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Run the Payroll Fee Auditor →Blog · Payroll Management · Home Health
Home Health Agencies: Payroll Software vs. Managed Payroll Service (2026)
Home health agencies 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 Home Health Agencies
| Payroll Task | Managed Payroll | DIY Software |
|---|---|---|
| Visit-based aide pay 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 Home Health Agencies?
For most home health agencies 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 visit-based aide pay, travel time reimbursement, Medicaid billing vs payroll, live-in caregiver rules.
Payroll software makes sense if you have dedicated in-house HR staff with genuine expertise in Home Health Agencies 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
Can you handle visit-based pay for home health aides?
Yes. Aides paid per visit are set up as hourly employees with a per-visit rate. Visit logs from your scheduling software are the input for pay calculation, and we ensure per-visit pay meets minimum wage for time including travel between clients.
How do you handle travel time between client visits?
Under DOL guidance, travel time between client sites is compensable and must be paid at minimum wage. We include it in the total hours calculation for overtime purposes.
Can you handle multi-state operations?
Yes. Home health agencies serving clients across state lines register in each state, handle state employer setup, and file required returns in all applicable states.
What does BEG charge for home health agency payroll?
Home health payroll runs at $25-$45 per employee per month. Visit-based pay, travel time tracking, and Medicaid reconciliation reporting are all included. For an agency with 30 caregivers, 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 Home Health Agencies. 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
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