and single-member LLCs taxed as sole proprietorships are not employees of their business; they take withdrawals and pay self-employment tax instead.
Can I do payroll myself for one employee?
Yes. You need an EIN, must withhold and deposit federal taxes electronically, file Form 941 quarterly (or Form 944 annually if the IRS tells you to), file Form 940, and issue a W-2 by January 31. A self-service plan such as Patriot Basic at $21 a month does the calculations so you only make the deposits and filings.
How often should an S corp owner run payroll?
The IRS requires a reasonable salary but does not set how often you pay it. Several providers let you run owner payroll monthly, quarterly or once a year; OnPay charges its per-person fee only in months you run payroll. Agree the schedule with your accountant, because deposit deadlines still apply.
What is the cheapest payroll for an S corp?
Patriot Basic is the cheapest at $252 a year if you file the taxes yourself. With taxes filed for you, Roll by ADP is cheapest in the first year at $396, and SurePayroll is cheapest after that at about $487 a year.
What is reasonable compensation for an S corp owner?
There is no IRS formula. The IRS looks at your duties, time, experience, what similar businesses pay for the same work, and what the company pays other staff. Use a salary tool or your accountant, and keep a record of how you chose the number.
How We Chose These Services
We compared nine payroll services on what they cost and do for a business paying one person: either a single employee or a one-person S corp owner. Prices come from each provider's own pricing and one-employee or S corp pages, checked on October 26, 2026. Patriot's site blocked automated access, so we confirmed its prices against Forbes Advisor (October 2, 2026) and TechRepublic (September 7, 2026).
Cost for one person. Monthly list price and first-year cost including current offers and year-end fees.
Tax filing. Whether federal, state and local payroll taxes and year-end forms are filed for you.
S corp fit. Salary tools, election help, flexible pay schedules and billing for months without payroll.
Rules and tax figures come from the IRS, the Social Security Administration, the Department of Labor and HHS, linked where they appear. Affiliate links do not change the cost figures. This guide is general information, not tax advice; talk to an accountant about your salary and entity choice.
