Payroll processing rates

[equinecpa]

I set up any customers who want assistance with payroll on Paycycle. They like it, and if they need help I can login and assist them. I can't do payroll for less than Paycycle charges and I don't have to be tied down doing payroll reports.

I think it is a great service and encourage my clients to use it. They have accountant discounts most of which I pass on to my clients...I think I'm charging $30.00 a month for the service.

[JohnH]

Suggestion on the separate payroll account.

Have the client deposit the gross payroll in the separate payroll account, plus a percentage to cover the FICA/MED/SUTA. In my state the SUTA rate averages 2.70%, so I have them deposit gross payroll plus 11% (7.65% plus 2.70%, rounded up). Then write the payroll checks out of the payroll account. The only deduction from the deposit would be any payroll withholdings for uniforms, insurance, etc. For example, if the gross payroll is $5,000, then they would transfer $5,550 to the payroll account before writing the checks.

This enables them to always keep the withheld taxes plus the matching and additional taxes segregated from operating funds and there's never a surprise when you hand them the payroll tax reports. I've found that any client who does this never complains about the reports, and almost any client who won't do this is a hopless case.

[Gretel]

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

Yes, I am printing the checks on forms supplied by clients.

[Jesse]

Thanks for the feedback. I only have one business that I started to do payroll for with 9 employees. I am charging $30 per payroll (biweekly). He brings in the time cards and I process the payroll and print the checks supplied by him. I also expect him to tally up the hours, which he has now asked that I do for what I am charging. I don't think this should be inclusive and I didn't think my charge was excessive.

I tried to get him to set up a seperate account to deposit the employee tax w/held and the employers taxes so he'll have the money on hand when due. He has yet to do this so I make sure to print a liability report w/ totals hightlighted. I did the first quarter reports and printed the checks and he is still "sticker shocked". I don't know how else to help him w/ this and try to explain this in NOT your money so if you don't pay it's equivalent to stealing from your employees.

This is a new business and I am trying to be helpful but now am wondering if I shouldn't send him down the road.

[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.

[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.

[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.

[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]

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?

[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.

[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.

[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.

[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).

[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.

[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.