how much do you charge per emp per month for payroll?
i been thinking about £6 per emp and £40 per emp for pye, or is this too low! do you also charge for a set up fee - i'm thinking about £25.00 per company
thanks in advance
-- Edited by lor on Wednesday 19th of September 2012 03:36:07 PM
I didn't offer payroll when I started, but the combination of taking on a member of staff and finding a great cloud based payroll software has lead me to offering it to my current clients. I'm now about to embark on some promotion of the service to the outside world.
As far as prices go, I don't charge a setup fee, neither do I charge year end fees. I charge £7 for the first employee per payrun and £2 for each thereafter.
I also offer a DIY option for £2 per employee, per month regardless of how often they are paid. I also don't charge a minimum amount.
I'm looking into the possibility of offering the service to other bookkeepers, but haven't really done anything with that yet.
Hope this helps.
Kris
-- Edited by kjmcculloch83 on Wednesday 19th of September 2012 04:16:38 PM
When I started offering bookkeeping services I also pushed Payroll but the enquiries that I got were always trying to push the price down to around £1.50 per payslip with end of year thrown in for the client signing up for the service. (I think mentioning a setup fee to a client would just send them running for the hills).
Anyway, I decided that it just wasn't worth my time as at those returns I couldn't see the commitment necessary to running a weekly payroll to be a cost effective use of my time. Better I think to leave such matters to businesses that specialise in Payroll and leave us to the more complex stuff that pays more.
Just personal opinion and your experience of offering the service may differ considerably from my own,
all the best,
Shaun.
__________________
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.
Hi Lor
My charges aren't that high and I charge the same for pye as I do for processing the payroll as provided that I have done my job properly during the year there should be very little extra to do. So in effect if I do the payroll for a whole year I charge the equivalent of 13 monthly or 53 weekly pay runs
My fees vary as to whether I have the client for bookkeeping work as well so I don't have a standard set fee
I do charge per employee per pay run but not a set up fee if it is straight restore of data but will do if I need to set the whole thing up on my system
I have recently started doing the bookkeeping for a clinet who outsources the payroll & they only charge £1.55 per employee (my fee isnt that low), which I was quite shocked at & wondered what software they were using to do it at such a cheap price
Regards
Mark
mmm, Shamus i've kinda always thought it was too low paid to make it worth while doing,
mark, thanks, £1.55 sounds stupidly low, i'm gonna stick with £6 each to start and see what happens otherwise its not worth it, it's only enquiry stage atm, ill keep u informed, cheers guys
Payroll bureau's that are geared up for volume can process pretty cheaply as it's all in the volumes.
I suspect that nowdays a lot of the actual payroll data entry for these businesses is actually subcontracted to India.
Interestig food chain there... Client contracts a bookkeeper who subcontracts to a Payroll Bureau who outsource to India and everyone makes money on fee's that we as bookkeepers cannot beat!
Over in the states bookkeepers seem to use Payroll bureau's a lot more than accross here. However depending on the final draft of the RTI implementation I can see that might change.
At the moment I think that the whole area is very much a watch this space.
kind regards,
Shaun.
__________________
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.
Hi Lor, I am certain my charging structure will change with the introduction of RTI. For instance, I have charged for annual P35 since the £250 online filing discount.
Presently, some PAYE clients don't make contact from one year to the next (pay rise). Then suddenly there'll be a time-consuming pregnancy/holiday/redundancy/sickness matter to deal with. It's only right therefore to charge that latter time separately.
Typically, I charge £50 to £100 for each P11D form and a set amount inclusive of a few payslips of £10 p/w and £25 p/m.
In other words, I can delegate the job yet offer a basic personel department for under £350 p/a. If there is only one employee then I will charge a minimum of £5 p/w and have a slightly lower charge for a relative and another one for a charity/PR case. In other words, I'm not charging for payslips exactly but per PAYE scheme.
Kind regards, Tim
PS. Hope someone can tell me if this is incorrect but I understand we are quite behind European countries with monthly reporting of wages paid; so am resigned to RTI penalties being inevitable.
I subcontract out my payroll to a former work colleague who has set up a payroll bureau. I just recharge clients what i get charged as just want to be able to offer a payroll service (like a client who signed up with me last night who has 7 p/t employees on payroll).
My charges are
£1.50 per weekly payslip
£2 per fortnightly payslip
£2.50 per monthly paylsip
plus £50 one off annual fee to cover year end/starter/leavers etc.
I think £6 per payslip is extortionate. One of my weekly payroll clients is a pub with fluctuating between 9 and 12 employees which with your charging would be between £54 and £72 per week for something that takes about 10 mins including emailing the payslips, and it only takes that long because the hours change each week. With a monthy payroll where everyone or most get the same each months it takes no time at all.
