Compare Online Payroll Service Prices - Buyers Guide 2017
How Much Will an Online Payroll Service Cost? As with most professional services, the ultimate cost of your online payroll service depends entirely on how much you use it and the sort of functionality you want to get from it, but in general you can expect to pay between $12 to $18 per employee for a month of online payroll services, assuming biweekly payments and a relatively small workforce. Larger employers will see a lower per-employee cost, though a higher total cost.
Basic payroll services include determining the proper paycheck amount based on salary information or wage and hours worked totals that you provide for each employee, making the appropriate tax deductions from employee paychecks, cutting checks and providing pay stubs that detail all deductions, and providing employers with basic reports for each pay period. More advanced reporting can usually be obtained for an additional charge, and some services charge an additional fee for state income tax deductions.
Most online payroll services can also be integrated with other bookkeeping and/or employee tracking software, enabling you—and your payroll processing company—to automate much of the necessary documentation and calculation; services typically do not charge extra for this integration as it enables them to do their job more easily and securely. All in all, payroll services in general often provide a significant savings versus using in-house staff to calculate and double-check payroll each period, and online payroll services can save you 15% compared to traditional providers.
What to Look for in the Cost of an Online Payroll Service Provider:
One of the biggest benefits offered by many online payroll processors is their guarantee of accuracy, both in calculating paychecks and in calculating and allocating resources for taxes. Upwards of 40% of small businesses end up paying penalties to the IRS every year due to mistakes made in paying their employees and/or in their employee tax deductions and payments; having another company bear the burden for accuracy can be worth the fee in and of itself. Make sure the payroll processor you select provides a guarantee in this area to better protect your business.
Also, look into legal and consumer complaints that have been lodged against the company. Like all businesses, you can expect some disgruntled users to have published negative reviews, but if you see a lot of the same complaint or if there have been serious legal problems in the recent past, steer clear—while a good payroll processor can be a great asset, hiring a cheap company with a shady reputation is a great way to land in a lot of hot water.
Finally, make sure you can easily get hold of someone at the payroll processing company who is knowledgeable and informed about your account if you ever have a problem. Changing laws and changing employment situations mean communication is key, and ultimately you're responsible for making sure things are done correctly. If you can't get someone accountable to handle your accounts, move to a different processor.
Online Payroll Sample Costs
Below are a few examples of price facts for online payroll services which will give you an idea how how much you will pay for you purchase.
- $55 - $75 average montly cost for small office of 2-5 employees.
- $1.00 to 1.50 average payroll processing cost per check (does not include base rate).
- Direct deposit ranges from free to $0.10 per check deposited.
- Average monthly cost for payroll of a company with 30 employees and a weekly payroll is $300 to $600.
- Year-end W2 and 1099 costs for businesses with 30-50 employees is $250 to $500 (one time fee per year).
Related Industry Terms: Small Business, Direct Deposit, Taxes, Tax Filing, W-2, 1099, File, Employee, Workers Compensation