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Auto Dealerships: Payroll Outsourcing Cost vs. In-House Hire (2026)
Payroll outsourcing for an auto dealership costs $45 per employee per month, all-inclusive, against an in-house payroll clerk at the $58,260 BLS national median before benefits and taxes. Live in 3 to 5 business days, with front-end and back-end commission structures and flat-rate tech pay configured at setup.
What the outsourced price includes for an auto dealership
Processing on your schedule, federal and state deposits and filings in every state with an employee, new hire reporting, direct deposit, garnishment processing, W-2s and 1099s, year-end close, and the auto dealership configuration for front-end and back-end commission structures, flat-rate tech pay, F&I chargebacks and draw-against-commission. Corrections caused by the provider are the provider's cost, including amended returns. There is no per-run fee, no per-state fee and no year-end fee.
What the in-house price includes, honestly
A payroll and timekeeping clerk at the BLS OEWS May 2025 national median of $58,260, about $75,738 loaded, plus software, plus the cost of the errors one person makes alone. Section 13(b)(10)(A) of the FLSA exempts salesmen, partsmen and mechanics who are primarily engaged in selling or servicing automobiles, trucks or farm implements at a nonmanufacturing dealership from overtime pay, but not from minimum wage. The exemption applies regardless of the dealership's annual dollar volume of sales.
Break-even for auto dealerships
At 50 employees outsourcing is $27,000 a year; at 100 it is $54,000. Both sit under the loaded clerk at about $75,738. Below about 20 employees the realistic comparison is with software rather than a hire, where the case rests on front-end and back-end commission structures rather than price.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- Section 13(b)(10)(A) of the FLSA exempts salesmen, partsmen and mechanics who are primarily engaged in selling or servicing automobiles, trucks or farm implements at a nonmanufacturing dealership from overtime pay, but not from minimum wage. The exemption applies regardless of the dealership's annual dollar volume of sales. [29 CFR 779.372]
Read the full guide to how much payroll outsourcing costs, and the rest of the auto dealership payroll library.
Managed Payroll, Handled.
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Frequently Asked Questions
What is included in the outsourced payroll price for an auto dealership?
Processing, all federal and state filings, new hire reporting, direct deposit, garnishments, W-2s and 1099s, year-end close and the auto dealership pay code setup. No per-run, per-state or year-end fees.
What does a payroll clerk cost an auto dealership in-house?
$58,260 a year at the BLS OEWS May 2025 national median, about $75,738 with benefits and employer taxes, before software.
What does a payroll error cost an auto dealership?
Section 13(b)(10)(A) of the FLSA exempts salesmen, partsmen and mechanics who are primarily engaged in selling or servicing automobiles, trucks or farm implements at a nonmanufacturing dealership from overtime pay, but not from minimum wage. The exemption applies regardless of the dealership's annual dollar volume of sales.
What does managed payroll cost for an auto dealership?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Front-end and back-end commission structures, flat-rate tech pay and F&I chargebacks are configured at setup, not billed as add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Auto Dealerships. BEG manages payroll at $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. Bureau of Labor Statistics: Occupational Employment and Wage Statistics
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