Wave

All in one small business invoicing, accounting, and payroll.

Payroll

I've used Wave for years for payroll, including lots of startups. It's very easy and straightforward for smaller teams.

Pricing

Starts at free, and you can easily create multiple organizations. Supports Sole Proprietorship

Does direct deposit into employee or contractor accounts.

$20/month pro plan includes connecting to bank account and downloading transactions and a few other things.

Payroll has separate pricing, ~$25/month base fee, then $6/employee or contractor.