Gusto is pretty popular for small businesses. You don't have to have a subscription plan to pay contractors, they take a cut. https://gusto.com/product/pricing
I haven't checked if they offer it, but places to research are Square Payroll, Wave, or the big ones ADP & Paychex. A lot of accounting software can also do this, so Quickbooks Payroll, Zoho & Sage. Let us know what you pick.
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