generaly charging in this area is per payslip with say the first five employee's included in your base price for the payroll run then a charge per employee after that.
Payroll is one of those area's where take any single payroll run and it doesn't normally bring in much money but over a year can prove a cost effective additional service.
My VAT inclusive charge is £15.75 for the first five employee's then £2.40 per employee after that but my prices include P14's, P60's, P32 and P35 where others have lower prices for the payroll run but charge extra for those (I charge the same prices per run whether for weekly or monthly where as others sometimes charge higher fee's for monthy).
Processing of P11d's and P45's and generally anything out of the ordinary is on an hourly rather than per employee basis.
Never forget though that one persons business model is not necessarily right for anyone else. Consider the above as an opener and see what others have to say on the matter.
Also remember that my prices are VAT inclusive where as many other bookkeepers are not VAT registered so are able to offer lower prices (But I for one am not looking to compete on price alone).
HTH,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
generaly charging in this area is per payslip with say the first five employee's included in your base price for the payroll run then a charge per employee after that.
Payroll is one of those area's where take any single payroll run and it doesn't normally bring in much money but over a year can prove a cost effective additional service.
My VAT inclusive charge is £15.75 for the first five employee's then £2.40 per employee after that but my prices include P14's, P60's, P32 and P35 where others have lower prices for the payroll run but charge extra for those (I charge the same prices per run whether for weekly or monthly where as others sometimes charge higher fee's for monthy).
Processing of P11d's and P45's and generally anything out of the ordinary is on an hourly rather than per employee basis.
Never forget though that one persons business model is not necessarily right for anyone else. Consider the above as an opener and see what others have to say on the matter.
Also remember that my prices are VAT inclusive where as many other bookkeepers are not VAT registered so are able to offer lower prices (But I for one am not looking to compete on price alone).
HTH,
Shaun.
I can never get my head round what to charge in thgis area. I must admit though I thought the prices above when I first saw them on your website were more expensive than what others were charging. Though as you say, you're not competiting on price alone.
I originally intended pricing in batches of 10. ie
1-10 employees : £1.75 per payslip
11-20 employees : £1.50 per payslip
21-30 employees : £1.25 per payslip
(Not necessarily those prices). Butr it would always fall down as it would work out cheaper (overall rather than per employee) to have 11 employees than 10 and cheaper to have 21,22,23 than 20 employees. Even breaking it down into blocks of 5 I would have to have odd prices to avoid this rather than simple prices above.
One of these days I'll set up a spreadsheet breaking down all the various parts - setting up company, setting up individual employees, calculating payroll run, end of year stuff and then see how much it actually costs me charging £x.xx per hour.
-- Edited by Peasie on Saturday 20th of August 2011 12:43:06 PM
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Never buy black socks from a normal shop. They shaft you every time.
Peasie wrote:I must admit though I thought the prices above when I first saw them on your website were more expensive than what others were charging.
Oh the fun of being VAT registered and competing against non VAT registered businesses.
Pretty much makes me competitive (but not cheap) for VAT registered businesses only but not one man and his van type entities.
With your calculation Peasie that means that you are willing to take on the payroll for one person at £1.75. Thats really not worth your time and effort and I would look at a minimum fee per payroll run which covers a certain number of employees but if they have less than that you still get a minimum fee.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
