I know a lot of people use paychex, but I always used my bank.Example, b of a uses adp and wells, has their own. I always use a service, as it acts like an insurance policy against errors which can get you hefty fines. Especially with hourly or commission employees. For only salaried employees, quick books is easy too.
What I like about the bank service, is that you open a separate account and they do all of the taxes for payroll each payroll. Then when you turn in quarterly it is simply sending the forms in.