How Much Does A Payroll Service Cost And Accounts Payable

If you're similar many business concern owners, you don't have time to dig into every aspect of payroll. After all, that'southward why yous hire a service, right? Just without a bones understanding of the elements of a payroll service, it'southward not possible to know whether or not you lot have the correct service for you… or if you're being overcharged.

Having worked with small businesses for more 50 years - and having opened a division devoted exclusively to payroll over a decade ago - nosotros know exactly how to break down the cost of a payroll service.

Different businesses have different payroll needs - and therefore add on different features, require different work per pay menses or quarter, or have different influences that are out of their control, such every bit employee paycheck garnishments. We'll break downward both the common factors and the heavily-weighted miscellaneous factors for you here.

Factors That Make Up Payroll Fees

We broke down the cost of monthly accounting services in a previous article and discussed the average cost that our clients pay. Out of our current payroll-only customer base, an average month of payroll fees can range from a little nether $100 to a few instances of effectually $i,000. The boilerplate payroll customer sits at a fee of around $200 per month.

Still, because payroll includes a mix of factors that are beyond your control and customizable options that are fully in your control, we're going to focus more than on what the controllable options will cost you.

When we price our payroll services, we consider common factors, such as the number of states you lot will pay taxes to, your pay frequency, and the number of employees on payroll, as well as other miscellaneous factors. Plus, there are fees that can fall outside of your pay frequency. An example would exist the annual W2 fees at the end of each year.

Mutual Factors that Impact Payroll Service Costs

As we mentioned above, common factors can include:

The number of states y'all will pay taxes to

Fees will be added per state that we demand to process per pay period. If your employees all alive in the same state, you will only need to pay taxes to i state.

Your pay frequency

The more oftentimes you pay your employees, the more often we need to process your payroll. This will result in higher fees per pay period. Our offered pay frequencies include weekly, bi-weekly, semi-monthly, and monthly.

The number of employees on payroll

Payroll fees are heavily influenced past the number of employees on payroll. There will typically exist a modest fee per employee per pay period.

Miscellaneous Payroll Service Fees

Aside from the factors that most commonly influence payroll fees, there are fees for:

Add-ons
- Showing PTO on paystubs
- 60 minutes service
- Timekeeping software
- Press and delivering newspaper checks and reports

Situational

Kid back up and other garnishments
New hire reporting
Employment verifications
Amending W2s or quarterly payment tax returns (on behalf of a previous provider, non our fault)
Retirement plan reporting
Rush fee for tardily changes to payroll details
Bounced direct deposits

Keeping Your Fee Lower While Using a Quality Service

When it comes to payroll features, you get what you pay for. While CSI Accounting & Payroll prices are usually similar to national payroll providers' fees for many small-scale business payroll situations, nosotros won't always be the lower-priced option in every circumstance.

Rather than moving away from a quality service in favor of a lower-priced (and generally lower-quality) service, consider what you can practice to minimize your fees with the quality service get-go.

For example, at CSI Bookkeeping & Payroll, businesses with the lowest fees have opted for some (or all) of the following:

not using timekeeping (have only salaried employees) OR doing their ain timekeeping (more effort on their part & they are held responsible for getting the reports to the states on time)
using direct deposit and electronic reports (rather than newspaper)
not using delivery for paper materials (if applicable, see point above) by picking them up yourself
non signing on for extra features (such as tracking PTO directly on employees' paystubs, having an Hour service, etc.)
not hiring new employees oft (and therefore don't need to do new hire reporting often)

Not only that, but clients who bundle both accounting and payroll with us get a discount of $105 per month. (Do you lot know about the benefits of having your accounting and payroll handled under one roof?)

Desire a Payroll Quote From CSI?

When you book a payroll consultation with united states of america, we tin can help break down what you're currently paying, as well as the different factors that would make upwardly your payroll price with CSI Accounting & Payroll. For many pocket-sized business payroll situations, CSI has similar prices to large, national providers. Why is that? It all depends on the factors that make upwards a payroll fee.

Every bit a reminder, our average payroll-only client sits at a fee of about $200 per month. You lot tin can find out what your payroll would cost with CSI by clicking the button below.

If you want to see if we can be a match for your business, it's time to determine if you'd like to schedule a free consultation by clicking the push button below.

If you're not ready to achieve out, that's fine! You tin learn more about who CSI is a proficient fit for and what CSI offers first.

Written past

This article was equanimous by a member of our staff who interviewed our experts to get the facts straight. Any uncited data plant here came directly from a knowledgeable accountant or payroll specialist.