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Agency Payroll Outsourcing: What's the Real Cost? | BEGse Hire (2026)
Payroll outsourcing for a marketing agency costs $25 per employee per month in your existing platform or $45 on isolved, all-inclusive, with a $500 monthly minimum, 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 1099 vs W-2 freelancer classification and project-based bonuses configured at setup.
What the outsourced price includes for a marketing agency
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 marketing agency configuration for 1099 vs W-2 freelancer classification, project-based bonuses, multi-state remote teams and billable vs internal payroll allocation. 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. For tax years beginning after 2025, Form 1099-NEC is required for each non-employee paid at least $2,000 in the year for services, up from $600, and the amount may be adjusted for inflation starting in calendar year 2027. Backup withholding applies at the same threshold.
Break-even for marketing agencies
At 50 employees outsourcing is $15,000 to $27,000 a year; at 100 it is $30,000 to $54,000. Both sit under the loaded clerk. Below 20 employees the minimum applies and the comparison is with software, where the case rests on 1099 vs W-2 freelancer classification 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.
- For tax years beginning after 2025, Form 1099-NEC is required for each non-employee paid at least $2,000 in the year for services, up from $600, and the amount may be adjusted for inflation starting in calendar year 2027. Backup withholding applies at the same threshold. [IRS Instructions for Forms 1099-MISC and 1099-NEC (2026)]
Read the full guide to how much payroll outsourcing costs, and the rest of the marketing agency payroll library.
Managed Payroll, Handled.
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Frequently Asked Questions
What is included in the outsourced payroll price for a marketing agency?
Processing, all federal and state filings, new hire reporting, direct deposit, garnishments, W-2s and 1099s, year-end close and the marketing agency pay code setup. No per-run, per-state or year-end fees.
What does a payroll clerk cost a marketing agency 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 a marketing agency?
For tax years beginning after 2025, Form 1099-NEC is required for each non-employee paid at least $2,000 in the year for services, up from $600, and the amount may be adjusted for inflation starting in calendar year 2027. Backup withholding applies at the same threshold.
What does managed payroll cost for a marketing agency?
$25 per employee per month inside your existing platform or $45 on BEG's isolved HCM, all-inclusive, with a $500 monthly minimum. 1099 vs W-2 freelancer classification, project-based bonuses and multi-state remote teams 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 Marketing & PR Agencies. BEG manages payroll at $25-$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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