Payroll pricing follows a simple logic: most providers charge per payslip or per pay run, so the number of people you pay and how often you pay them set the base fee. What separates a fair quote from a frustrating one is everything around that base (starters, leavers, pensions and corrections), because that is where per-item billing quietly accumulates.

Payroll is one component of the overall picture in our guide to what an accountant costs a small business; here we take the payroll line apart.

Headcount and pay frequency set the base

Running payroll means calculating pay and deductions, producing payslips, and making the real-time submissions HMRC requires from every employer operating PAYE. Each additional employee adds a payslip; each additional pay run repeats the whole cycle. Weekly payroll therefore costs meaningfully more over a year than monthly payroll for the same team, which is worth knowing if your pay frequency is a habit rather than a necessity.

The events that add work

A static payroll is cheap to run. Real payrolls have events, and events take time:

  • Starters: collecting details, applying the correct tax code, setting up pension assessment
  • Leavers: final pay, holiday balances, leaver documents
  • Variable hours and overtime: someone has to collect, check and enter the numbers each period
  • Statutory payments: sickness, parental leave and similar calculations with their own rules
  • Attachment orders and deductions: court-ordered deductions administered correctly

High staff turnover can matter more to your fee than headcount. A stable ten-person team may cost less to run than a five-person rota with constant churn, so ask how the quote handles turnover before comparing.

Pension auto-enrolment is part of the job

Every employer has workplace pension duties: assessing staff each pay period, enrolling those who qualify, handling opt-ins and opt-outs, submitting contributions and completing re-declaration cycles. Some quotes include this; others treat every pension task as an extra. Since the duties recur every single pay run, this one inclusion can change the real annual cost substantially.

Corrections and reruns

Mistakes happen: a missed timesheet, a late starter, an overpayment. What matters is whether fixing them is included. Ask: if an employee’s pay is wrong through our error, what does the rerun cost? If it is wrong through your error? Providers differ widely here, and it is precisely the situation where you have no negotiating power once it happens.

What a complete payroll quote should list

  • Payslips per period and the pay frequency priced
  • All real-time HMRC submissions, including the end-of-year cycle
  • Pension assessment, submissions and re-declaration
  • Starters and leavers, with an included count or per-item price
  • Payslip delivery method and employee portal, if any
  • Correction and rerun policy, in writing
  • Year-end employee documents

If payroll comes bundled inside a wider accountancy package, check the same list against the bundle. Our guide to what a monthly accountancy fee should include shows where payroll typically sits.

Frequently asked questions

Is payroll cheaper through my accountant or a specialist bureau?

Neither wins automatically. An accountant bundling payroll with your accounts removes handover friction and spreads responsibility; a bureau may be leaner on pure volume. Compare the full scope lists, not the per-payslip rate.

What does director-only payroll involve?

A company paying only its directors still operates PAYE, but with no variable hours, no turnover and often an annual scheme, the workload is minimal, and the price should be too. See what an accountant costs a limited company for how it fits a company package.

Why do payroll quotes ask about my pension scheme?

Because schemes differ in how contributions are calculated and submitted, and some integrate with payroll software while others need manual uploads. The answer changes the per-run workload.

Can I run payroll myself to save the fee?

Free HMRC-recognised tools exist for small employers, and some owners manage fine. The risk is not the software but the rules: statutory payments, tax codes and pension duties change, and errors surface as employee complaints or HMRC notices. Price your own time and risk honestly.

What happens at year end?

The final submission of the year, employee summaries and preparation for the new tax year are standard parts of a payroll service. Confirm they are inside the quoted fee rather than an annual surprise.

Get a payroll quote with the events included

Our payroll and auto-enrolment service prices starters, leavers and pension duties into the fee rather than around it, and the fees page shows how payroll fits a wider package. Request a quote with your headcount and pay frequency, and we will set out the full scope in writing.