Houston, TX · Payroll Services
Find Payroll Services in Houston, TX
Compare payroll providers and payroll-savvy accountants who handle processing, tax deposits, and compliance — so paydays are never a scramble and W-2s are never wrong. Serving Houston, TX and the surrounding region — Houston CPAs serve energy, healthcare, and the city's vast small-business community.
Why Houston clients hire payroll
Local context for payroll services in Houston, TX
Dominant local industries
- Energy & oil/gas services
- Healthcare & medical practices
- Logistics & port operations
- Real estate & construction
- Restaurants & hospitality
Texas tax climate
Texas has no state personal income tax and no corporate income tax — replaced by a margin (franchise) tax on businesses above the $2.47M no-tax threshold. Sales tax is 6.25% state plus local up to 8.25% combined. Property taxes are among the highest in the country, which shapes most local tax planning conversations.
Key local deadline
May 15
Texas Franchise (Margin) Tax Report and Public Information Report due — required even at $0 due.
When to hire
- You're about to hire your first W-2 employee
- You're manually calculating withholding and filing payroll tax yourself
- You've missed a payroll tax deposit deadline or filed late
- You operate in more than one state and payroll tax rules are getting complicated
- Your current provider doesn't integrate with your bookkeeping
What they do
- Payroll processing and direct deposit on a set schedule
- Federal, state, and local payroll tax deposits and filings
- New-hire reporting and W-2/1099 preparation at year-end
- Benefits and retirement plan deduction administration
- Multi-state payroll tax registration and compliance
Typical fees
What it costs
Low end
$40
per month base fee, plus per-employee
High end
$200+
per month base fee, plus per-employee
Notes
Most providers charge a base fee ($40–$100/mo) plus $6–$15 per employee per pay run. Full-service payroll bundled with a bookkeeper or CPA often runs $150–$500/month total for a small team.
Compare
Full-Service Payroll vs DIY / Software-Only Payroll
| Factor | Full-Service Payroll | DIY / Software-Only Payroll |
|---|---|---|
| Tax deposits & filings | Handled and guaranteed by provider | You're responsible |
| Compliance risk | Provider typically covers penalties for their errors | Falls on you |
| Multi-state support | Registration and filing handled | You register and file each state |
| Time investment | Minutes per pay run | Hours, plus research |
| Cost | $150–$500+/mo for small teams | $40–$150/mo software only |
Questions to ask
- Do you handle multi-state payroll tax registration and filing?
- What happens if a tax deposit or filing is late — who's liable?
- Does your system integrate with our accounting software?
- How do you handle contractor payments and 1099s alongside W-2 payroll?
- What's included for benefits and retirement plan deductions?
- How quickly can you fix an error if an employee is paid wrong?
Red flags
- No clear answer on who's responsible for late-filing penalties
- Doesn't support your state if you have remote or multi-state employees
- No integration with your accounting software — manual journal entries every month
- Vague, bundled pricing with no per-employee breakdown
- No experience with your industry's specific pay rules (tips, prevailing wage, overtime)
Documents to prepare
- EIN and state employer tax account numbers
- Employee W-4s and state withholding forms
- Prior payroll records or provider export, if switching
- Pay schedule, rates, and any benefits/retirement deductions
- Any existing payroll tax notices or unresolved filings
By city
Payroll Services in Houston in major U.S. cities
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Payroll Services serving Houston, TX
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FAQ
Payroll Services in Houston — common questions
How much does payroll services cost in Houston?+
Houston payroll services typically charge $40–$200+ per month base fee, plus per-employee. Most providers charge a base fee ($40–$100/mo) plus $6–$15 per employee per pay run. Full-service payroll bundled with a bookkeeper or CPA often runs $150–$500/month total for a small team.
Do I need a Texas-licensed CPA to work with a payroll services in Houston?+
For Texas state filings, your preparer should hold a CPA license from the Texas Board of Accountancy or be an Enrolled Agent. Out-of-state pros can prepare your federal return but should not sign as a CPA on Texas returns. Texas has no state personal income tax and no corporate income tax — replaced by a margin (franchise) tax on businesses above the $2.47M no-tax threshold.
How much does payroll cost for a small business?+
Expect a base fee of $40–$100/month plus roughly $6–$15 per employee per pay run for a standalone provider. Bundled with bookkeeping or CPA services, total payroll-related cost often runs $150–$500/month for a small team.
Who's responsible if a payroll tax deposit is filed late?+
This varies by provider — many full-service payroll companies contractually guarantee tax filings and will cover penalties caused by their own errors. Confirm this in writing before signing up; it's not automatic with every provider.
Do I need a different provider for multi-state employees?+
Not necessarily, but you do need a provider that actively supports registration and filing in every state where you have employees — not just processes the pay run and leaves compliance to you.
Can my bookkeeper or CPA also run payroll?+
Many small-business CPAs and bookkeeping firms offer payroll processing bundled with monthly accounting, which keeps payroll journal entries and tax filings in sync with your books automatically.
What's the difference between a W-2 employee and a 1099 contractor for payroll purposes?+
W-2 employees have taxes withheld and employer payroll taxes paid on their behalf; 1099 contractors are paid gross with no withholding and report their own self-employment tax. Misclassifying one as the other is a common and costly compliance mistake.
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