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Engineering & Professional Services Firms: Managed Payroll for Small Businesses (Under 25 Employees) (2026)
Managed payroll at $25-$45 PEPM all-inclusive makes economic sense at nearly every size for engineering firms, but the specific value drivers differ depending on headcount.
Payroll at Different Sizes for Engineering & Professional Services Firms
| Engineering & Professional Services Firms Size | Monthly Cost | vs. In-House Hire |
|---|---|---|
| Small firm (5-20 engineers) | $125-$900/mo | Save $63K-$93K/yr |
| Mid-size firm (20-75 staff) | $500-$3,375/mo | Save $55K-$83K/yr |
| Regional firm (75-200 staff) | $1,875-$9,000/mo | Save $30K+/yr |
The comparison is against an in-house hire at $65,000-$95,000 fully loaded to $67K-$98K per year.
Under 25 Employees: The Clearest ROI
For engineering firms under 25 employees, in-house payroll cannot be justified. A payroll coordinator costs $65,000-$95,000 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, engineering firms are dealing with more prevailing wage for government projects, billable hour payroll allocation, PE license classification, field vs office payroll. 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, engineering firms 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 Engineering & Professional Services Firms
BEG quotes managed payroll based on your actual headcount and pay frequency. For most engineering firms, 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
Can you handle prevailing wage for government engineering contracts?
Yes. For federally funded projects subject to Davis-Bacon, we produce certified payroll reports in WH-347 format and ensure each trade classification is paid at the required prevailing wage rate.
How do you handle payroll allocation across projects for billing purposes?
Project-coded payroll allocation is standard for engineering firms with cost-plus contracts. We set up project codes and produce payroll reports allocated by project to support billing calculations.
Can you handle payroll for field engineers who work in multiple states?
Yes. Field engineers working on projects in different states require withholding in both their resident state and sometimes the work state. We manage the allocation correctly for each employee.
What does BEG charge for engineering firm payroll?
Engineering firm payroll runs at $25-$45 per employee per month. Prevailing wage certified payroll, project code allocation, and multi-state filing are all included. For a 20-person firm, that is $500-$900 per month.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Engineering & Professional Services Firms. 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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