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Managed Payroll for 20-Employee Businesses
Managed payroll for 20 employees means two federal laws have just attached, the ADEA and COBRA, which turns every termination and every severance release into a deadline payroll has to track. BEG runs it for $45 per employee per month, all-inclusive, inside the payroll software you already use, live in 3 to 5 business days.
Twenty is the busiest single threshold below fifty. COBRA attaches to any group health plan of an employer that had 20 or more employees on more than half of its typical business days in the prior year, which turns every termination into an election-notice deadline. The ADEA attaches at the same count, so a severance release signed by anyone 40 or older now needs the 21-day consideration period and 7-day revocation window to be enforceable.
Title VII, the ADA and the PWFA attached five hires ago at 15. What has not attached is FMLA and the ACA employer mandate, both at 50, so leave at this size is still governed by company policy and state law, and health coverage is still optional at the federal level. That gap between 20 and 50 is where most employers build the policies they will be held to later.
On price, 20 employees at $45 per employee per month is $900 a month, all-inclusive. COBRA notices and ADEA-timed final pay sit inside that rate, not on a separate invoice.
The line most recently crossed at 20 employees
| 20+ | ADEA (age discrimination). Applies to private employers with 20 or more employees. Severance and early-retirement paperwork needs ADEA-compliant releases, with the 21-day and 7-day windows. [EEOC, coverage of federal EEO laws] |
|---|---|
| 20+ | COBRA continuation coverage. Group health plans of employers with 20 or more employees on more than 50 percent of typical business days in the prior year must offer continuation coverage. Termination triggers an election notice; below 20 the state mini-COBRA law, if any, governs instead. [DOL, COBRA] |
Already in force below that
- Any size: FLSA minimum wage and overtime [DOL, FLSA salary levels]
- Any size: Federal employment taxes [IRS Publication 15]
- 10+: Electronic filing of information returns [IRS Topic 801]
- 11+: OSHA injury and illness recordkeeping [OSHA recordkeeping, 29 CFR 1904.1]
- 15+: Title VII, ADA, GINA and the Pregnant Workers Fairness Act [EEOC, coverage of federal EEO laws]
Next lines ahead of 20 employees
| 50+ | FMLA. Employers with 50 or more employees in 20 or more workweeks are covered; an employee is eligible after 12 months and 1,250 hours if 50 employees work within 75 miles of their site. Up to 12 weeks of unpaid, job-protected leave with benefits maintained, which means leave tracking and benefit deductions continue while pay stops. [DOL, FMLA] |
|---|---|
| 50+ | ACA employer shared responsibility. An employer with 50 or more full-time plus full-time-equivalent employees on average in the prior year is an applicable large employer. Part-time hours are aggregated at 120 hours a month per FTE. Offer affordable coverage to 95 percent of full-time staff or face a 4980H assessment, and file Forms 1094-C and 1095-C every year from payroll hours data. [IRS, applicable large employer] |
| 100+ | WARN Act. Employers with 100 or more full-time employees must give 60 days written notice of a plant closing or mass layoff. Pay in lieu of notice and final-pay timing on a layoff of 50 or more at one site get planned with counsel, not run as an ordinary termination batch. [DOL, WARN] |
| 100+ | EEO-1 report. Private employers with 100 or more employees, and federal contractors with 50 or more, file the EEO-1 workforce demographic report each year. Job category, sex and race or ethnicity have to sit in the HR record for every employee before the filing window opens. [EEOC, EEO-1 data collection] |
What managed payroll costs at 20 employees
20 employees at $45 per employee per month comes to $900 a month, $10,800 a year, with no monthly minimum and no setup fee. BEG works inside the payroll software you already use, and the price is all-inclusive: processing, federal and state deposits and filings, new hire reporting, direct deposit, W-2s and 1099s, garnishments, and the threshold-driven filings above. Live in 3 to 5 business days from signing.
Managed Payroll, Handled.
BEG manages payroll at $45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
Does COBRA apply at 20 employees?
Yes, if the company had 20 or more employees on more than 50 percent of its typical business days in the previous calendar year and sponsors a group health plan. Part-time employees count as fractions of full-time. Below that, state continuation law applies where the state has one.
What changes in a severance agreement at 20 employees?
The ADEA now applies, so a release of age claims by an employee 40 or older is valid only if it is written plainly, advises the employee to consult a lawyer, gives 21 days to consider (45 for a group program) and 7 days to revoke after signing.
Is FMLA required at 20 employees?
No. FMLA covers employers with 50 or more employees in 20 or more workweeks of the current or prior year. Several states run their own family leave programs with lower or no headcount thresholds, so the state answer can differ.
Does the managed payroll price change when COBRA attaches at 20?
No. BEG charges $45 per employee per month at every size, so 20 employees cost $900 a month. COBRA election-notice timing on terminations is inside that rate.
How is the BEG price calculated at 20 employees?
20 employees at $45 per employee per month is $900 a month, $10,800 a year, all-inclusive. There is no monthly minimum and no setup fee.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries. 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. Department of Labor: Wage and Hour Division
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