Payroll services typically cost between $40 and $200+ per month for small businesses. The actual number depends on how many employees you have, how often you run payroll, and what level of service you need.

Most providers use base-plus-per-employee pricing. You pay a platform fee each month plus a charge for each employee per pay run. Platform fees usually range from $40 to $80. Per-employee fees run $4 to $15 depending on the provider and whether you pay weekly or biweekly. A company with five employees running biweekly payroll might pay $150 to $200 per month total.

DIY software like QuickBooks Payroll or Gusto sits at the lower end of pricing. You get the tools to run payroll yourself, but you’re responsible for entering everything correctly and understanding tax requirements. Full-service payroll where someone handles processing, filings, and compliance costs more but frees up your time and reduces error risk.

What drives cost higher: more employees, more frequent pay runs, multiple state filings, garnishments, certified payroll for prevailing wage work, and add-on services like time tracking or benefits administration. A contractor with a fifteen-person crew and weekly certified payroll will pay significantly more than a consultant with two part-time employees.

Massachusetts has specific requirements that affect payroll complexity. Paid family and medical leave contributions, state unemployment insurance, and various reporting rules all need to be handled correctly. Any payroll service you use should understand Massachusetts compliance specifically, not just federal requirements.

The real cost of payroll isn’t just the monthly fee. Factor in your time and the risk of errors. A missed filing or incorrect withholding calculation can trigger penalties that wipe out years of savings from a cheap service. When comparing options, ask what happens if they make a mistake. Good providers guarantee accuracy and cover penalties they cause.

For small business bookkeeping in MetroWest Massachusetts, choosing between DIY software and full-service payroll comes down to how much time you have and how comfortable you are with compliance details. If payroll feels like a distraction from running your business, the extra cost for full service usually pays for itself in time saved and mistakes avoided.

Pay attention to what’s included. Some services charge extra for year-end W-2 preparation, new hire reporting, or direct deposit. Others bundle everything into one price. Get clear on the total cost before you commit, not just the advertised starting rate.