Payroll Software Pricing Guide: DIY vs Full-Service vs Managed

Payroll pricing looks simple from the outside: a number per employee per month. In practice, the category splits into distinct pricing models, and comparing across them requires understanding what each model actually charges for, not just the number on the page. This guide covers the models, what drives your real cost, and how to compare providers on equal footing.

The Three Payroll Pricing Models

Nearly every payroll option on the market falls into one of three models:

• DIY software: Platforms like Gusto and QuickBooks Payroll publish a base fee plus per-employee rate. You or your team runs payroll each cycle. Pricing is transparent, but the labor is yours.
• Quote-gated full-service: Large legacy providers like ADP and Paychex assemble pricing from a sales quote based on your census (headcount, states, modules). Nothing is published; you need a conversation to get a number.
• Fully managed payroll: A provider runs payroll for you rather than handing you software. Pricing can be published (as with BEG) or quote-gated, depending on the provider.

The model matters as much as the price. A lower per-employee rate on DIY software can end up costing more in staff time than a higher rate on a managed service that removes the labor entirely.

What Drives Payroll Cost

• Headcount: The single biggest driver. Nearly every model prices per employee, so cost scales directly with team size.
• Number of states: Multi-state payroll requires registration, withholding, and unemployment filing in each state, which adds cost under most pricing models.
• Pay frequency: Weekly payroll runs typically cost more to process than bi-weekly or semi-monthly, especially under per-run pricing.
• Add-on modules: Time and attendance, HR support, benefits administration, and background checks are frequently priced separately from core payroll.
• Contract terms: Promotional first-year pricing, contract length, and cancellation terms all affect your real cost over time, not just year one.

How to Compare True Effective PEPM

The only fair way to compare payroll providers is effective PEPM: your total monthly cost, including every add-on and fee, divided by your employee count. A published base rate is not effective PEPM until you add back tax filing, per-run charges, and any modules you actually need.

When comparing a quote-gated provider to a published-tier one, request the full quote first, including all add-ons, before comparing it to a competitor's advertised number. Comparing an ADP or Paychex base quote to a Gusto or QuickBooks Payroll advertised tier without accounting for add-ons will understate the legacy provider's real cost. See our PEPM pricing explained guide for the full breakdown of how to calculate this.

For model-specific detail, see how we cover each provider: how much ADP costs, how much Paychex costs, Gusto's published tiers, and QuickBooks Payroll's published tiers. For a head-to-head on two specific providers, see our ADP vs Paychex comparison.

Where Managed Payroll Fits

Fully managed payroll removes the labor question entirely: a provider processes payroll, handles filings, and corrects its own errors. The tradeoff historically has been that managed providers were quote-gated, requiring the same sales-call process as ADP or Paychex to find a number.

BEG publishes its managed payroll pricing directly: a flat $25-$45 PEPM, all-inclusive, with an instant on-screen estimate based on your headcount. No census call, no separate add-on pricing to track down.

Frequently Asked Questions