Top 10 Payroll Companies Kansas City MO Businesses Choose [2026]
📞 Call Now: (816) 808-6626IRS penalties for payroll errors cost small businesses over $7 billion annually, with 40% of small businesses paying an average of $845 in penalties each year.
Last month, a Lee's Summit HVAC company got hit with a $12,000 penalty because they miscalculated Kansas City earnings tax withholding. A Westport restaurant nearly closed after missing payroll tax deposits for three quarters. An Overland Park consulting firm spent $8,000 fixing payroll mistakes their previous provider made. Payroll isn't just cutting checks anymore. It's federal tax deposits, state unemployment, local earnings tax, workers comp reporting, new hire notifications, and a dozen other requirements that change constantly. Getting it wrong costs real money. This list features payroll companies Kansas City MO businesses actually trust with their biggest expense and biggest liability. We evaluated each on accuracy, compliance knowledge, response times, technology, and how well they handle Kansas City's unique tax requirements. From three-person startups to fifty-employee operations, these providers keep people paid correctly and on time.
1. Paychex
National payroll leader with Kansas City presence offering comprehensive payroll and HR services.
Core Services
• Full-service payroll processing
• Tax filing and compliance management
• Direct deposit and pay cards
• Employee self-service portal
• Workers compensation administration
• Time and attendance tracking
• HR support and compliance tools
Paychex brings enterprise-level systems to small businesses. Their technology platform handles everything from basic payroll to complex multi-state tax compliance. They're particularly strong with Kansas City earnings tax, automatically calculating the 1% withholding based on employee residence and work location.
The dedicated payroll specialist model means you have a specific person who knows your business, not a call center. They handle federal, state, and local tax deposits, file quarterly and annual reports, and manage year-end W-2 preparation.
Their HR add-ons include employee handbook creation, job description templates, compliance alerts, and dedicated HR advisors for complex employee situations.
2. ADP
Industry-leading payroll provider with Kansas City operations serving businesses from startups to large enterprises.
What They Offer
• Comprehensive payroll processing
• Multi-state and local tax compliance
• Employee benefits administration
• Time tracking integration
• Mobile app access
• Retirement plan services
• HR compliance support
ADP's RUN platform serves small businesses with user-friendly payroll processing. Their technology automatically updates for tax law changes, handles Kansas City earnings tax calculations, and integrates with popular accounting software like QuickBooks.
The tax compliance guarantee means ADP pays penalties if they make filing errors. This transfers significant liability off your shoulders. They handle all federal, Missouri, Kansas, and Kansas City tax filings and deposits.
Their mobile app lets employees view pay stubs, update direct deposit information, and access W-2s electronically. This reduces administrative burden on business owners.
3. Elevated Ledger
3013 Oak St, Kansas City, MO 64108
Phone: (816) 808-6626
Website: elevatedledger.net
Hours: Mon-Fri 9:30 AM – 6:00 PM
View on Google Maps
Elevated Ledger provides small business and home-based payroll management services in Kansas City and surrounding communities including Overland Park, Olathe, Leawood, Lee's Summit, Independence, North Kansas City, and Blue Springs.
Why Local Businesses Choose Them for Payroll
Most payroll services just process paychecks. Elevated Ledger integrates payroll with your overall financial management, showing you true labor costs, burden rates, and how payroll affects profitability. They helped a construction company understand actual employee costs versus billing rates, increasing margins by 11%. They showed a restaurant owner how tip reporting affected payroll taxes, saving $6,400 annually.
The owner is QuickBooks Payroll certified, ensuring your payroll integrates perfectly with your bookkeeping. No duplicate data entry, no reconciliation nightmares. Everything flows seamlessly from time tracking to financial statements.
Complete Payroll Services
• Weekly, bi-weekly, semi-monthly, or monthly payroll processing
• Federal payroll tax deposits and filings
• Missouri and Kansas state tax compliance
• Kansas City earnings tax calculation and filing
• Direct deposit setup and processing
• Pay stub generation and distribution
• Year-end W-2 and 1099 preparation
• New hire reporting to state agencies
• Workers compensation reporting
• Payroll integration with QuickBooks
• Strategic labor cost analysis
What Clients Say About Their Payroll Service
"Elevated Ledger handles our payroll seamlessly. They understand Kansas City earnings tax complications better than the big national companies we tried before. Plus, they explain our labor costs in ways that help us make better hiring decisions."
"Switching our payroll here was the best decision we made. They caught errors our previous provider missed for two years and helped us get everything corrected."
Payroll Investment
Payroll services start at $150 monthly base plus per-employee fees. They include all tax filings, direct deposit, and integration with your existing bookkeeping.
Free payroll consultation available to review your current payroll, identify issues, and show how integrated payroll and bookkeeping saves time and money.
Kansas City Payroll Expertise
They understand Kansas City earnings tax employee and employer requirements, Missouri state income tax withholding, Kansas state income tax for cross-border employees, Jackson County personal property tax implications, local workers compensation requirements, and Missouri new hire reporting deadlines.
4. Gusto
Modern cloud-based payroll platform popular with tech-forward Kansas City small businesses.
Platform Features
• Automated payroll processing
• Full tax compliance and filing
• Employee benefits administration
• Time tracking integration
• Employee onboarding workflows
• Contractor payment management
• Mobile app for employees and employers
Gusto appeals to tech-savvy businesses with its modern interface and automation features. The platform handles payroll, benefits, and HR in one system. Employees love the user experience, accessing pay stubs, updating information, and viewing benefits through intuitive mobile apps.
The health insurance integration connects payroll deductions directly to carrier billing, eliminating manual coordination. They also facilitate 401(k) administration through partner providers.
Their contractor payment features simplify 1099 management, automatically tracking payments and generating year-end forms.
5. QuickBooks Payroll
Intuit's payroll solution integrating directly with QuickBooks Online for seamless bookkeeping.
Integration Benefits
• Native QuickBooks Online integration
• Automated tax calculations and filing
• Same-day direct deposit
• Workers compensation tracking
• Time tracking through QuickBooks Time
• Employee self-service portal
• Automated year-end tax forms
QuickBooks Payroll makes sense for businesses already using QuickBooks. The native integration eliminates data entry duplication and reconciliation issues. Payroll transactions flow automatically into your books with proper categorization.
The tax penalty protection guarantees they'll pay penalties and interest if QuickBooks makes a calculation or filing error. This includes federal, state, and local taxes.
Their support team understands Kansas City earnings tax requirements and can assist with complex situations involving employees living and working in different jurisdictions.
6. OnPay
Straightforward payroll service with transparent pricing and unlimited payroll runs.
Service Model
• Unlimited payroll runs
• Full-service tax filing
• Direct deposit included
• Employee self-onboarding
• Benefits administration
• Time tracking integration
• Dedicated setup specialist
OnPay's simple pricing includes unlimited payroll runs, making them attractive for businesses paying weekly or needing off-cycle paychecks for bonuses or commissions. One flat rate per month plus per-employee fee covers everything.
The setup specialist personally configures your payroll, imports employee data, and trains you on the system. This white-glove onboarding reduces implementation stress.
Their benefits marketplace connects you with insurance providers for health, dental, vision, disability, and life insurance with integrated payroll deductions.
7. Paylocity
Comprehensive HR and payroll platform for growing Kansas City businesses.
Full-Service Platform
• Payroll processing and tax compliance
• HR management tools
• Applicant tracking system
• Performance management
• Learning management
• Employee engagement surveys
• Workforce analytics
Paylocity serves growing businesses needing more than just payroll. Their platform handles the full employee lifecycle from recruiting through offboarding. This makes them popular with Kansas City companies scaling from 20 to 100+ employees.
The workforce analytics show labor cost trends, overtime patterns, turnover analysis, and hiring metrics. These insights help optimize staffing and control labor expenses.
Their compliance tools track certifications, licenses, training requirements, and review cycles, crucial for construction, healthcare, and professional services.
8. Heartland Payroll
Full-service payroll provider with personal service and flexible scheduling options.
What They Provide
• Flexible payroll schedules
• Tax filing and compliance
• Direct deposit and pay cards
• Time and attendance tracking
• HR support services
• Workers compensation administration
• Garnishment processing
Heartland emphasizes personal service with dedicated account representatives. They're particularly strong with complex pay structures including commission, bonuses, tips, and piece-rate compensation.
The garnishment processing service handles wage attachments for child support, tax levies, and creditor garnishments, ensuring proper calculations and remittances.
Their POS integration works well for Kansas City restaurants and retail, connecting time tracking and payroll directly to point-of-sale systems.
9. TriNet
Professional employer organization providing payroll plus comprehensive HR outsourcing.
PEO Services
• Full payroll processing
• Complete tax compliance
• Health insurance and benefits
• Workers compensation insurance
• HR compliance and risk management
• Employee relations support
• Recruiting assistance
TriNet operates as a co-employer, becoming the employer of record for tax and insurance purposes while you maintain operational control. This provides access to enterprise-level benefits at small business prices through their large risk pool.
The HR expertise included with PEO services helps navigate complex employee situations, compliance requirements, and workplace issues. You get dedicated HR advisors, not just automated tools.
Their workers compensation program often costs less than standalone policies because they leverage buying power across thousands of employees.
10. Paycor
Modern payroll and HR platform serving small to mid-sized Kansas City businesses.
Platform Capabilities
• Payroll processing and tax management
• HR and recruiting tools
• Time and attendance
• Learning management
• Benefits administration
• Analytics and reporting
• Mobile access
Paycor's modern platform combines payroll processing with HR tools in an intuitive interface. They're popular with Kansas City businesses wanting more than basic payroll but not needing full PEO services.
The recruiting features include applicant tracking, interview scheduling, and candidate communications integrated with onboarding and payroll setup when you hire someone.
Their analytics show cost-per-hire, time-to-fill, turnover rates by department or manager, and payroll cost trends helping optimize workforce spending.
Understanding Kansas City Payroll Requirements
Kansas City Earnings Tax
The 1% earnings tax applies to Kansas City residents regardless of where they work and to anyone working in Kansas City regardless of where they live. This creates complex tracking requirements.
Employers must withhold based on employee residence and work location. Someone living in Kansas City working in Overland Park pays the tax. Someone living in Lee's Summit working in Kansas City pays the tax. Someone living in Kansas City working in Kansas City doesn't pay double.
Quarterly filings require accurate wage tracking by employee with proper residence and work location coding. Penalties for late or incorrect filings add up quickly.
Multi-State Complexity
Businesses with employees in both Missouri and Kansas face dual state income tax withholding. Each state has different rates, forms, and filing schedules.
Unemployment insurance gets particularly complex with multi-state employees. You need to determine which state covers each employee based on where they primarily work.
Workers compensation follows different rules. Missouri and Kansas have separate requirements, rates, and insurance carriers.
Federal Compliance
Federal tax deposits follow strict schedules. Monthly or semi-weekly deposits depending on your tax liability. Miss a deadline and penalties accrue immediately.
Quarterly Form 941 reports wages paid and taxes withheld. Reconciling these reports with your deposits prevents IRS notices.
Year-end reporting includes W-2s for employees and 1099s for contractors. These must be issued by January 31 and filed with Social Security Administration and IRS.
New Hire Reporting
Missouri requires reporting new hires within 20 days to the Family Support Division for child support enforcement tracking.
Kansas requires similar reporting to Kansas Department for Children and Families within 20 days of hiring.
Federal Form I-9 verifies employment eligibility. Must be completed within three days of hire and retained for three years after hire or one year after termination, whichever is later.
Frequently Asked Questions
How much do payroll companies cost in Kansas City MO?
Basic payroll services typically charge $30-$60 monthly base fee plus $4-$12 per employee per pay period. A business with 10 employees paying bi-weekly would pay approximately $130-$300 monthly.
Full-service providers including tax filing, direct deposit, employee self-service, and HR tools cost $40-$100 base plus $6-$15 per employee per pay period. That same 10-employee company would pay $160-$400 monthly.
PEO services cost 2%-11% of total payroll, but include workers compensation insurance, health insurance, and comprehensive HR support. A business with $50,000 monthly payroll might pay $1,000-$5,500 monthly.
Additional costs may include setup fees, year-end processing, state registrations, or add-on services like time tracking or benefits administration.
Should I handle payroll myself or hire a company?
DIY payroll works for very small businesses with simple pay structures and tech-savvy owners who have time to learn tax requirements. However, payroll errors are expensive and time-consuming to fix.
Payroll companies prevent costly mistakes, save time, ensure compliance with federal, state, and local requirements, reduce stress around tax deadlines, and often cost less than the penalties from DIY errors.
Kansas City earnings tax adds complexity that most business owners struggle with. Professional payroll providers handle this automatically, reducing audit risk.
Time investment for DIY payroll averages 4-8 hours monthly for a 10-employee business. Outsourcing frees this time for revenue-generating activities.
What happens if payroll taxes are filed late or incorrectly?
Federal penalties for late tax deposits start at 2% for deposits 1-5 days late, rising to 15% for deposits more than 10 days late. Late Form 941 penalties are 5% monthly up to 25% of unpaid taxes.
Missouri penalties for late withholding deposits include 5% of tax due plus interest. Repeated late payments can trigger increased deposit frequency requirements.
Kansas City earnings tax penalties include 5% of tax due for first 30 days late, then 1% monthly thereafter. Interest accrues at statutory rates.
IRS Trust Fund Recovery Penalty can hold business owners personally liable for unpaid payroll taxes, even if the business declares bankruptcy. This is one of few business debts that pierce corporate protection.
Professional payroll companies typically guarantee accuracy and pay penalties if they make errors, transferring this significant risk off your shoulders.
How do payroll companies handle Kansas City earnings tax?
Professional providers maintain databases tracking which addresses fall within Kansas City limits. They automatically calculate the 1% withholding based on employee home address and work location you provide.
Quarterly reporting gets handled automatically. The payroll company files Form RD-110 reporting wages paid and tax withheld, then remits payment to Kansas City Revenue Division.
Employee changes like moves or job transfers get tracked. If someone moves from Overland Park to Kansas City, withholding starts automatically the following pay period.
Year-end W-2s include Kansas City earnings tax in the local tax section, providing employees with documentation for their tax returns.
Audit support from established payroll providers includes documentation and assistance if Kansas City Revenue Division questions your filings.
Can payroll companies handle workers in both Missouri and Kansas?
Yes. Quality payroll providers manage multi-state payroll routinely. They withhold appropriate state income tax, file quarterly reports with both Missouri Department of Revenue and Kansas Department of Revenue, handle dual unemployment insurance requirements, and track reciprocity agreements.
Reciprocity doesn't exist between Missouri and Kansas for income tax. Workers must file returns in both states, claiming credit for taxes paid to the work state on their residence state return.
Unemployment insurance typically follows where the employee primarily works. Payroll companies track this and ensure proper SUTA registration and payments.
Workers compensation requires separate coverage in each state. Some payroll companies can coordinate insurance placement, while others require you to manage this separately.
What information do I need to provide to a payroll company?
Business information including EIN, state tax IDs, Kansas City tax account number, business address, and bank account for payroll funding.
Employee information including name, Social Security number, address, wage rate, pay frequency, exemptions from W-4 and MO W-4, hire date, and salary versus hourly classification.
Pay schedule details including frequency, start and end dates for each pay period, and pay dates.
Deductions including health insurance, retirement contributions, garnishments, and voluntary deductions with proper authorization documentation.
Hours worked each pay period, either entered manually, imported from time tracking systems, or for salaried employees, their regular hours.
Bank information for direct deposit requires voided check or deposit slip for your business account plus employee bank information for their deposits.
How long does payroll implementation take?
Basic setup with simple payroll structures can be completed in 1-2 weeks. This includes business registration, employee data entry, and first payroll processing.
Complex implementations with multiple pay types, departments, locations, benefits deductions, or PEO transitions can take 3-6 weeks. These require more data gathering, testing, and parallel processing.
First payroll typically runs 3-5 business days before pay date to ensure tax filings and direct deposits process correctly. Off-cycle bonus or commission checks may process faster after initial setup.
Training on the system usually happens during setup. Most providers offer ongoing support, video tutorials, and help documentation for questions after implementation.
Plan to start setup 2-3 weeks before your first desired payroll date to ensure smooth transition without rushing or missing paychecks.
Choosing Your Kansas City Payroll Company
Define Your Needs
Employee count affects pricing and which providers fit best. Microbusinesses with 1-5 employees have different needs than 50-employee operations.
Pay frequency matters if you pay weekly or need frequent off-cycle paychecks. Some providers charge per payroll run while others include unlimited processing.
Complexity factors include tipped employees, commission structures, multiple work sites, multi-state employees, union shops, or certified payroll for prevailing wage work.
Technology preferences determine whether you want cloud-based self-service or prefer provider-managed processing with minimal system interaction.
Evaluate Provider Capabilities
Kansas City expertise with earnings tax is mandatory. Ask specifically how they handle residence versus work location tracking and quarterly filing.
Tax guarantee transfers liability for penalties if the provider makes errors. Not all companies offer this protection.
Integration with your accounting software, time tracking system, and benefits administration reduces duplicate data entry and errors.
Support quality varies dramatically. Some provide dedicated representatives while others route you to call centers. Consider which you prefer.
Consider Total Cost
Base fees plus per-employee charges make up the core cost. Get written quotes based on your actual employee count and pay frequency.
Setup fees can range from $0 to $500+ depending on complexity. Some providers waive these during promotions.
Year-end processing fees for W-2s and annual reporting may be extra or included. Clarify this upfront.
Add-on services like time tracking, HR tools, or benefits administration cost extra but may provide value if you need them.
Hidden costs sometimes appear as fees for check printing, employee portal access, or report generation. Get comprehensive pricing documentation.
Verify Compliance and Security
Tax compliance guarantee should be in writing. Understand what's covered and any limitations.
Data security standards including encryption, access controls, and backup procedures protect sensitive employee information.
Disaster recovery plans ensure payroll continues even if the provider experiences technical issues.
Insurance and bonding protect you if employee data is breached or funds are misappropriated.
Resources
Scientific & Scholarly Sources
Payroll Error Costs and Prevention - Research documenting financial impact of payroll errors on small businesses and effective prevention strategies.
Multi-Jurisdictional Payroll Tax Compliance - Academic study examining challenges businesses face with local, state, and federal payroll tax obligations.
Online Resources
Kansas City Revenue Division - Official Kansas City resource for earnings tax information, forms, and filing requirements.
Missouri Department of Revenue - State withholding tax information, forms, and employer resources.
IRS Payroll Tax Center - Federal payroll tax requirements, forms, publications, and compliance guidance.
Recommended Books
Payroll Practice Fundamentals by Vicki M. Lambert - Comprehensive guide to payroll processing, tax compliance, and regulatory requirements.
The Essential Guide to Federal Employment Laws by Lisa Guerin and Amy DelPo - Critical employment law information every employer needs when managing payroll and employees.
Multimedia Resources
IRS Payroll Tax Videos - Official IRS channel with tutorials on payroll tax requirements, filing procedures, and compliance topics.
Payroll Podcast for Small Business - Regular episodes covering payroll trends, compliance updates, and best practices.