Managed Payroll · Technology
Multi-state remote teams, equity compensation events, contractor vs. employee classification, and rapid headcount scaling make tech payroll a moving target. We manage all of it at $25-$45 per employee per month -- so your team focuses on shipping, not spreadsheets.
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The Cost of Running It Yourself
How It Works
We map your current payroll process, employee roster, and complexity. You get a fixed monthly cost -- no surprises.
We configure and run your first payroll cycles. No migration required -- we work in your existing system. Transition takes 30-60 days.
Every pay cycle, every filing, every compliance update -- fully managed by BEG. Your team touches nothing.
Compliance Requirements
When a tech company hires a remote employee who works from a state where the company has no other presence, the hire creates employer tax nexus in that state. This requires registering for a new employer withholding account, a state unemployment insurance (SUI) account, and new-hire reporting in that state -- before the first paycheck is issued. Every state has different registration processes, different UI new-employer rates, and different payroll tax thresholds. Missing a registration triggers automatic penalties from the date the employee began working in that state, not from when the oversight was discovered. On a 50-person remote team spread across 12 states, managing state registrations manually is a full-time task. BEG handles state registration proactively -- when you make the hire, we initiate the registration before the first payroll run.
When restricted stock units vest, the number of shares multiplied by the fair market value on the vest date is ordinary income subject to federal withholding, FICA, Medicare, and state income tax. The company must withhold taxes at the time of vesting -- typically through a sell-to-cover arrangement or flat supplemental rate -- and remit with the next scheduled payroll deposit. Missing the vest date or withholding at the wrong rate creates a payroll tax restatement, potential IRS penalties, and employee W-2 errors. BEG coordinates vest event processing with your equity plan administrator so withholding is calculated correctly at the time of each vest, reflected in the payroll deposit, and reported on the employee W-2 without requiring manual corrections at year-end.
Non-qualified stock option (NQSO) exercises create ordinary income equal to the spread between the exercise price and the fair market value on the exercise date -- taxable and subject to FICA at the time of exercise. Incentive stock options (ISOs) do not create a regular income tax event at exercise (though they trigger AMT), but a disqualifying disposition -- selling ISO shares before the holding period requirements are met -- converts the gain to ordinary income that must be reported on the employee W-2. BEG manages both NQSO exercises and ISO disqualifying dispositions in coordination with your equity plan records so the correct amounts appear on the W-2 and are properly deposited.
Tech companies at 25 to 200 employees often have a mix of W-2 employees and 1099 contractors. As the company scales and contractor engagement patterns change -- higher hours, more control, dedicated project assignment -- some contractor relationships begin to look more like employment under the IRS classification tests. The cost of misclassifying an employee as a contractor is the uncollected FICA (both employee and employer share) plus penalties and interest for every open tax year. BEG reviews contractor arrangements during the scope review and flags any relationships where the classification carries elevated risk, so you can address them proactively rather than in an audit.
BEG serves domestic tech companies -- US-based employees across multiple states -- and does not manage international employer of record or PEO arrangements for overseas employees. The domestic focus means BEG is purpose-built for the compliance challenges that a 25-to-200-person US tech company actually faces: multi-state registration, equity event payroll processing, contractor classification, and remote team scaling. If your team is distributed across 8 to 15 US states with quarterly equity vesting events and a mix of salaried employees and contractors, this is exactly the payroll profile BEG is designed to manage.
Who This Serves
Remote engineers across 8 to 15 states with RSU grants and quarterly vesting create the exact multi-state, equity-event payroll complexity BEG manages.
Post-Series A companies scaling headcount rapidly, onboarding employees across new states every quarter, and managing equity compensation for the first time.
B2B software and tech-enabled services businesses with a mix of W-2 engineers, customer success employees, and 1099 contractors working on specific deliverables.
Creative and technology agencies with distributed teams, freelancer-heavy workflows, and contractor classification questions that require regular review.
Financial technology companies that combine distributed tech teams with regulated employee classifications -- compliance obligations from both industries.
Companies with equity plans that will accelerate vesting or exercise at a liquidity event, requiring payroll coordination with the cap table and transfer agent.
What You Get
Common objection: "Switching payroll systems is too disruptive."
We do not require you to switch platforms. BEG operates as your managed payroll team inside your current system. If you want to move to a better platform, we can handle that too -- but it is never a requirement to get started.
Common objection: "Payroll services always add fees for every little thing."
The $25-$45 PEPM rate is all-inclusive: payroll processing, tax filing, compliance updates, year-end W-2s, and support. One number, everything included.
Common objection: "Payroll vendors disappear after onboarding."
Your BEG payroll specialist is your ongoing contact. When something changes -- a new hire, a state registration, a compliance update -- you send one message. There is no ticket queue, no chatbot, and no calling a 1-800 number. Your team has a real person who knows your account.
The Math on Waiting
An internal payroll specialist at your tech company costs $60,000-$100,000 per year in fully-loaded compensation. Fully managed payroll at $25-$45 PEPM on a 50-person team costs $15,000-$27,000 per year. Every month you scale headcount without a managed payroll partner is a month of increasing compliance exposure across more and more state tax jurisdictions.
Your Next Transition Window
Payroll transitions take 30-60 days. If you want a clean cutover at Q3, Q4, or January 1 -- the window to start is now. Companies that miss the quarter-start timing typically wait another 3 months. The savings you defer are gone for good.
15 minutes. We scope your payroll, give you a fixed monthly cost, and show you what transition looks like.
FAQ
Full-time employees, part-time staff, and W-2 contractors across all functions at technology companies of any stage.
No. We operate as your managed payroll team inside your existing system. Migration is an option, never a requirement.
Everything: payroll processing, federal and state tax filing, compliance updates, year-end W-2s, and dedicated BEG support.
30-60 days from scope review to first managed payroll run. We handle setup, testing, and go-live. Your team reviews and approves before anything goes live.
Your rate adjusts with headcount. Adding or removing employees updates your monthly cost at the same per-employee rate. No contracts to renegotiate.
When you notify us of a new hire in a state where you are not already registered, BEG initiates the employer withholding and SUI registrations in that state before the first payroll run. We track the registration status and confirm it is complete before any wages are paid. You are never in a position of running payroll in an unregistered state.
BEG coordinates with your equity plan administrator to receive vest event data -- shares vesting, employee, vest date, fair market value. We calculate the ordinary income amount, determine the correct withholding (federal supplemental rate or aggregate method, plus state and FICA), process the withholding payroll run on or near the vest date, and remit with the next scheduled deposit. The income is reflected on the employee W-2 in the correct box.
During the scope review, BEG reviews your contractor roster against the IRS classification factors. Any relationship that shows elevated reclassification risk is flagged so you can address it proactively. When a contractor is converted to W-2 status, BEG handles the payroll configuration update, ensures the new employee is enrolled in withholding correctly, and coordinates the transition of any benefits that need to start at conversion.
No. BEG manages domestic US payroll -- W-2 employees working in US states. International employer of record, global payroll, and overseas entity compliance are outside our service scope. BEG is purpose-built for US-based tech companies at 25 to 200 domestic employees.
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