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Payroll for one employee, made simple
No credit card required. Cancel anytime.
The easiest way to pay yourself (or your one employee) and stay tax-compliant
Payroll for one employee shouldn't take a finance degree. Whether you're putting yourself on payroll or paying your first W-2 hire, FreshBooks handles the hard parts for you. In a few clicks, let taxes file themselves, and get back to the work you love.
Make one-employee payroll simple
Guided setup, without spreadsheets
Add your EIN, bank, and state tax details, onboard your employee with a W-4, and you're ready to run your first pay run.
File taxes automatically
FreshBooks calculates, pays, and files your federal and state payroll taxes, including 941s, 940s, and year-end W-2s.
Payroll and accounting in one login
Payroll entries sync to your chart of accounts, with no manual reconciliations or second tool to learn.
Built for one-employee businesses
Single-member LLCs electing S-corp
Run your owner salary on schedule, with the 941s, W-2s, and state filings that come with S-corp status handled for you.
Sole proprietors paying a first W-2 hire
Going from one to two is a big step. FreshBooks runs payroll, withholds taxes, and files the W-2—so you don't have to learn payroll on the fly.
Freelancers going full-time owner-employee
Swap owner draws for a real W-2 paycheck and show lenders, landlords, and underwriters that your income is the real deal.
Micro-businesses (1 W-2 and contractors)
Pay your one employee and your contractors from the same place, with W-2s and 1099-NECs filed at year-end.
Your payroll taxes, handled
Pay on time, every time
Your payroll taxes, handled
Pay on time, every time
Your payroll taxes, handled
Pay on time, every time
Set up payroll for one employee in 6 steps
Create your FreshBooks account—free for 30 days, no credit card needed.
Select the Payroll tab, then click Set Up Payroll under FreshBooks Payroll powered by Gusto.
Enter EIN and bank information.
Onboard yourself and your employee with a W-4 and pay rate.
Set up state tax for your business.
Run payroll on schedule, from the office or the job site.
Find the right FreshBooks plan for your business
Choose a plan and run your business with smarter tools. Risk-free. 30-Day money-back guarantee.
Plus
The ROI of running your business in FreshBooks
Take back 11 hrs a week
Spend less time on admin and more on the work that grows your business.
Save up to $580 a month
Capture every billable minute and stop money slipping through the cracks
Track 365 days of tax info
Year-round records mean filing is quick and painless when it counts.
Why Business Owners Love FreshBooks
FreshBooks has really helped me to be more efficient throughout the year so that tax time…it’s less stressful
Damona Hoffman
Dear Mrs D, Inc.
FreshBooks has really helped me to be more efficient throughout the year so that tax time…it’s less stressful
Damona Hoffman
Dear Mrs D, Inc.
Free payroll tools vs. FreshBooks payroll
| DIY payroll (spreadsheet + IRS forms | FreshBooks Payroll |
|---|---|---|
Calculate withholdings | You do the math and own the errors | Calculated automatically |
File 941s, 940s, and W-2s | On you, every quarter and year-end | Filed for you |
Direct deposit | Not possible without a separate service | Included |
Post to your accounting | Manual CSV uploads | Syncs automatically |
Stay compliant as rules change | You track the changes | Handled for you |
Support when you're stuck | Forums and guesswork | Real human help when you need it |
A free spreadsheet or a bare-bones payroll tool can look appealing when you only have one employee. But it usually leaves the hard parts to you: calculating withholdings, filing your 941s and W-2s, and keeping up with changing tax rates.
One missed deadline can cost far more than you ever saved.
FreshBooks Payroll is a better alternative, built for one-employee businesses. It calculates, pays, and files your federal and state payroll taxes automatically, runs direct deposit on schedule, and posts every pay run straight to your books—no CSV exports, no reconciliations.
On top of that, you get secure data storage and award-winning support whenever you're stuck. FreshBooks gives you everything you need to pay yourself or your hire and stay compliant with confidence.
A powerful partnership
You’re in good company
Rest easy knowing your payroll is in good hands. FreshBooks partners with Gusto to offer speedy set up and pleasant pay days. All from the comfort of your FreshBooks account.
Keep your books in sync
Transactions for every pay run will be automatically created so your reports and books stay accurate and organized.
See pay run info
Get an at-a-glance summary of your previous payroll runs with hours and earnings for your team.
File payroll taxes automatically
With FreshBooks Payroll, your payroll taxes are automatically filed.
Resources to support small business owners
8 Best Payroll Software for Small Business (2026)
How to Do Payroll Yourself for Small Business
How to Set Up Payroll for Your Small Business in 6 Easy Steps
Frequently Asked Questions
