How Much Do Payroll Services Cost?

What Drives Payroll Pricing?

Payroll pricing can feel mysterious at first.

One provider might quote $50 a month, another $200—and the features often vary widely.

The truth is, what you pay depends on a few key factors: your team size, the services you need, how often you run payroll, and the level of support you want.

Understanding these drivers is critical—not just to compare costs, but to evaluate the real value of outsourcing payroll.

In this post, we’ll walk through common pricing models, what services typically come included versus optional, and why investing in the right payroll solution can save you hours of administrative work, prevent costly errors, and give you peace of mind.

Pricing Models

Most payroll services follow one of a few standard pricing structures:

• Per Employee, Per Month (PEPM): A base monthly fee plus a small charge per employee. For example, $40 per month plus $6 per employee. This is the most common model because it scales with your business.
• Flat Rate: A single monthly cost, regardless of headcount—often used by very small businesses or single-member LLCs.
• Add-Ons: Many providers charge extra for things like timekeeping, benefits administration, or HR tools. It’s important to look closely at what’s included versus what’s “optional.”

Example: A five-person company might pay $70 per month with one provider, but $150 with another once add-ons and hidden fees kick in.

What’s Included (and What’s Not)

“Cheaper” doesn’t always mean better. Some payroll companies advertise a low headline price but charge extra for basics—things that most business owners expect to be included.

Here are a few common “surprise” charges you might encounter:

• Year-end tax forms (W-2s, 1099s)
• New hire reporting
• Direct deposit
• Quarterly and annual tax filings
• Live customer support

At Brand’s Payroll, we believe in transparent, all-in pricing—no hidden fees for features you actually need to stay compliant and keep your employees happy. What you see is what you pay.

Typical Cost Ranges

For small to midsized businesses, payroll services generally range from $30–$150 per month plus $4–$15 per employee.

That means:

• A small business with 5 employees might pay around $70–$100 per month.
• A 25-person team could expect closer to $150–$250 monthly.

Costs rise when you add time tracking, HR tools, or benefits management—but so does efficiency. The key is to make sure those extras actually serve your business goals.

The Real Value Behind the Price

While cost matters, the bigger question is: What does this actually save you?

Outsourcing payroll eliminates hours of manual work and reduces the risk of IRS penalties, late filings, and paycheck errors. In fact, even a small mistake in tax withholding can trigger fines that far exceed your monthly payroll fee.

For most business owners, the ROI comes in peace of mind. When your payroll runs correctly—every time—you can focus on growth, not paperwork.

At Brand’s Payroll, we pair reliable technology with real human support. That means when you call, you get someone who knows your account—not a chatbot. And that level of accountability is part of the value you’re paying for.

The Takeaway

‍Payroll services aren’t just an expense—they’re an investment in accuracy, compliance, and your company’s reputation.

If you’re ready for payroll that’s transparent, affordable, and backed by real people who care about your business, get a quote from Brand’s Payroll today. You’ll know exactly what you’re paying—and exactly what you’re getting.