Payroll processing rates

[Jesse]

Just curious what some of you might charge for payroll services for business clients.
Do you charge per employee? By the hour?

[JohnH]

I tried coming up with pricing a few times years ago, but I always found myself needing to charge so much that I would wind up suggesting that the client go to a payroll service because they do the job so much cheaper.

[Bucky]

You might want to look at www.paycycle.com. I had a few clients that wanted me to handle payroll but it ties me down to much. I have 5 set up on paycylces. They (the client) do the payroll each pay period but you can duoble check or log on and help out with any problems. I love it. Also does direct deposit, monthly and quarterly filings. You might have to do some local tax filings but check it out.

Bucky

[geekgirldany]

I can tell you my charges which are lower than ADP or Paycycle. I charge $60 a month for one employee. I then add $8 to $10 per employee. This takes care of monthly federal/state deposits and quarterly forms. Yearly forms I charge and extra $50 at the end of the year for them. This does not include payroll check processing. There is a higher charge for that. Right now most of my payroll customers are $60 per month. I have one that has 10 employees. I print his payroll checks, pay his taxes weekly on eftps, and do the other regular payroll work. I charge him $250 per month.

[TaxLadyinPA]

When did you check Paycyle prices last??

I can tell you my charges which are lower than ADP or Paycycle. I charge $60 a month for one employee. I then add $8 to $10 per employee. This takes care of monthly federal/state deposits and quarterly forms. Yearly forms I charge and extra $50 at the end of the year for them. This does not include payroll check processing. There is a higher charge for that. Right now most of my payroll customers are $60 per month. I have one that has 10 employees. I print his payroll checks, pay his taxes weekly on eftps, and do the other regular payroll work. I charge him $250 per month.

Not sure when you looked at Paycycle last but wow ... you are way more costly than they are.
I just had a new client who was in a partnership that ended, came to me as a new business asking about my payroll, when I started to tell him my prices he decided he would stay with Paycycle that they used in the Partnership.
I just went to their website and they charge $ 43 a month up to 5 employees and $ 1.50 for each over the 5. This includes the federal and state quarterly filings. (At the time I didn't think to ask him about the Local and unemployment filings)

My prices are as follows:
I charge $ 15 per week up to 5 employees and $1 each over 5. Then I charge $ 15 per quarterly return i.e. Form 941, PA W-3, PAUC and the Local Earned Income Tax. So my fees of $60 for the 4 returns and $ 15 per week payroll is way more costly then what Paycycle offers.

I have some who do their own payroll and I only do their quarterly reports. For those I charge $ 20 per return and $ 25 for Form 941SB and if I have to reconcile their mistakes (which I usually do grrrr) I charge $ 25 per hour additional for the extra nonsense I go thru fixing their errors.

[geekgirldany]

I said Paycycle but really my prices were more based on ADP. This was probably 2 or 3 years ago that I looked at it. Not sure that I even looked at Paycycle.

[Black Bart]

Rates

Just curious what some of you might charge for payroll services for business clients.
Do you charge per employee? By the hour?

Jesse/ Dany's $60 sounds reasonable to me. I charge a flat monthly fee -- as low as $40 (my "pore boy" rate) and as high as $75 (my average is also about $60) depending on how many employees (no hourly billing--don't like to keep track). Fee includes monthly sales tax (30-minute job), but I don't write payroll checks -- as Bucky pointed out, it ties you down too much (every Friday).

[JoshinNC]

I hope none of yall call on my clients

We charge $125 per month, plus $3.50 per month per employee. We also charge $7.50 per 1099 or $5 per W-2 at year end. But, our clients just bring us a pay sheet and it's done. Our clients are very hands off on their payroll. We print the checks, make the depsosits, do the DD, everything.

[Gretel]

I am surprised that you all charge per month or week and not per payroll. It makes a difference if they pay weekly or monthly. I charge $15 per payroll for up to 3 employees plus $2 for each add. employee. Then I charge $50 for the quarterly reports plus $30 at year-end up to 3 employees ($2 add. employees). This includes work.comp. filings and any other payroll help but excluding messes they create in QB.

[JG EA]

I am surprised that you all charge per month or week and not per payroll. It makes a difference if they pay weekly or monthly. .

I figure how much I want per hour for payroll (less than for taxes but enough to make money and pay someone else to do it). I then times the number of payrolls in the year by the number of employees divided by the time I think it will take, times the $ amount I want. To this I add the cost of checks, the cost of stamps, extra for quarterlies, extra for W-2's. Then divide it all by 12 for the monthy charge. They seem to like that instead of many different billings during the year.

[Black Bart]

Uh...would you say that all again?

I figure how much I want per hour for payroll (less than for taxes but enough to make money and pay someone else to do it). I then times the number of payrolls in the year by the number of employees divided by the time I think it will take, times the $ amount I want. To this I add the cost of checks, the cost of stamps, extra for quarterlies, extra for W-2's. Then divide it all by 12 for the monthy charge. They seem to like that instead of many different billings during the year.

Well shoot, JG; you're spendin' more time figurin' what they owe you than you do on the payroll. I'd have to charge you sump'n myself just to see what it comes up to. How 'bout doin' some convuluted calculatin' and tell us what your clients gets charged in an average month?

[Black Bart]

Gretel

I am surprised that you all charge per month or week and not per payroll. It makes a difference if they pay weekly or monthly. I charge $15 per payroll for up to 3 employees plus $2 for each add. employee. Then I charge $50 for the quarterly reports plus $30 at year-end up to 3 employees ($2 add. employees). This includes work.comp. filings and any other payroll help but excluding messes they create in QB.

Are you writing the payroll checks? That would make a big difference.

I also fill out workmens' comp audits, census bureau forms, and any other minor junk.

[Black Bart]

Well now -- look here Josh,

We charge $125 per month, plus $3.50 per month per employee. We also charge $7.50 per 1099 or $5 per W-2 at year end. But, our clients just bring us a pay sheet and it's done. Our clients are very hands off on their payroll. We print the checks, make the depsosits, do the DD, everything.

Your job description "...our clients are very hands off...we print the checks...do everything" is a perfectly valid justification for your (yuk-yuk) outrageous $125 fee and is also the reason why we can do it so cheap and still live normal lives. You cain't pack up and head for the lake on Friday 'cause the Joe Blow's Rolled Dough employees want their check every week come hell or high water and your foot's nailed to the floor.

I suggest you contact ST (recently relocated to the Carolinas from California) who can probably suggest a suitable New Age therapy regimen to alleviate your consuming obssession with monthly fees.

[JoshinNC]

Actually we did just that Friday

Your job description "...our clients are very hands off...we print the checks...do everything" is a perfectly valid justification for your (yuk-yuk) outrageous $125 fee and is also the reason why we can do it so cheap and still live normal lives. You cain't pack up and head for the lake on Friday 'cause the Joe Blow's Rolled Dough employees want their check every week come hell or high water and your foot's nailed to the floor.

I suggest you contact ST (recently relocated to the Carolinas from California) who can probably suggest a suitable New Age therapy regimen to alleviate your consuming obssession with monthly fees.

We called everyone on Thursday and told them, "Pick your stuff up by 11 am or you ain't gettin' it cause we're headed to the lake." We were in the water by 12:30.

I got 'em trained up, so to speak.

[JG EA]

Well shoot, JG; you're spendin' more time figurin' what they owe you than you do on the payroll. I'd have to charge you sump'n myself just to see what it comes up to. How 'bout doin' some convuluted calculatin' and tell us what your clients gets charged in an average month?

Actually it's not that hard I just put it into an excel formula and type in the 26 (for biweekly) or 24 (for semi), etc, and the number of employees. I also type in if I print the checks, etc.

But OK OK. The payrolls I have are small with just a few employees. My prices did start at $50 for one employee (I now will start at $60 if any new clients) to $90 for approximately 7 employees. But if someone has just a couple of employees but have child support, Simple Plan, or some other extra then they are around $85. I thiink that is pretty reasonable.