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Payroll Processing Services: What Is Actually Included
Every payroll processing service sells the same headline: we run your payroll. The word "run" is doing a lot of quiet work in that sentence. For some providers it means the calculation engine executes and a file goes to the bank. For others it means a named person owns the outcome, including the parts that go wrong.
That gap is where budgets break. A company signs at a base rate it can defend to the CFO, then discovers eleven months later that off-cycle corrections, a second state registration, and January W-2 production were never in the number.
The Core Scope Every Provider Should Cover
Six functions are table stakes. If a payroll processing service cannot confirm all six in writing, it is a software license, not a service.
- Gross-to-net calculation. Wages, withholding, pre-tax and post-tax deductions, garnishments, and net pay, correct every cycle.
- Direct deposit and pay delivery. Funded and settled on the promised date, with a documented remediation path when a bank file rejects.
- Tax deposits and filings. Federal 941 and 940, state withholding, and state unemployment, deposited and filed on schedule.
- New hire reporting. Filed with the correct state agency inside the statutory window, automatically.
- Year-end forms. W-2s and 1099s produced, distributed, and filed with the SSA and IRS.
- Compliance monitoring. Someone watching minimum wage changes, overtime thresholds, and state rule updates that affect your configuration.
The federal wage and hour rules underneath all of this come from the Fair Labor Standards Act. The U.S. Department of Labor Wage and Hour Division publishes the current thresholds and recordkeeping requirements, and those obligations sit with you as the employer regardless of who processes the payroll.
Included, Add-On, or Not Offered
The scope conversation is more useful than the price conversation, because scope determines price. Take the list below into your next provider call and make them answer in one of three words for each row.
| Service line | Typical provider treatment | BEG Managed Payroll |
|---|---|---|
| Standard payroll run | Included in base | Included |
| Off-cycle or correction run | Per-run fee | Included |
| Multi-state registration and filing | Per-state add-on | Included |
| Year-end W-2 and 1099 production | Per-form fee | Included |
| Garnishment administration | Per-order fee | Included |
| Compliance monitoring | Rarely offered | Included |
| Dedicated payroll specialist | Enterprise tier only | Included |
Software Is Not the Service
Most of what gets sold as payroll processing services is really platform access with a support queue attached. You still enter the hours. You still approve the run. You still chase the state agency when a filing bounces. The software did not do the work, it just made the work possible.
The distinction matters because payroll failure is rarely a math failure. It is a process failure: nobody registered the new state before the first employee was paid there, nobody caught that a salaried employee crossed under the overtime threshold, nobody reconciled the quarterly filing against the ledger. Software does not catch those. A person does.
What the In-House Alternative Costs
The other way to close the process gap is to hire for it. A competent payroll manager who can handle multi-state filing, garnishments, and year-end reporting is a $60,000 to $100,000 salary before benefits, payroll taxes, software licensing, or ramp time. Realistically, the fully loaded cost lands well north of the salary line, and the coverage risk is total: one person, one set of vacation days, one point of failure.
Run the same math against managed payroll. At 50 employees, BEG at $45 PEPM is $27,000 a year for the platform, the processing, the filing, the compliance monitoring, and a named specialist who owns the outcome. At $25 PEPM inside the platform you already own, it is $15,000. Neither number requires you to recruit, train, or backfill anyone.
| Headcount | BEG in your platform ($25 PEPM) | BEG on isolved ($45 PEPM) | In-house hire (salary only) |
|---|---|---|---|
| 25 employees | $7,500 / yr | $13,500 / yr | $60,000 to $100,000 / yr |
| 50 employees | $15,000 / yr | $27,000 / yr | $60,000 to $100,000 / yr |
| 100 employees | $30,000 / yr | $54,000 / yr | $60,000 to $100,000 / yr |
Where BEG Fits
BEG delivers payroll processing services as a managed service, nationwide and fully remote. Two ways to buy: $25 PEPM if BEG runs payroll inside the platform you already license, or $45 PEPM on BEG isolved. Both are all-inclusive. Off-cycle runs, multi-state filing, garnishments, year-end forms, and compliance monitoring are in the price, not on the invoice as line items.
Live payroll runs in 3 to 5 business days from signing, because when BEG works inside your existing system there is nothing to migrate. See the managed payroll overview for the full service list, or browse more comparisons in the payroll blog.
Payroll Processing, Fully Managed.
BEG manages payroll at $25 to $45 per employee per month, all-inclusive. Get instant pricing for your headcount.
Frequently Asked Questions
What is included in payroll processing services?
At minimum: gross-to-net calculation, direct deposit, federal and state tax deposits and filings, new hire reporting, and year-end W-2 and 1099 production. Anything beyond that varies by provider.
What is the difference between payroll processing and managed payroll?
Payroll processing runs the calculation and filing mechanics. Managed payroll means a person owns the process end to end, including setup, corrections, multi-state registration, and compliance monitoring, so no one on your team has to run it.
How much do payroll processing services cost?
Most providers quote a base fee plus a per-employee rate, then bill separately for off-cycle runs, multi-state filing, and year-end forms. BEG manages payroll at $25 to $45 PEPM, all-inclusive, with no separate module pricing.
Do payroll processing services handle payroll tax filing?
Most do, but confirm scope. Federal deposits are standard. State unemployment, local withholding, and multi-state registration are frequently priced as add-ons or excluded entirely.
How long does it take to switch payroll processing services?
Industry timelines are usually quoted in weeks. BEG runs live payroll in 3 to 5 business days from signing, either inside your existing platform or on BEG isolved.
Can payroll processing services work inside the system we already use?
Some can, most will not. BEG manages payroll inside the platform you already own at $25 PEPM, so there is no migration and no data conversion project.
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries. 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.
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