If you’re like most business owners, you don’t have the time—or the patience—to dig into every detail of payroll. That’s why you hire a service, right?
But without understanding what makes up payroll costs, it’s hard to know if you’re working with the right provider or if you’re paying too much.
Payroll isn’t one-size-fits-all. Different businesses have different needs, and that affects pricing. Some costs are unavoidable, while others depend on the features you choose or your specific situation. We've broken it down so you can feel confident about what you’re paying—and why.
What Does Payroll Include?
Payroll goes far beyond simply writing checks. It encompasses every part of managing employees, and there are a lot of rules and deadlines to keep track of. Here’s an overview of what payroll involves:
- Cutting Paychecks: This is the part everyone thinks of when they hear "payroll." But it's only one piece.
- Tax Deadlines and Filings:
- Taxes you withhold from employees must be sent to the IRS, usually within three days of tax day.
- You’re required to file quarterly reports (like Form 941) to reconcile what you’ve withheld and paid.
- Unemployment filings are also due every quarter.
- New Hire Reporting: When you bring on a new employee, you’re required to file a new hire report. This ensures compliance with things like child support or other garnishments that might apply to your team.
- Onboarding and Employee Management: Payroll ties into onboarding, where you collect all the necessary paperwork, have employees sign forms, and enroll them in benefits.
- Timekeeping and PTO Tracking: Keeping track of hours worked, vacation days, and sick leave is another important piece.
- Offboarding Responsibilities: When employees leave, payroll helps ensure they’re removed from benefits systems like 401(k) plans and other programs.
What Affects Payroll Costs?
One of the biggest challenges we see with business owners is a lack of clarity around payroll pricing. Many services don’t explain their fees, so you might not even know what you’re paying for—or why your costs keep changing.
Here are some common factors that shape payroll costs:
- Number of Employees: The more employees on your payroll, the higher the cost. Many payroll providers charge a fee per employee for each pay period.
- Pay Frequency: Do you pay employees weekly, biweekly, or monthly? More frequent payrolls mean more processing and higher fees.
- State Taxes: If your employees live and work in multiple states, you’ll pay extra for tax processing in each state.
- Miscellaneous Services: Add-ons like tracking PTO on pay stubs, timekeeping software, or employment verifications can add to your fees.
Miscellaneous Payroll Fees to Consider
In addition to the basics, there are fees for specific situations or additional services, such as:
- New Hire Reporting: Ensuring compliance when adding new employees.
- Garnishments: Handling child support or other deductions for employees.
- End-of-Year Services: Fees for processing W2s or amending previous tax filings.
- Rush Fees: Charges for last-minute changes to payroll details.
- Paper Checks or Reports: Printing and delivering physical materials often comes with an additional cost.
Some of these services are optional, but others, like garnishments or new hire reporting, are essential to staying compliant with regulations.
How Payroll Fees Are Structured
Most payroll providers charge based on a few standard models:
1. Base Fees: A flat fee that covers the minimum cost of handling payroll, regardless of the number of employees.
2. Per-Employee or Per-Process Fees:
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- Some providers charge per employee.
- Others charge for each payroll process or for every check they cut.
At Whirks, we charge a flat per-employee, per-month fee (PEPM). Whether you process payroll weekly, biweekly, or monthly, your cost stays the same. This makes it easier for you to budget and manage expenses without any surprises.
Why Transparency in Payroll Pricing Matters
When we sit down with potential clients, one thing we hear over and over is that they don’t know what they’re paying for. Their payroll invoices are full of vague line items, and the total seems to jump around from month to month.
We believe in total transparency. All of our fees—from quarterly tax filing charges to new hire reports—are listed in your agreement when you sign up. There are no hidden fees, and everything is spelled out on our website so if you're charged for something, you’ll know exactly what it’s for.
Unfortunately, that’s not always the case with other providers. Hidden fees, unclear pricing structures, and unexpected charges are all too common. If this sounds familiar, it might be time to take a closer look at what you’re paying—and why.
Are You Paying Too Much?
When it comes to payroll, what you think you’re paying and what you’re actually paying can be drastically different. That’s why I always recommend doing a price shop.
It’s not just about finding the lowest cost—it’s about making sure you’re getting the value and support you need.
Here are some things to consider when comparing payroll providers:
- How clear is their pricing?
- Are you charged extra for adding employees or filing taxes?
- Do they offer reliable customer service to help with issues or questions?
Payroll might not seem like a huge expense compared to other parts of running a business, but it’s a critical service. You want a provider that communicates well, offers excellent support, and helps you stay organized and compliant.
The True Value of a Great Payroll Provider
A great payroll provider isn’t just a cost—it’s an investment.
When your payroll is handled the right way, it’s not just about paying employees on time; it’s about simplifying your workload, staying on top of deadlines, and freeing up your energy to focus on growing your business.
At Whirks, we help you own your payroll process. From taxes to benefits to employee records, we give you the tools and confidence to manage every detail. Our approach keeps you organized and prepared so that payroll finally feels manageable—dare we say even fun.
Stop Paying Too Much For Not Enough Support
Why settle for a payroll provider that charges more while doing less? Big-name services often leave you with hidden fees and limited support, making you wonder if you’re really getting your money’s worth.
With Whirks, payroll is simple, transparent, and built around your needs.
Curious how we compare to the big-box providers you’ve heard about
—or maybe even use? Read Whirks vs. The Big Box Providers to see what makes us different.
It might be the answer you’ve been looking for.
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