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Technology & SaaS Companies: Payroll Outsourcing Cost vs. In-House Hire (2026)
Payroll outsourcing for a technology company costs $45 per employee per month, all-inclusive, 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 equity compensation handling and remote employee multi-state tax configured at setup.
What the outsourced price includes for a technology company
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 technology company configuration for equity compensation handling, remote employee multi-state tax, contractor classification and commission payroll. 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. 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.
Break-even for technology companies
At 50 employees outsourcing is $27,000 a year; at 100 it is $54,000. Both sit under the loaded clerk at about $75,738. Below about 20 employees the realistic comparison is with software rather than a hire, where the case rests on equity compensation handling 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.
- 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]
Read the full guide to how much payroll outsourcing costs, and the rest of the technology company payroll library.
Managed Payroll, Handled.
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Frequently Asked Questions
What is included in the outsourced payroll price for a technology company?
Processing, all federal and state filings, new hire reporting, direct deposit, garnishments, W-2s and 1099s, year-end close and the technology company pay code setup. No per-run, per-state or year-end fees.
What does a payroll clerk cost a technology company 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 technology company?
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.
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. Bureau of Labor Statistics: Occupational Employment and Wage Statistics
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