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Technology & SaaS Companies: Payroll Software vs. Managed Payroll Service (2026)
Tech companies 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 Technology & SaaS Companies
| Payroll Task | Managed Payroll | DIY Software |
|---|---|---|
| Equity compensation handling 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 Technology & SaaS Companies?
For most tech companies 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 equity compensation handling, remote employee multi-state tax, contractor classification, commission payroll.
Payroll software makes sense if you have dedicated in-house HR staff with genuine expertise in Technology & SaaS Companies 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 payroll for fully remote teams across multiple states?
Yes. Remote-first teams with employees in multiple states are a standard use case. We register in each state, withhold state income tax for each employee's resident state, and pay state unemployment where the employee works.
How do you handle RSU vesting events in payroll?
RSU vesting events require supplemental wage withholding. We coordinate with your equity platform on vesting schedules and process supplemental withholding on vest dates, including the net shares sold for taxes approach when applicable.
Can you handle commission payroll for our sales team?
Yes. Commission payroll is processed as supplemental pay runs or integrated into regular payroll. We apply the correct supplemental withholding rate and reconcile commission against draw when applicable.
What does BEG charge for tech company payroll?
Tech company payroll runs at $25-$45 per employee per month. For a 40-person Series A company, that is $1,000-$1,800 per month covering payroll, multi-state tax filing, W-2s, and equity comp withholding coordination.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Technology & SaaS Companies. 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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