Before we go into any numbers, the price range of payroll services from accountants will more or less depend on a business’s employee numbers. And the difficulty of executing the payroll and the nature of the services chosen by the client. This is clarifying for purposes of knowing what most businesses are likely to put aside for the pay roll back up services.
Average Costs of Payroll Services
Per Employee Charge
There are some accountants that work on the cost of payroll preparation on a per employee scale. This average cost is around £4-10 per month for each employee. In the example above, where the business has 10 employees, the monthly charge could be about £40 to £100.
Flat Monthly Fees
Many of the accountants will also provide a monthly retainer for payroll services, especially for the lite companies. For instance:
Small companies with less than 10 staff members will pay anywhere within the range of £50 to £100 on monthly basis.
While for average sized businesses, which beat the brunt workforce of 50 employees, one can expect pricing ranging from £200 to 300 monthly.
For such businesses, the pricing is also unique for each business due to the nature of their subjective payroll systems that they operate.
One-Time Setup Fee
There are some accountants who might also charge a one-off installation fee which can be anywhere between £50 and £200. This includes the cost of entering the first batch of employees, putting in their tax details and other relevant induction processes.
Reasons For The Variance In Costs Of Payroll Services Provides
The Pay Period: Weekly payroll processing is often more costly than monthly activity due to the increased volume of work involved.
Extraneous Services: Services like tax reporting, end of the year documents and deduction of benefits may incur an extra fee.
Adaptation of Reports: There may be additional charges for special reports or specific compliance needed.
Nature Of Payroll: Companies which have different rates of pay, commissions and even more than one outlet may have to incur more costs as a result of increased admin costs.
Payroll Service Package Options And Cost Comparison
Basic Payroll Services
Basic Package encompasses the computation of wages, taxes levied, and preparation of pay slips, hence often ranges from £50 to £150 per month for small establishments.
Full-Service Payroll
Full-service payroll encompasses not only the reporting and filing of taxes but also the printing of employees’ tax forms, managing benefits and compliance, recurring fees of pay rolling services ranging between £150 to £500 a month depending on the size and requirement of a firm.
Tailor-Made Packages For Bigger Corporations
For big organizations, chartered accountants may provide bespoke services with considerable details on reporting and compliance management, those are usually given after assessing the needs of the clients.
Conclusion
The price of payroll service is influenced by the size of the business and the frequency of the payroll as well as other services that may be needed. By knowing these, it would help businesses decide on a payroll system that is cost effective but at the same time meets its operational requirement. To get a fair and precise estimate however, it pays to speak with a local accountant or a payroll company in order to give a better idea of the costs depending on specific needs.