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 · Retail
Retail Businesses: Managed Payroll for Small Businesses (Under 25 Employees) (2026)
Managed payroll for a small retail business is a complexity decision, not a headcount one: at $45 per employee with no monthly minimum a 10-person retail business pays $450 a month. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
What managed payroll costs a small retail business
At $45 per employee per month with no monthly minimum and no setup fee, a 5-person retail business pays $225 a month, a 10-person one $450 and a 20-person one $900, all-inclusive. The cost grows one employee at a time, so there is no headcount to wait for. Payroll software at roughly $40 to $150 a month plus $5 to $12 per employee is cheaper in raw dollars for a single-state, all-W-2, hourly-and-salary payroll. The question is whether this retail business is that payroll.
The complications that decide it for retail businesses
Commissioned employees of a retail or service establishment are exempt from overtime under section 7(i) only when three conditions are met: the employee works for a retail or service establishment, the regular rate exceeds one and one-half times the minimum wage for every hour worked in an overtime week, and more than half of total earnings in a representative period of one month to one year are commissions. If any condition fails, overtime is owed at time and one-half for hours over 40.
High turnover and new-hire volume, multi-location payroll, seasonal overtime spikes and tipped employee tracking: each is a pay code that self-service software ships blank, and each is a place a small retail business with no payroll specialist gets it wrong for years before an audit or a wage claim finds it. One of these, or an employee in a second state, or a first garnishment order, is the point where the managed price stops being a premium.
What a small retail business is already subject to
Below 50 employees the federal lines already crossed are e-filing at 10 information returns, OSHA logs at 11 unless the industry is on the exempt list, Title VII and the ADA at 15, and the ADEA and COBRA at 20. None of them wait for a payroll department to exist.
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.
- Commissioned employees of a retail or service establishment are exempt from overtime under section 7(i) only when three conditions are met: the employee works for a retail or service establishment, the regular rate exceeds one and one-half times the minimum wage for every hour worked in an overtime week, and more than half of total earnings in a representative period of one month to one year are commissions. If any condition fails, overtime is owed at time and one-half for hours over 40. [DOL Fact Sheet #20]
Read the full guide to managed payroll by company size, and the rest of the retail business 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
Is managed payroll worth it for a retail business under 20 employees?
When there is a complication: high turnover and new-hire volume, a second state, a garnishment, or a classification question about sales associates and cashiers. Without one, software is the cheaper price for a simple payroll and this page says so.
What does a 10-person retail business pay?
$450 a month: 10 employees at $45 per employee, all-inclusive, with no monthly minimum and no setup fee.
Which retail business rule most often breaks a self-service setup?
Commissioned employees of a retail or service establishment are exempt from overtime under section 7(i) only when three conditions are met: the employee works for a retail or service establishment, the regular rate exceeds one and one-half times the minimum wage for every hour worked in an overtime week, and more than half of total earnings in a representative period of one month to one year are commissions. If any condition fails, overtime is owed at time and one-half for hours over 40.
What does managed payroll cost for a retail business?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. High turnover and new-hire volume, multi-location payroll and seasonal overtime spikes 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 Retail Businesses. 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