Pricing Models
Payroll Software (Self-Service)
You run payroll yourself using software (Gusto, ADP Run, Rippling). Software costs $40–$150/month + per-employee fees.
Best for: Small businesses with <25 employees who have someone to manage payroll internally.
Full-Service Payroll
Payroll provider handles all processing, tax filings, direct deposits, and W-2s. $100–$500/month for small businesses.
Best for: Business owners who want to outsource payroll completely and not think about tax filings.
PEO Payroll
PEO co-employs your workers and handles all payroll, taxes, and compliance under their master employer account.
Best for: Small businesses wanting group health insurance rates and full payroll compliance management.
Enterprise Payroll Outsourcing
Large-scale payroll outsourcing for 200+ employees with multi-state compliance, garnishments, and HR data integration.
Best for: Mid-to-large companies wanting end-to-end payroll outsourcing with a dedicated service team.
Service Tiers
Small Business (1–25 employees)
$40–$200/mo
Payroll processing with tax filings, direct deposit, W-2s, and new hire reporting.
- Automated payroll runs (weekly, bi-weekly, semi-monthly)
- Federal, state, and local tax filing
- Direct deposit
- W-2 and 1099 filing
- New hire reporting
Growing Business (25–100 employees)
$200–$700/mo
Full-service payroll with multi-state support, HR integration, time and attendance, and dedicated support.
- Multi-state payroll and compliance
- Time and attendance integration
- Benefits deduction management (401k, health)
- Year-end tax services
- Dedicated payroll specialist
Enterprise (100+ employees)
$700–$3,000+/mo
Enterprise payroll outsourcing with HRIS integration, garnishments, equity tax management, and SLA-backed service.
- Full HRIS/ERP integration
- Equity and supplemental pay processing
- Garnishments and wage assignments
- Multi-entity and multi-country support
- SLA-backed service with dedicated team
What Drives the Cost?
Employee Count
The primary pricing driver. Most payroll services charge a base fee plus a per-employee cost of $4–$12/employee/month.
Pay Frequency
Weekly payroll costs more than bi-weekly or semi-monthly because more processing runs are required each month.
Multi-State Compliance
Each additional state requires separate tax registration, filing, and compliance management — adding $20–$50/state/month to payroll costs.
Benefits Integration
Integrating 401(k) deductions, health insurance premiums, and FSA deductions into payroll adds complexity and cost.
Contractor (1099) Payments
Managing contractor payments and 1099 filing adds $10–$30/month for platforms that support it.
International Payroll
Paying international employees (in-country or via EOR) adds $200–$600/employee/month due to local compliance, currency, and benefits management.
Rates by Location
| Region | Rate |
|---|---|
| 🇺🇸United States | $40–$200/mo (software) |
| 🇮🇳India | $5–$15/employee/mo |
| 🇵🇭Philippines | $8–$20/employee/mo |
| 🌐Global EOR | $200–$600/employee/mo |
| 🇬🇧United Kingdom | $40–$150/mo |
Pricing FAQ
What is the best payroll software for a small business?
Gusto is the top-rated option for US businesses under 100 employees — strong UX, full-service tax filings, W-2s, and integrated benefits. ADP Run is better for companies planning to scale beyond 100 employees. Rippling is best if you want payroll, HR, and IT management in one platform. Paychex is a strong option for businesses that want dedicated local payroll support.
What are the penalties for payroll tax errors?
The IRS charges 2–15% penalties on late or incorrect payroll tax deposits, plus interest. State penalties vary. A single payroll mistake for a 20-person company can cost $2,000–$10,000 in penalties — making professional payroll services worth every penny of their monthly fee.
Should I manage payroll in-house or outsource it?
For any business with employees, outsource payroll to a professional service. The cost is $40–$300/month for most small businesses — far less than the risk of payroll tax errors, the time spent managing compliance, and the risk of employment law violations. Payroll is not a core competency worth building in-house at any company stage.
Find the right Payroll partner
Compare verified agencies with transparent pricing. Request quotes and get matched to the right partner for your budget.
Find Payroll Service Providers