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How much do Payroll Services cost?

Average Price
$5 - $15 per employee, per month

What is the price of Payroll Services?

Are you looking for someone to manage your payroll? Read our handy guide to find out how much you can expect to pay for payroll services.

What are Payroll Services?

When you hire a payroll management company, you’re outsourcing your payroll to an external payroll provider who is an expert in their field. This completely hands-off approach to payroll will save you both time and effort, as well as helping you to remain compliant with employment and tax legislation.  

Your payroll provider will maintain annual leave records, as well as dealing with sick leave. They’ll also manage your employee’s timesheets, making sure they’re paid on time and accurately for the work that they do.

Payroll service providers will also deal with any enquiries from your employees, as well as calculating, creating and distributing payslips. This takes another job off your plate, leaving you to deal with what’s important in your business.

How much do Payroll Services cost?

Choosing to outsource your business’ payroll can save you both time and effort, but how much do payroll services cost in Australia?

The cost of hiring a payroll management company will depend on the number of staff that you employ and the frequency with which you pay them. Although there is no fixed rate for payroll services, a breakdown of average costs of outsourcing your payroll based on Australian payroll providers is given below.

Average cost of Payroll Services
Average cost (per employee, per month)$10
Minimum cost (per employee, per month)$5
Maximum cost (per employee, per month)$15

What changes the price of Payroll Services?

The cost of hiring a payroll management company will depend on several factors including:

  • Number of employees

  • Frequency of payment

  • Setup costs

  • Additional services

Number of employees

The cost of hiring a payroll management company is largely influenced by the number of people that you employ. The cost is typically calculated per employee, but the majority of payroll providers will offer a reduced rate for larger businesses. This means that the larger your workforce is, the lower the individual cost per employee will become.

Frequency of payment

The price of using an external payroll provider will also depend on how often you pay your employees. The average prices above are based on businesses that pay their employees monthly. If you pay your employees on a weekly or fortnightly basis, you’ll be looking at a higher cost to outsource your payroll as the workload is increased.

Setup costs

You will generally be charged a small set up fee for each of your employees. This cost is generally nominal, averaging around $10 per employee. You’ll incur this charge when you first hire the payroll company and again whenever new employees join your payroll.

Some payroll management companies may also charge extra for sending printed payslips to your employees. This typically costs in the region of $3 per person per payslip. Make sure you ask your payroll management company about this charge before signing up to ensure that you fully understand the associated costs.  

Additional services

Some payroll companies may also offer HR and other accounting services as part of a more comprehensive package. If you opt for an integrated service, you’ll notice the fees increase quite significantly due to the additional workload required. It’s worth considering what you want to keep in-house and what you’d like to outsource.

Is it worth outsourcing your payroll?

It’s possible to manage your payroll in-house if you choose to. However, you’ll need to have experience in managing payroll and a good knowledge of the legal requirements to ensure that you don’t end up with a fine.

If you have a larger business which employs several people, payroll can quickly become overwhelming and take over your day-to-day work. Employing an in-house payroll specialist can work well, but you’ll need to make sure that you’ve got back up in case they call in sick on payday

By outsourcing your payroll, you can concentrate on what matters to your business whilst leaving your payroll to the experts. You will feel confident in the knowledge that your legal duties will be complied with and you’ll be less likely to be hit with a fine. 

It can be difficult to know where to start when you’re looking for a company to manage your payroll. At Bark, we understand how difficult it can be to find the right payroll provider. That’s why when you search for a payroll provider on Bark, you can browse the profiles of companies that meet your requirements and read reviews from genuine clients before requesting a quote. 

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The average rating for Bark Payroll Service Providers is 4.95, based on 430 reviews.

4.95/5

based on 430 reviews