How Much Does an Online Payroll Service Cost?

The Milestone Team December 6, 2022
How Much Does an Online Payroll Service Cost?

It may seem unnecessary for business owners to invest in an online payroll service. However, in terms of training, time, and fees for incorrect filing, it may save you money in the long run.

It is critical to keep in mind that the cost of a payroll service will vary depending on several factors:

  • Size and scope of your business.
  • The location of your business.
  • Your choice of outsourcing services.
  • Payroll service provider fees.
  • Employee wages.
  • Employer payroll taxes.
  • Unemployment insurance.
  • Worker’s compensation insurance.

There are usually two or three costs associated with using a payroll service:

  • A monthly base cost that ranges from $30 to $200 per month.
  • Payroll service cost per employee that ranges from $10 to $25 per month.
  • Sometimes, a one-time setup fee is charged as well.

You may find that the price structure of a payroll provider does not always include everything you require to run your payroll from start to finish. Occasionally, separate fees are charged for:

  • Direct Deposit
  • Automatic check signing
  • Paycheck printing and delivery
  • Tax filing
  • Year-end processing including forms such as W-2, 1099, etc.

Payroll expenses can be drastically increased by add-ons, so employers should verify exactly what is included before signing a contract.

How Much Does an Online Payroll Service Cost for a Small Business?

There are no two payroll companies that are the same. Considering this, it is imperative for employers to consider the overall value they will receive from the provider when weighing costs, in order to make an informed decision.

Besides cost, some of the many things to consider when purchasing an online service include: 

Ease of Use

There shouldn’t be too much complexity in the payroll service. It should be easy to use, so that you can run payroll and add employees without any hassle.

Reputation

You should choose a provider with a strong track record and positive online reviews. With payroll experts handling any issues you may encounter, you’ll feel more secure.

Integrations

Your payroll service should sync with the programs you already use. The systems should work together to increase productivity, decrease human error, and ensure the consistency of data. 

Support

Assisting you when you need it is the responsibility of your provider. Whenever you have a problem, you should have access to resources as well as a way to get support if you need it.

Employee Self-Service

Employees should be able to view their digital pay stubs and tax forms on their own through our payroll service. This allows for a very customizable experience, and employees can have access 24/7 at their convenience. 

What Is the Cheapest Payroll Service for Small Businesses?

Payroll is one of the most critical processes in any business. The payroll function is the only one of the company’s functions that truly touches each employee, so its process must reflect that importance. Having cheap payroll services carries many significant risks for your business. 

In the event you do not have the funds to hire a payroll service, you may be able to save money by using a self-service approach. With the right knowledge, time, and a calculator, you can do payroll on your own. The option remains available even though it is not recommended.

A large part of business decisions and compliance is influenced by payroll. Payroll services for small businesses are worth investing in for the long term. If affordability is a concern, Gusto – our simple small business recommendation – provides inexpensive starter tiers for small businesses.

How Much Do Banks Charge for Payroll?

Banks charge payroll fees for direct deposit. Electronic transfers of funds between bank accounts are known as direct deposits. Transferring funds from an employer’s business account to an employee’s account is a common practice in the workplace. Your employees will appreciate its convenience, safety, and reliability. Depending on the size of the business and the type of bank account, direct deposit provider setup fees range from $50 to $149. Additionally, banks can charge a flat fee per pay period plus a fee for each employee payment.

Employers and employees alike benefit from direct deposit. Due to the lack of paper checks, direct deposit eliminates the possibility of wages being stolen or lost. In addition, a damaged or delayed check is no longer a concern. Employees can control where their money lands, and having control over where the paycheck ends up is another way direct deposit provides flexibility and convenience for employees.

Count On Milestone to Provide You With High Quality and Affordable Payroll Services

At Milestone, we pride ourselves on being payroll experts. Let us handle your small business payroll, so you don’t have to worry about it. Pricing varies based on service level, employee count, and frequency of pay cycles. Contact us today to get a quote for your company.

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