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Technology & SaaS Companies: Payroll Features Every Business Needs (2026)
Technology companies need payroll configured for equity compensation handling, remote employee multi-state tax and contractor classification, pay codes that general-purpose software leaves to the customer to build. BEG runs technology company payroll for $45 per employee per month inside the payroll software you already use, all-inclusive, live in 3 to 5 business days.
Pay codes a technology company cannot run without
Technology companies pay software engineers and product managers on different bases, and the payroll system has to hold every one of them as its own pay code with the right tax and overtime treatment: equity compensation handling, remote employee multi-state tax, contractor classification and commission payroll. A generic setup collapses these into hourly and salary, and the errors show up in the regular rate, in year-end forms and in the first wage claim.
Computer systems analysts, programmers, software engineers, and similarly skilled workers are exempt from minimum wage and overtime under sections 13(a)(1) and 13(a)(17) if they meet the duties test and are paid either on a salary or fee basis at the standard salary level or on an hourly basis at not less than $27.63 an hour.
The computer employee exemption does not cover employees who manufacture or repair computer hardware, or workers such as engineers and drafters whose jobs depend heavily on computers but who are not primarily engaged in systems analysis, programming, or similarly skilled computer work.
Tax handling specific to technology companies
The federal income tax withholding rate on supplemental wages, which include bonuses and commissions, is 22 percent, and 37 percent to the extent an employee's supplemental wages during the calendar year exceed $1 million. The 37 percent rate applies without regard to the employee's Form W-4.
What is configured before the first run
At implementation every pay structure above is built as a code with its own taxability, its own overtime treatment and its own W-2 mapping, and the exemption status of software engineers and product managers is documented against the rule that supports it. That is the difference between software with the features and a payroll that uses them correctly.
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.
- Computer systems analysts, programmers, software engineers, and similarly skilled workers are exempt from minimum wage and overtime under sections 13(a)(1) and 13(a)(17) if they meet the duties test and are paid either on a salary or fee basis at the standard salary level or on an hourly basis at not less than $27.63 an hour. [DOL Fact Sheet #17E]
- The computer employee exemption does not cover employees who manufacture or repair computer hardware, or workers such as engineers and drafters whose jobs depend heavily on computers but who are not primarily engaged in systems analysis, programming, or similarly skilled computer work. [DOL Fact Sheet #17E]
- The federal income tax withholding rate on supplemental wages, which include bonuses and commissions, is 22 percent, and 37 percent to the extent an employee's supplemental wages during the calendar year exceed $1 million. The 37 percent rate applies without regard to the employee's Form W-4. [IRS Publication 15 (2026)]
Read the full guide to every managed payroll feature, explained, and the rest of the technology 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
Can you handle payroll for fully remote teams across multiple states?
Yes. Remote-first teams with employees in multiple states are a standard use case. We register in each state, withhold state income tax for each employee's resident state, and pay state unemployment where the employee works.
How do you handle RSU vesting events in payroll?
RSU vesting events require supplemental wage withholding. We coordinate with your equity platform on vesting schedules and process supplemental withholding on vest dates, including the net shares sold for taxes approach when applicable.
Can you handle commission payroll for our sales team?
Yes. Commission payroll is processed as supplemental pay runs or integrated into regular payroll. We apply the correct supplemental withholding rate and reconcile commission against draw when applicable.
What does BEG charge for tech company payroll?
Tech company payroll runs at $45 per employee per month. For a 40-person Series A company, that is $1,800 per month covering payroll, multi-state tax filing, W-2s, and equity comp withholding coordination.
What does managed payroll cost for a technology company?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Equity compensation handling, remote employee multi-state tax and contractor 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 Technology & SaaS Companies. 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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