Payroll Software Fees Nobody Mentions on the Pricing Page
State filings, year-end forms, corrections, off-cycle runs, time tracking and HR support can double the headline payroll price. Check these fees before switching.
- The advertised base fee is not the payroll budget. Additional states, year-end forms, corrections, off-cycle runs and time tracking can materially change it.
- Quote-based providers must supply a sample invoice and renewal price in writing.
- Compare annual cost using the company’s states, payroll frequency, worker types and required add-ons.
Two payroll plans that both advertise “full service” can produce different invoices because the expensive events happen outside the ordinary pay run. The following costs should be priced before data is migrated.
1. Additional state filings
Patriot publishes the mechanism clearly: the first state is included and each additional state costs $12 a month on Full Service. Gusto requires Plus or Premium for multi-state payroll. Other providers may bundle states into a quote.
2. Per-run versus per-month worker fees
Patriot charges its worker amount once per month even if payroll runs twice. Some quoted services charge by payroll cycle. Weekly payroll can therefore cost much more than semi-monthly payroll under a superficially similar proposal.
3. Year-end W-2 and 1099 forms
Ask whether preparation, electronic delivery, printing, mailing, corrections and late forms are included. A low monthly price can be recovered through a year-end invoice.
4. Corrections and amended returns
A voided check is not the same as an amended quarterly or annual tax filing. Confirm who pays when the error comes from employee data, employer setup or the provider.
5. State registration and tax notices
Calculating tax does not necessarily include opening accounts in a new state. Registration services, power of attorney, agency notices and penalty resolution may be separate.
6. Time tracking, scheduling and HR support
These features frequently sit in a higher plan or per-person add-on. Gusto, for example, separates Simple from Plus and offers priority support and HR resources at an additional per-person price.
7. Setup, migration and termination
Implementation may be discounted to win the account while renewal returns to list price. Ask for the normal price, contract term, data-export method and post-termination access before signing.
A usable annual-cost worksheet
| Line item | Input |
|---|---|
| Base subscription | 12 × monthly base |
| Workers | 12 × active workers × per-worker fee |
| Payroll cycles | Runs per year × per-run fee |
| States/entities | 12 × additional jurisdiction/entity fees |
| Year-end | W-2/1099 delivery and filing |
| Add-ons | Time, HR, benefits, support |
| Events | Corrections, off-cycle payroll, garnishments |
Reject any quote that cannot populate this worksheet. Payroll migration is expensive enough that a vague first-year discount is not a valid basis for purchase.