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Run the Payroll Fee Auditor →Blog · Payroll Management · E-Commerce
E-Commerce & DTC Brands: Payroll Software vs. Managed Payroll Service (2026)
Payroll software gives an e-commerce company the fields; managed payroll gives it someone accountable for filling them correctly, which for e-commerce companies means seasonal workforce spikes, multi-state nexus payroll tax and contractor vs W-2 for fulfillment configured against the rules cited here rather than left at defaults. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
What software leaves to an e-commerce company to get right
Non-exempt employees must receive overtime at not less than time and one-half the regular rate for hours worked over 40 in a workweek, and hours cannot be averaged across weeks. When an employee works at two or more different straight-time rates in one week, the regular rate is the weighted average of those rates.
The executive, administrative and professional exemptions do not apply to manual laborers or other blue collar workers who perform repetitive operations with their hands, physical skill and energy. Such workers are entitled to minimum wage and overtime no matter how highly they are paid.
The honest comparison
Software at roughly $40 to $150 a month plus $5 to $12 per employee handles a single-state, all-W-2, hourly-and-salary payroll well, and the customer owns every configuration decision, every deposit and every notice. Managed payroll at $45 per employee per month, with no monthly minimum, owns the configuration, the deposits, the filings and the corrections. For e-commerce companies the deciding question is who documents the exemption status of warehouse staff and customer service reps and who rebuilds the pay codes when the rule changes.
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.
- Non-exempt employees must receive overtime at not less than time and one-half the regular rate for hours worked over 40 in a workweek, and hours cannot be averaged across weeks. When an employee works at two or more different straight-time rates in one week, the regular rate is the weighted average of those rates. [DOL Fact Sheet #23]
- The executive, administrative and professional exemptions do not apply to manual laborers or other blue collar workers who perform repetitive operations with their hands, physical skill and energy. Such workers are entitled to minimum wage and overtime no matter how highly they are paid. [29 CFR 541.3(a)]
Read the full guide to fully managed versus self-service payroll, and the rest of the e-commerce company payroll library.
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
What does payroll software get wrong for e-commerce companies?
Non-exempt employees must receive overtime at not less than time and one-half the regular rate for hours worked over 40 in a workweek, and hours cannot be averaged across weeks. When an employee works at two or more different straight-time rates in one week, the regular rate is the weighted average of those rates.
When is software the right answer for an e-commerce company?
A single state, all W-2, hourly and salary pay, no seasonal workforce spikes, and under about 20 employees, where software's lower per-employee cost outweighs what a managed service adds.
What does managed payroll cost for an e-commerce company?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Seasonal workforce spikes, multi-state nexus payroll tax and contractor vs W-2 for fulfillment 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 E-Commerce & DTC Brands. 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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