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 · E-Commerce
E-Commerce & DTC Brands: Payroll Software vs. Managed Payroll Service (2026)
E-commerce brands evaluating payroll options typically compare managed payroll service against payroll software. Here is the honest comparison.
Managed payroll service (like BEG) means a provider processes payroll for you. You submit hours and changes; they handle the rest including tax deposits, compliance, and year-end forms.
Payroll software (Gusto, ADP Run, Paychex Flex) means you run payroll yourself using a platform. You are responsible for configuring it correctly and keeping up with compliance changes.
Side-by-Side Comparison for E-Commerce & DTC Brands
| Payroll Task | Managed Payroll | DIY Software |
|---|---|---|
| Seasonal workforce spikes setup | Configured for you | You configure |
| Tax deposits | Handled | You are responsible |
| Compliance updates | Applied automatically | Your responsibility |
| Multi-state filing | Included | Varies by plan |
| Year-end W-2s | Included | Included or add-on |
| Payroll errors | Provider corrects at cost | Your cost to fix |
| New hire onboarding | Handled | You set up |
Which Is Right for E-Commerce & DTC Brands?
For most e-commerce brands under 100 employees, managed payroll wins on total cost and compliance coverage. The tradeoff -- giving up direct software access -- is outweighed by removing the compliance risk that comes with self-managing seasonal workforce spikes, multi-state nexus payroll tax, contractor vs W-2 for fulfillment, inventory labor cost tracking.
Payroll software makes sense if you have dedicated in-house HR staff with genuine expertise in E-Commerce & DTC Brands payroll compliance, prefer hands-on control, and have a low tolerance for vendor dependency. These are real advantages, but they come with real responsibility.
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 the Q4 staffing spike for holiday fulfillment?
Seasonal workforce additions are processed rapidly through batch new hire entry with state new hire reporting, withholding setup, and direct deposit enrollment for each new hire.
How do you handle payroll tax nexus in states where we have warehouse employees?
Having employees in a state creates payroll tax nexus. We handle state employer registration, withholding account setup, and state unemployment registration for each new state.
Can you handle payroll for a mix of W-2 warehouse workers and 1099 fulfillment contractors?
Yes. W-2 warehouse employees run through regular payroll. 1099 independent contractors are tracked separately with 1099-NEC forms at year-end.
What does BEG charge for e-commerce brand payroll?
E-commerce payroll runs at $25-$45 per employee per month. Seasonal scaling, multi-state filing, and year-end W-2 and 1099 processing are all included. For a brand with 30 employees, that is $750-$1,350 per month.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including E-Commerce & DTC Brands. 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. Bureau of Labor Statistics: Occupational Employment and Wage Statistics
From the blog