First-month costs after hiring an employee (2026)

The pile

The first month after a W-2 is not “Gusto plus hope.” You owe: wages, employer-side taxes, a payroll product that files, a business-named account that can take the debit, workers’ compensation where required, onboarding time, and usually a ledger that is no longer a spreadsheet. How to choose payroll for your first employee is the buying process. First-hire stack is the default kit. This page is the cost list so you do not discover line items on payday two.

Software napkins as of September 21, 2026

• Gusto Simple: $49 + $6 = $55 for one person, one state. Ten people: $109. See how much Gusto costs for 10 employees.
• Square Payroll: $35 + $6 if the register is Square.
• OnPay: $49 + $6, multi-state included on their card.
• Workforce: $50 + $7 plus QBO (Simple Start $38 or more).
• QBO if you leave Wave: $38–$140 depending on plan. See how much QBO costs.
• Homebase scheduling + payroll if the roster is the leak: payroll $39 + $6 plus a location plan.
• Banking: Mercury/Relay/Novo $0 monthly on published core stories — not a substitute for wages.

Not software

• Gross wages and employer FICA/FUTA/SUI — computed from pay, not from Gusto’s $55.
• Workers’ compensation. Many states want this before day one. A partner add-on in Gusto is not automatically a bound policy.
• Benefits. Month one is often “wait until benefits-eligible.” If you offered them in the offer letter, budget the premium.
• Equipment and accounts. A laptop is not Rippling. See Gusto vs Rippling payroll before you buy an HRIS for one person.
• Your time. Setup, I-9, and the first register review. See payroll-tax mistakes for new employers.
• A CPA hour to look at the first register. Cheap compared to a wrong quarter.

A one-hire scenario (illustrative, not a quote)

One W-2, one state, $4,000 gross in month one. Software: Gusto Simple $55. Ledger: Wave $0 if it already exists, or QBO Simple Start $38 if the CPA asked. Bank: $0 Mercury/Relay if you already opened it — if not, open it this week (see banking mistakes). Workers’ comp: your state’s quote, not a number we will invent. Employer taxes: a percentage of wages your CPA or the payroll register will show — we will not publish a fake combined rate. The point: $55 is not the cost of the hire. $4,000 + taxes + policy + $55 is closer to the conversation.

What not to buy in month one

• Rippling or BambooHR “to grow into.” BambooHR’s sub-25 floor starts at $250/month on pages we have reviewed. See the HR ranking.
• Gusto Premium for one person.
• A second payroll “backup.”
• AI hiring agents. Aiacent.
• Four fintechs because payroll “needs a stack.”