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Calculator · Business & Tech

Payroll Service Cost Calculator

Outsourced payroll against running it in-house, including the cost of getting it wrong.

Read the how-to
42,180
The formula

How this number is built

provider = (base + per-employee × headcount) × 12 + multi-state surcharges · in-house = labour + software + penalty exposure
Step by step

Doing it by hand

Step 1

Count every pay run, including off-cycle and bonus runs.

Step 2

Cost the internal time honestly at a loaded rate, including reconciliation and year-end.

Step 3

Add each additional state or jurisdiction, which multiplies filing complexity.

Step 4

Include an expected penalty figure — occasional late or incorrect filings are normal in-house.

Questions

What people ask next

Does the provider assume liability for penalties?

Some guarantee tax filing accuracy and pay penalties they cause. Read exactly what the guarantee covers before relying on it.

When does in-house make sense?

Small headcount, one jurisdiction, simple pay structure and someone already competent doing it.

Search intent

Searches this page answers

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Estimates, not advice. Every figure here is produced from the inputs you enter and the formula printed on the page. Rules differ by state, carrier, lender and contract, so use these numbers to prepare for a conversation with a qualified professional rather than to replace one. See our full disclaimer.