How Much Do Online Payroll Service Prices Cost in 2024?
In 2024 online payroll services cost at least $39 a month plus an additional cost per user, totaling between $5 to $25 per employee, however, larger employers will see a lower per-employee cost.
Use the guide below to check out popular payroll brands, or to check out specials and free trials from top rated payroll service providers in 2024.
Popular Payroll Brands
Compare Payroll Service Cost by Top Providers
Let’s take a look at popular payroll service providers along with their current publish costs as of January 11, 2024.
COST: 3 Months Free
ADP Payroll is an industry stalwart, renowned for its reliable payroll processing and extensive HR functionalities. Serving businesses from small to enterprise-level, its system is robust, offering tax compliance, detailed reporting, and seamless integrations. While its comprehensive features cater to a broad audience, some users might find the platform slightly overwhelming initially. Yet, with solid customer support and continuous updates, ADP remains a trusted choice in the ever-evolving payroll landscape. Learn more here.
COST: $40/month + $6 per person
OnPay Payroll shines with its simplicity and efficiency, making it a favorite among small to medium-sized businesses. The platform’s clear interface and straightforward processes enable effortless payroll runs, tax filings, and benefits management. Its transparent pricing and stellar customer support further enhance the user experience. While it may lack some of the advanced features of larger competitors, OnPay’s focus on core functionalities ensures a hassle-free payroll experience for its users. Learn More
COST: Starts at $39/month + $8 PEPM
Rippling offers an intuitive payroll solution streamlined for businesses of all sizes. Its user-friendly interface and seamless integrations make payroll processing a breeze, ensuring timely and accurate payments. Features like automatic tax filing, benefits syncing, and real-time reporting enhance its robustness. However, as with any software, occasional hiccups may arise. Overall, Rippling payroll effectively blends efficiency with simplicity, making it a top contender in the payroll software market. Learn More
Cost: $39/Month + $5 per employee
Paychex, Inc., established in 1971 and headquartered in Rochester, New York, provides payroll, human resource, and benefits outsourcing solutions for small to medium-sized businesses in the United States and Europe. Renowned for its payroll services, the company handles employee payment, taxation, and compliance issues, facilitating smoother business operations. Paychex also offers HR solutions, including employee handbook creation, training, and assistance with compliance matters. Additionally, they supply benefits administration, including retirement planning and insurance services. Paychex emphasizes technology, offering cloud-based solutions and user-friendly apps to streamline processes like payroll management, benefits administration, and HR functions, contributing to its well-regarded status in the industry. Learn More
Gusto Payroll Cost:
The below are the cost of payroll services currently published on this company’s website as of January 11, 2024.
- Simple: $40/Month plus $6 per person
- Plus: $80/Month plus $12 per person
Gusto, founded in 2011 and headquartered in San Francisco, California, is a cloud-based platform providing payroll, benefits, and human resources management solutions targeted predominantly at small businesses in the United States. The platform is designed to simplify complex business processes such as payroll processing, tax filing, and employee benefit management, making them accessible and manageable for business owners. Gusto is recognized for its user-friendly interface, automated functionalities, and customer-centered approach, particularly aiding companies without dedicated HR departments. The platform also emphasizes its commitment to ensuring regulatory compliance, providing tools and resources to help businesses adhere to local, state, and federal labor laws. Learn More
Quickbooks / Intuit
Quickbooks Payroll Cost:
The below are the cost of payroll services currently published on this company’s website as of January 11, 2024
- Simple Start: $15/month
- Essentials: $30/month
- Plus: $45/month
- Advanced: $100/month
QuickBooks, developed by Intuit Inc., is a comprehensive, cloud-based financial management software aimed at small and medium-sized businesses, offering features like expense tracking, invoice generation, and robust reporting. Intuit Payroll, often used in conjunction with QuickBooks, provides payroll services and solutions, catering to the varied needs of businesses, including automated payroll, tax filing, and employee payment management. With its user-friendly interface and integration capabilities, it ensures that payroll taxes and employee payments are processed efficiently and accurately. QuickBooks and Intuit Payroll prioritize simplifying financial and payroll management for businesses, enabling them to focus on core operational activities while ensuring regulatory compliance and financial accuracy. Learn More
Cost: $99/month – No set up fee
Bambee offers a tailored approach to payroll and HR management, catering especially to small and medium-sized businesses. The platform pairs companies with dedicated HR managers, ensuring compliance and streamlining HR tasks. Its affordable pricing model makes professional HR services accessible even for startups. While Bambee’s specialty lies in compliance and policy guidance, some users may desire broader functionality. Overall, Bambee delivers value by demystifying HR and simplifying complex compliance landscapes.
Cost: $99/month + $5 per employee
Paycor provides a comprehensive HR and payroll solution suited for businesses of varying sizes. Its platform boasts an intuitive interface, making tasks like payroll processing, time tracking, and benefits administration straightforward. Key features like robust reporting and mobile accessibility stand out. While most users appreciate its functionality, some have mentioned occasional software updates can be disruptive. Overall, Paycor strikes a balance between depth and user-friendliness, making it a solid choice in the HR software arena.
SurePayroll Payroll Cost:
The below are the cost of payroll services currently published on this company’s website as of January 11, 2024.
- Accounting Software Integration: $4.99/month
- Local Tax Filing: $9.99/Month
- Stratustime integrated timeclock: $5/mo. + $3/EE/mo.
SurePayroll, a Paychex company, delivers cloud-based payroll and HR solutions, predominantly catering to small businesses, households, and accountants. Founded in 2000 and headquartered in Glenview, Illinois, SurePayroll emphasizes simplicity and convenience, offering online payroll services that manage wage payments, tax filings, and compliance with federal and state regulations. Renowned for its 24/7 support and user-friendly platform, SurePayroll enables users to run payroll on various devices, ensuring flexibility and accessibility. Additionally, it provides direct deposit and online filing options, seeking to streamline payroll processing and enhance accuracy. With various features aimed at minimizing the payroll management burden, SurePayroll positions itself as a dependable, intuitive payroll service provider.
Local Bookkeeping Service Rates
A local bookkeeper or accountant can provide payroll services for your company. This is one of the cheapest options overall, and using a local bookkeeper can provide personal service. This is a useful option if you’re already using a local bookkeeper for other financial processes.
The payroll outsourcing cost for a local bookkeeper ranges from $3,000-$5,200 per year. It may cost more if you use a CPA instead of a general bookkeeper.
While this option allows for more personal service, it does have its drawbacks. Depending on the software they use, the process might prove more complicated than other payroll services. You also need to make sure any local bookkeepers are aware of changes to labor and tax laws each year.
What Impacts the Cost of Payroll Outsourcing?
When discussing the factors that impact the cost of payroll outsourcing, the information can be structured as follows:
- Factors Impacting the Cost of Payroll Outsourcing
Bullets and Sub-bullets:
- Company Size and Employee Count
- Larger organizations often incur higher costs due to the complexity and volume of payroll processing.
- Small businesses may benefit from lower-cost options tailored to simpler payroll needs.
- Frequency of Payroll Runs
- Weekly, bi-weekly, or monthly pay cycles can affect pricing.
- More frequent payroll runs typically increase the cost.
- Complexity of Payroll
- The inclusion of bonuses, commission, overtime, and other variables can complicate payroll processing.
- Additional layers of complexity, such as multiple pay rates for a single employee, can further increase costs.
- Additional Services Required
- Services like tax filing, benefits administration, and retirement plan management can be added at extra cost.
- Integration with existing HR systems can also impact pricing.
- Geographical Considerations
- Different states or countries may have varying payroll regulations, impacting the cost of compliance.
- Multi-national companies might face higher costs due to the need for localized payroll expertise.
- Customization and Support
- The degree of customization required for the payroll system.
- Level of customer support desired, such as dedicated support personnel or 24/7 assistance.
- Regulatory Compliance and Reporting Requirements
- Keeping up with changing tax laws and regulations can add to the cost.
- Specialized reporting needs or compliance with specific industry standards can increase expenses.
- Contract Terms and Duration
- Longer contract terms might offer cost savings.
- Short-term contracts could be more expensive due to the lack of long-term commitment.
- Technology and Software Integration
- Advanced technology features like automated payroll systems or AI integration.
- Compatibility with existing software and the need for additional software licenses or upgrades.
- Experience and Reputation of the Outsourcing Provider
- Established providers with a strong reputation may command higher prices.
- Newer or less-known providers might offer competitive rates to attract clients.
By considering these factors, businesses can better understand and anticipate the costs associated with outsourcing their payroll services.
What Does a Payroll Outsourcing Service Do?
Payroll outsourcing allows small and large businesses to place the burden of processing payroll on a third party. From a per-employee fee to basic payroll services, you can easily avoid payroll mistakes with this online solutions. Simply provide the service with some basic data:
- Company contact info and demographics.
- Employee info (number of employees, pay rates, direct deposit info, etc.)
- Timecard info for each pay period. This process is easier if you also have time-tracking software to keep up with your employee’s time each week.
- Vendor info, if you’re using the service to pay vendors.
The payroll service will use this data to do the rest of the processing for each pay period. Depending on the services you use, the outsourcing service will take care of all payments and tax deductions involved with your payroll.
They will take care of calculating the payments and tax deductions. The service will also take care of processing direct deposits to employee accounts.
Most payroll service options can also process all end-of-year tax documentation. This includes W-2 and 1099 paperwork. These services will likely cost extra, so this should be taken into consideration when choosing the service provider.
During tax time, the outsourcing service will take care of paying the payroll taxes and any other deductions involved. If you choose the service, they will also take care of regular payments to vendors. Plus, you will receive regular reports to keep your records up-to-date.
Payroll services are useful in cutting penalties associated with payroll taxes. 40% of businesses end up paying extra fees to the IRS because of issues with their filing. With a company dedicated to keeping up with the requirements, you can cut out this extra expense.
Professional Employer Organization Plans
A PEO is the most expensive option available for outsourcing payroll tasks. A PEO is more expensive because it offers several services other than payroll processing. The PEO service provides HR, payroll, benefits, insurance, and retirement processing.
If you want to automate the full employee management process, this is a good option. The price ranges from $12,000-$40,000 per year depending on the services you use. Some of the most reputable PEO companies include:
- ADP– monthly cost starts at $59.
- Coastal HR- monthly cost starts at $84.
- Paychex– monthly cost starts at $59.
- QuickBooks – $50/month
Remember that these prices are a base monthly fee. These prices are subject to change based on the services used. These prices are based on a company with 30 employees or less, so prices are also subject to change if you have a larger employee count.
Prices also increase with extra payroll services such as direct deposit and end-of-year tax documentation. A PEO will be updated on all laws and regulations involved with the payroll process, but you don’t want to use this option if payroll is all you need to outsource.
Each payroll provider starts with a monthly base rate. This is the cost for using the basic services. In order from least expensive to most expensive, the major payroll providers and their base rates are:
- Intuit (Quickbooks) – monthly cost starts at $50.
- Payficiency – monthly cost starts at $35.
- PayUSA – monthly cost starts at $35.
- Gusto (formerly ZenPayroll) – monthly cost starts at $39.
- Onpay Payroll – monthly cost starts at $40.
- Benefitmall – monthly cost starts at $57.
- MyPayroll– monthly cost starts at $63.
- IOI – monthly cost starts at $66.
- Complete Payroll Solutions – monthly cost starts at $69.
- SurePayroll – monthly cost starts at $80.
Remember, the cost is dependent on the services offered and the number of employees. The base price covers a limited number of employees, usually around 30 people. Additional fees are processed for added employees.
Each payroll provider offers different services with their base fee. Other fees are required for extra services such as direct deposit and end-of-year tax documentation.
While this may seem costly, keep in mind that you remove the need for an extra employee for payroll. You also save money with accurate tax processes. Another benefit of payroll providers is integration.
Payroll provider software is easily used with other tracking software such as time-tracking and bookkeeping programs. This makes it easier to provide new data for each system.
Advantages and Disadvantages of Payroll Outsourcing
Payroll outsourcing can offer several advantages and disadvantages, which organizations should carefully consider when deciding whether to outsource this function. Here is a summary of the main pros and cons:
Advantages of Payroll Outsourcing:
- Cost savings: Outsourcing payroll can lead to cost savings by eliminating the need for in-house payroll staff, software, and other resources. In some cases, outsourcing can be more cost-effective than managing payroll internally, especially for small to medium-sized businesses.
- Time savings: Payroll processing can be time-consuming, particularly for businesses with complex compensation structures or a large number of employees. Outsourcing this function can free up time for business owners and HR staff to focus on core business activities.
- Expertise and compliance: Payroll outsourcing companies have specialized expertise in handling payroll taxes, regulations, and compliance. This can help businesses avoid costly mistakes, penalties, and fines associated with non-compliance.
- Access to technology: Payroll service providers often utilize advanced software and technology, which may be more sophisticated than what is available to individual businesses. This can result in more accurate, efficient, and secure payroll processing.
- Scalability: Outsourcing payroll can make it easier for businesses to scale their operations as they grow. Service providers can quickly adjust to accommodate changes in the number of employees or payroll requirements.
Disadvantages of Payroll Outsourcing:
- Loss of control: When outsourcing payroll, businesses relinquish some control over the process. This can be a concern for some organizations, particularly if there are concerns about data security, privacy, or the quality of the service provided.
- Dependency on a third party: Outsourcing payroll creates a dependency on the service provider, which can be a risk if the provider encounters financial, technical, or operational problems.
- Hidden costs: While payroll outsourcing may initially appear cost-effective, there may be hidden costs such as setup fees, charges for additional services, or fees for making changes to the payroll process.
- Data security and privacy risks: Outsourcing payroll involves sharing sensitive employee data with a third party, which can pose security and privacy risks. It is crucial to carefully assess the service provider’s data security measures and policies.
- Limited customization: Some payroll outsourcing providers may not offer the flexibility or customization required for businesses with unique payroll requirements. This can be a disadvantage if the service provider is unable to accommodate specific needs or preferences.
When considering payroll outsourcing, it is essential to weigh the advantages and disadvantages and evaluate how they align with your organization’s needs and priorities. It may be helpful to consult with other business owners or industry experts to gather insights and recommendations.
Online Payroll Sample Costs
Below are a few examples of price facts for online payroll services that will give you an idea of how much you will pay for your purchase.
- $55 – $75 average monthly cost for a 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.
- The average monthly cost for the payroll of a company with 30 employees and weekly payroll is $300 to $600.
- Year-end W2 and 1099 costs for businesses with 30-50 employees are $250 to $500 (one-time fee per year).
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 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.
How to Save Money on Online Payroll Services
Online payroll services have become increasingly popular among small and medium-sized businesses due to their convenience, accuracy, and affordability. However, some businesses may still find the cost of these services to be a burden. Here are some tips on how to save money on online payroll services:
- Compare prices: Before signing up for an online payroll service, compare prices between different providers. Look at what each service offers and determine which one best suits your business needs and budget.
- Choose a basic plan: Many online payroll services offer multiple plans with varying features and prices. Consider opting for a basic plan that includes only the features you need, rather than paying for additional features that you may not use.
- Sign up for a trial: Many online payroll services offer free trials, which allow you to test out the service before committing to a subscription. Take advantage of these trials to see if the service meets your needs and fits your budget.
- Automate as much as possible: Online payroll services can save you time and money by automating many payroll tasks, such as calculating taxes and generating reports. Make sure to take advantage of these features to minimize manual work and reduce the risk of errors.
- Avoid unnecessary fees: Some online payroll services charge additional fees for certain features or services. Make sure to read the fine print and avoid signing up for features that you don’t need or that come with extra fees.
- Pay annually: Some online payroll services offer discounts if you pay for a year of service upfront. This can be a good option if you’re committed to using the service long-term and can afford to pay upfront.
- Consider bundling services: Some online payroll services offer additional services, such as HR or benefits administration. If you need these services, consider bundling them with your payroll service to save money.
In conclusion, online payroll services can save businesses time and money, but it’s important to choose the right service and plan for your needs and budget. By comparing prices, automating tasks, avoiding unnecessary fees, and bundling services, you can save money on your online payroll service.
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Related Services Available: Small Business, Direct Deposit, Taxes, Tax Filing, W-2, 1099, File, Employee, Workers Compensation
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Related Information: IRS