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 · Agency
Agency Payroll: Managed for Under 25 Employees | BEGs (Under 25 Employees) (2026)
Managed payroll at $25-$45 PEPM all-inclusive makes economic sense at nearly every size for marketing agencies, but the specific value drivers differ depending on headcount.
Payroll at Different Sizes for Marketing Agencies
| Marketing Agencies Size | Monthly Cost | vs. In-House Hire |
|---|---|---|
| 5-person boutique | $125-$225/mo | Save $53K-$78K/yr |
| 20-person agency | $500-$900/mo | Save $48K-$72K/yr |
| 50-person full-service | $1,250-$2,250/mo | Save $38K-$58K/yr |
The comparison is against an in-house hire at $55,000-$80,000 fully loaded to $57K-$83K per year.
Under 25 Employees: The Clearest ROI
For marketing agencies under 25 employees, in-house payroll cannot be justified. A payroll coordinator costs $55,000-$80,000 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, marketing agencies are dealing with more 1099 vs W-2 freelancer classification, project-based bonuses, multi-state remote teams, billable vs internal payroll allocation. 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, marketing agencies 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 Marketing Agencies
BEG quotes managed payroll based on your actual headcount and pay frequency. For most marketing agencies, 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 freelancers vs. employees?
Freelancers classified as independent contractors are paid through a 1099 contractor system. W-2 employees go through payroll. We help review worker classifications to reduce audit risk.
Can you handle performance bonuses for account managers?
Yes. Performance bonuses are processed as supplemental pay runs with the correct federal supplemental withholding rate applied, included on the employee's W-2.
How do you handle remote employees across states?
Remote employees in multiple states are standard. We withhold state income tax based on each employee's state of residence and pay state unemployment where the employee works.
What does BEG charge for agency payroll?
Agency payroll runs at $25-$45 per employee per month. For a 20-person agency, that is $500-$900 per month covering payroll, tax filing, year-end W-2s, and multi-state compliance.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Marketing & PR 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
From the blog