A caveat to Xero payroll is that they only have it in certain states, and their electronic filing capability is very limited. I've been listening to them telling me Xero payroll is coming to my state next week for the past 3 years. As of this morning:
Xero payroll states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Georgia, Hawaii, Illinois, Indiana, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, and Wyoming.
Efile states: California, Florida, Illinois, New Jersey, New York, Pennsylvania, Texas, Utah and Virginia only.
They are slowly adding states. Can't wait for mine to be up there! It would be a superior product for the price and would greatly help me grow my bookkeeping side hustle.