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Post Info TOPIC: Price structure for payroll


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Price structure for payroll
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Hi All,

I'm going to be including payroll soon and was wondering about pricing.  Ive looked at some website and seems to be

1-5£££
6-10 £££ etc.

Now I assuming the price is per employee but would you also charge an initial set up fee??

How would you structure your pricing for payroll, any thoughts?

Michelle


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Michelle
Zoe


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Hi Michelle

Many people don't like a set up fee so most (but not all) payroll providers build it in to the cost.

You also need to think about the year end procedure which is normally added as an extra fee but can be built in to the price.

The format you have outlined above seems to be the standard structure but you also need to consider if they are on weekly or monthly payroll and so maybe charge per employee, per payslip.

I hope some of this helps

Kind regards

Zöe

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Hi Michelle

From the websites I've seen that show payroll prices I've assumed it to be a block of employees for the price.

I base mine on £12.50 per payroll run, for up to five employees and with payroll software, excluding the initial setup, it takes about 10 mins to do five. This more than covers the set up and filing time.

Bill



-- Edited by Wella on Thursday 4th of March 2010 04:51:03 PM

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Thanks for your replies.

I must admit I would prefer to have a fixed fee. Would you give a discount on say 5 -10 and so on?

Which software would you recommend, I was using Sage training software but have had a bit of a hiccup with that at the moment, my accounts software is Sage.

Wondering if some thing else might be compatible with it.

Michelle

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Michelle


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If you are printing and posting payslips (as opposed to emailing them to the client) then don't forgot to incorporate those costs into the price.

In my experience, clients generally want to know the cost per payslip. It's not unreasonable for a very small pay run to cost more per payslip than a larger run because it would take a similar amount of time process 1 employee as it would 5.



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Amy
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Hi Michelle,

I would base each quote on the size of the business, for example should it be a small business with just 5 employee's then i'd have £x per payslip and for a medium sized business with say 15 - 20 employee's £x charge. I'd probably factor in some sort of discount if i felt it appropriate and would help retain business in the long term.

I myself tend to charge a fixed fee per payroll run with an additional charge per payslip, however i don't charge for end of year submissions to HMRC.

Kind Regards

Neil

-- Edited by Neil G on Thursday 4th of March 2010 11:28:28 PM

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I charge £1 per payslip with a minimum of £5 per weekly wage run and a minimum of £20 for a monthly. Though if I'm doing books for a small owner managed company I woulod include payroll in the monthly fee. Two out of my top 3 clients come from payroll, a monthly and a fortnightly which I bill around £250 per month each for (though I actually get more like £1.50 per slip for both those). I also charge around £75 for P35 submission.

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Rob
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Michelle

one thing to be aware of is how many leavers/joiners you have to process - some businesses have quite a high staff turnover e.g. bars/restaurants.

We make an extra charge for joiners/leavers - it keeps the regular price more competative for businesses with a stable payroll.

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Hi

For my payroll clients I charge a standard fixed fee per employee per pay run with no set up fee and no additional fees for leavers and joiners. For the year end I charge the same standard fee for each employee so it is like an extra months charge, so they are charged 13 months for a years payroll.

Regards

Mark



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Hi everyone

Think i,m gonna go with the fixed fee and an additional month for the year end making it 13 months as suggested by Mark and Bill, then just give a small discount in blocks of five.


Thank you all for your advice, it really helps.

Michelle





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Michelle
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