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Costs of Payroll Management

Hiring a payroll management company is a great way to save on costs associated with payroll processing. Costs will vary depending on the services you choose, but most payroll management companies will charge anywhere between a few dollars to $20 or more per employee each month.

Some factors that can impact the costs of a payroll management system include:

• Number of Employees • Length of time between pay periods • Method of payment (direct deposit or checks) • Employee benefits offered • Changes to employee information • Reporting functions

The more complex the computations, such as those for employee retirement accounts, the more expensive the services will be. The type of account you set up can also impact the cost. If a payroll company draws checks on your account, you might be subject to more charges than if you were to use an account held by the vendor. Though costs can increase based on any of the factors above, payroll management systems are still usually much more cost effective than processing payroll in-house.