Payroll Services in the USA

Payroll outsourcing that keeps you compliant in every state

Payroll is unforgiving: a late deposit or a wrong form triggers penalties quickly. We run payroll, calculate withholding, make tax deposits and file the required returns so that your team is paid accurately and on time, wherever in the United States they work.

What is included

• Regular payroll runs with direct deposit and pay stubs
• Federal, state and local withholding calculations
• Payroll tax deposits and quarterly Form 941 filings
• Annual Form 940, Form W-2 and Form 1099-NEC preparation
• New-hire reporting and contractor onboarding, including Form W-9 collection
• State unemployment and withholding account registration for new states

Employees or contractors?

Misclassifying workers is one of the most common and costly payroll errors. The IRS looks at behavioural control, financial control and the nature of the relationship, not just what the contract says. We help you assess each role before you hire and set up the right paperwork for either path.

Payroll for foreign-owned US companies

A US company owned from abroad still has US payroll obligations when it employs people in the United States. We coordinate payroll with your bookkeeping so that wages, taxes and owner payments are recorded correctly, which also supports annual filings such as Form 5472.

Key payroll deadlines

Payroll tax deposits follow a monthly or semiweekly schedule depending on your size, Form 941 is filed quarterly, and Forms W-2, 1099-NEC and 940 are generally due by January 31. See our tax deadlines guide for the full calendar.

What a US payroll service actually covers

Payroll is more than paying people on time. Each pay run triggers calculations, deposits, reports and records that must agree with one another. Employers withhold federal income tax, withhold the employee share of Social Security and Medicare, pay the employer share, pay federal and state unemployment taxes, and file the returns that report all of it. Mistakes are expensive because payroll taxes are held in trust for the government, and penalties can reach the business and, in some cases, the people responsible for it.

Our payroll service handles the full cycle: employee and contractor setup, pay runs, tax calculation, deposits, quarterly and annual filings, year-end forms and the accounting entries that tie everything to your books. It works alongside our bookkeeping and tax preparation services, so payroll liabilities in the ledger always match what has been filed.

Employee onboarding and compliance

Compliance starts before the first paycheck. A new employee completes Form W-4 so withholding can be calculated, and both employer and employee complete Form I-9 to verify work eligibility, with the employer finishing its part within three business days of the start date. Most states also require new hires to be reported to a state directory within a short window, often around 20 days.

We set up each employee with the correct pay rate, pay frequency, overtime status, benefits deductions and state tax profile. We also help you register for the state withholding and unemployment accounts you need before running payroll. Records are stored securely and available for audits or agency questions.

Payroll taxes explained in plain language

• Federal income tax withholding: calculated from the employee's Form W-4 and the IRS withholding tables.
• Social Security and Medicare (FICA): 6.2% Social Security and 1.45% Medicare are withheld from the employee and matched by the employer, up to the annual Social Security wage base for the Social Security portion. An Additional Medicare Tax of 0.9% applies to employee wages above $200,000.
• Federal unemployment tax (FUTA): the employer pays this on the first $7,000 of each employee's wages, with a credit that lowers the effective rate when state unemployment taxes are paid on time.
• State unemployment tax (SUTA): rates and wage bases vary by state and by your claims history.
• State and local withholding: some states and cities add income tax, disability or paid family leave contributions.

Rates and wage bases change over time, so we apply the figures in force for the pay date rather than relying on fixed numbers.

Filing deadlines we manage

Most employers file Form 941 each quarter, due on the last day of the month after the quarter ends, and deposit taxes on a monthly or semiweekly schedule based on their lookback liability. Smaller employers may qualify for annual Form 944. Form 940 for federal unemployment tax is filed annually. At year end, Forms W-2 and W-3 go to employees and the Social Security Administration, and Forms 1099-NEC go to qualifying contractors, generally by January 31.

We build these into one calendar with your state deadlines and reminders, so nothing depends on memory. Our US tax deadlines page shows how payroll dates sit alongside income tax dates.

Employees or contractors? Getting classification right

Classifying a worker as an independent contractor when the relationship looks like employment is a common and costly error. The IRS looks at behavioral control, financial control and the nature of the relationship, and states apply their own tests, some stricter than the federal one. Misclassification can lead to back taxes, penalties and interest.

We help you assess each role, collect Form W-9 from contractors, track payments through the year and prepare 1099-NEC reports. Where the facts point to employment, we explain the change and set up payroll correctly.

Multi-state and remote teams

Remote hiring has made payroll more complex. An employee who works from another state may require you to register for withholding and unemployment in that state, and some cities have local taxes as well. Rules differ on when work location, residence or both determine where tax is owed. We review each hire, register where required and keep a record of where every employee works.

Payroll for owners and foreign-owned companies

Owner pay depends on the entity. Sole proprietors and partners are generally not employees of their business, while S-corporation owners who work in the business must receive reasonable salary through payroll. C-corporation officers who perform services are employees. We set up owner pay in line with your structure, as described in LLC vs S-corp vs C-corp.

Foreign-owned US companies that hire in the US also need an EIN and state registrations. Our company formation and cross-border compliance teams can set these up and align payroll with your Form 5472 reporting.

Payroll and your accounting

Each pay run posts wages, employer taxes, benefits and liabilities to the right accounts. We reconcile payroll liabilities every month, so the amount owed to the IRS and states in your books matches your filings. Clean payroll data also supports loan applications, investor reports and workers' compensation audits, and feeds budgeting work from our CFO advisory team.

Payroll FAQs

How much does payroll service cost? Fees depend on the number of employees, pay frequency and states. We quote a fixed monthly price after a short scoping call.

Can you take over mid-year? Yes. We set up year-to-date balances so quarterly and year-end filings remain accurate.

Who is responsible for payroll tax errors? The employer remains legally responsible, which is why we review every filing and monitor notices. If a notice arrives, we help you respond.

Can you run payroll for a very small team? Yes. Many clients have one to ten employees. Ready to start? Book a free consultation.

Pay frequency, pay stubs and direct deposit

Pay frequency is a business decision with legal limits. Some states set minimum pay schedules, and the choice affects cash flow and administrative work. Weekly, biweekly, semimonthly and monthly cycles each have trade-offs. Employees should receive clear pay stubs showing hours, gross pay, deductions and net pay, and many states require this by law. We set a schedule that fits your cash cycle and local rules and offer direct deposit and electronic stubs.

Benefits, deductions and garnishments

Payroll must reflect pre-tax and post-tax deductions, such as health premiums, retirement contributions, commuter benefits and wage garnishments. Each has its own tax treatment and remittance rules. We set up deductions with the right tax flags, remit amounts to carriers or agencies and reconcile them monthly so withheld money is never left in the wrong account.

Overtime and exempt versus non-exempt status

Federal and state wage laws require overtime for many employees, and exempt status depends on both pay level and job duties rather than a job title. State rules can be stricter than federal ones. Misclassifying a role as exempt is a frequent source of back-pay claims. We flag roles that need review and apply the correct overtime calculations.

Paid leave, insurance and state programs

Many states require paid sick leave, paid family leave or disability contributions, and most employers must carry workers' compensation insurance. These obligations vary by state and employer size. We track accruals, apply the right payroll deductions and give you a state checklist when you hire in a new location. Insurance audits are easier when payroll reports are already organized by class and period.

Termination, final pay and records

When an employee leaves, final pay timing, unused leave payouts and benefit notices depend on state law. We help you calculate final pay, close the employee record and keep copies of payroll files for the period required. Retaining organized records protects you in a wage claim or agency audit.

Year-end payroll checklist

• Verify employee names, addresses and taxpayer identification numbers.
• Reconcile quarterly returns to the ledger and year-to-date totals.
• Review contractor payments and collect any missing Forms W-9.
• File Forms W-2, W-3 and 1099-NEC by the deadline.
• Update withholding and benefit settings for the new year.

Starting early avoids penalties. Learn more about filing dates or ask us to review your payroll setup.

Setting up payroll for the first time

• Obtain an EIN and confirm your business structure.
• Register for state withholding and unemployment accounts.
• Collect Forms W-4 and I-9 for each employee before the first pay run.
• Decide pay frequency and set up bank details for tax deposits.
• Set up benefits deductions, leave policies and workers' compensation.
• Run a test payroll, review results and then go live.

We guide new employers through each step, and take on mid-year switches from another provider while preserving year-to-date data.

Payroll mistakes that cost businesses money

• Late or incorrect tax deposits, which attract penalties and interest.
• Treating employees as contractors or the reverse.
• Missing state registrations for remote employees.
• Incorrect overtime or exempt classification.
• Failing to reconcile payroll liabilities to the ledger.
• Ignoring notices from agencies until a deadline passes.

Each of these is preventable with a calendar, a review step and monthly reconciliation.

Payroll for founders and small teams

Founders often start with one employee or only themselves. Even a one-person payroll needs correct withholding, deposits and filings. We handle owner-employee payroll for corporations and S-corporations, contractor payments for early teams and the move to full payroll as you hire. For help choosing a structure, see US company formation, and for deadlines see US tax deadlines.