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How much do Payroll Services cost?

Average Price
$4 - $12 per employee, per month

What is the price of Payroll Services?

Are you looking to hire a payroll management company? Read our handy guide to find out how much you can expect to pay for payroll services.

What are Payroll Services?

If you’re looking to outsource your payroll to a payroll provider, you’ll need payroll services. This completely hands-off approach to payroll will save you both time and effort, as well as helping you to remain compliant with employment legislation.  

Most payroll providers will offer a comprehensive service, maintaining 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 liaise with and deal with any inquiries 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 to 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?

The price of hiring a payroll management company will be influenced by 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 the average costs of outsourcing your payroll based on US payroll providers is given below.

Average cost of Payroll Services
Average cost (per employee, per month)$8
Minimum cost (per employee, per month)$4
Maximum cost (per employee, per month)$12

What changes the price of Payroll Services?

The price 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 number of people that your business employs will affect the price of outsourcing your payroll to an external payroll service. 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 cost of payroll services in the US will also be influenced by 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

Most payroll providers will also charge a small set up fee for each of your employees. This cost is generally nominal, averaging around $5 per employee. You’ll incur this charge when you first hire the payroll company and again whenever new employees join your payroll.

You may find that some payroll management companies may also charge an additional fee 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 also offer HR and other accounting services. 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?

You may decide to manage your payroll in-house and it’s perfectly possible to do so. 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’re the owner of a larger business that employs several people, payroll can quickly become overwhelming and take over your day-to-day work. Hiring a payroll specialist can work well, but you’ll need to make sure you’ve got back up in case they call in sick on payday.

Outsourcing your payroll means that you’re free to concentrate on what matters to your business whilst leaving your payroll to the experts. You can 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. 

Looking for payroll services can feel like a challenge. How do you know where to start? 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 4.94, based on 29,458 reviews.

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based on 29,458 reviews