How much is the average cost for payroll services for small businesses in Australia?
What should a small business expect to pay, in price range, to outsource payroll services?
There is no "average" business in the current economic environment. Cost will depend on numerous factors.
in house bookkeeper or payroll clerk
Outsourced payroll sub-contractor / BAS Agent
Offshore bookkeeping firm
Outsourcing firm
Fixed price Accountant service inclusive of bookkeeping & payroll.
To difficult to respond as an "average"
It depends on the type of payroll services you need and the size of your business. When comparing costs for outsourcing, take into account how much it would cost you to hire an internal HR expert or manager instead, including recruitment, salary, superannuation, benefits and training.
Generally, the cost to outsource payroll services gets cheaper the more employees you have on the payroll. If you check out this 2019 report by Australian Payroll Association, those with fewer than 50 employees pay the most, $200+ per payslip. For 50 – 100 employees, it comes down to about $64 per employee and then it reduces to less than $20 for 200 – 499 employees.
Eloah Paes Ramalho, Community Manager at SavvySME
I love the tone of this message, @Amanda Hoffmann - Certified Bookkeeper, BAS Agent ! No such thing as average! You mentioned a list of factors to consider. How do you recommend a small business goes about estimating those costs?