Payroll Processing - Why Should I Pay Someone to do This?

Why should I pay for this? What does this usually cost?

 

According to a report by the industry publication HRO Today, HROs average price for services is around $600 to $800 per employee, per year. 

 

PEOs appear to be more expensive. Some of this can be hard to tell, because you don’t get to see the ala carte pricing for each service provided, like workers compensation insurance. PEOs price their services as a percentage of employee salary. The percentages vary, depending on how much the outsourcer will have to spend to cover workers compensation, retirement and health insurance. But expect a figure between 12 and 20 percent of your employee’s wages. 

 

A 2007 report by the Everest Research Institute, an outsourcing intelligence firm, looked at twelve different HR functions that firms send out. The functions with the smallest variation in price – managing employee data, contact center services, maintaining evaluation reports – tended to be those with the least subjective judgment to apply. The services with the widest price variations – compensation, training, employee relations – tend to require a thinking human being applying subjective judgments.