Discussion:Payroll Processing - What to charge
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| 23 June 2008 | |
| Howdy do we do today?
As my Monday tends to be the let's get the client payrolls done day, this is the day I usually think about my pricing structure. As the empire continues to grow and grow, these items need to be reviewed regularly. The payroll clients and the pricing structure are things that came with this business. For the time being we are going to continure to offer payroll and so, I wish to make sure I am charging appropriately. My present fee structure has been $5 per check written, all inclusive. This includes the EFTPS payments and NYS withholding checks written as checks to charge for. no additional charges for 941's, state forms and year end. Previously, there has been no minimum fee, one check a week, then $5 per week. This $5 per check charge has also been all inclusive of payroll returns and W-2's. For new clients, this has been eliminated. Now a weekly minimum of $20 for payroll processing is being charged. Also thinking of going with a minimum fee and then a low per check charge after that. Thinking $15 to $20 per plus $1.50 to $2.00 per check. Maybe more if still all inclusive. Then, I have to decide whether to be all inclusive, or to charge additional fees for reports. What are your thoughts and what do others charge? Thanks. | |
Actionbsns (talk|edits) said: | 23 June 2008 |
| Fred, I wouldn't charge anything less than an hour's worth of time for payroll, unless it was REALLY simple - like one check always the same. All tax forms are charged separately. Quarterlies are generally an hour for most of my payroll clients, although we have two now with large employee bases and I charge that at the amount of time it takes to do the returns. W-2's and year end reports are charged at the hourly rate also, one hour minimum. I've never really gotten to where I was really comfortable with my year end charges though. In California, I charged the year end forms at $5 per W-2 with a $30 minimum (that was five years ago), 1099's were charged at $3 per 1099, with a $20 minimum (I think). Since moving to Hawaii I seem to have abandoned the per form schedule and we go with the hourly charges. BTW, the hourly is my bookkeeping rate of $50, not my rate for preparing a "real" tax return (1040, 1065, 1120, etc.) | |
| 25 June 2008 | |
| I did some search around my area. Payroll Processors are trying to be competitive with Paychex, ADP, and other franchises. The average rates are $30 / month service fee with $2.50 (direct deposit check stub) and $3.10 for a check. Postage is included. I don't process payroll but I believe the extra cost is due to the MICR ink on the actual checks vs deposit remmitance notices. | |
| 25 June 2008 | |
| Pegoo, actually, you no longer need true MICR ink. I use my regular copy/printer machine to print out checks. Banks scanners are much more sensitive and I have had no problems.
I am trying to charge in line with the ADP's and Paychex with a small discount. I figure that processing payroll pays for my staff for the off season. allows me to not be here myself all the time. Action - bookkeeping hourly rate or CPA/consultant hourly rate? big difference | |
| 28 June 2008 | |
| Fred,
Are you doing after-the-fact payroll? Are you issuing the checks themselves? I bill by the hour. I don't have a big p/r practice just a few. I'm a sole practitioner on my own and I don't push p/r but will accomodate a client if need be. I only do after-the-fact p/r and QB Enhanced handles it well. How do your fees compare with Paychex or ADP? PB | |
