The market for payroll services is competitive and reflects local market
conditions. The basic payroll processing service typically costs between $2 and
$3 per check, plus a base account fee.
Services such as tax filing and delivery can cost between $4 and $9 per
payroll period. Add-ons like direct deposit often carry a nominal per-check
charge. For a full-service solution, a small to medium-sized business can expect
to pay a total of $3 to $5 per paycheck issued.
Furthermore, there can be fees for adding or dropping employees, adjusting
employee information, or setting up your account. Fees for various services can
differ dramatically across payroll services, so it is important to understand
which ones you want before signing up for a service. That way, you can ensure
you are comparing the relevant pricing when evaluating different providers.
As with many other business services, the more you buy, the cheaper it gets.
If your company has significant plans for expansion, find out when you will be
eligible for volume discounts.