Free Payroll Tool
See what your payroll provider really charges
Most providers hide per-run and add-on fees. Audit your real cost per employee in about 30 seconds, free.
Run the Payroll Fee Auditor →Blog · Payroll Management · Auto Dealership
Auto Dealerships: Managed Payroll for Small Businesses (Under 25 Employees) (2026)
Managed payroll at $25-$45 PEPM all-inclusive makes economic sense at nearly every size for auto dealerships, but the specific value drivers differ depending on headcount.
Payroll at Different Sizes for Auto Dealerships
| Auto Dealerships Size | Monthly Cost | vs. In-House Hire |
|---|---|---|
| Single rooftop | $375-$675/mo | Save $58K-$88K/yr |
| 2-4 rooftop group | $750-$2,700/mo | Save $50K-$80K/yr |
| Regional auto group | $1,875-$9,000/mo | Save $25K+/yr |
The comparison is against an in-house hire at $60,000-$90,000 fully loaded to $62K-$93K per year.
Under 25 Employees: The Clearest ROI
For auto dealerships under 25 employees, in-house payroll cannot be justified. A payroll coordinator costs $60,000-$90,000 fully loaded -- compared to $625-$1,125/month for managed payroll. The savings pay for a year of managed payroll in the first 2-3 months.
25-75 Employees: Complexity Drives the Case
In the 25-75 employee range, auto dealerships are dealing with more front-end and back-end commission structures, flat-rate tech pay, F&I chargebacks, draw-against-commission. An in-house generalist is less likely to have the depth needed in these areas. Managed payroll provides specialist coverage that reduces exposure.
75-200 Employees: Hybrid Approaches Emerge
At 75+ employees, auto dealerships often consider a hybrid approach: an HR generalist handles employee relations and benefits while a managed payroll provider handles the compliance-heavy payroll function. This keeps an internal HR presence while outsourcing the most technically complex piece.
How to Get a Quote for Your Auto Dealerships
BEG quotes managed payroll based on your actual headcount and pay frequency. For most auto dealerships, the first discovery call includes a custom cost comparison against your current setup.
Managed Payroll, Handled.
BEG manages payroll at $25-$45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
How do you handle front-end and back-end commission for salespeople?
Front-end gross profit commission and back-end finance reserve commission are both processed through payroll. We receive deal sheet data, calculate total commission, and include it with correct supplemental withholding.
How do you handle flat-rate pay for service technicians?
Flat-rate pay is calculated based on flagged hours at the technician's flag rate. We run compliance checks to ensure flat-rate pay meets minimum wage requirements for hours clocked.
What about F&I manager chargebacks?
F&I chargebacks are handled as negative adjustments in the current pay period with documentation for audit purposes.
What does BEG charge for auto dealership payroll?
Dealership payroll runs at $25-$45 per employee per month. Commission processing, flat-rate tech pay, and chargeback adjustments are all included. For a single rooftop with 20 employees, that is $500-$900 per month.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Auto Dealerships. BEG manages payroll at $25-$45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage and Hour Division
From the blog