Houston Payroll Services

Houston Payroll
Services for Small Business

A Midtown restaurant owner called us after her third missed EFTPS deposit in one year. The IRS had stacked $4,200 in penalties on top of the tax she already owed. She'd been running payroll herself in a spreadsheet, and every busy week pushed the deposit to the bottom of the list.

Houston payroll services from EZQ Group means every deposit runs on time, every quarter's Form 941 gets filed, and your TWC report goes in before the deadline. Our in-house accounting team is supported by licensed CPAs when your situation calls for CPA-level expertise.

Every Pay Period, We Handle

  • Payroll Processing (Weekly, Bi-weekly, Semi-monthly, Monthly)
  • Direct Deposit to Employee Accounts
  • Federal Tax Deposits via EFTPS
  • Form 941 (Quarterly) and Form 940 (Annual)
  • TWC Quarterly Wage Reports
  • W-2 and 1099 Preparation at Year-End

How Our Payroll Service Works

From Hours Collected
to Deposits Filed

Running payroll is a repeating cycle of seven steps. Miss one and you're either short-paying an employee or late on a tax deposit. Here's exactly what happens when EZQ handles your payroll each period.

01

Collect Approved Hours

You submit approved timesheets by your cutoff date. Hourly employees, salaried employees, overtime, and PTO all get captured in one pass.

02

Calculate Gross and Net Pay

Gross pay, federal withholding, FICA (Social Security at 6.2%, Medicare at 1.45%), and any voluntary deductions are calculated for each employee.

03

Run Direct Deposit

Funds move directly to employee bank accounts on pay day. No checks to print, no bank trips, no delays. Employees get a pay stub they can access online.

04

File the Tax Deposit

Federal payroll tax deposits go to the IRS via EFTPS on schedule. Most small businesses are monthly depositors. We track your deposit schedule and file before the deadline.

05

Quarterly Form 941 and TWC

At the end of each quarter we file Form 941 with the IRS and submit your TWC wage report. These two filings reconcile every deposit you made during the quarter.

06

Year-End W-2 and 1099

By January 31 each year, W-2s go to your employees and 1099-NECs go to your contractors. We prepare and file everything with the SSA and IRS so you meet the deadline.

What's Actually at Stake

Payroll Penalties Hit Harder
Than Most Business Expenses

The IRS deposits late fee starts at 2% and climbs to 15% within 16 days. On a $10,000 monthly deposit, a 15% penalty is $1,500 on top of what you already owe. That's before the TWC charges $25 per day for a late quarterly filing.

The number that gets Houston business owners into the most serious trouble is the trust fund recovery penalty. When payroll taxes go unpaid, the IRS can hold any "responsible person" personally liable for 100% of the unpaid amount. Your LLC structure offers no protection here. The IRS does not distinguish between your personal assets and your business assets when trust fund penalties are in play.

Professional houston payroll services exist specifically to keep deposits on schedule. When the deposit runs automatically every period, the trust fund penalty becomes a non-issue. Read our guide on Texas payroll compliance for a full breakdown of every deadline small employers face.

Worker classification is the other common pressure point. If you pay contractors who the IRS later determines were employees, you owe back payroll taxes for every period they worked, plus penalties and interest. We help you document contractor relationships the right way. For a full comparison of how to handle contractors versus employees, see our post on setting up payroll for the first time.

Penalty Schedule: What Late Looks Like

1 to 5 days late 2% penalty
6 to 15 days late 5% penalty
More than 15 days late 10% penalty
IRS notice issued, still unpaid 15% penalty
TWC late quarterly filing $25 per day

These penalties apply per deposit period, not per filing. A business making monthly deposits can face penalties on 12 separate tax events per year.

Who We Serve

Houston Payroll for Every
Industry That Pays People

Payroll works differently depending on your industry. Tipped restaurant employees, construction crew on certified payroll jobs, medical offices with benefit deductions: each situation has its own wrinkles.

Restaurants and Food Service

Tipped wages, reported tip income, FICA tip credits, and varying hours. A Montrose cafe with eight hourly employees has a very different payroll than an office. We handle both.

Construction and Contractors

Certified payroll for public projects, subcontractor 1099s, and crews that vary week to week. We track prevailing wage requirements and keep your certified payroll reports current.

Healthcare and Medical Offices

Multiple pay rates, complex benefit deductions, and high compliance expectations. We make sure benefit withholdings reconcile against your plan documents every period.

Retail and Service Businesses

Hourly schedules that shift weekly, seasonal staffing, and commissions layered on top of base pay. We process what you approve and send you the final numbers to review before anything runs.

Professional Services

Law offices, agencies, and consultancies with salaried employees. Clean payroll, consistent deposits, and year-end filings that make your accountant's job easy.

Nonprofits and Faith Organizations

Clergy housing allowances, volunteer stipends, and the payroll compliance that comes with 501(c)(3) status. We keep your employee payroll separate from exempt-organization rules.

Transparent Pricing

Flat Monthly Rate.
No Per-Run Surprises.

National payroll platforms charge a base fee plus a per-employee fee plus a per-run fee. A 10-person team running bi-weekly payroll can hit $150 to $300 per month before add-ons. Our pricing is a single flat monthly number tied to your employee count and pay frequency.

1 to 3 Employees

$75

per month

  • All pay frequencies
  • Direct deposit included
  • 941, 940, TWC filings
  • W-2s at year-end
Most Common

4 to 10 Employees

$150

per month

  • All pay frequencies
  • Direct deposit included
  • 941, 940, TWC filings
  • W-2s and 1099s

11 to 25 Employees

$250

per month

  • All pay frequencies
  • Direct deposit included
  • 941, 940, TWC filings
  • W-2s, 1099s, certified payroll

Over 25 employees? Contact us for a custom quote.

FAQ

Houston Payroll Services
Questions Answered

What does a Houston payroll service actually do each pay period?

Each pay period we collect approved hours, calculate gross pay, apply all federal and Texas withholdings, run direct deposit, and file the matching payroll tax deposit with the IRS via EFTPS. At quarter-end we file Form 941 and submit your TWC wage report. At year-end we produce W-2s for employees and 1099s for contractors.

How much do Houston payroll services cost for a small business?

Most Houston small businesses pay between $75 and $250 per month for complete payroll processing. The exact figure depends on employee count and pay frequency. We give you a flat quote upfront with no per-run surprise charges.

Do you handle Texas Workforce Commission (TWC) filings?

Yes. We file quarterly TWC wage reports, pay Texas unemployment insurance on your behalf, and submit new-hire reports to the Texas Attorney General's office. TWC deadlines run one month after quarter-end. Missing them triggers penalties that compound quickly.

What is the IRS trust fund penalty and how does payroll service protect me?

The trust fund recovery penalty equals 100% of unpaid payroll taxes and attaches personally to any responsible person in the business, LLC or not. Professional payroll processing keeps every deposit on schedule via EFTPS, removing the conditions that trigger it.

How fast can we switch from our current provider to EZQ Group?

We can typically complete the transition within one to two weeks. We coordinate the cutover date around your existing pay schedule so no payroll run is missed. If you're switching mid-quarter, we review your prior filings to make sure Form 941 totals will reconcile correctly.

Stop Running Payroll
on a Spreadsheet

Tell us your employee count and pay frequency and we'll send you a flat monthly quote, no phone call required. Or call us directly at +1 (346) 389-5215 and we'll walk through it with you.