Free Payroll Tool
See what your payroll provider really charges
Most providers hide per-run and add-on fees. Audit your real cost per employee in about 30 seconds, free.
Run the Payroll Fee Auditor →Blog · Payroll Management · Engineering
Engineering & Professional Services Firms: Payroll Software vs. Managed Payroll Service (2026)
Payroll software gives an engineering firm the fields; managed payroll gives it someone accountable for filling them correctly, which for engineering firms means prevailing wage for government projects, billable hour payroll allocation and PE license classification 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 engineering firm to get right
Engineering is listed as a field of science or learning for the learned professional exemption, so engineers whose primary duty requires advanced knowledge acquired through prolonged specialized instruction and who are paid on a salary or fee basis at the standard salary level are exempt from overtime. Job titles alone do not determine exemption status.
The standard salary level for the executive, administrative and professional exemptions is $684 per week, equivalent to $35,568 per year; the highly compensated employee threshold is $107,432 per year including at least $684 per week paid on a salary or fee basis.
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 engineering firms the deciding question is who documents the exemption status of engineers and project managers 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.
- Engineering is listed as a field of science or learning for the learned professional exemption, so engineers whose primary duty requires advanced knowledge acquired through prolonged specialized instruction and who are paid on a salary or fee basis at the standard salary level are exempt from overtime. Job titles alone do not determine exemption status. [DOL Fact Sheet #17D]
- The standard salary level for the executive, administrative and professional exemptions is $684 per week, equivalent to $35,568 per year; the highly compensated employee threshold is $107,432 per year including at least $684 per week paid on a salary or fee basis. [DOL WHD Earnings thresholds for the EAP exemption]
Read the full guide to fully managed versus self-service payroll, and the rest of the engineering firm 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 engineering firms?
Engineering is listed as a field of science or learning for the learned professional exemption, so engineers whose primary duty requires advanced knowledge acquired through prolonged specialized instruction and who are paid on a salary or fee basis at the standard salary level are exempt from overtime. Job titles alone do not determine exemption status.
When is software the right answer for an engineering firm?
A single state, all W-2, hourly and salary pay, no prevailing wage for government projects, 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 engineering firm?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Prevailing wage for government projects, billable hour payroll allocation and PE license classification 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 Engineering & Professional Services Firms. 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
From the blog