Payroll Fee Basics for Real Businesses
Generally, your payroll fees will increase depending on how many employees you have. Small and medium sized businesses generally end up having very similar fees, but because large businesses and corporate ventures require so many employee accounts to be set up they end up saving quite a bit through bulk rates, although they are obviously paying more than other businesses.
Generally, how much you pay will be determined by the number of employees and your pay periods. Companies that pay bi-weekly will pay less on a monthly basis than one that pays weekly. There are very few small and medium-sized companies that pay on a monthly basis. A monthly payroll may be earned commissions and this would be an extra cost.
What is included as standard in payroll fees?
Services for businesses that are included as standard in payroll processing fees are paycheck processing, online access to the accounts, tax filing, and direct deposit. The price for these services can range from $20 - $150 per month depending on the frequency and the number of employees. According to our research a company with 50 employees on a bi-weekly payroll can have payroll services with direct deposit plus employer tax calculations and filings for $125 per pay period. Note that this does not include any end of year tax statements or HR functions.
Fees for checks are often added and can range from $0.75 to $2. Additional fees will also usually be charged for new employees, delivery and other services. If you are liable for a high staff turnover rate then this is definitely something to consider when shopping around at various providers for price comparisons.
What else is there to consider in costs?
There are some large banks that offer payroll services that are lower is fees but the catch is your employees must bank with that institution. For example, Bank of America offers payroll services via Intuit that range from a monthly fee of %0 for a basic package, $36 for an enhanced package and $99 for the full package. If all your employees receive their paychecks via direct deposit to a Bank of America account, there are no charges for the first 20 employees. There is a charge of $2 per employee over 20.
The basic package does not include state taxes. The $36 package does include state and all the same qualifications apply. With the $99 per month package the employer receives:
- Full outsourcing of payroll service. Employer enters the hours an Intuit does the rest.
- Payroll experts help you switch from your previous processor
- Specialists Specialists prepare your payroll and make tax payments
- Guaranteed accurate payroll and taxes or your next month is free.
According to PC World using ADP's cloud-based services would cost would be $284 per month for a company with 15 employees on the Essential Payroll and $370 a month for the Enhanced Payroll.
There is no doubt a small business can find a payroll service provider that meets its needs and its budget. Just remember that the price can be based on the number of employees, the number of monthly paydays and the services you require.Ready to Compare Payroll Services Price Quotes?