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Date Posted: 9/16/2013

How Much Should Payroll Cost?

 
 
By Steve Kania

If you’re an accountant, bookkeeper or payroll professional using some type of payroll service or software to pay your employees, you've probably wrangled over how much you should be paying for such a service.

How do you put a price on something like this?

It depends on how big your operation is, first of all. Some services are not equipped, for instance, to handle hundreds of employees. Others may offer more than you need for a small business.

Obviously you don’t want to pay a lot for this functional service, but be careful to compare what you need to what you’re getting. What most everyone needs:

• Accurate payment of employees. 
• Payroll taxes paid and filed. 

However, the next question is, how much work do I want to put in to secure these basic elements? A few hours? A couple minutes? This will help you differentiate the type of service that’s right for you. 

Also consider your expertise. Are you a payroll wizard? Or is it only part of your job and something you may need help with from time to time? Is the service you’re paying for offering you payroll help – which shouldn't be confused with technical help on the software you’re using. You want to be sure what you’re doing is within the confines of the many laws and regulations you have to deal with. 

Payroll pricing requires careful consideration – number of employees, robustness of the service, level of customer service. Be sure to weigh these factors when making your payroll product decisions.
 
 


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