Payroll for Your First Employee — Done Right the First Time
Set up payroll, taxes, and compliance in under 30 minutes — without hiring a CPA or HR firm.
Set Up Payroll the Easy WayHiring your first employee is exciting — payroll mistakes aren’t
- Payroll tax mistakes can trigger IRS penalties
- State and local compliance is easy to get wrong
- Misclassifying 1099 vs W-2 workers can be costly
- Manual payroll wastes hours every month
Most small business owners don’t mess up payroll because they’re careless — they mess it up because it’s confusing.
The simplest way to run payroll as a small business
Instead of juggling spreadsheets, tax forms, and deadlines, many small business owners use a single system that:
- Automatically calculates and files payroll taxes
- Handles W-2s and 1099s correctly
- Manages federal, state, and local compliance
- Runs payroll in just a few clicks
One of the most popular tools for this is Gusto.
Why small businesses choose Gusto
- Built specifically for small teams and first hires
- Automatic tax filings and year-end forms
- Health benefits and HR tools as you grow
- Clear pricing and fast setup
Is this right for you?
Yes, if you:
- Are hiring your first employee
- Run an LLC, S-Corp, or small business
- Want payroll done correctly without becoming an expert
- Don’t want to hire a payroll firm yet
Not ideal if you:
- Have 100+ employees
- Need enterprise-level customization
- Already have a full HR department
Common questions
Do I need an accountant to use this?
No. Payroll taxes and filings are handled automatically, though you can involve your accountant if you want.
Can I pay contractors too?
Yes. You can manage both W-2 employees and 1099 contractors.
What about state taxes and filings?
They’re handled automatically based on your business location.
Is there a long-term contract?
No. You can cancel anytime.