You have done your research in regards to outsourcing your payroll to a trusted vendor. You maybe even have found a few third partner payroll vendors that you are deciding between to help solve your payroll and HR needs. It is time to make a final decision. One of the final questions to answer when making any business decision is “How much is it going to cost me?” While every vendor has a unique price that they charge for their services, the answer to this question really is open-ended. Depending on how many HR services your business requires, the higher the payroll cost to your business. However, we have broken down some of the costs for running payroll below.

How much will payroll cost my business?

At Paper Trails, we charge an all-inclusive price. We have, which is an industry standard, two different methods of invoicing our clients. The first method is a monthly invoice. Your business is charged a set price per active employee in our system per month (PEPM). The second way we invoice your business is per each payroll run. We charge a set base fee and a small per employee charge based on the number of service you need. In this method, your business is charged every payroll run, not a monthly invoice.

Per Employee Per Month (PEPM) Model

Our per employee per month (PEPM) model charges one price for each active employee in our system every month. Depending on how many HR tools that your business requires, the PEPM price can range from $15 to $25. The more services you use, the higher the monthly payroll cost.

For example:

Your business has 50 employees and you use a few of our HR tools such as payroll and timekeeping. We have agreed on a $20 per employee cost.

Your monthly invoice would be: 50 employees x $20 per employee = $1,000 per month

The PEPM model generally favors larger businesses that need to take advantage of more tools that Paper Trails has to offer.

Per Payroll Run

The per payroll run method charges a base fee plus a smaller per employee charge every time you run a payroll. If you make a mistake in your payroll and need to process payroll again, there will be that set fee plus the per employee charge. The base fee generally is around $28 and the per employee fee can range from $3.75 per employee to upwards of $10 per employee. The final price will be depending on how many services your business uses.

For Example:

Your business has 10 employees. You use the same tools as before, payroll and timekeeping. We have agreed on a $5 per employee cost.

Every time you run a payroll, your business would be charged the base fee of $28. Then, 10 employees x $5 per employee = $50. $28 base fee + $50 for employees = $78 per payroll.

If you make an error and need an additional pay check for one employee, you would be charged the $28 base fee + $5 employee fee for a total of $33.

This per payroll method is generally a better solution for smaller business. Or if you are a business with dramatic seasonal swings and you only need a few employees during the winter months, this method is more favorable.

Which pricing model is better for my business?

Choosing between the two pricing models for your business depends on many factors. Factors to consider about your business can include:

• Number of employees you have.
• Amount of HR services you need.
• Which industry you are in.
• The seasonality of your business.

Each business will be different, but remember, the PEPM model generally favors larger businesses that need to take advantage of more tools that Paper Trails has to offer. The per payroll method is generally a better solution for smaller business, or a hospitality business with dramatic seasonal swings.

If you have any questions about pricing, or would like to get started, please reach out to our team today!