How Much Do Payroll Services Cost?
Once you hire your first employee, you’ll need to process payroll regularly. That means giving your worker(s) a paycheck and withhold state and federal taxes and other deductions, like insurance benefits. It can be a time-consuming process! That’s why many payroll processing solutions, offering varying levels of service and features, have been introduced to the marketplace.
Payroll, which includes wages paid to an employee plus payroll taxes, is usually a company’s biggest expense. The cost to actually process payroll is sometimes overlooked, whether it’s done by hand or with a payroll processing software. So, how much do payroll processing services typically cost?
Standard costs and fees
Certain costs are associated with just about any payroll solution. There’s usually a base fee that can range from $10 to $85 per month. Then, you might have to pay an additional fee for each worker on the account – anywhere from $5 to $15 per person per month. Be mindful that some providers will set a minimum per-month cost no matter how few employees you have. Using those prices, a small business with 10 employees could pay standard fees between $50 and $180 per month, depending on the provider.
You will also need to ask whether there is a cost per payroll run on top of those base and per-person fees. For instance, if you decide to pay your 10 employees twice a month, you could be racking up an additional $20 to $60 per month to run that second payroll. You’d then be paying a standard fee of $70 to $180 per month, depending on the provider.
Choosing a software option that allows you to run an off-cycle payroll means you can offer pay advances, bonuses, and multiple pay cycles per month without costing your small business additional fees.
As previously mentioned, these are just the standard costs for a payroll processing service. Some providers may also charge you additional fees based on the features you decide your small business needs.
All payroll processing services will calculate earnings and generate paychecks. Additional fees may apply if a provider offers features like:
- Direct deposit
- Generating tax forms, such as W-2s and 1099s
- Employee portals
- Paper check printing
- Filing and paying state and federal taxes
Workful actually includes direct deposit, W-2 and 1099 forms, and employee portal access as part of its standard price. Keep in mind that some features may not be available with every provider, so be diligent and what you will need in the future, as your small business grows.
Read also: 5 Ways Going Paperless Can Save Your Business Money
Many providers will offer a free trial period so your business can explore their software and experiment with all its features. This will help you decide which service will work best for you.
Run payroll with Workful
Beyond the cost of setting up and distributing paychecks, the time spent managing your payroll can be substantial. Workful can help you avoid the penalties associated with running payroll incorrectly while keeping you up to date on any changes to labor laws. Whether you run payroll once or several times a month, our solution allows you to process payroll quickly and easily. We’ll even prepare your necessary state and federal payroll tax forms so you can review and file them by the deadline. Try our payroll software now for your small business and enjoy a free 30-day trial.