We use Paychex, they are a national service. An acount rep comes to your house, sets you up, then you get a payroll rep who calls you each week for payroll hours. The monthly fee ranges, but our average is only about $30-40 month. They deduct everything necessary, cut us checks, transfer the funds out of our account, and sends in all our taxes (and employees)to the IRS for us all for this $30. We are also provided monthly, quarterly, and yearly reports, as well as W-2's are sent out to our employees. We asked them how they do all of this for a lousy $30. They basically told us that the day they transfer the funds from our account to theirs, they earn a days interest from our funds. Multiply that times 330,000 accounts nationwide, and that's some serious bucks. Plus the payroll fee is tax deductable as a professional fee. Go this route if possible, it lets you sleep at night. If you need a number for them, email me.