Pricing for payroll software varies greatly from one vendor to another. Usually offered as a SaaS product, a typical pricing structure for basic payroll without any add-ons would revolve around a base fee and then additional fees per user per month. However, many of these vendors offer customized plans where organizations can structure their plans so that they only pay for what they actually need. Understandably, plans with additional features will cost more.

You can find a sample pricing chart below for a few company sizes. The estimated cost already includes the base fee that organizations would have to pay upfront. You’d still need to contact and consult with each vendor to get an accurate quotation since there are many factors that go into payroll software pricing.

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Take note that the price chart above is a highly rough estimate. Some vendors might only charge depending on the number of employees, while some would add a monthly base rate. Remember that there are times where you could still negotiate the prices with the vendor, especially when it comes to initial setup fees.

Handling larger companies will require software with core features that can significantly reduce workload and ultimately benefit the company. Knowing the features available in these software is key when assessing a company’s payroll needs. 

Most vendors offer feature-rich payroll software with highly intuitive, user-friendly interfaces that elevate user experience. It is key that business owners and HR teams are familiar with key payroll features to allow them to choose the best one for their organization. 

• Automated and unlimited payroll runs: One of the primary features of payroll software is to automatically run payroll for an organization. This incredibly powerful function takes care of a task that can otherwise cost the organization significant time and human resources to do. 
• Off-schedule payroll runs: While payroll software primarily functions to run payroll on regular pay periods, it can also run payroll off-cycle for certain situations.
• Direct deposit: Employers can use payroll software to pay salaries by electronically transferring funds to their bank accounts automatically.
• All tax filing/payments: Payroll software eliminates the trouble of filing and paying for payroll taxes, compliances, and regulations.
• Multiple pay rates and schedules: Payroll software simplifies payments for employees that may have multiple pay rates and schedules.
• Payroll reporting: A payroll report is an important document that allows employers to check financial data or confirm tax liabilities. Since payroll software has access to all this pertinent information, payroll reporting can be done regularly with ease. Online payroll software can even generate reports for team leaders and managers from anywhere in the world.

Virtually all vendors can offer demos to showcase their payroll software. During demos, it is important to know which questions to ask to effectively assess their offerings. Here are some questions we think you should ask on demos:

• Are you capable of handling a company of our size?
• What is the size of your biggest customer right now? How far would you be able to effectively scale with them?
• Will pricing change as we scale? If so, how so?
• How do you keep data safe for a company this size?
• Do you have a regulatory compliance team?
• Do you operate in all our locations?
• Are you compliant with regulations in all our locations?
• How flexible are your plans?
• What integrations does your payroll software support? Can it integrate with our current technologies?
• Do you have an employee portal? How is its ease of use?
• How will direct deposit work?
• What’s your implementation like? How is customer support? Is it real-time?
• How does your interface work? Do you have a mobile app?

Implementation can look quite different from one vendor to another, but the primary factor involved in how long implementation will take is how big the client is. Understandably, implementation of new payroll software for a large enterprise can take up to a couple of weeks. 

Fortunately, there are ways companies can help expedite the process. For example, implementation can take place much quicker when the client provides the relevant employee information as soon as possible. This relevant employee data includes employee names, departments, positions, salary information, and so on.

What is payroll software?

Payroll software is a technology designed to manage, streamline, and automate payments and invoicing to employees, as well as help maintain tax compliance and regulations. Many of these payroll software vendors also include other services such as benefits administration.

Does a company need software to do payroll?

No. Traditionally, companies have done payroll manually. However, processing payroll without the aid of a payroll software solution requires a significant amount of time and labor. Small business owners might typically assign payroll tasks to Human Resources, while larger companies can acquire dedicated payroll administrators to process payroll.