I'd be interested to find out how much other practicioners are charging clients for payroll services (just to make sure I'm not charging too little!!)
For example, how much for a single director company who takes a salary of £7,488 and how much for larger clients with, say, 25 employees. How would this change if the payroll was run weekly or fortnightly?
Thanks in advance
Replies (4)
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It depends on the service. I try to provide a comprehensive service and lump in all returns, processing, p45's, s336 dispensations etc. and expect people to pay for it.
Whatever you do, don't forget to factor in the changes that will be required when Real Time Information kicks in.. e.g. the P35 is going to disappear, so why bother charging seperately for it from now?
Charge out rates
I subcontract my payroll function to a former work colleague who has a payroll bureau business. She charges me
£1.50 for weekly payslip
£2.00 for fortnightly payslip
£2.50 for monthly payslip
plus £50 one off fee for year end returns etc.
So for example a limited company with 2 employees paid monthly the yearly bill would be £110 being £60 (2x12x£2.50) for the monthly payslips and £50 for the year end work.
I just recharge my clients what i am charged as it is just a service that i am offering as dont deal with payroll myself having an accounts and tax background.
Regards
MarkS
Remember RTI will make it a time-consuming job next year!
2012/13: For a director-only payroll: work out a year's figures in advance and send to client. Then end of tax year file the P14 /P35. This is TWO ACTIONS.
2013/14: RTI arrives. Effectively report figures monthly (or weekly) to HMRC instead of annually. This is now 12 (or 52) ACTIONS.
So, any quote now given on current low-admin cost scenario cannot be profitable for the new RTI high-admin scenario applicable next tax year.
Factors to consider in pricing payroll work where other workers / likely to be varying gross pay:
Some firms charge per payslip (so 10 employees each paid monthly is 120 payslips @ £ x --- but 5 employees each paid weekly is 260 payslips @ £ x). I favour this number of payslips approach to fees for payroll, plus...
This on its own sounds OK until you get an employer who constantly has leavers and starters (and typically P45 forms are late so use P46s at first then have to apply P45 when received later on). So, there should be a price per P46 and a price per P45 as well as a price per payslip. Attachments of earnings is another extra to consider charging for.