|The market for payroll services is competitive and reflects local market situation. The basic payroll processing service typically costs between $2 to $3 per check, plus a base account fee. |
Based on the practical information, here are some points to consider about pricing:
• Monthly costs for payroll services usually include paychecks processing, online account access, tax filing, and direct deposit. Check with your vendor to understand exactly what your fee includes.
• Prices can range from $20 to $250 per month depending on the frequency of payroll and the number of employees. Per-check fees, if applicable, range from $0.75 to $2 or more.
• Vendors charge higher prices for more frequent pay periods. However, there is little difference in cost between employees that are paid on a salary basis or hourly.
• Some payroll providers offer a free trial period to test their system before you agree to work with them. Others establish a low payment for the first few months before charging you the standard prices. We recommend you take advantage of these offers to make sure the provider can meet your company's needs.
Services such as tax filing and delivery can cost between $4 and $9 per payroll period. Add-ons like direct deposit often carry a nominal per-check charge. For a full-service solution, a small to medium-sized business can expect to pay a total of $3 to $5 per paycheck issued. Also there can be fees for adding or dropping employees, adjusting employee information, or setting up your account.
Charges for various services can dramatically differ across payroll services, so it is important to understand which ones you want before signing up a contract. This way, you can be sure you are comparing the relevant pricing when evaluating different providers.
As with many other products or services, the more you buy, the cheaper it becomes. If your company has significant plans for expansion, find out when you will get volume discounts.