You may already be offering payroll services or considering offering them for the first time. But how should you go about it?
Should you choose a referral partnership with an established brand, or invest in your own software and in-house payroll team? And what are the pros and cons of each?
Once you've determined which model intrigues you most, you're likely wondering about the benefits and costs to implement.
In this article, we’ll break down the costs of the two partnership options Whirks offers and help you understand which model is the best fit for your business.
Network Partnership
A Network Partner with Whirks allows you to integrate payroll services directly into your business. One of the primary benefits of the Network partnership option is that you make minimal investment in technology while retaining complete control of your relationship with your clients. You can continue to manage all client interactions, ensuring that your brand remains at the forefront.
However, this model requires dedicated payroll staff within your organization. These employees will need to be trained to handle payroll-related questions and manage your clients' needs. While you’ll have access to training opportunities from the Whirks team, becoming a Network Partner means committing to having a payroll department within your business.
This partnership can be an ideal fit for CPAs, consultants, or brokers who prefer to maintain control of client relationships and internal processes but lack the technology or tools to do it on their own.
How It Works
In a Network Partnership, you, as the partner, manage the day-to-day interactions, gather data, and maintain full control over how payroll is processed.
You’ll use Whirks’ technology to deliver the service, but all client interactions and management remain in your hands.
Whirks will also manage all ACH transmissions, paying employees appropriately, and filing all appropriate federal and state payroll taxes.
Pricing Structure
Our Network partner pricing model scales with your business, allowing you to manage costs effectively as your client base grows.
One-Time Investment
Before you begin managing payroll as a Network Partner, there is a one-time investment fee of $2,500. This fee covers the initial training provided by Whirks so that you and your team are fully prepared to use the payroll platform, manage client interactions, and handle the technical aspects of payroll processing. It also covers the initial client conversion from your previous payroll system onto our system.
Base Cost: Per-Employee and Per-Entity Pricing
The Network Partnership operates with a base fee of $7.70 per employee per month plus $12 per entity per month. Each entity refers to a company or business that you manage payroll for.
For instance, if you manage payroll for 10 companies with 10 employees each, your total cost would be:
$7.70 × 100 employees = $770
$12 × 10 companies = $120
Total Monthly Cost: $890
Minimum Monthly Spend
To ensure ongoing engagement, network partners must meet a minimum spend of $2,000 per month, even if your employee and entity counts don’t reach this level. This guarantees a base commitment but may be challenging for smaller firms that haven’t yet scaled up their payroll service.
This means the total annual minimum cost for network partners is $24,000.
If your payroll operations are below this threshold, the $2,000 minimum becomes the default monthly cost. For firms with larger payroll books, the monthly costs will increase as more employees and entities are added to your portfolio.
Network partners also have the option to sell all of our ancillary services and receive a 20% revenue share across all ancillary add-ons like Time and Attendance and Benefit Services. For a complete list of add-ons, view our pricing page.
Additional Costs
These are annual fees that cover specific payroll functions such as tax filings and reporting.
- $75 per entity, plus $5 for each W-2 form
- $125 per entity, plus $7 for each 1095 form
Client Billing
As a network partner, you handle all billing for your clients. Whirks bills you directly, but you have the freedom to decide how much to charge your clients. You can upcharge for added services, include payroll as part of a broader package, or adjust your fees based on your clients' needs. This gives you the opportunity to tailor pricing to the value you’re delivering.
Ideal for Businesses Who Want To Grow Their Own Payroll Service
The Network Partnership is perfect for businesses that want to grow their own payroll service while maintaining control over their client relationships. Typically, it’s a good fit for accounting firms or service providers that are not yet large enough to operate payroll independently but still want to manage their clients’ payroll functions directly.
Additionally, you can earn a 20% revenue share on bundled packages sold beyond core payroll services, creating another revenue stream.
If you've gotten this far and are not interested in hiring payroll staff and working with your client base directly, perhaps you're a better candidate for a referral partnership. This is often a good fit for CPAs who have no desire to do payroll in their firm, for franchisors, and for associations who want to offer a dedicated partner to their members.
Referral Partnership: A Hands-Off Approach
The Referral Partnership takes a hands-off approach, allowing you to refer clients to Whirks, who will manage everything from payroll processing to client support. This model involves no direct costs to you but operates through a revenue-sharing agreement.
How It Works
With a Referral Partnership, your involvement is limited to referring clients to Whirks. From there, Whirks’ sales team handles the entire process, onboarding clients, training them, and managing all payroll functions. You do not manage payroll or interact with the clients regarding their payroll needs.
Pricing Structure
No Minimum Spend
One of the main advantages of the Referral Partnership is there are no minimum spend requirements, which makes this partnership more accessible for firms with smaller client bases.
Your business is not responsible for any direct costs related to client payroll processing.
Revenue Sharing
The Referral Partnership operates on a tiered revenue share model that grows as you grow your client referrals. To start earning revenue refer at least 100 employees across ten or more FEINs.
Once you reach this threshold, your revenue share is calculated as follows:
- 101–1,000 employees: 8% annual recurring revenue share
- 1,000+ employees: 12% annual recurring revenue share
Maintain your revenue share by bringing in at least one new client per quarter.
This structure allows your firm to earn additional income without managing payroll directly, providing a scalable way to grow revenue as you increase your referrals.
Whirks Bills Clients Directly
In this model, Whirks takes care of all client billing, eliminating any need for you to manage invoices or payments.
Whirks will also maintain the sales process and identify the best services for your client. We provide a form for you to use to submit referrals, or you can simply introduce your client to our team via email. Each of these methods will count towards your referrals.
Referral revenue is shared for the lifetime of your client, so over time, if you consistently refer clients, this can add up to significant revenue!
Ideal Fit for Our Referral Partnership
The Referral Partnership is ideal for businesses that don’t want to manage payroll directly but still want to offer payroll services to their clients.
It’s ideal for companies, such as accounting firms, that recognize their clients’ need for payroll services but don’t want to take on the operational responsibility. It’s also a great fit for franchisors who want to provide a preferred partner for payroll and receive a revenue share for the introduction.
Benefit brokers and HR consultants can leverage this model to offer payroll services without the burden of in-house management, while still generating additional revenue.
Which Partnership Model Is Right for Your Business?
Choosing a partnership model is a significant decision that can shape the future of your business, and it’s one you want to get right. Whether you’re looking for a model that will grow alongside you or prefer a completely hands-off approach, it’s essential to find a partnership that aligns with your goals and one you won’t regret down the line.
What’s Included in Each Partnership?
Both partnership models come with access to Whirks’ advanced payroll technology and support, but the level of inclusion depends on your role in the process.
Network Partnership Inclusions:
- Access to the isolved platform for payroll processing.
- Whirkshops and training on payroll management.
- Full support from Whirks’ team for payroll-related issues.
- Flexibility in how you manage client billing and interactions.
- Ongoing training opportunities at Whirks for continual professional development and coaching
Referral Partnership Inclusions:
- Whirks handles the entire sales process, onboarding, and client management.
- Revenue share for client referrals.
- No responsibility for billing or payroll operations.
- Access to marketing support to help refer clients to Whirks.
- Annual strategy session with the Whirks team for product updates and more
- Free payroll for your business once you refer 50 employees or more
Choosing between the Network and Referral Partnership depends on how much control and involvement you want in payroll operations, as well as how your business wants to handle costs.
Choose the Network Partnership if:
- You want to manage your clients’ payroll operations directly.
- You’re looking to grow your payroll service offering with advanced technology.
- You’re comfortable with billing clients and managing their relationships.
- You can meet the minimum spend requirement of $2,000 per month.
Choose the Referral Partnership if:
- You prefer a hands-off approach to payroll.
- You want to refer clients to a trusted payroll provider without handling any operations.
- You want to earn a revenue share without the responsibility of managing payroll or billing.
- You don’t want to meet a minimum spend requirement but are ready to refer clients to qualify for revenue sharing.
Finding Value in the Right Payroll Partnership
Understanding the cost differences and inclusions of Whirks' Network and Referral Partnerships is crucial for deciding which model is best for your business. If you’re looking for more involvement and control over payroll operations, the Network Partnership may be right for you. However, if you prefer a hands-off approach while still benefiting from referring clients, the Referral Partnership offers an ideal solution.
To learn more or discuss which partnership suits your business, schedule a call with Whirks today and let us help you find the right fit.
