In business and entrepreneurship, having a unique payroll system is very much important. Now, considering the costs of having a great payroll system is quite tricky. As a businessman, you have two options in processing and assessing your payroll. One is having an in-house payroll processing and two is outsourcing payroll services from a third party.
In comparing and weighing the two options, the payroll services costs are much more efficient and practical than having an in-house payroll system since on the latter option – you have to hire staff and employees in processing the whole payroll system whom are as well to be included in the payroll list. Moreover, you have to have your own payroll program and software especially if you are running quite a medium to large scale of business. Accordingly, all of these require certain costs which are actually quite expensive.
Today, acquiring and outsourcing payroll services from a third party such as payroll companies has become a trend due to its efficiency and practicality when it comes to expenses. Nevertheless, it lessens your total overhead costs and stresses in general since you no longer need to have extra Softwares and the need to hire and oversee staff for and on your payroll department.
Indeed, this kind of service has truly become one of the most apparent services being obtained by several establishments and companies in the recent times. Although it decreases dramatically and significantly your total expenses in your business, you still have to take into considerations the general payroll service fee since this will still be an actual expense on your end.
The Average Cost of Payroll Services Today
There are a lot of companies today which actually offer different kinds of payroll services that you can choose from. It is quite evident for the existing service to be an efficient and effective one since the industry keeps on flourishing up until today.
On a normal condition, the average cost of payroll services today can go for as low as $25 and may reach up to $200 or more monthly. These rates may include generally the payroll processing and payroll deposits or delivery. Some other payroll companies and services include and offer as well the basic tax filing and online accessing of payroll accounts by the employers and employees which may serve as additional costs or additional packages for the acquired basic payroll service.
A more complex payroll system and services may apparently increase the costs ranging from $250 up to $1500 a month. Such system is the advanced type and may include the online payroll systems and tax filings of each employee.
Accordingly, learning how much do payroll companies charge for its services also means understanding the recurring factors affecting the fees and rates. Although there are only a few variables and factors that may influence the overall pricing for acquiring such service, you still have to weigh it all in and note that the usual basis of rates and fees of these payroll services is actually dependent largely on your and your company’s payroll needs.
The costs and rates usually depend on the pay frequency of your company, numbers of employees, your location or state (since this will affect variably the taxation system), and the difficulty of your tax conditions in the company or business you are apparently running.
By and large, you must understand that having a small business or company that usually runs 5 to 10 employees alone may require you much higher costs when it comes to hiring a third party payroll company since this kind of service is usually intended for larger companies and corporations. Also, they tend to offer package deals and discounts for bigger numbers of employees.
If in case you are running just a small business or company that only have less than 15 employees, you and your trusted associate may actually be the ones to compute and do all the necessary processes of your payroll system. However, it will still be dependent on your preferences whether to hire one or not.
Basic and Advanced Payroll Services
Generally, the most basic payroll service is the one that usually includes only the payroll assessment and processing. The payroll service fee for this kind of assistance may actually cost between $0.80 and $2 per paycheck, thus intended mainly for companies and businesses which run a smaller scope and number of employees.
On the other hand, advanced payroll services are much more complicated since more often than not, it includes already other kinds of payroll assistances such as paycheck deliveries and deposits, online access tools for employers and employees, and a lot more. The usual cost may range from $4 up to $9 per payroll period.
Payroll Periods and Frequencies
There are actually companies which tend to have payroll periods on a weekly basis and there are as well which prefer to have it every two weeks. But note that the most practical and efficient payroll period and frequency is to have it on a monthly basis since payroll services cost much higher if the payroll is much frequent. For instance, a certain payroll company and service may require you to pay an average amount of $36.85 a week for that specific period which you can sum up to $147.40 a month for the whole payroll service.
A bi-weekly basis may cost you around $41.85 on an average note which can be added to the total of $83.70 for the whole month of service. While on a monthly basis of payroll distribution, it may actually cost you $46.85 only for the whole service in one month.
Payroll companies and services apparently have different services as well that you may find useful and beneficial on your end. Since convenience and efficiency is what you are looking for, these companies tend to extend their services with additional payroll assistances. Now, these assistances and additional supports have also extra charges.
To determine how much do payroll companies charge for their additional services, you must know very well what these services are specifically.
Payroll companies charge an extra fee if you want to include a basic tax filing and assistance to your acquired payroll service package. Usually, the average cost of $.08 to $2 per paycheck may reach $4 and above basing on the location of your company and tax filing offices. It is actually recommendable if you are running a huge company with lots of employees since this will lessen the additional staff you intend to hire in doing the tax filings and other related matters.
Some payroll companies tend to charge additional fees for having a secured online platform of payroll system intended for employees and employers. On a normal note, such computer softwares may cost around $75 up to $250 annually depending on the complexity of the interface and platform of the payroll software.
Other payroll services also tend to charge extra fees and rates for having the readily-made paychecks be delivered on hand to your business location and address. This may come handy on your end since you don’t need to hire another staff doing the said job that will also have a regular payroll account on your company.