Managed Payroll · Cost Per Employee
Federal and state filing, W-2 prep, direct deposit, and support, broken down per employee at real company sizes, including the very small team. BEG charges $25-$45 per employee per month, all-inclusive, with a $500 monthly minimum.
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TL;DR
Payroll services typically cost $5 to $17 per employee per month on top of a base fee, or $25-$45 PEPM all-inclusive with BEG's fully managed service. Below 20-25 employees, most vendors' base fees and BEG's $500 monthly minimum both push the effective per-employee cost higher, and we explain exactly why below rather than hide it.
The Direct Answer
Payroll services generally charge $5 to $17 per employee per month plus a separate base fee, putting effective per-employee cost anywhere from $10 to $40 depending on headcount. BEG charges a flat $25 or $45 PEPM, all-inclusive, with no separate base fee and no per-run charges.
By Company Size
| Company size | BEG monthly total | BEG effective PEPM | Typical DIY software monthly |
|---|---|---|---|
| 1-5 employees | $500 (minimum applies) | $100-$500 | $60-$110 |
| 6-10 employees | $500 (minimum applies) | $50-$83 | $100-$180 |
| 11-19 employees | $500 (minimum applies) | $26-$45 | $150-$300 |
| 20 employees | $500-$900 | $25-$45 | $180-$340 |
| 50 employees | $1,250-$2,250 | $25-$45 | $350-$700 |
| 100 employees | $2,500-$4,500 | $25-$45 | $600-$1,300 |
The Honest Answer
The $500 minimum exists because running compliant multi-state payroll, filings, and support has a fixed cost regardless of headcount. At 1-5 employees that works out to $100-$500 per employee monthly, higher than the $25-$45 PEPM rate, and we would rather tell you that up front than bury it.
Every payroll provider, software or managed, has some form of fixed cost floor. DIY platforms build it into a base fee ($40-$150 monthly regardless of employee count). BEG builds it into the $500 minimum instead of a separate base fee plus per-employee add-on. The difference at very low headcounts is that BEG's $500 includes the full managed scope: filings, W-2s, support, and a dedicated contact, not just software access.
For a 3-person company, that means BEG is not the cheapest option in raw dollars if you are comfortable running a DIY platform yourself. It becomes the better option once you count the time spent learning the software, verifying every filing, and being personally on the hook for errors, since the IRS employment tax due date schedule applies the same filing deadlines to a 3-person company as a 300-person one.
Per-Employee Scope
Correct withholding calculated and remitted every pay cycle, per current IRS and state tables.
Direct deposit processing and digital pay stub delivery for every employee, every cycle.
Year-end W-2 preparation, SSA filing, and employee delivery included at no extra per-form charge.
State new hire reporting filed within required deadlines for every new employee, in all 50 states.
Employees call BEG directly with paycheck questions. Not a queue, not a ticket. A person who knows the account.
Court-ordered garnishments calculated, withheld, and remitted correctly for any employee under an order.
See the full tier-by-tier scope on managed payroll pricing, or the complete service overview at BEG managed payroll.
Your Exact Per-Employee Cost
Use the free cost calculator to enter your exact headcount and see your monthly total, whether the $500 minimum applies, and your effective per-employee rate.
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What Growth Does to the Math
At 20 employees and $25 PEPM, your bill is already above the $500 floor. Every employee you add after that point costs a flat $25-$45, no jump, no new base fee, no renegotiation.
Your Exact Number
Tell us your headcount and current setup. See your exact monthly total and whether the minimum applies, on screen, instantly.
FAQ
With BEG, a single employee falls under the $500 monthly minimum, since $25-$45 for one person would not cover the fixed cost of compliant multi-state payroll and filings. Some DIY software plans can run cheaper for a single employee, often $30-$60 monthly, but you do the data entry and filing verification yourself.
A per-employee-only rate at very low headcounts would not cover the fixed cost of tax registrations, filings, and support that apply regardless of size. The $500 minimum keeps the engagement fair for both sides rather than under-pricing small accounts and cutting corners on compliance.
Once you are at roughly 20-25 employees, BEG's $500-$1,125 monthly total is comparable to or better than many mid-tier DIY software plans with tax filing add-ons, while including full management rather than software access alone.
No. The PEPM rate applies to any active employee paid during that period, part-time, seasonal, or full-time. Your monthly invoice reflects your actual active headcount for that cycle.
The ongoing PEPM rate is the same regardless of which state an employee works in. A one-time $300 setup fee applies when adding a new state to your account, covering registration and configuration.
Want the full monthly breakdown across every method? See the full payroll cost guide or compare payroll system and software costs.
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