STPS

Payroll Service Cost Comparison

A payroll service is helpful when running a business. Finding the perfect fit for your business is very important. While trying to choose the right payroll service for your company you’ll need to consider the prices of each payroll service option. In this article, we will compare the costs of the top payroll services for small and medium businesses including Gusto, ADP, OnPay, Paychex Flex, TriNet, and Quickbooks. We will consider the factors that impact the cost of payroll services and explore five effective ways to reduce your payroll service costs.

Comparing Top Payroll Service Costs

ADP:

Depending on the services you require and the size of your business, ADP‘s pricing for payroll services might vary greatly. Typically, the price might range from $40 to $200 per month for a company with 10 employees.

Gusto:

Gusto is well known for its user-friendly interface and variety of payroll capabilities. You should budget about $40 each month plus $6 per employee per month for a modest business with 10 workers. The prices jumps to a price of $80/mo plus $12/mo per person for a more extensive payroll plan.

OnPay:

OnPay stands apart for being straightforward. They charge a base fee of $40 per month plus an additional $6 for each employee. This implies that you would pay $76 per month for a company with 10 employees.

Paychex Flex:

Paychex Flex is a full-service payroll solution. Their pricing varies based on the company size, but for a business with 10 employees, the base rate is $39 plus $5 per employee per month.

QuickBooks:

A payroll add-on service from QuickBooks is available for $30 per month plus $6 per employee each month. That would be $90 per month for ten workers. Prices for higher tier plans might increase up to $200 a month.

Factors Impacting Payroll Service Costs

Number of Employees: One of the most significant factors influencing payroll service costs is the size of your workforce. Generally, the more employees you have, the more complex and time-consuming the payroll process becomes. Larger employee counts often result in higher base fees from payroll service providers.

Pay Frequency: How often you plan to pay your employees can also impact costs. Weekly or bi-weekly payrolls may incur more frequent charges than monthly ones. It’s essential to consider your business’s cash flow and employee expectations when determining your pay frequency.

Add-On Features: The specific features and add-ons you choose to include in your payroll service plan can significantly affect costs. Comprehensive services with extras like time tracking, benefits administration, direct deposits, garnishments, tax filing, or year-end filing or W-2 and 1099 printing will come at a higher price. Carefully assess which features are essential for your business to avoid unnecessary expenses.

Employee Locations: If your employees are dispersed across different states or countries, your payroll service costs may increase due to the complexities of managing multi-jurisdictional tax regulations. Providers often charge extra for handling payroll taxes in various locations, so it’s crucial to factor in your workforce’s geographic diversity when estimating costs.

3 Ways to Reduce Payroll Service Costs

Choose the Best Plan: Make sure to examine prices from many payroll providers before settling on one service. Pricing for each payroll provider varies slightly, and when you take into account all of your payroll requirements, you’ll find the finest offer.

Automate Processes: In the long run, time can be saved by automating processes like time tracking, tax calculations, and simplifying leave regulations. You can spend less time on payroll by giving employees account access so they can update their personal information. Less time will be spent on payroll, which will result in greater financial savings.

Evaluate Your Services Regularly: Periodically review your payroll service plan so you don’t end up paying for extra add-ons that you don’t need. 

Bottom Line:

In conclusion, choosing the right payroll service for your business involves careful consideration of costs and features. By comparing top payroll services, understanding the factors that impact costs, and implementing cost-saving strategies, you can find the perfect balance between service quality and affordability. Remember that the ideal payroll service should not only meet your current needs but also scale with your business as it grows. 

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Written by Tessa Braybrook

Tessa joined Superior Trucking Payroll Service in September 2022. She loves to write and make videos which made her a great asset to the team in her marketing position. 

Before working at Superior Trucking Payroll Service she worked in IT at GVSU which gave her the skills to problem-solve with customers over the phone. 

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