My wife is in the business. They do payroll, benefits, HR, etc. They are a small business competing with ADP and the like.....located in Downtown Atlanta, but have clients across the country. Corporate Business Solutions http://www.cbshro.com/ Pam Young if you wish to0 speak with her directly.
I have around 10 guys total , some are full some are part ... cheapest easiest way is diy ... quickbooks was cheap at one time then they tripled their costs.(maybe it was based on payroll going thru it )
You could also use QB's online service, Intuit. It's around $50 a month and Intuit will figure and pay all your employee and employer taxes on there.
When I was self employed doing contract work I used Aerotek as my payroll service. Saved me a ton of hassles and gave me access to health ins, 401K, and a few other benefits. I used them for around 5 years and even allowed them to place me in a few short term contracts during the lean times in 2008-2009.